Repeat After Me: Never Buy a New Car (and other lessons for young adults)

“Everything I have is yours. My four lawnmowers. My sister. My 35 ferrets. My massive student loan and real estate debt. It’s all yours.” – Anchorman 2

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I took this picture on June 2 from my hotel room.  Well, over a decade ago – in Anchorage.  Dinner that night was salmon, red wine, Caesar salad, and a beer for dessert.  I was still paying on my student loans, but I didn’t have a car payment . . .

It was about 10:30 on a warm summer evening.  I was sitting at a stop light in my home town.  I had my (then) best friend with me, a case of beer in the back, and we were going to go and watch HBO® over at my apartment.  I was a senior in high school.  Yes, I had my own apartment while I was in high school – it was amazing, thank you very much.  It’s a longer story – maybe I’ll share it sometime – danger it involves striking workers, cans of soup, and volleyball.

Anyway, back to the stoplight.

I looked behind me as I heard a squealing sound.  In the rear view mirror I saw a car (headlights off, even though it was night) heading right for the rear end of my brand new car.  Brand new!  I did the mental calculation.  It wasn’t going to stop in time.  It didn’t.

The squealing sound ended in a crunching sound.

My brand new car (I got it because I’d gotten a full-ride scholarship) now had a wrinkled back end, just like Cher®.  Crap.

skyhawk

So, off to the local auto-body place it went.  The car, literally owned by me for less than two months needed a lot of repair.  I went in to find out when my car would be done.  The manager (the father of a girl that had graduated a year before me) invited me into his office.  He had a fairly long speech that he shared, indicating that he had found some cheaper parts than he had originally quoted the insurance company, and, well, my $200 deductible could go down to $40 if I only paid him in cash, right then.

I’m not sure how he knew that I had exactly (and only) $40 on me at the time, but his cash radar was perfect.  I pulled out my wallet (brown nylon with a Velcro® strip that kept it closed) and pulled out my $40.

I felt vaguely dirty afterward, like I’d done something wrong.  Honestly, I still fill icky about it writing this down.

The reality is that he probably just needed money his wife couldn’t track for booze or lunch and saw an 18 year old coming . . . and decided to separate me from all the cash that I had . . .

Fast forward to today:

I was walking in a local department store and ran into a kid that I’d coached for a while.  She’d just bought a new car, and was excited about it.  But she’d had a “new” car two years ago – a 2008 vintage car.  What was up with that?

“Well, John, I’d had to replace the alternator and the starter.  And maybe it was leaking oil.  So, I was worried that would cost a lot of money to fix, so I bought a brand new car.  I know you only buy used cars, but this one is brand new!  Sometimes things are just meant to be!  And I got a loan – it’s only 21% interest!”

I wish I was making up these details, but they are true.

For those of you that are unfamiliar with my take on cars, it is my considered opinion (noted in this post: I’m gonna tell you about an accident, and I don’t wanna hear “act of God.” – Jack Burton, Big Trouble in Little China) that my rules are even more correct if you’re a kid.

John Wilder’s Hard Earned Car Iron Lesson One:  If you can’t afford to buy a car with cash, don’t.  Don’t.  Don’t. Don’t. 

My young friend violated this rule.  Now she has interest payments.  Two weeks ago, there were none.  Now, each and every month, like Cher™ at the fridge after midnight, they’ll always be there.

Why?

You can use someone else’s spare money RIGHT NOW to buy what you want.  RIGHT NOW!   Sounds awesome!  There must be a catch?  Yes, they want a fee.  That fee is interest.  You pay it every month until you’ve paid back the money you owe.

And to top it off, loans are “amortized,” which is Latin for “will cause you to die of stress because you have to figure out how to pay off all that money.”   At the start of the loan, say, of $16,000 at 21% for five years, your payment will be $432.85.  Yeouch!  That will buy a lot of Netflix®.

That $432.85 is made of two parts:  the first is the interest you pay back to the guy who loaned you the cash.  The second is the money you borrowed from the guy.  So, in month one you’d expect that you pay half of $432 as interest and half of $432 as principle, right?

No, not even close.  Your first payment would be $280 in interest and $152 in principle.

