Do you really need a second car in the driveway?
North America's economy would take off like a rocket if only consumers bought not just one, but two, cars.
A full recovery from the economic downturn “relies on a lot of people buying that second car,” maintains Itay Michaeli, who follows the auto industry for Citi Investment Research. “It reflects consumer confidence, not just the buying of a replacement vehicle.”
He expects younger buyers to take the lead in boosting vehicle sales. “We consistently see in surveys that 18 to 34 year olds say that when the economy gets better, their households will have multiple cars.”
Really? The fact is, today’s young people simply don’t drive like their predecessors did. At least city dwellers don't, says Jordan Weissman in the Atlantic.
"Urbanites may embracing mass transit, biking, and car sharing services like Zipcar. Other young people may be gravitating towards walkable suburbs, where cars are often optional," he maintains.
"But it's not far fetched to think that the ability to connect with friends and family, shop, and entertain ourselves online has contributed to the trend."
Even an extra little clunker would run most people around $3,500 per year, barring what you paid for it in the first place. That’s a quite a chunk of money for any age group, let alone most members of Generation Y, many of whom are still struggling with overwhelming school loan debts and record underemployment.
Use this calculator to estimate the total monthly household expense of one car, let along two, and how much you'd be saving each month, which is what anti-debt crusader Travis Pizel is trying to do.
Of course, he doesn't live in rural Manitoba.
Do you see a second car in your future? Or are you even managing without the first one?
By Gordon Powers, MSN Money
Posted by: Really !! | Feb 19, 2022 11:01:40 PM
Yup... might as well put the second car, err... clunker... in the driveway. Ya gotta keep the garage free and clear for all the other junk you bought and couldn't afford.
Posted by: Patrick | Feb 20, 2022 8:52:51 AM
Yes let's all go out and buy a second car we can't afford which will make it harder to pay off the crushing student debt that's been accumulated on the way to the promised land jobs that don't exist for the overeducated and underemployed (and piss poor paid) younger generation while we also fund OAS, CPP, and all while we watch the Boomers sitting on their high horse telling us how easy we have it, how lazy we are, and that it was "so much harder" in their day.
These people don't live on the same planet as the rest of us.
Posted by: Jack | Feb 20, 2022 10:24:58 AM
@Patrick... I wish I didn't live on the same planet with the likes of you. Yes, I am a Boomer, and I own 4 cars, 2 of them worth over $100,000. SO WHAT!!! WHO CARES??? I also paid for my adult children's university education and living expenses (med. school), which cost more that what you probably have earned in your lifetime from the sounds of your whining. I don't want my kids saddled with debt and sponging off the tax payers. I pay over $150,000 per year on income tax alone, so you whiners just shut the F up! I am certainly not complaining.
Posted by: scott | Feb 20, 2022 10:45:42 AM
I have two vehciles but considering I live in Alberta owning two vehicles is a must have. I have to agree with Patrick on a few points. The cost of living and education for younger generation or non boomers as it were, has become extremely expensive. i sympathize with the non boomers and if you can't afford a 2nd vehicle its better not to put yourself in more debt. I think we will all in for a big shock in the next few months when it comes to the economy. Good luck to boomers and non boomers alike.
Posted by: John | Feb 20, 2022 11:04:07 AM
I have retired ahead of my wife. When she retires we shall thankfully be down to one car.
Posted by: ZREXER | Feb 20, 2022 12:54:56 PM
I have had the benefit of company vehicle over the last 25 years. My wife is alowed to use it, so even though my wife has her own vehicle, she drives it very seldom. She bicycle commutes during the spring/summer/fall period and I drive her on the days she does not bike.
We are plalnning on retirement to have only one vehicle, not because we won't be able to afford a second or even a third one, but because we choose to live simply and far below our means.
My wife and I both plant to retire in the next few years, we are currently 53 & 54 and have been able to achieve this by not accumulating a lot of stuff and by avoiding all debt. Our house has been paid off for 10 years, we paid for both of our children's educations. We also gave each of our children a $100,000 each to get their lives started. Our kids are very good with their own money, so it has been great to be able assist them as it iis very expensive toset up a home now. This has given us much more satisfaction than buying a huge house or 'vanity' vehicles that many with our financial resources seem to buy.
We will still be retiitring with around 2.5 million in investments and look forward to continuing to support the numerous charities we have supported long term. Much more satisfying than spending more on ourselves.
Live simply so others can just live...
Posted by: Cris | Feb 20, 2022 5:53:08 PM
You are an entitled, cocky, shameless jackass. We don't give a rat's ass about your material possessions.
What a burden for this Planet you are. Boo hoo! Patrick is right. And you shut the f up!
Posted by: Cris | Feb 20, 2022 5:55:09 PM
You too are an asshole. Living off somebody else's money. This is what your so-called investments are. Coming here and bragging about it. Disgusting!
Posted by: Cris | Feb 20, 2022 6:24:00 PM
Here come the parasites of the world to show off. Rememer Wall Street? The 'investments' they made in our names? Remember the CEOs? and their salaries? They don't work for the money, they invest the money. Meaning, the steal the money from the poor and live the good life while we are going down. Then, they show up on the blog to rub it in our faces. Nice, isn't it? There will come a day when you will have to count your pennies, because we are going to go after you.
Posted by: Really !! | Feb 20, 2022 8:22:20 PM
@Chris... I have a nice big jar of pennies I'm willing to hand over to you... for free. Then, if you're really smart (which may be doubtful), you can invest them in Ontario's grape industry and become a bigger whiner than you are. After you get rich, your momma will be really happy when you vacate her basement.
Posted by: Patrick | Feb 21, 2022 8:11:37 AM
Actually I've had a job since I was 12 years old. I put over 100,000 down on my house and worked 45+ hours per week during my summers to graduate University debt free. I also own my car 100% and have never carried consumer debt.
Sorry I wasn't born into the easiest job market the western world has ever known. Sorry people my age today, despite being better educated than your generation or the generation after, still faces record levels of underemployment and unemployment.
I've never sponged off the taxpayers and don't ever plan on it Jack. Apt that your name is Jack because you certainly don't know jack.
Expecting the younger generation to kickstart the economy by spending themselves into oblivion. What a joke.
Posted by: Troy | Feb 21, 2022 12:12:10 PM
It's no sense trying to talk to people like Cris or Jack... THEY are the ones with the feelings of entitlement. They look at people like you, that have made a SIZABLE amount of money, and think, "That's not fair! They should give some of that to us." (For nothing in return, of course...) I look at that and think, "Good for him. Sounds like he worked for what he got, had talent, and was in the right places at the right times."
Granted, you're also FAR above the average Canadian Boomer, who is more likely to be only worth 2-300k in total, rather than 2 mil or more. These younger ones are also correct in how the Boomers don't understand their situation. An automatic job with a College degree? No more. Automatically being successful by working hard and proving yourself? Not these days. With the reclining economy, rising population, immigration and standard of education, plus increased regulation by government, it's much harder to 'go at it' and get somewhere anymore. Couple that with the greatly inflated costs of food, housing, transportation...what have you, and it's the perfect recipe to keep these people 'behind the eight-ball'. Which makes the resentment they feel when they look at the generation that were better rewarded for their efforts, a bit more understandable, if unwarranted.