What is the greatest expense in the average American's life? His house? Heck, no. Generally speaking, houses are great investments, not expenses. They appreciate. The biggest expense is the automobile, in absolute dollars and as a percentage of annual income. It depreciates, as you know, a lot and especially quickly, particularly if it is new or slightly used. Just out of college, I took a job at an upscale car leasing company in Beverly Hills, California. And if you just read the opener to this article you saw a summary of a lecture I was given by the owner of that firm. He went on to advise: "Gary, do you know how to BEAT the car business?" "Nope." "Buy the best car you can, hold onto it forever, and keep it in decent running condition; that's how." If you think he was wrong, consider this. Mark O. Haroldsen is the author of the book, "The Courage To Be Rich," and he mentioned that be bought a very used, but still great looking Rolls-Royce. He drove it for a number of years, getting thousands of admiring glances, and then he sold it for TWICE what he paid! This smart guy took what is typically the biggest expense in American life and turned it into a PROFIT! Now, you know the secret to beating the car business. But do you have the courage to withstand those new car rebates and low interest loans in order to do so? |
