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Leasing a car is the absolute most potato thing you can do
07-11-2018, 12:45 PM
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#91
- MarinoMike
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Originally Posted By Messiahtype⏩
Those two really aren't comparable though - yes, in both cases you get the new car. But, it's not like you're just going to magically grow a $5K investment into $18K and have all the hard work done for you. Are you better off investing the $18K up front and then taking a $500 distribution each month? Under those circumstances yes, absolutely. But, much of the "support" for leasing a car in this thread has been done under the "no down payment" logic. So, if you have no Down payment, you most likely don't have cash to invest either.1. A lot of miscers don't understand what a depreciating asset is.
2. A lot of miscers are in a financial position that they worry about where $400/month goes
My car is paid for. But IDGAF about cars. Not at all. If my car broke down tomorrow, I would go lease something. Wouldn't even fix it. I have the cash to go buy a car outright. But why? Here, take my $50K right now and turn it into $25K in two years.
vs.
$500/month on a lease over the course of 3 years = $18k
Now what do you think will make my money work the best for me...keeping that $50K invested or spending it on something that loses value by the hour?
Misc is full of smarts today.
2. A lot of miscers are in a financial position that they worry about where $400/month goes
My car is paid for. But IDGAF about cars. Not at all. If my car broke down tomorrow, I would go lease something. Wouldn't even fix it. I have the cash to go buy a car outright. But why? Here, take my $50K right now and turn it into $25K in two years.
vs.
$500/month on a lease over the course of 3 years = $18k
Now what do you think will make my money work the best for me...keeping that $50K invested or spending it on something that loses value by the hour?
Misc is full of smarts today.
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07-11-2018, 12:46 PM
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#92
- cobhc
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Originally Posted By esmile⏩
Why would you only keep a used car for 2 years? To keep flexin' on everyone with a last gen model of a car?I agree leasing is dumb but so is financing over 36 months. Best is to just buy a used car from auction, keep it for 2 years, sell it and repeat.
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07-11-2018, 12:48 PM
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#93
- HMFIC_BROWSIN
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Originally Posted By cobhc⏩
This. My previous car i paid $2600 for it after graduating HS and had it 9 years.... I don't drive much tho so cars tend to last forever if you barely drive.Why would you only keep a used car for 2 years? To keep flexin' on everyone with a last gen model of a car?
07-11-2018, 12:49 PM
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#94
- TurkBrah
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Originally Posted By rollerball⏩
this peasant op doesnt know.If you're a baller and would rather get a brand new luxury car every three years, it's not necessarily a bad idea. Like everything else, it depends on your income bracket.
brb brand new luxury car every 3 years. Im riding the next best thing you are in your beater, wasting your life away on cloth seating and staring a manual speedometer.
just lol
07-11-2018, 12:57 PM
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#95
Originally Posted By rollerball⏩
If you're a baller and would rather get a brand new luxury car every three years, it's not necessarily a bad idea. Like everything else, it depends on your income bracket.
Originally Posted By jamalfudge⏩
So much this. OP went full retard.Wouldn't be terrible if there was no down payment. I mean, $250/month for 3 years on a depreciating asset would be ok if you didn't have to drop 3k on it first.
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07-11-2018, 12:58 PM
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#96
- cobhc
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Originally Posted By HMFIC_BROWSIN⏩
I don't think esmile knows what a logarithmic function is.This. My previous car i paid $2600 for it after graduating HS and had it 9 years.... I don't drive much tho so cars tend to last forever if you barely drive.
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07-11-2018, 01:06 PM
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#97
- ispy
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Originally Posted By devin45k⏩
this x100. lol @ you if you pay for a car when you can have a new one, or several new ones for free every day.Stealing one.
🟩🟩🟩🟩 I am Jack's complete lack of surprise. 🟩🟩🟩🟩
07-11-2018, 01:09 PM
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#98
07-11-2018, 01:11 PM
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#99
07-11-2018, 03:12 PM
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#100
- Cytomegalovirus
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If you are poor and don't care about cars then get yourself the cheap beater. If you have money and like cars, don't dump it in a depreciating asset. I think the people that are against leasing tend to be poor or just could care less about cars.
