Win or Lose (Lease / Rent vs Buy)

[Lets Respect]

Not to beat a dead horse, but there is something else I see a lot with women my age (30-45). Their needs can change quickly as they go in in and out of different stages of life.

I started with a compact commuter car to a midsize sedan and then a minivan. Minivans are great for hoisting multiple kids into carseats lol. Then the minivan was overkill in terms of cabin size with poor handling so I switched to a wagon. I imagine in a few more years when my kids start driving themselves, I may want something different again. None of these life changes took place longer than 5 years apart.

The reliability issue is a big one too as mentioned above.

 

[RustySpork]

My point is this- you can achieve that dream without tying up your money in a loan that you are paying interest on, take interest out- still tying up money that could be earning for you elsewhere. That's where people mislead themselves.

Peace

So rather than taking all of your money out of your front pocket and lighting a small amount of your money on fire (depreciation, taxes, interest) while you keep the larger chunk safe by putting it into your back pocket, it's much better to take your money out of your front pocket, light a lot of it on fire (lease payments) but you're cool since you're still taking a small amount of it and putting it back in your front pocket rather than burn it.

 

[Dad 2 M & M]

My point is this- you can achieve that dream without tying up your money in a loan that you are paying interest on, take interest out- still tying up money that could be earning for you elsewhere. That's where people mislead themselves.

Peace

I hear ya......2 - 3 years of payments into an investment is worth way more than that newly purchased (now 2 -3 year old) auto is,even without factoring what balance is still due...not that complicated

 

[21stamps]

Not to beat a dead horse, but there is something else I see a lot with women my age (30-45). Their needs can change quickly as they go in in and out of different stages of life.

I started with a compact commuter car to a midsize sedan and then a minivan. Minivans are great for hoisting multiple kids into carseats lol. Then the minivan was overkill in terms of cabin size with poor handling so I switched to a wagon. I imagine in a few more years when my kids start driving themselves, I may want something different again. None of these life changes took place longer than 5 years apart.

The reliability issue is a big one too as mentioned above.

That's a great point.

 

[Dad 2 M & M]

Every time I walk into a new car showroom I'm amazed at how many financial geniuses work there.

And them financial geniuses are amazed at how many peeps walk in and know how to take advantage of them buy trading in a 2 - 3 year old car, or get the better of them by leasing....da hee HEE. Don't see how those dealers stay in business with the genius of the consumer nowadays... up to almost 90 comments now....getting nervous

 

[RustySpork]

I guess the moral of this story is to go outside and throw a bunch of hundies into the fire pit.



Look, I'm leasing!

 

[21stamps]

And them financial geniuses are amazed at how many peeps walk in and know how to take advantage of them buy trading in a 2 - 3 year old car, or get the better of them by leasing....da hee HEE. Don't see how those dealers stay in business with the genius of the consumer nowadays... up to almost 90 comments now....getting nervous

Except for some people, like me, fully admit that "my way" is not the best way..as I know it would be better for me if I kept a car for 7-10 years. I recognize that I won't, so I minimize my damage.lol

 

[RustySpork]

Except for some people, like me, fully admit that "my way" is not the best way..as I know it would be better for me if I kept a car for 7-10 years. I recognize that I won't, so I minimize my damage.lol

How do you even?

 

[Dad 2 M & M]

Except for some people, like me, fully admit that "my way" is not the best way..as I know it would be better for me if I kept a car for 7-10 years. I recognize that I won't, so I minimize my damage.lol

Up to 92 now......it's inevitable.....

There are merits to both sides, and probably isn't a "best" way with all things considered, ceteris paribus

Type slower, I can't read very fast......

 

[RustySpork]

Up to 92 now......it's inevitable.....

There are merits to both sides, and probably isn't a "best" way with all things considered, ceteris paribus

Type slower, I can't read very fast......

Unless you lease you're just throwing money at a bank.

 

[21stamps]

Up to 92 now......it's inevitable.....

There are merits to both sides, and probably isn't a "best" way with all things considered, ceteris paribus

Type slower, I can't read very fast......

