10.05.2005

Honda May Up Cost of Pet Ownership

I do not currently have a pet. My building will not allow dogs and I am allergic to cats. However, in the future I plan to own a larger dog (yet to be decided between a Lab or a German Shepard). Back in June, Free Money Finance found an article that referred to the monthly cost of pets. He put some straightline calculations together:

Let's put a few numbers to this. If a pet costs $400 per month and lives for 10 years, that's $48,000 (not to mention what you could have earned on that money if you had invested it). If the pet lives for 15 years, that's $72,000!!! Even if the pet only costs $200 per month, that adds up to $36,000 over 15 years. Yikes!!!

These were not even future value calculations. If you instead took $400 and put it into an investment vehicle that earned only 6% over 10 years, you would have $65,551.74!! Up that to 8% expected return and you are over $73,000.

According to an article at the Denver Post, Honda is debuting a pet friendly vehicle at the Tokyo auto show later this month. They are trying to promote a safer car for dogs (and other pets) as their research shows that a major danger for pets hitching a ride in the car with you is that they may get ejected from the car during a crash. There is no figure on how much this vehicle may cost or if it would ever reach the United States. However, it would no doubt impact the cost of pet ownership for those that would trade their vehicle for this one if and when it is released. But, if you were already planning to buy a car at this time it would not necessarily cost you extra, but could sway your decision to buy this new vehicle.

1 Comments:

At 10/09/2005 07:07:00 PM, Anonymous pfadvice said...

Most people don't step back and consider the financial costs when they see the little puppy in the window. Too bad - since it will take a lot of money out of your pocket as your post well illustraded. That's not to say not having a pet is better (I have a dog and 3 cats) - just that you need to have their cost factored in when you make a decision to have one.

 

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