Cars
I have such mixed feelings about cars. I find how they work interesting (Although I only have a little experience with the mechanical aspects of them), but I really hate how much they cost.
Once I get some form of shed I definitely want to pull a car apart and learn more about how they work. But when it comes to deciding whether I actually want to get one or not is a completely different question.
If we take the following costs (these may or may not be accurate and there may be more but it will do):
- Approx $1000 per year on registration, insurance etc
- $30 a week on petrol
- $200 budget per year on repairs
These assumptions bring the weekly cost of a car to $50 (1200/52 + 30).
What is the opportunity cost of this $50. The most immediate thing that comes to mind is a house in a better location, theoretically you could get rid of the car and put the cost towards living closer to work (So you could walk or ride).
Whether or not this is feasible again is questionable, a car might be a necessity in today’s society (Depending on where you live). But my belief is that a car is more hassle than its worth due to the negative qualitative factors, these include:
- Police harassment and traffic laws.
- Capital locked away in an asset that doesn’t hold it value.
- Hassle of breaking down.
The main thing for me is that it ties you to one spot. You can’t travel overseas too easily if you have to deal with this huge possession and if you are frequently away it creates little benefit anyway.
However, there are plenty of good things about having a car. That is why I have such mixed feelings towards them.
Strikee 