Buy a Car That Actually Appreciates in Value
I didn’t know it was possible. I thought cars were the ultimate money sucker and certainly not an investment, unless you were the owner of a historic car. I’ve always dream of a ’65 Mustang for myself. I was inspired by Brandon Walsh back in the day and the dream stuck.
Wired reported today that there is more demand for Prius cars than there are cars being made. As a result, people will pay more. Just like Adam Smith said, goods are only worth what people will pay for them.
Supply and Demand, Prius Style, Wired.com Blog
I hope all this excitement about the Prius shows that North Americans are beginning to embrace a more sustainable way of living. Unfortunately, I am skeptical. I argue that most people buying the car are not truly informed of the benefits and drawbacks of owning hybrid car but are instead driven by their knee-jerk reaction to try and save money (even though in reality, they might not be).
For instance, did you know that while hybrids are the most gasoline efficient of all cars – they typically get 48 to 60 mpg. Which sounds good but that is only about 20% to 35% better than a fuel efficient gasoline powered vehicles – like the Honda Civic or Toyota Yaris, which get, on average, 36 mpg. When you compare the purchase prices – hybrids cost from $19,000 to $25,000 and gas saver cars cost $14,000 to $17,000 – the justification to buy becomes less clear.
Things are never as simple as they seem. Or more specifically, you need to educate yourself before you make any major decision. If I said biodiesel hybrids were the answer to all our car woes, I hope you would read up on it before you agreed.