He just retired and managed to find a great part-time job. The old pickup he’s been driving for five years is just not trustworthy anymore. So he decided to purchase a large truck, a 2005 F150, V8, with extended cab. Gas prices have been over $4 a gallon for several months, so at first blush it sounds like a really bad idea. I figured there was a good reason auto dealers are trying to get rid of trucks; after all, this is the same thing that happened in the late 1970s, in the “gas crisis” of that time. But…
The guy who sold it to him is a carpenter who was out of work all winter (this is the Midwest, where we had a record-breaking winter, and now are dealing with the aftermath of floods), so he sold the truck at less than blue book. I should tell you that my husband drives less than 5 miles to work every day, that most of our family is within a few miles of us, and that we have another car to drive on trips. Surprisingly, the truck gets 21 mpg on the highway! We also intend to keep the truck as long as possible, until it falls apart (or we do).
I’ve a feeling this kind of sale is happening a lot these days, as people deal with high gas prices and inflation, and the problems of economic dislocation. We’re in an economic shift right now. We have to re-learn some things:
1. Gas prices will shoot up periodically, and people driving huge cars are going to be stuck
2. House prices are not always going to go up; sometimes that investment drops in value.
3. Saving/conserving/not spending is always a superior idea than debt.
4. In inflationary times, savers do better than debtors.
What do you think? Are you looking at downsizing your automobile? Or are you grabbing a good deal on something?
Tags: baby boomers, credit crisis, gas crisis, housing crisis, retirement planning
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