We simply get tired of our "old cars" and want something different, newer, fresher with more gadgets and an updated look.
Ok, I know what you’re thinking right now, “Why would I want to keep my car for life”? Well let me re-phrase that, maybe not life, but how about keeping your automobile for ten to fifteen years? Think of the money you will save over the long haul. Think back to the last three or four purchases you have made in cars, regardless if they were new or used. Ask yourself this one question, did I purchase because I had absolutely no transportation and walking? Now most of you will answer, ‚ÄúNo‚Äù to that question. Over ninety eight percent of us purchase not because we have no other choice, but because we want to.
We simply get tired of our “old cars” and want something different, newer, fresher with more added gadgets and look. You see, most people allow their ego to dictate when and what they buy when it comes to automobiles. I can’t tell you the last time I talked to someone who just purchased a vehicle and was told what a rotten deal he got, and he only traded because he simply didn’t like the old vehicle or just wanted a new look. Most of the time when you talk to the new proud owner of a new purchase you’re told something like this, “You know I was beginning to have major problems with my old car and this was a great deal, I just couldn’t pass it up”. Have you ever traded in a car because you were afraid it was not going to last much longer just to have the dealer resell your car to someone else and two years later it is still on the road? If you had kept the car it probably would be paid off today and those payments would look a lot better in your account.
When a buyer purchases a vehicle the first thing they want to do is “justify” the purchase to others, even if you don’t ask they will tell you why they purchased and how it was the best deal in town. Over the years we have all been programmed to think we can “trade up” anytime we want, financing was available and job stability was rock solid. Today things are changing and no longer are people thinking of trading every year or two.
Baby Boomers are realizing they can hold on to their autos for much longer and save. I have talked with many who have indicated they are paying off their current car and not thinking of trading, new or used. If you schedule your regular maintenance, there is no reason an automobile today would not give you over 250,000 miles of service or more.
This is not the greatest news for Detroit, but they have much larger problems to deal with. I don’t think bailing the big three out is the answer under their current set up. The population of the US is approximately 304,000,000 and there are over 251,000,000 registered autos on the road. I think it would be safe to assume that if you subtract the difference one could assume that would be children not old enough to drive or the elderly who don’t drive any longer. I have but one question, given what Boomers are doing today in tightening their belts and the number of cars on the road, if you gave Detroit all the money in the world, who would buy them?
Before you decide to trade that car ask yourself if you think you can get a little more use out of it first, I bet you can and in the long run you will be better off financially.