|
THE ALMIGHTY AUTOMOBILE
by
Ken Seymour
|
A new survey that was conducted over the first six months of this year (January to June 2004) concludes that the 'Almighty Automobile' now costs the average North American, and British family, more than any other living expense, including mortgage payments.
The 'Almighty Automobile' is the most over-priced and most expensive product to buy and maintain than any other product or service available! And costs even more than the average monthly mortgage payment. Starting with a vehicle that sells, say, for $40,000, you'll be surprised to learn that the vehicle costs no more than $25,000 to make! Everything included - profit mark-up, materials, workers wages, executive salaries, you name it. As it arrives at the dealers on goes the other $15,000, being dealers cut, commissions, fees, shipping, stocking, etc, etc, etc. When it's sold to you they could take $10,000 off and still make a tidy profit. In the showroom begins the biggest load of nonsense you've ever had to deal with. "I'll check with my boss to see if we can cut that deal". That's the big lie they still sucker you with. Yeah! How often have you heard your friends tell you that they 'got a deal'. NO ONE gets a deal. NO ONE. Or if you like, 'everyone gets a deal'. Your choice!
But that's just the purchase price. As you drive off the lot, having got 'your deal' your $40,000 vehicle drops 20% in value immediately, so whatever you do don't insult intelligent people by saying your new vehicle is an 'investment'. If you think that then we seriously suggest you get psychiatric help. The value of your new vehicle continues to depreciate until within a few years it is close to half the original purchase price - NOT COUNTING all those extras you paid, which no one mentions anymore, like taxes, delivery, finance charges, and what those in the car trade call 'fillers' and 'stuffers.' But wait. There's even worse news! The cost of RUNNING your vehicle. Start with insurance - say a modest $200 month. Then maintenance - not much that first year but it'll start creeping up to about $200 month, being tires, brakes, etc. How about gas? Yes gas. $200 a month is fair at todays prices? So, running costs are about $600 PER MONTH. Depreciation about $300 month in the first one to two years. AND that biggy you nearly forgot, the monthly 'car payment'. You financed your purchase like most everyone else does - say 36 months at $600 per month! So, your nice new car is costing you (wait for it).....$1400 month minimum. The national average cost however is $1650 per month in the US and Canada. The national average for a mortgage is around $1450.00 a month. In Britain it is £747 per month (in US funds $1120 - In Canadian funds $1680).
Of course if you're 'netting' an income of $40,000 a year - that's only HALF going on your car! But there's even worse news. Read this: The average family car, used to and from work, the store, taking kids to school, soccer practice, etc, is IN MOTION only 55 minutes out of every 24 hours! Yee Gods! Really? Yes, it's parked, not moving, stationery, for a smidgen over 23 hours in every 24 - on average, seven days a week. A lot of cars hardly move at weekends. In miles it averages out at about 17,000 miles a year - which is what most family/personal use cars average in a year. So, if you use your car only about 7 to 8 hours (in motion) per week ( or 35 hours per month) it depreciates as it sits motionless at $52 a day, or $1621 a month. Time in motion its depreciating at only $2.19 cents. Look at it that way!
We said it was a scary report. No one else is interested in printing it. Because it shows just how much we are prepared to lay out for a vehicle, and how we really don't want to know the truth about the costs. Half our income, on a set of wheels? Yes! Gas can go to $5 a gallon - who cares. The average family car is now the most expensive cost-of-living item, ahead of house mortgage payment. And it pollutes, it kills, it stinks, it rusts, it causes family upheaval, and it obsesses just about all of us. It's the 'Almighty Automobile', more worshipped by people, than God himself.
ROAD ACCIDENTS - CAUSES.
Of ALL road accidents, MOST are caused by 'Careless Drivers', because most drivers do not pay enough attention to road signs, to other road-users, and road & weather conditions. This group represents 34% of all drivers in the US, 38% in the UK, and 39% in Canada.
The next group is the 'Speeders', who ignore speed limits, or pretend they never saw them. As most accidents happen in busy city areas, the speeder represents a real danger, the report says. These drivers cause 22% of all accidents in the US, 24% in the UK, and 25% in Canada.
The next group is the 'Drunk Driver', being mostly alcohol, with 17% under the influence of other drugs. These account for 18% in the US, 16% in the UK, and 14% in Canada.
All other road accidents (26% in the US, 22% in the UK, and 22% in Canada) are attributed to a variety of causes, with faulty vehicles (brakes & tires mostly) heading the list, mostly cars & vans, but a surprising 21% of trucks being found unroadworthy that were involved in accidents. Truck accidents have increased 13% in the last year.
The one single factor in all road accidents is the fact most people do not know how to drive - properly. Cameras were set up at high-accident crossroads, and it was noted that a surprising number of drivers only drive with a forward eye-scan of less than fifty yards. Any vehicle suddenly stopping would cause nearly ALL the vehicles travelling behind, NOT to see the stopped vehicle until they were virtually upon it. Drivers do not adjust their speed to corners, or turns, or road weather conditions. There is an over-use of turn signals, which gives drivers a false sense of being - good drivers.
A completely new form of road test for driver's licences is being proposed, with essential upgrades after one year, five years, and thereafter every ten years until aged 65. Then every two years.
(Condensed from the: Virginia Institute for Consumer Research Section VU04 Vehicle Use - 2004)
|
