"This truck isn't costing me anything just sittting here!"

[TonyV.]

So I was on FB yesterday reading a post in a Dodge Dakota group I'm a part of and one guy comments saying that he has a Dakota that he drives daily, but also has  a 2014 Dodge Ram 4x4 that just sits in his driveway for snowy days. So of course I make the comment stating that the Ram is costing him a lot of money just sitting there, in which he replies "it only costs me insurance, which isn't much."... So I pull out a calculator and do some figuring... I replied back to him, letting him know that if he were to sell his truck (easily worth $20k), invested that, it would be worth about $45K in 10 years. Then you add in insurance, maintenance, depreciation of the truck and so on... I figured that truck was costing him at least $30k every 10 years! What was his reply to that? "If you have a place to park it and can afford the insurance, why not?"
Now I'm not perfect, I own a non fuel efficient 4x4 truck (17mpgs). But that's also all I own and it was only $4k to begin with. I don't have a $20k vehicle sitting in my driveway just in case I need it a couple times a year. lol

[ixtap]

So I was on FB yesterday reading a post in a Dodge Dakota group I'm a part of and one guy comments saying that he has a Dakota that he drives daily, but also has  a 2014 Dodge Ram 4x4 that just sits in his driveway for snowy days. So of course I make the comment stating that the Ram is costing him a lot of money just sitting there, in which he replies "it only costs me insurance, which isn't much."... So I pull out a calculator and do some figuring... I replied back to him, letting him know that if he were to sell his truck (easily worth $20k), invested that, it would be worth about $45K in 10 years. Then you add in insurance, maintenance, depreciation of the truck and so on... I figured that truck was costing him at least $30k every 10 years! What was his reply to that? "If you have a place to park it and can afford the insurance, why not?"
Now I'm not perfect, I own a non fuel efficient 4x4 truck (17mpgs). But that's also all I own and it was only $4k to begin with. I don't have a $20k vehicle sitting in my driveway just in case I need it a couple times a year. lol

I have several in laws who seem to have this attitude to their sports cars. I have never seen, or even heard mention of, any of these cars leaving the garage, but it is a family tradition.

[Davnasty]

The concept of opportunity cost seems to be completely lost on some people. Not to mention we don't really know what he means by "afford". The definition of afford can be anything from "I can spend this money and it will have zero impact on my future because I already have more money than I'll ever be able to spend" to "hey, there's a little room left on my credit card so I can afford it."

But the stupidest part is ignoring depreciation and maintenance. Someone on a truck forum should understand that stuff better than most.

[TonyV.]

I have several in laws who seem to have this attitude to their sports cars. I have never seen, or even heard mention of, any of these cars leaving the garage, but it is a family tradition.
[/quote]

I give a LITTLE break to sports cars because some do appreciate. Although, not most of them and not usually very much to be considered any kind of "investment".

[TonyV.]

The concept of opportunity cost seems to be completely lost on some people. Not to mention we don't really know what he means by "afford". The definition of afford can be anything from "I can spend this money and it will have zero impact on my future because I already have more money than I'll ever be able to spend" to "hey, there's a little room left on my credit card so I can afford it."

But the stupidest part is ignoring depreciation and maintenance. Someone on a truck forum should understand that stuff better than most.

Yes, exactly. One reply was "you can't look at everything as profit though". ...uh, ya, you can. lol
And about the being able to "afford" it. I'm not sure, but I would assume he's a majority of people that have a little room left in their monthly budget so they spend it. Not putting any thought into saving for later other than MAYBE enough company 401K to get the match...

[eljefe-speaks]

But the stupidest part is ignoring depreciation and maintenance.

That's my thought too. The battery is slowly dying, the tires are deflating, the spiders are moving in, the oil is getting watery, the electrical connections are corroding, the ceiling liner is gonna droop, etc., etc. No thanks!

Collecting cars would be the worst IMHO.

[Just Joe]

Collecting cars worth something and appreciating a little isn't the worst - but it helps to have them stored inside. Closer to suspended animation.