07-11-2018, 03:13 PM
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#101
- Cytomegalovirus
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Originally Posted By MarinoMike⏩
Again why would you put a down payment on a lease lol? It's wasted money.Those two really aren't comparable though - yes, in both cases you get the new car. But, it's not like you're just going to magically grow a $5K investment into $18K and have all the hard work done for you. Are you better off investing the $18K up front and then taking a $500 distribution each month? Under those circumstances yes, absolutely. But, much of the "support" for leasing a car in this thread has been done under the "no down payment" logic. So, if you have no Down payment, you most likely don't have cash to invest either.
07-11-2018, 03:23 PM
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#102
- GolfmanBrah
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I legit had a boss of mine lease a phucking new Hyundai Elantra. Probably one of the most potato car things I have ever seen.
She said the lease payment on it was $300 a month, for a car that might as well be invisible to everyone, but me and all of my
coworkers had to be fake impressed cause she had a "brand new car". She made over six figures and was still working at 65 and she couldn't
figure out how to get out of debt.
She said the lease payment on it was $300 a month, for a car that might as well be invisible to everyone, but me and all of my
coworkers had to be fake impressed cause she had a "brand new car". She made over six figures and was still working at 65 and she couldn't
figure out how to get out of debt.
07-11-2018, 03:31 PM
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#103
- Godfrd824
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Leasing is great. If you're gonna get a new car every 3 years anyways, and don't drive too many miles, it's great, much cheaper than buying, and the car is always covered under warranty.
When it comes your time to die, be not like those whose hearts are filled with the fear of death, so that when their time comes they weep and pray for a little more time to live their lives over again in a different way. Sing your death song and die like a hero going home.
07-11-2018, 03:34 PM
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#104
- cobhc
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Originally Posted By Micii⏩
WTF have all your parents been doing?am i missing something here?
Why wouldnt you just finance a low mileage used car for three years opposed to leasing it ?
srs
Why wouldnt you just finance a low mileage used car for three years opposed to leasing it ?
srs
When you finance a vehicle you take out a loan for the full price of the depreciating asset.
When you lease a vehicle, a bank buys the depreciating asset and you finance the depreciation over the negotiated term.
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07-11-2018, 03:34 PM
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#105
- spentan
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There are some limited circumstances where leasing a vehicle makes sense.
Always do $0 down on a lease.
Also, with Electric Vehicles, there is a $7500 Federal EV Tax Credit, which some people may not be eligible for, in which case if you lease, it just applies as a $7500 cap cost reduction.
Also, There are some EVs that have inflated residuals, because the Manufacturers cash in on the ZEV Credits in CARB States. This is why I leased my dad a Fiat 500E, for essentially $38 a month.
Always do $0 down on a lease.
Also, with Electric Vehicles, there is a $7500 Federal EV Tax Credit, which some people may not be eligible for, in which case if you lease, it just applies as a $7500 cap cost reduction.
Also, There are some EVs that have inflated residuals, because the Manufacturers cash in on the ZEV Credits in CARB States. This is why I leased my dad a Fiat 500E, for essentially $38 a month.
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07-11-2018, 03:43 PM
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#106
Originally Posted By dcycles⏩
Exactly.Ya because that's way different than a loan???
Lease-
Brb always under warranty
Brb lower payment
Brb guarantee of knowing equity position in 2-3 yrs
Brb short term finance allows you to walk away halfway through loan or buy out the rest.. depending on equity position
Brb.. brb.. u wut m8? Do you even finance advice?? Unless you plan on driving a beater or tieing up a large amount of cash in a vehicle (rapidly depreciating asset)(which would be dumb) leasing is actually a very smart option..
But you sound like you got life figured out so I would keep giving impressionable people horrible advice
Lease-
Brb always under warranty
Brb lower payment
Brb guarantee of knowing equity position in 2-3 yrs
Brb short term finance allows you to walk away halfway through loan or buy out the rest.. depending on equity position
Brb.. brb.. u wut m8? Do you even finance advice?? Unless you plan on driving a beater or tieing up a large amount of cash in a vehicle (rapidly depreciating asset)(which would be dumb) leasing is actually a very smart option..