Why?  At the beginning of month one, you are paying 21% interest on the full $16,000.  At the end of month one, you’ve paid off that $152, so the next month, your payment would have less interest, since now you’re paying interest only on $16,000-$152 (which is $15,848 or something like that).

You pay lots of interest early in the loan, but not much of the money you borrowed.  If I were to graph it, (and I did) it would look like this:

interestonloan

This graph explains why, when you buy a car, you can very quickly owe much more than the car is worth, since the car is worth at least 10% less the second you drive it off the lot.  Your car is immediately worth $1,600 (if you paid $16,000 for it) less than you owe on it.

You’re trapped.

Never borrow for a car.

John Wilder’s Hard Earned Car Iron Lesson Two:  You can’t possibly afford a new car.

I have ridden in a billionaire’s wife’s car exactly once.  It was several years old.  The CD player was broken.  The case around the CD player was gone.  It was a nice car, but it was old.  As a billionaire’s wife, she had zero need to feel superior to anyone within a three state radius – she could get on a private jet at 8AM and have lunch in Rio and ski in Switzerland the next day.  Hell, she could send her dogs off to summer camp in the jet.  Who is she trying to impress?

Who are you trying to impress?  So why do you need a new car?

My friend had noted that I only bought used cars.  I had shared that with them hoping it would wear off.

Well, maybe next time?

John Wilder’s Hard Earned Car Iron Lesson Three:  If the car is worth more than 15% of your gross income, don’t buy it.

This is the kicker for my friend, and the bitter lesson they’ll learn over the next sixty months.  This car is (probably) valued at 75% of their gross income.  75%.  That’s like Elon Musk® buying a car that that was worth $7.5 billion dollars that year his net worth went up $10 billion dollars.  I guess that’s a really cool Tesla®.

I digress.  Nobody needs a car worth 75% of their gross income.  Nobody.  The last car I bought was 5% of my gross income.  It was for The Mrs.  She likes it.  The one I drive is six years older, and the oil in it is only four!  I like it.

My friend would have been better off buying a car that was closer to $3,000, and having a bike ready if it ever broke down.  She has a job, but she rarely travels farther than 10 miles on any given day.

Let’s look at the details – at 21%, a $16,000 car will cost nearly $26,000 in payments.  You’re paying an additional $10,000.  How many fixes on a used car would that pay for?  Lots.

It’s actually worse.  If you don’t own the car outright, you MUST pay insurance so whoever loaned you the money isn’t out if you wreck the car into a deer at 7:15AM.  Not that anything like that ever happened to me . . . .

So, in addition to the $10,000 in interest, my friend will be paying another $150 a month in insurance.

My friend makes (I’ll guess) about $15,000 a year.  After taxes, that’s probably about $875 a month.

This car plus insurance is costing them $580.  That’s 66% of every dime they take home.  OUCH!  And you thought the government was bad.  Cars cost even more.

John Wilder’s Hard Earned Car Iron Lesson Four:  It is no longer 1940.

Used cars last longer today.  In 1940, a car might last five or six years.  We’ve had 80 years of engineering excellence driving cars to be amazingly reliable (shh, don’t tell my car I said that).  Cars are more expensive, sure, but a good car from between 1998 and 2015 or so will last for a very long time.

New cars (like my friend bought) might have issues:  in order to meet government mileage restrictions, car companies are having to make the automatic transmissions (who drives stick anymore except Wilders learning to drive?) so complicated an expensive that a car may become a disposable item when the transmission goes out.  There’s a mom joke here, but I’m going to skip it.

Do your research and get a good car with a decent transmission.

People Keep Taking Advantage of Kids

Yes, at 18 you’re technically an adult, although an adult that can’t drink but that can certainly sign their figurative life away to debt.  Or their actual life in the military.  I could have done that at the age that greasy body shop guy swindled me out of $40.

But the $40 was cheap.  I never trusted ANYONE who tried to tell me that what I should do was good for me if was going to put money in their pocket – it’s a lesson that probably saved my job a time or two.

