Defining Value. What’s it really worth?
I have recently just bought a new car which was an emotional
rollercoaster to be honest, but generally speaking, a good experience.
I ended up buying a fairly new car from a dealership that had only been driven by Toyota executives. It has all the features and extras on it which make it an awesome buy and much more valuable than a standard model. That is of course, depending on who you talk too.
There is quite literally a car for everyone out on the
If you don’t want to spend a heap of $$, you don’t have too. It won’t be the best car on the market but it will get you from A to B. You can pay a fortune if you want for something sporty, or a luxurious premium option. Maybe you want a quick and easy little hatchback. Perhaps you need a big Ute for work or a large SUV for a growing family. If you live off road, you’ll need a 4WD and then you can always get a motorbike if there is no car suitable for you! There are so many options for vehicles, it can quite honestly do your head in if you don’t know what you want in a car. If you are unsure, you can easily pay more than you have to for things that you don’t need. But then again, some people lower their standards and can choose poorly because their decision is based just on price and not about what they need. Balance and a clear, rational mind are needed when car shopping.
So once you have decided on the car that is right for you, what is it worth? How do you determine value?
Obviously, you can compare the car you are buying against other cars on the market and figure out a ball park figure from there. Then you have to take in account things like the kilometres, damages, rego, features, added extras and all those little things that make it unique and give it more or less perceived value.
But ultimately, if you have large 4WD big enough for a family of 7 that is valued at $50000 with all of these special extras and a tow bar and lots of rego, and you are single person that lives and works in a small, busy city, how valuable is that car going to be for you? Some people wouldn’t even look at it. Even if it was offered to you for $25000, it just wouldn’t be viable in most cases. Yes, you could get it and sell it and make a financial profits, but purely as a car, it serves little or no purpose in regards for your lifestyle. A single person living in the city, will usually go for a smaller, zippier car that moves around the city easily. That’s what that car is made for. It is designed to add value to that person who lives in the city. The big family SUV is designed for big families who have to move lots of people. For big families, these larger cars are not an option, they are a necessity, and those families will value that particular car highly.
Value is always based on the what the person buying it, perceives its value to be.
There are so many other things that may come into account when considering value. Your personal situation, past experiences and also, the people selling it to you. If they are rude, mean or pushy, no matter how nice the car is, the whole experience can leave a bad taste in your mouth, so what they are selling you, will not be worth it because of the negative feeling that it produces. Buying anything should feel good. If doesn’t, walk away.
On the other side of that coin, there are the super nice people that go out of their way to help you. Reciprocity comes into play here. When the person who you are potentially buying something from goes that little bit further for you, you’ll want to buy from them. You’ll want to encourage your friends to buy from them too because of the positive experience that you have had. That positive experience will add value to your final decision because it will carry on as a memory of the item you have purchased. Eg “I remember when I bought that car….the salesman was so nice and gave me all those little extras!
For me personally, I purchased a beautiful car with all the little things that I wanted, fair price, fair mileage, but for me, the most important thing was the great people that went the extra mile to make it a positive experience. There were even companies I went to that I didn’t buy from, but their customer service was so good, I would still recommend them to friends.
If you are struggling to find value when you are purchasing anything, try to think about all the people who had a hand in bringing that product to you, just so you can have that one experience. Whether that be a car or just a litre of milk from the supermarket, it took people’s time and energy to bring that product to you.
In regards to a car, think about all the car designers, the engineers, then the factory workers who make the car, the managers who oversee everything and make sure everything in turning over nicely, finance departments, marketing managers who have to get their product out there, salesmen who probably get rejected 90% off the time but keep showing up. Then all of these workers have supportive families who live without their loved ones for 40 hrs per week just so they can keep the industry moving and money and cars circulating through the world. It’s crazy when you accually think about all the people involved in getting a car or product to you. And I’ve just skimmed the surface without going into the larger transport and fuel industries.
Although this system is far from perfect, we should feel very grateful that we live in a world where all our needs are met and that there are so many people doing their work in order to bring what we want and need into our lives. That experience alone can be truly difficult to put a value on.
Gratitude- A way of life by Louise Hay
Rich Dad Poor Dad by Robert T. Kiyosaki
Measure what matters by John Doerr