I got home late from the dealership last night. But my five year old son was still up. He happened to be stimulating his brain cell by reading a Donald Duck comic book. As I headed to the basement to get changed, he noticed me and said, "Dad, let's talk." I waved and said, "Okay. Why don't you follow me." So, while I changed into pajamas, Trenton waited on the stairs and we talked. Here's how the conversation went.
That made me laugh. If only that were possible. We'd all be driving a luxury cruiser at that rate. That got me thinking and I figured that at 50 cents per day it would take Trenton approximately 100 years to pay off a $20,000 loan with 0% interest and no money down.
Welcome to Leikin Motor Company, little boy.
What kind of car would you like to buy?
Umm... a SAAB.
Great! I can help you with that.
We currently have four SAABs in stock.
Would you like a truck or a car?
Umm… a truck
Very good. I have two black SAAB 97X SUVs.
How much do you have to spend?
(pause) I'll give you 50¢ per day.
365 days x 50¢ = $182.50 per yearSo, wanting to take advantage of the moment, I quickly guess-timated the amount of money Trenton would need to spend to knock out the loan in three years. I told him it would be about $15 per day. Let's see how close I was.
$20,000 / $182.50 = 109.6 years
$20,000 / 3 years = $6,666.67 per yearI was a bit off, but I think he still got the point. No matter how attractive the price seems to be, it all comes down to whether you have enough money in your budget. Trenton doesn't. And if most people are honest, neither do they.
$6,666.67 / 365 days = $18.26 per day