Thankfully we now allow 18 year olds to get themselves in thousands to hundreds of thousands of dollars in college loan debt that they’ll never repay because they have a degree in the anthropology of ancient Greek testosterone supplement commercials.

Because, you know, it’s good for them.

The Coming Civil War (United States), Cool Maps, and Uncomfortable Truths

“Well, l could be wrong, but l believe diversity is an old, old wooden ship that was used during the Civil War era.  l would be surprised if the affiliates were concerned about the lack of an old wooden ship, but nice try.” – Anchorman

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So, I guess that my “Secretly Wants To Live in a Post-Apocalyptic Society” secret is out of the bag?  I guess I need more dehydrated food.  And scotch.

(Part II of this series is posted at: The Coming Civil War Part II, and a (Possible) American Caesar)

There are some posts where I know exactly what I want to say, and how I want to say it.  Often, those are fairly well scripted, either with a handwritten first draft or a set of researched bullet points.  I’ll expand those into the full post.  Those are nice.  The structure has been created.  The post flows out.

Some topics are topics that are well planned out (I actually plan the blog topics about three months out) and fit.  Some topics just hit me with a blast of inspiration and nearly write themselves.

And some are difficult.  Very difficult – they occupy headspace I know that I’m going to write about them, but the issue is so difficult that I want to make sure it comes out how I want it to come out, that it doesn’t inadvertently come out in some sort of ham-handed way.  This is one of those.  I’m sort of pleased with the results – it came out the way I wanted it to come out, just like the ending to Breaking Bad, or Jean-Claude Van Damme’s last optometry appointment – he still doesn’t need glasses, yay!

Don’t know a great way to put this, but we’re (in the United States, and in Europe, though my read there is much murkier) heading towards civil war.  In Europe, civil war means dissolution of the EU and (likely) expulsion of large numbers of immigrants.  But I’m not European, so I won’t go too far speculating about them.

I’m not sure if it will be a decade off or longer, but I put the arrival of this war as soon as 2024, and as late as 2032.  Not really any longer than that.  What would stop it is a prolonged, total war that would challenge the very existence of the United States.  External threats and an external enemy are the best way to create unity (and second term for a president named “Bush”).  And that’s not good, because a prolonged war always leads to extremes, and we have extreme weapons – in that way, a civil war might be the best-case scenario.  But I digress – back to civil war.

Why?  Again, this won’t be exactly the same civil war as THE Civil War – there are some facets that will rhyme, but others that won’t.  The major theme is division.  And what better way to show that than with . . . maps.

Here’s a map from Colin Woodward and Tufts University, and Brian Stauffer, depicting the 11 cultures that they contend make up the United States:

11nations

So, there’s this.  Accurate?  I would personally draw a line between those who like Star Wars® instead of Star Trek™.  Those people are awful.

And it’s not just culture, the Woodward/Tufts map is pretty accurate at predicting where we are today politically.  Here is a map of the Clinton/Trump 2016 vote count:

vote-by-nation-2016

The redder you are, the more Trump.  The overlay of the Woodard/Tufts map is clear.  These cultures are significant, and real, and explain NASCAR®, country music, and the inexplicable popularity of PEZ®.

And I think I’ve graphically made my case for there being a division.  But how significant is it?  Well, research shows that it’s pretty one-sided.  Liberals (at least young ones) are significantly more close-minded than conservatives:

civilwarstats

Yes, you read that right.  45% of liberals would be uncomfortable with a roommate with opposing political views.  12% of conservatives would be uncomfortable.  I guess this means that liberals don’t like diversity?

In 49 B.C., Julius Caesar was ordered back to Rome.  Quite specifically, he was ordered to leave his army, the 13th Legion (Legio XIII, Gemina, or “Twins”) beyond the border of the Rubicon river, which was considered the northern border of Rome.  He didn’t, and then spawned a civil war that (ultimately) led to the end of the Roman Republic and Caesar being proclaimed Emperor.  To this day we celebrate this event by ordering salads in Caesar’s name.

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The last time the 13th Legion was active, I think they got in line in front of me at Arby’s® in Boulder, Colorado after a Van Halen© concert.  Man, when 4,000 people are in front of you in line, you’d expect they’d run out of roast beef.   They did.  Thankfully they had lots of panda and koala bear left.  They also ran out of Horsey Sauce L.  They claimed they ran out of horses.

