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Why are people so short sighted.

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FixMyCredit1992
Established Contributor

Why are people so short sighted.

About 4 years ago the computer control module quit on my Mom's 2000 Dodge Intrepid. I had this bad omen come over me, and I told my mom to replace the car before other issues happened. I never had a feeling like this before, so I told her to 

 

Well the omen came true.

 

Since then,  the A/C compressor has died, the evaporator coil leaks, the car consumes coolant (probably a head gasket issue), the ignition module went out, the door gaskets leak, the power steering pump leeks, and now the dome lights periodically come on when you hit a bump. To top it off, it needs new struts on all 4 corners.

 

Their excuse was they had no money. Ok...you have a house, borrow on that (HELOC).

 

At the time the computer failed the card had a trade in value of about $2,500, now one is lucky if the car is worth more than junk price, because the cost of repairs is now more than the private value.

 

At the time, used cars were cheaper, and replacments I looked at cost only $4000, now they are $6,000-$7,000

 

So not only has $2,000 been lost due to the age of the car, the price of the replacement has gone up $2,000.

 

So instead they are going to wait until spring, and save towards something newer.

 

Had they went the HELOC route, they would of only needed to pay about $20 a month on a 360 month HELOC. Yes this is a very long loan (30 years), but there odds of being alive 30 years from now (they are both in their 60's), is low.

 

Yes, this is also a very expensive loan (as far as total interest), but paying $20 a month for the rest of your life is better than scrimping every dime you have to come up with $6,000. Especially when you live paycheck to paycheck. 

 

However, I don't find fault within my parrents, I find fault in this with a lot of people. It seems like a lot of people are short-sighted, they always look at the now, and maybe even a week from now. They never look at what the picture will be 5, 10, 20, 40 years from now and so on.

 

I talk to people at work who are my age (20s), and many of them don't even have a retirment plan. You are NEVER too young to invest in retirement.

 

Their reply is "I'm not going to worry about it now". These are the same people who when they turn 50, are going to realize that maybe investing 30 years ago would of been the smart move.

 

Again, this seems to be a problem with most people. It seems our brain is given a 100 year calender, but only has acess to only one month at a time. 

 

Personally, I blame soicety, because we now live in a push-button, instant world.

 

Instant approval, instant results, instant notifcation, hell, even the debit card I have says "Instant" on it.

 

It seems like we don't even have to think anymore. Type a word wrong, your computer corrects it, don't even need to input your address, your computer fills it in for you.

 

Two plus two equals? Nah, don't think about it, just grab a calculator, forgot about pencil and paper, that's yesterday. 

 

Our thinking has mainly been replaced by a computer, and that is making us very dumb.

 

 

 

 

 

 

 

 

 

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Message 1 of 7
6 REPLIES 6
longtimelurker
Epic Contributor

Re: Why are people so short sighted.

Because making financial decisions based on perceived omens is a smart thing to do?

Message 2 of 7
twall06
Frequent Contributor

Re: Why are people so short sighted.

I am a bit confused wasn't you trying to get instant gratification / approval when you kept getting denied for cards. Not every one wants HELOC some people do not want to borrow against something the have worked hard  to pay off. All used cars have problems struts is something that must be replaced  even if they spent $1500 - $2000 maybe a little more on repairs the last few years it is still a lot cheaper than paying several hundred a month for a car payment for four years.

Message 3 of 7
llecs
Moderator Emeritus

Re: Why are people so short sighted.

I spent this year over $4000 in repairs on my 2001 Saturn L200 ($1600 was yesterday on a new fuel pump, oil change, new gasket, and window motor assembly). No regrets whatsoever. I saved $$$$$. It'd cost more in a down payment alone for a new/used car with 0% chance of a ROI on that purchase, not to mention taxes, fees, added insurance, interest if I took a loan, etc. Good points above. There will always be something wrong with any car purchased. 

 

However, OP, I agree on your latter points.

Message 4 of 7
thom02099
Valued Contributor

Re: Why are people so short sighted.


@llecs wrote:

I spent this year over $4000 in repairs on my 2001 Saturn L200 ($1600 was yesterday on a new fuel pump, oil change, new gasket, and window motor assembly). No regrets whatsoever. I saved $$$$$. It'd cost more in a down payment alone for a new/used car with 0% chance of a ROI on that purchase, not to mention taxes, fees, added insurance, interest if I took a loan, etc. Good points above. There will always be something wrong with any car purchased. 