I have a neighbor that has a convertible that he brings out once a month and circles the neighborhood before puts it away again. Makes him happy to have a museum car. Not hurting me but I imagine it doesn't happen for free.

[Cadman]

Is this guy paying a note on that 2014? Otherwise it seems odd he'd have it insured for half a year or more when not driving it.

[talltexan]

I think "can afford it" is code for "I'm out of debt". He could optimize financially by selling the truck, sure, but it doesn't sound as though he's in a hair-on-fire debt emergency.

[JAYSLOL]

I think "can afford it" is code for "I'm out of debt". He could optimize financially by selling the truck, sure, but it doesn't sound as though he's in a hair-on-fire debt emergency.

Most people I know (outside the MMM community) mean "I can afford the payments" by saying they can afford it. 

[Dr.Jeckyl]

I think "can afford it" is code for "I'm out of debt". He could optimize financially by selling the truck, sure, but it doesn't sound as though he's in a hair-on-fire debt emergency.

Most people I know (outside the MMM community) mean "I can afford the payments" by saying they can afford it.

^This

I tell people I know I can't afford a new car and they don't understand. "I thought you just paid off your student loans. How much do you owe on your current car?" I have to explain that yes, I have only a mortgage and the wife has a small student loan left. But what I mean is that I'd like to buy a car with cash or at least put a good chunk down on a car. I think part of the problem is that while the wife and I may make more than many of our friends we have less disposable income due to our savings habit.

[EngineeringFI]

But the stupidest part is ignoring depreciation and maintenance.

That's my thought too. The battery is slowly dying, the tires are deflating, the spiders are moving in, the oil is getting watery, the electrical connections are corroding, the ceiling liner is gonna droop, etc., etc. No thanks!

Collecting cars would be the worst IMHO.

There is a guy in my office who has 5 or 6 cars. After he bought the last one I had to ask how expensive this hobby of collecting cars was and he cheerfully replied with the great deal he got on insurance. The logistics of just owning a single car annoy me (registration, insurance, maintenance, gas, etc.) owning 6 cars sounds terrible...

[Just Joe]

But they are so shiny...

[Mississippi Mudstache]

My father-in-law bought a brand-spanking-new 4WD Chevy pickup truck in 2014. It cost him $45,000, cash. He drives it to church on Sunday, and nowhere else. Naturally, he has another late-model pickup trucks that he drives to work and to his hunting property each weekend (hunting properties require lots of upkeep, apparently, so he's there every weekend even during the offseason). His brand-spanking-new (but 4 years old) pickup truck has less than 10,000 miles on it today. It drives my wife crazy, because he could easily be retired right now if he didn't have frivolous toys draining his net worth and life energy. He also has about 5 boats, but he works too much to use any of them. But he'll use them when he's retired, so he has to keep them, of course. Thank God my wife didn't inherit his spending habits.

[TonyV.]

He also has about 5 boats, but he works too much to use any of them. But he'll use them when he's retired, so he has to keep them, of course.

Because you can't use the ski boat for fishing! Might as well throw a pontoon boat in there too so you can take out the whole family for the weekend. But what if you want to sleep on the lake? Better get one with a cabin too!

[JAYSLOL]

I think "can afford it" is code for "I'm out of debt". He could optimize financially by selling the truck, sure, but it doesn't sound as though he's in a hair-on-fire debt emergency.

Most people I know (outside the MMM community) mean "I can afford the payments" by saying they can afford it.

Actually, for some people I know it often means "I feel like I should be able to afford the payments" or sometime "I can afford the payments soon because XYZ should come in soon, but I'll totally buy it now because XYZ is pretty much a sure thing"

[Syonyk]

But the stupidest part is ignoring depreciation and maintenance. Someone on a truck forum should understand that stuff better than most.

Have you seen what low mileage instances of a truck go for when most sold are up in the 200k-300k mile range?  If anything, I think the value of my truck ('97, large) is going up over time, because I barely have 100k miles on it.  I got it used, maintain it myself, use it as a truck somewhat often, but definitely don't put average miles on it.  I'm in a dry part of the country, so maintenance at a few thousand miles a year is pretty low.