To Lease or Own...That is the Question

[VaDwayne]

Unfortunately, buying American means that you lost many,many thousands of dollars in depreciation unless you did like I did and buy a used Taurus or something. I bought my Taurus because I know they depriciate faster than a Las Vegas home in 2009.

I will buy American fro now on too, but I will let some other fool take the 10,000-15,000 dollar hit, and then I will buy it at the auction.

 

[xrac]

Personally I would buy a used car and save 65% and pay it off as quick as you can have a couple of good months. Then drive it for 3 years and do it again.

I am with Newby but then great minds think a like. I would never buy or lease a new vehicle that I was going to drive a lot. The only time I have bought new was as a 25 year anniversary present. For example I bought a 2 1/2 year old SUV on Ebay for $7,500 less than retail with an extended warranty that I transfered for $50. It was cherry and loaded. New it went for about $35,000 and I paid $14,950.

But then I am the guy who bought a minivan for $200. Spent about $1,000 on repairs. Drive it for two years and was in an accident where the other driver was at fault. His insurance totalled it and paid me $3,900 for it. I bought it back for $500. Spent $500 more on repairs and drove it another year. Then sold it for $1,200. I drove that van for three years and made almost $3,000 in the process. Those are the kind of deals I like.

 

[Crabcake Johnny]

Ditto. I will never have another car payment again - like throwing money right in the toilet. I've lost my drive to impress the stranger next to me at the stop light.

When my car dies - hopefully I get another 10 years out of it I'll buy another one with cash...used.

My father's generation is truly the last - I think he had his car for around 25 years. Of course, my dad saved everything and now is very, very comfortably retired.

 

[Newby]

My wife wanted an Acura RL. They were $50,000 new. I went to a dealer that handled a lot of them as they come off of 36 month leases. They had 9 of them to choose from. All colors and all of them loaded with everything. He said take your pick for $18,000. We chose a flawless silver one with 32,000 miles and 2 years of factory warranty still left.
She's still driving it 5 years later. Buying a new car couldn't feel any better and we haven't had a payment in years.

 

[Crabcake Johnny]

Great move.

 

[Guest]

Absolutely, a car is never an asset, only a liability so limit your liability. Buy a used car in cash, if possible. I know, you can't do that, well, maybe if you stop with high unnecessary car payments you can't afford anyway, you'd eventually be able to buy the car in cash with the money you would save.

My wife wanted an Acura RL. They were $50,000 new. I went to a dealer that handled a lot of them as they come off of 36 month leases. They had 9 of them to choose from. All colors and all of them loaded with everything. He said take your pick for $18,000. We chose a flawless silver one with 32,000 miles and 2 years of factory warranty still left.
She's still driving it 5 years later. Buying a new car couldn't feel any better and we haven't had a payment in years.

 

[VaDwayne]

If you pay $40,000 for a vehicle and finance it for 72 months at 7.5% the payment will be around $691 per month which means it will cost you ove $50,000 in 6 years.

If you invest this same 691 per month for 72 months, and you only make 7.5% and you don't put another dime in after 6 years, you will have saved around $69000.00. Leave that money there for 20 years and you will have $293,000 and if you leave it for 30 years you will have $604,000. You better really enjoy that car.

When calculating what something actually cost, you have to look at the potential future earnings of that dollar.

$293,000 for a $40,000 car, not such a good deal.

 

[briko3]

Sounds like you've been listening to some Dave Ramsey

 

[VaDwayne]

Sounds like you've been listening to some Dave Ramsey

"Circle of Wealth"

 

[xrac]

I knew to avoid depreciating assets long before anyone every heard of Dave Ramsey. I was teaching this stuff in church 25 years ago.