So we have divisions that are significant, enduring (these divisions aren’t new), and deep.  Yet for decades we haven’t had a problem.  Why are we at the Rubicon?

Well, we were ethnically much more uniform than today.  The United States in 1965 (at the time of a major change to immigration policy) was 85% white.  Now?  62%.  That’s a pretty significant change, and one that impacts politics.  Again, cultural divisions lead to war.  And the easiest division is what you look like.  I know that people like to fight and will pick any old reason to fight.  Religion in Northern Ireland (Protestants and Catholics), football in California (Raiders™ vs. 49er’s©), and really important stuff (Star Wars© vs. Star Trek™).  People will fight each other to the death because we don’t like each other’s hats.  Historically, multi-cultural societies . . . fail.  Spectacularly.  (Again, this is not an indictment of any individual group, just a reading of history.)

But civil war in the United States is . . . very singular.  The Civil War was built upon philosophical differences (with very human consequences).  Issues involved in the Civil War include slavery, states’ rights, and Northern industrialism versus Southern agrarianism.  But one of the underlying causes might just be that map of the 11 cultures shown above.  The Northern states were built on the Puritan ethic.  They make up the Boston/New York corridor and the swath heading west from that.  The Southern states were built upon scoundrels – the Irish malcontents and Scottish reivers that immigrated later.  They’re the ones that make up Greater Appalachia.

So what will cause a civil war in the United States?

The first thing is the philosophic divisions listed above.  The desire for the freedom of individual determination is still strong in the Deep South and in Greater Appalachia and the Far West.  That hasn’t changed.  The Puritans in Yankeedom and the Left Coast still very much want to make their values the only values that matter.  Note the graph above that shows relative discomfort with diverse exhibited by liberals.  Ouch!

These groups have hated each other since the 1600’s.  And it will never go away, especially as long as the New England Patriots® keep winning Super Bowls™.  The two sides have never spoken the same language.  The time that both North and South united?  After the Civil War, the North (magnanimously) allowed the South to keep their heroes (Lee, Stuart, Jackson, Davis) and they were transformed into American heroes rather than insurrectionist traitors.  Not a bad trade.

There were places that held out – the first celebration of July 4th after the Civil War in Vicksburg was on July 4th, 1945.  Admittedly, Vicksburg surrendered on July 4th after a horrific siege and devastating defeat for the Confederacy.  It took 80 years and winning not one, but two world wars for Vicksburg to celebrate national unity on a regular basis on July 4.  These divisions remain to this day.

But what else will cause this war?

The Fourth Turning – it’s time.  Here’s a previous post (The Economy, The Fourth Turning, Kondratieff, and You.) that explains this timing in more detail.  The last generation to have experience the horror associated with total war, with the mobilization of the entire economy of the United States to defeat a foe is . . . dead.  The youngest boys that landed on Omaha Beach on D-Day are 95 today.  They control nothing.

Our leadership, our population has no connection to those that saw the horrors of a continent ripped apart by war.  They led our nation (and all of the nations of the West) and their actions were held in check by the horrors that they had seen.  Now their experiences no longer temper the actions of the leaders (and desires of the people) to avoid apocalyptic levels of violence.

Let’s continue with economics – I’ve discussed before that the current economic practices have a time limit (More Budget Doom, The Rolling Stones, an End Date, and an Unlikely Version of Thunderstruck).  One cause of civil war (not necessary, but certainly an exacerbating cause) is economic collapse.  When people have more to lose than to gain, they won’t fight.  As Janis Joplin said, “Freedom’s just another word for nothing left to lose.”  And when people are ruined?  They fight.  See the French Revolution (Robespierre, Stalin, Mao, Mangos and A Future That Must Not Be).

Economics will be a trigger, but not the underlying cause of division listed above.

So, we have a civil war.  What’s the end look like?

Breakup.

