25th Jul 2020, 19:36
Notice the comment actually says operate and not “own”. Probably for the exact reason you mentioned. Leasing is essentially renting a vehicle, never owning it. All the depreciation you discuss, YOU pay for that as part of the lease payments, money down, etc that goes into it. Plus, you have no equity in it. Leasing is just lighting money on fire & a way for people who can’t afford the vehicle to find a way to get into it anyway.
26th Jul 2020, 14:54
"Leasing is just lighting money on fire" That couldn't be farther from the truth. Here's another way to look at it. When you buy a car, you're paying off of your balance sheet. You're buying a car that costs $30,000. You take $30,000 out of your savings account, you've got the car, and that money is gone forever. In its place is an asset that is rapidly depreciating. Now, what about when you lease? When you lease, you're paying off of your income statement. Your monthly payment is $300. Your salary is $150,000. The depreciation cost in a lease you speak of is simply for the duration of the lease and not the total purchase price of the vehicle. The only people who should buy a car are people who are are job insecure and/ or do not feel their income going forward will be sufficient to cover the lease payments. There is no other reason to utilize your balance sheet for an asset that generates such a terrible return on investment, period.
27th Jul 2020, 14:27
Uh, no. There is this thing called financing that lets you buy a car without having to "take $30,000 out of your savings account". Yes, there is an interest cost, but once the car is paid for you now own an asset that still has value. At the end of your lease (at which, on top of the down payment you made when the lease started, you may have to pay an additional charge if the mileage on the car exceeds the allowance) you turn the car in to the leasing company and you have: nothing.
The only people who should LEASE a car are those who think they will impress others by driving a car that is more expensive than they could ever afford to buy. News to them, nobody is impressed when they find out you leased it.
27th Jul 2020, 16:49
Wrong again. Buying a $30k car with cash or a loan, maybe it’s worth $10k by the time you get rid of it. You spend $30k and decide for yourself when you get rid of it. A lease you spend most of that $30k, get zero equity, are told how much you can drive it, and are told how long you can drive it. The depreciation, the fact that the dealer is essentially loaning you $30k for 3 years, and some extra for them to make a profit are ALL priced into the lease. Search “Dave Ramsey Car Lease” on YouTube. You don’t seem to really understand them.
27th Jul 2020, 18:42
If Dave Ramsay is your source for financial advice, I completely understand why you know so little.
27th Jul 2020, 18:55
The only people who should buy a car are those who think they will impress someone by paying cash for a rapidly depreciating asset. And the only people who should finance are people who want to brag about having acquired a rapidly depreciating asset when they have not even done so, and likely will never will. Most people who finance end up trading the car in after 2 or 3 years (the absolute pinnacle of foolishness). If they had leased, their payments would have been much lower and they could just get another car upon maturation of the lease as they intended and not worry about the consequences of an underwater loan.
27th Jul 2020, 19:21
Equity in a car is meaningless. It's especially meaningless, in fact nonexistent, in a financed vehicle. I bet you're the type who would include the value of his car in his net worth calculation!
28th Jul 2020, 04:13
"Most people who finance end up trading the car in after 2 or 3 years"?
So, is that statement based on any factual data... or is it just another of your opinions?
What is factual is that leasing is very profitable for dealers, which is why they push it so hard. Kind of like you are trying to do here.
28th Jul 2020, 17:01
FACT: A car is a depreciating asset.
In the words of John Paul Getty, "If it appreciates, buy it. If it depreciates, lease it."
28th Jul 2020, 20:40
I own my car free and clear. Don’t owe a single penny on it, and I’ve never wasted money renting, err leasing, a car. If you want to compare your financial situation to mine, I completely welcome that. You’ll realize quickly you don’t know what you’re talking about.
28th Jul 2020, 20:40
Very true. I’m skeptical this poster must work for a car dealer. Nobody else would be arguing that is a wise decision.
28th Jul 2020, 20:41
So you’re saying someone with a paid off car which is worth five figures (my exact situation) shouldn’t consider that in their net worth calculation? You apparently haven’t had to spend time doing a net worth calculation before if you think that.
28th Jul 2020, 21:45
You sound like an emotional person. You feel good about owning a car it's "paid off." As if your ability to pay for something is any better than the rational person who chooses to lease instead (Hint: getting an attractive lease requires excellent credit). All you've proven is that you don't know how to invest your cash. Show me your real estate, your exotic art collection, what stocks you own. Your car? Get out of here with that.
29th Jul 2020, 20:07
There’s no such thing as an attractive lease. It’s effectively like borrowing at 14% interest on average; far worse of a financial decision than even a car loan (which is also not smart). I pity you that you can't see the bad decisions you’re making by leasing cars. Find me any wealthy person who leases cars. I know many of them, and I don’t know any who do that.
29th Jul 2020, 20:11
I’m actually impressed at car dealer marketing that they’ve convinced you and reeled you in to parrot everything they want people to believe & waste their money. By the way, I don’t “invest” in cars. Nobody does other than vintage collectibles. Stocks, real estate, precious metals, collectibles, you name it. I’m very well diversified in actual assets. Helped that I never wasted money on a car lease to be able to invest in all those things.
24th Jul 2020, 00:13
"Leasing is the most expensive way to own a vehicle" Um, not quite! This statement first and foremost misunderstands what it means to own property. No one ever "owns" a leased car except the bank. Similarly one doesn't own a financed car until it is fully paid off. More to the point though, the biggest advantage of leasing is just that: you don't own the car! A car purchase is one of the worst investments one can ever make. Why one anyone ever want to own something that loses value the second one signs the dotted line? The average car depreciates 20-30% in the first year. Why would you want to do that to yourself? There's a reason leasing is increasing in popularity. A BMW salesman told me that something like 80% of his business is leases.