But you sound like you got life figured out so I would keep giving impressionable people horrible advice
I leased before, twice actually.
Last car was a maxima.
Brb only 195 a month, 0 down, 15k a year.
Brb returned the car with 31k miles.
brb Got a check back for the mileage i didn't use.
Brb didn't have to worry about depreciation.
brb didn't have to put a down payment
brb didn't give a chit about what broke during ownership because it was under full warranty
brb getting a new car every 3 years
07-11-2018, 03:47 PM
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#107
- mchabs
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Originally Posted By Cytomegalovirus⏩
isn't it usually required to put a down payment down on a lease?Again why would you put a down payment on a lease lol? It's wasted money.
07-11-2018, 03:49 PM
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#108
- cobhc
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Originally Posted By mchabs⏩
Never. Only to reduce your monthly payment but that money is gone forever in case your car gets totaled or anything else happens.isn't it usually required to put a down payment down on a lease?
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07-11-2018, 03:52 PM
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#109
07-11-2018, 03:52 PM
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#110
- Micii
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Originally Posted By cobhc⏩
Yeah i understand that, but youre getting nothing at the end of your lease term unless you buy it.WTF have all your parents been doing?
When you finance a vehicle you take out a loan for the full price of the depreciating asset.
When you lease a vehicle, a bank buys the depreciating asset and you finance the depreciation over the negotiated term.
When you finance a vehicle you take out a loan for the full price of the depreciating asset.
When you lease a vehicle, a bank buys the depreciating asset and you finance the depreciation over the negotiated term.
Im just confused because every personal finance forum ive been on says no to leasing, only on the misc have i ever heard of it being good.
I agree though that it can make a lot of sense for people who dont drive often, need it for business, change cars frequently.
EDIT: Genuinely trying to understand this more, not trying to argue
07-11-2018, 04:00 PM
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#111
- cobhc
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Originally Posted By Micii⏩
That’s the whole point. Man, how is this difficult to understand? I’ll explain when I’m back near a computer, unless someone else beats me to it. Or find LinuxJons thread. Don’t ever listen to any self proclaimed experts on the internet without investing your own time to learn it. Even me, go verify everything I’m saying. I’m sure the upper class is just really stupid for leasing and obese lower class bob on a forum is smarter.Yeah i understand that, but youre getting nothing at the end of your lease term unless you buy it.
Im just confused because every personal finance forum ive been on says no to leasing, only on the misc have i ever heard of it being good.
I agree though that it can make a lot of sense for people who dont drive often, need it for business, change cars frequently.
Im just confused because every personal finance forum ive been on says no to leasing, only on the misc have i ever heard of it being good.
I agree though that it can make a lot of sense for people who dont drive often, need it for business, change cars frequently.
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07-11-2018, 04:02 PM
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#112
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If I'm picking up a new car, I lease. I do not want to have the note in my name in the event of an accident that depreciates the vehicle. I negotiate the lease in the same way I would negotiate the sale price. Residual is posted by the manufacturer (leasing company). I reserve the right to buy the vehicle cash or finance at the end of the lease. At that point I can walk away if the vehicle is a dud or if it is worth less than the buyout (residual).
Same cost as buying new but with the added benefit of walkaway in the case of a serious collision.
I'd prefer to pay for the car as I consume it. I don't want to look out in the driveway and have any net equity parked out there with borrowing rates as low as they are on new vehicles.
Same cost as buying new but with the added benefit of walkaway in the case of a serious collision.
I'd prefer to pay for the car as I consume it. I don't want to look out in the driveway and have any net equity parked out there with borrowing rates as low as they are on new vehicles.
07-11-2018, 04:34 PM
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#113
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Worst mathematical decision to best:
1. Leasing
2. Financing new car
3. Financing used car
4. Used car
5. Used car after depreciation hit
Sure, there are some exceptions, but 95% of the time most people are flushing money down the drain doing 1-4. Most people will try to justify flushing money down the drain but you still lose on pure math alone.
1. Leasing
2. Financing new car
3. Financing used car
4. Used car
5. Used car after depreciation hit
Sure, there are some exceptions, but 95% of the time most people are flushing money down the drain doing 1-4. Most people will try to justify flushing money down the drain but you still lose on pure math alone.