I don’t think that the things that have held us together as a nation will continue to hold us together.  What values do we have in common anymore?  It seems like . . . none.  Let me elaborate.  I could do a post on each of these (and likely won’t – other people cover this on a regular basis, so unless I have a Wilder take, I won’t):

We don’t speak the same language at all, anymore.  Even though I have friends that don’t (at all) agree with me politically, I fear that they aren’t the norm.  The end state isn’t 11 countries.  It’s probably (at least) four.  I can see a Heartland State, an East Coast, a West Coast, and a Northern Mexico.  Los Angeles will be Mexico.  Portland, San Francisco, and Seattle will be East Coast.  The Boston/Manhattan/DC corridor will be East Coast.  Northern Mexico will be as shown as El Norte.

But on the bright side?  Jean-Claude Van Damme doesn’t need glasses!!! How awesome is that?

Health as a System – Or, Ignore What Keith Richards Does and Treat Your Body Like A New Tesla.

“Think big, think positive, never show any sign of weakness. Always go for the throat. Buy low, sell high. Fear? That’s the other guy’s problem. Nothing you have ever experienced will prepare you for the absolute carnage you are about to witness. Super Bowl, World Series – they don’t know what pressure is. In this building, it’s either kill or be killed. You make no friends in the pits and you take no prisoners. One minute you’re up half a million in soybeans and the next, boom, your kids don’t go to college and they’ve repossessed your Bentley. Are you with me?” – Trading Places

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It’s a new martial art – we call it “Slap-foo.”

I’ve been posting on health topics weekly for, well, over a year every Friday, which is well over fifty posts on health (my basic math is still intact, so my senility is at least another week off).  The Friday health posts have examined some important relationships between all sorts of issues, and generally attempt to tie back to things that impact (or will impact) our health, health care, and the future of what technology might do to health care and longevity.  It’s a pretty big topic, and well within the blog’s mission, which was stolen shamelessly from Benjamin Franklin’s “healthy, wealthy, and wise” quote.

But what I haven’t done is look at health from a bigger picture.  Health as a human system.  Let’s examine the human body as if it were a Tesla® Model 3™ or any other engineered system.  That car rolls off the assembly line (or not, if it’s a real Tesla©, they seem to be having trouble making them) in as good a condition as it ever will be.  Every moment, every mile degrades a system in one way or another.  The tires get worn down by the road.  The batteries experience a slow failure as they are charged and discharged.  Your Elon Musk™ bobblehead gets faded by ultraviolet rays.  The paint gets chipped by a rock from the road.  And yet, we can look at the systems that impact the life of the car in a dispassionate way because they’re governed (mostly) by things that we can analyze, failures that we can predict based upon way we use and treat the car.

So how is a human body different?  In many ways it isn’t.  Human longevity depends on many predictable, controllable factors that determine how long and how well a human will function.  It reaches its peak genetic health at birth, its peak physical health between 16 and 30 (depending upon the system) and then ages.  What determines how long this machine lasts?  How much of it do we control?

Quite a lot, really, and it’s simpler than you might imagine (though I didn’t say it was easy):

Diet – if I were to pick my number one choice for something to focus on for longer human life, it would start here. “You are what you eat.”  “Don’t be such a pig, John Wilder, and save some for the rest of us.”  “No, you don’t have to finish off the second plate of fettuccini alfredo.  That’s not the way to stick it to Olive Garden®.”

I’ve discussed this on numerous posts – and it appears that a low carbohydrate diet is demonstrably the best in many respects.  But sugar tastes so good, even high fructose corn syrup.  Obesity is one that more and more people struggle with every year.  It’s a major factor in heart disease and cancer, too – the number one and number two killers.

If you want to live longer, start with diet.  It’s hard, and society is making a frowny face at you if you don’t conform.  But in the end, you (and I) control the fork . . . .

Here are a couple of relevant posts from the past:

Doritos, Obesity, Addiction, and Nic Cage

Diet, then Exercise. Diet first. Atkins and Paleo work.

The Link Between Sugar, Cancer, and the Kardashians

Exercise – this is my number two on the list. Exercise tones and trains the body, so that when you die you will look awesome at your funeral and also helps you lose weight so that you don’t need thirty pallbearers.  I kid.

