Choices, choices everywhere

Having a choice is a wonderful thing. Something that I suspect many of us take for granted. Which vocation to pursue. Which meal to order at a restaurant. Which car to buy. To even have the luxury of a choice means we are in a very fortunate position, relative to so many in the world.

And with every choice, we actually make two decisions – what we accept, and what we reject. I was pondering this whilst reading an old article by Mr. Quinn as he wrestled with the logic of purchasing a Bentley SUV.

Some luxury car owners will have such abundant wealth that the purchase will just mean a slightly lower inheritance to their heirs. So the choice is relatively easy and with little impact. But I suspect for many of those driving their dream luxury vehicle, they have made the choice of a car, and rejected some financial benefits that they might otherwise enjoyed.

Where I live, I would be happy to bet you $1,000 that we won’t see a Bentley SUV this year. But motor vehicles still seem to be imbued with status. A fully optioned Ford Ranger or Toyota Hilux, or maybe a 300 Series Toyota Landcruiser, will certainly generate lots of comments around town.

And everyone that purchases a 300 Series Landcruiser for about A$110,000 has spent about 1.5 times the median annual Australian income. The 300 Series is an amazing vehicle. Powerful, comfortable, high towing capacity. But you have spent 1.5 times the Australian median income! That is a lot of money that you have chosen to use for owning a motor car, and you have therefore rejected lots of other things. That money could have been invested for retirement, funding education, family holidays, charitable donations or myriad other things.

Personally, family holidays, minimal debt and retirement investments are far more important to me than a motor car. So that is what drives my choices.

But I get it. People have different motivations and aims, and therefore make different choices. But I do wonder if people viewed each choice as two choices – what did I accept, and what did I reject – would it change their behaviour?