This is Alpha, the first-born, when he was 2YO.
This is Beta, the second-born, when he was about 2YO.
This is Gamma, the third-born, when he was about 18MO.
Interest-Free Vehicle Registrations
Jan
31
2024
As with most people, I had to renew my license plate tabs again this year.
Something new I noticed, though, was that we in Michigan now have an option to renew for 2 years at a time, instead of just one.
“That’s a good idea,” I thought, ready to take advantage of halving the vehicle paperwork over the next several years. I got most of the way through the process online, and then it showed my total: exactly double the one-year rate.
When I state it like that, you may think “what’s the big deal? It’s twice as long so it should be twice as much.” Yes, but the down side outweighs the up side, at least to me.
The Michigan Secretary of State is thinking that most people will go along with my initial thought (“less work for me”) and not think any further.
But I want a price discount from them before I sign up for a longer term. Mainly because I have 4 vehicles, and that’s around $450 per year. If I sign up for two years at once, I am giving the state a $450 interest-free loan for that second year.
What is my incentive to give them a chunk of money up front and lose out on my using that money for a year? Especially now, with interest rates being higher.
For example, most Certificates of Deposit are giving about 5%. For a 1-year CD at 5%, that $450 would earn me $22.50. If Michigan wants me to lose out on theoretical interest, they need to give me a discount for the longer term.
Plus, how much does it cost them to mail out reminders, process the renewal, and print out the new tabs? Why don’t they pass those savings on to me? I don’t even need my discount to be all of what they save, but they need to make at least some effort.
For now, all the benefits go to the state and I’m left with only drawbacks. So I’m going to keep renewing annually, until they come up with a better offer.
You shall not give him your silver at interest, nor your food for gain.
Leviticus 25:37
This little article thingy was written by Some Guy sometime around 6:35 am and has been carefully placed in the Finance category.