Exercise is clearly related to a stronger body.   It’s clearly related to a healthier heart (though it’s not a cure all for heart disease).  It’s clearly related to lower incidence of cancer.  And it’s clearly related to smaller pants (which helps with stress, below).

If you’re not exercising and are healthy enough to do so, exercise.  Duh.

Russian Wrestlers, Pylometrics, and You’re Probably Not Trying All That Hard

Sitting? Death. Get up. Neal Stephenson says so.

Stress – third on my list of factors influencing how long you live, stress seems to be a byproduct of modern life. But many of the things that stress us are chosen, and most of those things we choose to stress out about are based on future consequences that will never happen.  Stress is dangerous for nearly every system that you require for operation:  your brain and memory deteriorate under long-term stress.  Your heart and blood pressure are aggravated by stress (and stroke risk increases).  Negative behaviors like eating a whole cake, or living on a diet that consists entirely of pre-made frosting tubs (chocolate sour cream, of course) increase with stress.  Tobacco use increases.  Alcohol/drug consumption increases.

Sure, you say, but what are the negative behaviors?  I kid.  But long term consequences of stress and the behaviors that we engage in to cope with stress kill 4 billion people a year.

Okay, not 4 billion people a year.  But it’s not good.  According to one source, stress-related conditions are responsible for 75% of doctor visits.  Stress is a contributor to the top deadly conditions (heart disease, cancer, accidents, suicide) in the United States.

So what do you do?

Surviving Stress, Still Proudly Caffeinated

Superpowers, Stress, Ben Franklin’s Nails

Relationships and Social Engagement – having friends is key to living longer. While it may be related to stress reduction, I think it’s more than that.  Engagement in something that gives your life meaning and purpose is inherently fulfilling.  And it gives you something to look forward to each morning when it’s time to get up.  Being married is also key.  Having people you can share with – you can confide in – makes you stronger.

Duck

Recently, however, people doing more social interaction on places like FaceBlock® or Tweeter©, and these interactions don’t and can’t replace taking a five mile hike with your son or a spirited conversation with your family, just like you can’t fight evil with a macaroni duck.

Lonely? Ditch Facebook, Find Real People. Live Longer.

Friendship and Health – and When Friendships are Made . . .

 

macaroni duck

Lifestyle – other lifestyle factors can greatly influence your lifespan, especially if you overdo them:

  • Alcohol/Drugs/Smoking – I would say these might void the factory warranty, but Keith Richards is still alive. I also had a relative that smoked several packs of cigarettes a day.  And slipped in the shower and died when she was in her mid-seventies.  Those are outliers – be moderate in your vices.  Ben Franklin and his Thirteen Virtues

doctorwrong

  • Sleep – Get enough. Too little will hurt you and make you fatter over time. Sleep Deprivation, Health, Zombies, and B-Movies
  • Be Wealthy – everything is easier if you’re rich, and that’s part of the mission of this blog. So get a lot of money, or change your name to Richard.
  • Personal Safety Habits – I had a dream that my youngest son was using my table saw to turn trees into planks. He kept putting his fingers near the blade.  NOOOOO!  Don’t do that.  Be . . . at least a little
  • Supplements – Might some help? Sure, but you have to have your basics (above) in place.  Vitamins and You

Sure, there are things you can’t control and that are difficult to assess:

  • Bad luck –
    • Accidents,
    • Meteors,
    • Being a skinny marathon runner who has a heart attack
    • Being Job, that guy from the Bible. (Never be the subject of a bet between God and Satan – it’s like being Dan Ackroyd from Trading Places.)
  • Genetics – Ever see a family of fat people? Or skinny people?    Some people just have those genetics.  And if you’re lucky you’ll have the “only allergic to being stabbed and are impervious to cancer” genes.  Heck, I’d settle for Keith Richards’ genes.

Luck aside, if you control your diet, exercise, stress, relationships, and lifestyle, you could live 10 to 20 years longer – you can get a lot more mileage out of your Tesla® if you take care of it.  That is, if you can get one . . .

Again:  I am Not a doctor.  NOT A DOCTOR.  Not a doctorNot a doctorNot a doctorDoctor. 

NOT A DOCTOR.  So see a real one if you think you need to.