all they have to do is own a home for it to make sense, gnome saiyan?

seen this a lot with jap cars - dc5's have also gone up in value.

Which for most millenials is not a thing anymore. I get what you are saying, but Id also imagine there is not a huge difference between a 2% spread on a 10-20k loan. Most people are not gonna throw the money at a different loan, they are just gonna spend it on something else. It makes financial sense to do what you did if you can get an extremely low interest rate on a car (most wont), but I dont think its a big enough difference for most purchases to really stress about.


Im moreso commenting on the ridiculousness of suggesting leasing is a better option than buying in terms of financial sense...

This thread is retarded.

The answer is a mathematical equation where you weigh the costs against each other (with certain assumptions like a 5% return on S&P, depreciation % YoY), including the value toyouto own a new car.

Either option may be better depending on the output of the math.

Simple.

Buy/finance: You're okay with owning one car for more than 5 years, and not having a car payment once it is paid off, but at the same time having a dated car. You own it.

Lease: You're okay with always having a car payment, but you always have the newest tech inside the car. You don't own it and you're limited on the miles you can drive it. Brb, no road trips from LA to NY

The best of both worlds in my opinion is to do a lease takeover. I would only lease an expensive car though otherwise the math wouldn't add up correctly.

Case:
I want a BMW M4
Specifically I want one in manual with cloth seats and the competition package. I live close to where I work. I don't really take long car trips. I would probably want to sell it after 3 years and the warranty is up because I won't want pay a large amount of money to fix a depreciating asset.

To buy a new one would cost $75, 200 in liquid cash. I am going to lose $5-7000 as soon as I drive it off the lot. Residual will probably be around 60% at 3 years meaning I can sell it for ~45000 if I can find anyone in the premium BMW market that wants to buy a BMW with cloth seats in manual with no other optional features. Meanwhile, I've paid tax on the entire 75k. God forbid this thing is in an accident and now has a record on Carfax because now the value is much lower.

Or I could finance it. Payments will be around $1300 per month at a decent interest rate. I still have the same downsides as outlined above except I haven't done away with an entire $75k... yet. I'll still try to sell it after 3 years. But for every month it doesn't sell I'll be forced to hold onto and pay for this rapidly depreciating asset that I don't even want anymore.

Or I could lease it. Payments would be around $1000 with a $3k down payment. I could probably get the payment to go down even lower through a couple of different techniques that would lower the interest rate. I am paying $30k over three years (which I would have to pay anyway if I bought it new and sold it at the three year mark). I am only paying sales tax on $30k not 75k. I don't have to worry about selling this weirdly configured car. If it gets into an accident I don't have to worry about how it will affect the resale. I do have to pay interest on the residual amount though. Regardless there is about a 7-10k difference over three years in the amount of money I am losing favoring leasing

Or I could do a lease takeover. Payments there are sometimes as low as $650 because the people who put those cars on the site often will give cash towards the lease lowering the overall payment. Same benefits as before except now you don't have a down payment in some cases. The lease is a little shorter. Car still under warranty. I can still walk away from it in a couple years and get a newer model.

This only works in specific examples. For example, I would never lease a Jeep wrangler or Toyota Tacoma/4runner because the resale on those cars are too high to make the math work out in favor of leasing.

Still waiting

Are we supposed to be impressed?

Anyone can live the life of a monk and accrue every penny of their minimum wage job like you.

However, the whole point of having money is to help live a meaningful, fulfilling life.

Something I strongly suspect you have little to no experience of.

Keep squirreling away those pennies. Chances are I'll benefit from them in some way when you die of a stroke and the government takes the lot.

How I get into peer to peer lending? I've been thinking about it recently, seems like a great way to get high returns and I've got cash sitting in my bank account doing nothing for me

The correct answer for whether buying or leasing a car is the right option is: It depends.

Generally if you want a high end luxury car, it's better to lease because then you don't have to pay expensive as fuk repair bills or deal with that massive depreciation cost. If you want a lower end car with low cost of maintenance, it's better to buy.

Also if you are the kind of person that wants to upgrade cars every few years, better to lease. If you are happy driving a 10-15 year old car, better to buy.

I bought a new car a few years ago, but I've been wanting to upgrade since last year. I decided I would keep my current car until I pay it off next year and then upgrade. But I'm still going to take a lot bigger financial hit when I sell it, then I would have if I had leased it. So I'm stuck paying more money for a vehicle I don't want, since I financed it, instead of leasing it. If I could have done it over again, I would have leased my vehicle from the beginning, then upgraded to a luxury car like a year ago and been happy.

Depends on your skills as a negotiator, day you shop for the car, etc.


I got my truck for 6K less then the Kelly Blue book value. 3 year warranty over-all. Free 7 year warranty on the paint job and on the leather seats. Free Life-time oil changes/tire rotation. Free roadside assistance + towing for 5 years. And I financed at only 2% interest.