 

However, OP, I agree on your latter points.


+1.  Same boat!  $2300 spent on my daughter's car's transmission rebuild.  Since the car is basically sound (body and interior in great shape for a 2002 Ford Escape), it was a worthwhile investment, and the repairs came with at 36month warranty.  In this sort of situation involving vehicle repairs, one has to decide of the cost of repairs outweighs the cost of replacement.  Certain year Dodge Intrepids were notoriously unreliable (for the OP), so that would also be a factor....replace versus repair. 

 

And I also agree w/OP on his latter points.  The dumbing down of our society???

Message 5 of 7
KoolDev
Regular Contributor

Re: Why are people so short sighted.

I understand what the OP is saying and feeling.   But when you do live paycheck by paycheck, you want to hold onto what you have and make it work.  Been there done that and still do at times.    I am in a position now that I dont live like that anymore, thank goodness.   If something broke, I fixed it myself unless it was internal in the engine. 

 

 

Recently, I had noticed a small bit of clear coat coming off my wife's car.  I carried it by the body shop to see what it would take to fix.  Learned that it had been wrecked and a quick fix with bondo had been used.  To correct the problem would have cost a minimum of 2k.  Upside down by 2400, going to need a 800 dollar set of tires in 5 months.  I found another vehicle, less miles, one year older and a lot nicer, got the money, bought it and now i dont have to worry about it. (payments are less too and not upside down).    5 years ago, I couldnt have done it (thanks myfico family). 

 

I agree that many of us are short sighted, generally until its either too late or almost too late.   But at the same time, life happens.  Costs and expenses you never could have realized or dreamed that would happen. (Wife is disabled due to Systemic Lupus).  We get caught up in the moment and fail to look past our immediate troubles.  I  have for sure.  The struggle to stay afloat can hurt us long term by not making the best decisions short term.

 

The only thing I wished differently in life for me was that i had been educated on credit and personal finances at an early age.   I had to self teach.  I am also trying to teach my kids, I just hope they listen and practice it.

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Message 6 of 7
Mrm-na
New Contributor

Re: Why are people so short sighted.

This is my personal take on old cars.
At some point in a car's life, it graduates.  It reaches a point where it begins to require more than just the simple stuff like oil changes.  If a person normally hires repairs to be done by a paid mechanic, then this stage of a car's life could become frustrating and expensive.  It also depends somewhat on how aware the owner is when new problems are developing.  Not everybody notices early warning signs, and car problems tend to be subject to chain reactions.  What starts simple ends up expensive due to long term collateral damage.
Relying on professional labor at this stage of a car's life could become impractical.  So for many people, I can see a car in the 10+ year range being something they don't want to deal with anymore. It isn't junk, but it might not be suitable for the original owner anymore.

Buying a younger used car can be a good way to go.  However, remember that nearly every used car is being sold because the owner has gotten frustrated with it.  Best case, maybe they truly don't "need" the car anymore, but there's a reason they decided to sell *this* car, and not any of the others they own.
The problem with used cars is they are full of unknown variables.  With your own old car, you know what it's issues are and presumably have a good sense of what it needs and doesn't need. With somebody else's used car, you're mostly guessing. You just can't get enough info in a 20 minute test drive to compare with years of experience on your own car.  The only certainty is that there will always be something that surprises you in the first few weeks. That's just the way it is with used cars, I've never seen that not happen.

The cost of paid labor could make it worth trading to a newer car, if you can find one that you're confident of but not terribly overpriced.  Brand new is not competitive in financial terms IMO.

For someone who doesn't mind doing the work themselves, old cars can stay reliable and cheap to own for pretty much as long as the owner doesn't feel overwhelmed.  The car I bought 3 years ago is from the 80s, and while it's first few months had some rough spots, it eventually got sorted out and has been a reliable daily driver ever since. Getting it into shape required me to spend more than the car was "worth" in a blue book, but I've never agreed with the reasoning that says not to do this.  It's a car, not a resale investment.  The parts for that car are much cheaper than newer models, and it's simpler to diagnose and more pleasant to work on. As a result, I prefer it over newer models in equal condition.

Message 7 of 7
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