May 9, 2006

Sweet Ride To The Poorhouse

Did you ever see a $500,000 Toyota Tacoma? It's a doozy, at least the one I saw. One Saturday I was teaching a group of court-remanded shoplifters in the error of their ways, when up rolled a 19 year old in her brand new Toyota, looking, extra cab, 4-wheel drive. Just a beauty. I can only say, "Shoplifting is stupid" in so many ways, so we got around to talking about other things, such as making better decisions in general. I asked the Toyota owner what she paid for truck. I said I would guess $500,000. She rolled her eyes, hemmed and hawed a bit, but finally said she paid about $30,000, more or less. See she paid $30,000 but cost herself $500,000 the way I figure it. If you take the monthlies on $30,000 at 6% for 60 months, you get about $580. Instead of riding around in a money-eating box of bolts why not put the $580 in a mutual fund account for the same 60 months and bike, hitch, take the bus, walk or just keep driving the old heap? Just 60 easy payments to yourself rather than Toyota Motor Credit. Just 60 payments and never another dime. Then sit back and prepare to be well-to-do. Over the next 25 years that $580 x 60 becomes a cool $580,000. I suppose living out your golden years on social security and little else is worth the "sweet ride" to some folks, some really dumb folks.

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