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07-11-2018, 05:35 PM
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#114
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Originally Posted By Micii⏩
Vehicles depreciate. The more you use them and the longer you keep them. The less they are worth, the more they break and the more they cost to repair so you can keep using them.Yeah i understand that, but youre getting nothing at the end of your lease term unless you buy it.
Im just confused because every personal finance forum ive been on says no to leasing, only on the misc have i ever heard of it being good.
I agree though that it can make a lot of sense for people who dont drive often, need it for business, change cars frequently.
EDIT: Genuinely trying to understand this more, not trying to argue
Im just confused because every personal finance forum ive been on says no to leasing, only on the misc have i ever heard of it being good.
I agree though that it can make a lot of sense for people who dont drive often, need it for business, change cars frequently.
EDIT: Genuinely trying to understand this more, not trying to argue
Assuming you lease a vehicle you don't look at it like at the end of the term you get nothing. You had use of a new vehicle, reliable with modern tech and the most modern safety features that was fully under warranty for the length of the term. You paid to use a depreciating item. Not paid to own it. Look at it this way. Do you ONLY buy DVD's or do you sometimes go to a theater or rent a movie? Under the never lease logic you should never pay to watch a movie because you won't 'own' anything afterwards.
Some people are perfectly happy driving a 10-15 year old 6K car. And if they are good for them. That's precisely what I did from 18-25. Its undeniably the smart play if you can't use your vehicle as a business expense. At a certain point the money becomes irrelevant and/or if someone is an enthusiast and that car is part of their hobby then maybe that expense is worth it.
Originally Posted By faxanadu⏩
I like Dave's theory on buying used cars then saving to upgrade to another slightly better used car. Its great for people in financial distress or young people. (Other videos he's done).Worst mathematical decision to best:
1. Leasing
2. Financing new car
3. Financing used car
4. Used car
5. Used car after depreciation hit
Sure, there are some exceptions, but 95% of the time most people are flushing money down the drain doing 1-4. Most people will try to justify flushing money down the drain but you still lose on pure math alone.
1. Leasing
2. Financing new car
3. Financing used car
4. Used car
5. Used car after depreciation hit
Sure, there are some exceptions, but 95% of the time most people are flushing money down the drain doing 1-4. Most people will try to justify flushing money down the drain but you still lose on pure math alone.
I'm 31 years old. Been there and done that. Its a great strategy. At a certain point the goal is to get to a point where financially, you don't have to drive cheap beaters that you pay for cash.
07-16-2018, 11:38 AM
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#115
Cliffs: Companies who lease vehicles take into account the amount of depreciation (among other things) when they determine how much they charge for the lease so that they always make a profit. Dave Ramsey claims that leasing is the biggest rip off out of all automative methods.
07-16-2018, 01:11 PM
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#116
- StormRunner
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It amazes me that I see some people who have the means to pay cash for a $15,000-20,000 car take out a lease/finance it. Their excuse is almost always "Why should I use cash that I could be using for investments" or something along the lines.
And this is the problem with debt and payments. It makes things seem affordable. But you are making everyone else rich and are truly signing yourself to be a slave to the lender.
I think Dave said it best - the rich/smart people ask how much, and the lower-middle class asks how much per month.
And this is the problem with debt and payments. It makes things seem affordable. But you are making everyone else rich and are truly signing yourself to be a slave to the lender.
I think Dave said it best - the rich/smart people ask how much, and the lower-middle class asks how much per month.
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07-16-2018, 01:21 PM
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#117
- cobhc
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Originally Posted By StormRunner⏩
Except rich people primarily lease their vehicles.I think Dave said it best - the rich/smart people ask how much, and the lower-middle class asks how much per month.
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07-16-2018, 01:26 PM
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#118
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Just lol at leasing. Brb get a new import car every year but can't modify it or tune it. Got to keep it stock. No thanks jeff.
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07-16-2018, 01:28 PM
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#119
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youll learn that there are benefits to leasing and even reasons why a person should, once you have more life experience.
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07-16-2018, 01:56 PM
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#120
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