The main difference is this.. we don't have a crystal ball. So no one really knows what the value of their car will be in 3 years. The person who buys with the intention to trade in that time frame is assuming more risk than the person who can walk away from their car. At minimum taxes will be several hundred dollars (most of the time well over $1k) which can not be recouped.
I have worked the numbers inside and out. There was a time where I started driving a lot more miles for a few years...when I went to almost 25k miles per year the numbers came out in favor of the purchase. Still unfavorable scenario overall though. I'll probably always have nightmares over that trade in process

I'll stop posting now to help you get your wish of not getting to 100.lol

 

[Dad 2 M & M]

***edit***delete

 

[RustySpork]

The main difference is this.. we don't have a crystal ball. So no one really knows what the value of their car will be in 3 years. The person who buys with the intention to trade in that time frame is assuming more risk than the person who can walk away from their car. At minimum taxes will be several hundred dollars (most of the time well over $1k) which can not be recouped.
I have worked the numbers inside and out. There was a time where I started driving a lot more miles for a few years...when I went to almost 25k miles per year the numbers came out in favor of the purchase. Still unfavorable scenario overall though. I'll probably always have nightmares over that trade in process

I'll stop posting now to help you get your wish of not getting to 100.lol

What if I told you that there is such a crystal ball? It's called research.

 

[RustySpork]

I'm sure I've benefited in at least the peripheral, to your lucrative scheme to get the Bugati and the blue yonder above....keep socking it to us as we,re not making anything off you.....hope many aren't going to follow as your plan has got us teetering on the brink and almost out of business...dah hee HEE.... I'll have to make 236 high interest, high risk loans to make up for your last deal.....if one, even ONE of those 236 defaults, I'm toast...please don't trade up again....

Nah, I don't dream of a Bugatti but it did make a fine example since we're still talking about it! Dealerships always make money, I've said that before though. Just have to know how to not get taken to the cleaners when you walk in the door and you'll both be alright.

Maybe I'll go out and pick up an SL Roadster for DW, she's had her eye on one for a while now. What do you think @Dad 2 M & M lease or loan?

 

[Grimley1968]

For me, besides the equity math being in favor of buying, I can't imagine personally making such a large transaction with the end result being that I get nothing for all that money, except a somewhat limited privilege of driving someone else's property for a time.

Also, it seems to me the consumer loses in another way: the manufacturer sets the payment amount and then the floor of what has to be paid to buy the car at lease end. I can think of no other big ticket type of transaction as lopsided against consumers as car leases.

Buying is always going to win versus leasing for me.

 

[Laketravis]

#100.

 

[21stamps]

$0, at 4% interest. When I traded it (year 3) I had $20K in equity. If you deduct taxes and interest, I was still ahead.

Was this a Bugatti? a completely customized one?

This is the part that I still can't figure out. That insane equity.
It's been an interesting exercise in fantasy though.lol

 

[RustySpork]

Was this a Bugatti? a completely customized one?

This is the part that I still can't figure out. That insane equity.
It's been an interesting exercise in fantasy though.lol

Wow, now that's quite a mish mash of crazy there. No, it was not a Bugatti. TIL that owning a car that's worth more than zero once it's paid off (or even partially paid off) equals "insane equity". Might want to take another look at post #64.

 

[21stamps]

Wow, now that's quite a mish mash of crazy there. No, it was not a Bugatti. TIL that owning a car that's worth more than zero once it's paid off (or even partially paid off) equals "insane equity". Might want to take another look at post #64.

Ok so that was paid off. That makes more sense how the 20k came in. the important math would be how much total was paid in the 3 years. Not how much equity a paid off or almost paid off car had.

But at this point we're going in circles. lol. All of its been said already.
It has been mildly fascinating though.

 

[RustySpork]

Ok so that was paid off. That makes more sense how the 20k came in. the important math would be how much total was paid in the 3 years. Not how much equity a paid off or almost paid off car had.

But at this point we're going in circles. lol. All of its been said already.
It has been mildly fascinating though.

You just don't understand that you don't have to have a vehicle paid off to have equity in it. You literally own what you've paid into it minus depreciation, taxes, and interest. It's amazing that you don't understand that.