Did some shopping on used trucks in the same class. Trucks that were 2-3 years old and had 40-50k miles were going for only about two thousand less then I paid. And they had none of what I just listed. Furthermore those trucks would be needing a bit of maintenance soon. Tires. Etc. which could easily eat into that few thousand of savings. A vehicle isn't an investment its a luxury. And sometimes buying a new vehicle can be more affordable/ a better financial decision. I'll likely sell my truck within 5 years and get another new vehicle. Either that or pay it off and pick up a new vehicle as well and just keep the truck for when I want to do truck stuff.

Played golf four days in a row last week. Been to America twice and most places in Europe. Considerable passive income and a neat side hustle. Salary increasingly irrelevant. You do you, I'll do me.

In the US yours is called lending club. There are other ones too but the main one is lending club.

Go check it out. You can invest in riskier loans that pay high interest, but have a high chance of default and will go first if your economy goes bad... but that there 25%+ interest
or lower risk loans.. less return but safer...

You can see the distribution of loans I have, the safe ones are too safe, so I don't have many A's, and the F's although high interest are too dodgy. The sweet spot is B/C/D and some E's.

Just got back to UK and looking at cars now. Pleasantly surprised how much you can pick up a used one for. > 10 years and > 40k miles for about £1,500-£2,000. Will be buying, but making sure it's not a dud.

Not at all true.

I got a loan for my Maserati, even though I made enough in 30 days in April to buy more than two of them outright and have enough to buy 10 outright with no other debt.

Why? because my loan interest rate is 4%. My stock portfolio gained 11% YTD. Therefore it's best to have the smallest payments possible and keep the bulk of my income in my stock portfolio.


Poor and dumb people think only poor people finance or get loans.

super standard

I'm not quite as balling as you are - I could buy a maserati, or even 2, but it would be the a good chunk of my investments, but yeah investments return more than cost of borrowing = borrow some more


what do you do btw to pull that sort of $$$?

I think we can assume Busta isn't in that boat

1) - "Played golf 4 times last week" - because you were obviously due for nightshift.
2) - "Been to America twice and most of Europe" - that's all you have to show for the last 44 years? LMFAO!!!
3) - "Considerable passive income" - you mean you rent a house out? Big deal mate. Not rocket science.
4) - "Neat side hustle" - you deliver pizzas in your spare time.
5) - "Salary increasingly irrelevant" - yet you choose to slave away at a shift job on minimum wage? If it's not relevant surely you can afford to drop that caper now.

Annnnnnddddd The Capp is back

I didn't read the history on why you two are going at it lol and I doubt he makes minimum wage but even if he does, if he managed to save money on Any income that's respectable.

How can he deliver pizzas in his spare time if he hasn't had a car for 15 years? Moped driver perhaps?

I am not disagreeing with you but I still decided to buy a brand new Honda because I plan on keeping the car 10 years+ and I want to be in complete control of its history and maintenance.

It's not that black and white guys...

just lmao @ buying a new car.

1) no, but so what??
2) and Egypt. Not a big traveller or spender as I've said many, many times. And I'm 43
3) definitely isn't rocket science, except I bought on the housing dip twice. How many people are smart enough to have the deposit ready to do that next time around? Are you?
4) nope. Although I wouldn't knock a man for his job, whatever it is. (Unless its you claiming to be an 'analyst')
5) yep, pretty much could stop if I retired somewhere cheap, however I'm fit and enjoy my job and can have a better retirement in a nicer place by carrying on working a few more years. And I'm sticking around for a potential payout in my company share save.

Good troll job. Thread derailed quickly into e-peen measurements contest!

Bought on the big housing dip myself, paid for my initial house outright years ago. Whoop de fukking do. Doesn't make me Donald Trump.

I simply used the proceeds towards a deposit for an upgrade since I have a reason to live and I'm not interested in pissing about chasing subhumans for rent.

As for having a deposit ready for another dip - yes I could if I wanted. But so could MILLIONS of other people. You're neither rich, eligible or clever just because you have a few k in the bank.

You're the type of guy who showers only at the gym to save on water bills, wear coats indoors at winter and leaves all the doors in your house half-open to minimize wear on the hinges.

That couldn't be more inaccurate. Almost all rich/wealthy people lease their supercars, they almost always say its idiotic to buy them unless its a collectors/one that won't devalue.

they lease them because they dont have the liquid cash to buy a £1.2M lambo.

i just bought a new car for 30k outright literally last week, sorry that some of you guys are too poor to have that luxury

Guys I have an idea instead of arguing about something that can be easily solved by math :

- Both parties agree to a car model
- We'll do the maths together and find out what is better

how bout dah ?

This is actually a very interesting topic