Lease Vs. Finance

[Googer]

Originally posted by: iamwiz82

Originally posted by: Googer
150.000 homes in 1985-1990 now sell for $500,000-750,000! Despite the bust in real estate, certain areas of Florida seem to be exempt from it and demand keeps going up.

How unimpressive. That is only a 6-8% annual appreciation.

It's a safe investment and it beats inflation or wasting that cash on a car that looses +20% per year.

 

[jiggahertz]

Originally posted by: vi_edit

Originally posted by: Googer
Buying the car and then selling it after 3 years is much cheaper than leasing. A lease will cost you about 25% more than a purchase.

Can you back that up with anything besides BS?

No, because it's false. Someone doesn't understand residual value.

 

[KillyKillall]

Honestly, I didn't read this thread past the first 5 posts, but neither LEASE nor FINANCE are a good idea for a vehicle.

Something like a vehicle depreciates SOOO fast in the first 2-3 years that you should ALWAYS buy a car 2-3 years used. On top of that, you should always pay full cash for the car.

If you can't afford to buy the car flat out - then you can't afford the car. Buy something more affordable (even if it is $2000), then drive it until you can sell it and upgrade to something better.

Don't put yourself in debt over something that you lose money on.

 

[KillyKillall]

Originally posted by: alkohoLiK
buying the car today at 4pm. ill post some pics when i get a chance

<sigh>

Losing another brother to debt.

R.I.P. alkohoLiK

 

[ElFenix]

Originally posted by: RichUK
I prefer a company car allowance.

our taxes didn't get as fscked up as your's did so company cars never became anywhere near as popular here.

 

[dullard]

Originally posted by: KillyKillall
Something like a vehicle depreciates SOOO fast in the first 2-3 years that you should ALWAYS buy a car 2-3 years used. On top of that, you should always pay full cash for the car.

Always is too strong of a word. Some cars don't depreciate much (and some rare ones don't at all) during the first 2-3 years. For these cars, your advice is wrong. Usually it is correct, but not always.

You are correct about cash. If you can stop your splurging on cars for a couple of years at the beginning, you'll probably forever be able to buy cars outright with cash and never pay a penny in interest. The interest savings will pay for your cars over and over and over again. All for simply postponing a car purchase for a little bit when you are young.

 

[Googer]

Originally posted by: jiggahertz

Originally posted by: vi_edit

Originally posted by: Googer
Buying the car and then selling it after 3 years is much cheaper than leasing. A lease will cost you about 25% more than a purchase.

Can you back that up with anything besides BS?

No, because it's false. Someone doesn't understand residual value.

It's model specific and my number is just a round one. Not all cars loose that much the first year or two. (just certain expensive luxury cars). The percentage lost goes down every year. It's a diminishing return.

 

[fstime]

Originally posted by: KillyKillall
Honestly, I didn't read this thread past the first 5 posts, but neither LEASE nor FINANCE are a good idea for a vehicle.

Something like a vehicle depreciates SOOO fast in the first 2-3 years that you should ALWAYS buy a car 2-3 years used. On top of that, you should always pay full cash for the car.

If you can't afford to buy the car flat out - then you can't afford the car. Buy something more affordable (even if it is $2000), then drive it until you can sell it and upgrade to something better.

Don't put yourself in debt over something that you lose money on.

/THREAD

 

[Googer]

Originally posted by: BouZouki

Originally posted by: KillyKillall
Honestly, I didn't read this thread past the first 5 posts, but neither LEASE nor FINANCE are a good idea for a vehicle.

Something like a vehicle depreciates SOOO fast in the first 2-3 years that you should ALWAYS buy a car 2-3 years used. On top of that, you should always pay full cash for the car.

If you can't afford to buy the car flat out - then you can't afford the car. Buy something more affordable (even if it is $2000), then drive it until you can sell it and upgrade to something better.

Don't put yourself in debt over something that you lose money on.

/THREAD

Best post in this thread.

 

[Googer]

Originally posted by: TheSlamma
Atleast with a lease you won't own a faulty electronics VW.

At least with a different manufacturer, you won't have to worry about that at all. GM for the win.

 

[OFFascist]

Originally posted by: Turin39789
---- get a tdi-----

Pretty much the only VW that interests me at all are TDIs.

 

[pyonir]

purchase.

 

[TangoJuliet]

Ok, thanks for the replies everyone.

My wife and I purchased the vehicle yesterday. It wasnt a matter of putting us in debt because we have enough money to buy it outright but why? We went with a 2.9% financing plan for 48 months which comes out to about $990.

I'd rather keep the $20,000 in my 5% savings account and accure more interest. The payments are low enough that they fit into our budget.

With our combined monthly salaries - all expenses ie mortage, taxes, car payment, insurance, tv, phone, cable, etc etc we have $1400 that goes into our savings account....so this car, unless the payments were $1800/m will never put us in debt.

 

[Marinski]

Leasing isn't bad for the right price. I did a one pay lease on a 06 Dakota for 2200 otd for 24 months. But, I got it at the right time. The dealerships were way overstocked and they were giving them away dirt cheap because they needed to bring in the new models. To buy it would have been at least 18,000 if not more. Monthly payments would have been three times as much, plus the loan, and thats with nothing down. After that your talking additional $ for any repairs/maintenance. If its a lemon you get jacked on repair costs unless you know a mechanic. I think leasing is good if you don't have the loot and you want a problem free vehicle for cheap for a few years. If I was going to buy, I would buy used. Let somebody else pay the depreciation and buy it from them afterwards because as soon as you drive that new car off the lot its not worth what you paid for it.

 

[Nutdotnet]

Originally posted by: Googer
Leasing is the same as tossing lots of money in a garbage can. Smart people buy then have something to show for it. Even smarter people buy used cars and have tons of cash left over for their retirement.

Leasing is a GREAT option for people who are able to fit into the leasing lifestyle.

If you:
Drive less than 15k per year
Don't want to tie up your $$$ in a large down-payment
Don't want to tie up your $$$ in a depreciating asset

Then leasing is a GREAT option. You go zero down, have low payments, and are able to use your hard-earned funds for something that actually creates value...a car does not.

There are caveats to leasing that make purchasing a smarter option, absolutley, if you're the type to run your vehicle into the ground then it makes perfect sense to buy...but don't discount leasing just because you don't understand it.

Buy appreciating assets...lease depreciating ones...pretty simple concept.