I graduated in August 2006. I have a fairly stable job that pays me a relatively good salary. So, why do I still drive a 14 year old car with 155K miles on in, you ask? Let’s say a new car will cost me $20,000.
- At $2.80 a latte, the new car is equivalent to 7143 lattes! If you like the Latte Factor Philosophy, that’s 19.56 years of one latte every day!
- The average cost of lunch at our cafeteria is $6. Assuming 260 working days in a year, I would have to brown bag my lunch every single day for 12.8 years to pay for that car!
- The person who bought a brand new $20,000 car in August 2004, now has a “used” car which might fetch him $10,000 to $15,000 depending on which brand the car is (and whom he sells it to :) But the person who bought shares of Google at their IPO and held on to the stock now sits on stock worth $98,661! (GOOG historical stock chart)
- If I lose my job and have to go on federal minimum wage of $5.15/hour, and put away every penny I earned towards the car, I would have to work for 3883.5 hours just to pay down the principal. Note that I am not even considering the interest payments here (or the taxes on my earnings!)
- For crying out loud, a car is a mechanical contraption for transporting people from Point A to Point B. My 14 year old car with 155K miles on it, does that part just fine! So why would I buy a new car?
Well, those are just my reasons. If you have any more reasons why I shouldn’t buy a new car (or any that I should, for that matter), make sure to leave a comment below.