pay cash or lease or financing?
#16
Originally Posted by VitB6
Like it or not, spending your money to purchase ANY car in full (15K or 30K or 50K whatever) is the worst thing you can do with your money
Lex
#17
Lexus Champion
Sure, but my opinion is that if you WANT a new car every two or three years and you cannot afford to BUY a new car every two or three years but you can DRIVE a new car every two or three years if you LEASE it, then you are leasing because you cannot afford your desires by buying. For me, I put way too many mileage on a vehicle to consider leasing. So I will buy the is350. This certainly doesn't apply to every single individual who leases, so YMMV. I personally know several people who readily admit they cannot afford to purchase the current car they are driving so they leased it.
My 2 cents.
My 2 cents.
#19
Liquid Bra Champion
Originally Posted by MR LEX
I've struggled with the lease option many times since I usually get bored with a car around the 4-year mark but I always end up purchasing.
Lex
Lex
#20
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I think a lot of this debate is silly. Some people have the money, some people don't. I could pay cash, but I would rather hold onto the cash in case I need it. I can't lease because I drive 30,000 miles per year. I write off my payments as a business expense.
Everyone has their reasons, don't knock them. If some guy who makes $30,000 per year wants to buy this car and finance it, good for him.
It is my guess that few people have $40,000 laying around and most will finance.
Everyone has their reasons, don't knock them. If some guy who makes $30,000 per year wants to buy this car and finance it, good for him.
It is my guess that few people have $40,000 laying around and most will finance.
#22
10 year old corolla broke down
we have 2 cars in our family, my 2000 maxima SE and my wife's 10 year old corolla (her first car, got it when she got her license). since the tranny went out, we're put in a position of buying a car ASAP. so we're going to have to pay MSRP for the lexus this month as my wife won't even take a look at the 3 series or TL, it's IS all the way.
anyway, since this is a bit sudden expense, 25% down, the rest financed with more money on the principle so hopefully pay it off in 2 years.
if we hadn't bought our house w/ 20% down 3 months ago we probably would've still financed. house = investment, car = necessity.
and as you can see by the years on our cars, we drive 'em 'til they don't go no more, so leasing is not an option for me. i leased a mustang before the SE and i hate having to watch the mileage or not being able to modify anything in the car (i like my windows tinted, and the lease car didn't come w/ a spoiler).
anyway, since this is a bit sudden expense, 25% down, the rest financed with more money on the principle so hopefully pay it off in 2 years.
if we hadn't bought our house w/ 20% down 3 months ago we probably would've still financed. house = investment, car = necessity.
and as you can see by the years on our cars, we drive 'em 'til they don't go no more, so leasing is not an option for me. i leased a mustang before the SE and i hate having to watch the mileage or not being able to modify anything in the car (i like my windows tinted, and the lease car didn't come w/ a spoiler).
#23
Originally Posted by TimboIS
Basically, leasing is for people that can't afford what they want. It's the greatest hook auto makers invented in the past 20 years. And I mean that in bad way,
90% of people who finance cars owe more on the car than its value.
#24
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Originally Posted by Erick G
Thats not true.. leasing is great if you own a business and use it as a tax writeoff and I've been doing this for years.
90% of people who finance cars owe more on the car than its value.
90% of people who finance cars owe more on the car than its value.
I'm a photographer and I normally use the weekend to travel to remote destinations and the car will be used for that purpose.
#25
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I think I should share my opinion on the topic after looking at the mistakes that a few of my friends/family have made. I think none of the options is better than the other but I think some options are better for some folks while those same options may be be a poor financial option for others.
I have a friend who paid cash ( over 35k) for his car and lost his job a few months later. He had to take a huge hit on the resale of the car to avoid loosing his home. Paying cash was not the best option for him.
Once I overheard a conversation where this guy wanted to get rid of his luxury car and use the money to put a deposit on a new home, but he could not find someone who was willing to take-over his lease. So leasing may not have been the best option for him.
I took a loan for a car and about two years afterwards I was involved in an accident but the insurance company refused to write-off the car. It was repaired but it drove like crap afterwards. I had to practicaly give the car away when I sold it. Financing was not a good option for me. I was also paying interest on the taxes which was a bad idea.
I believe the decision to finance/purchase/lease should be base on each individuals circumstances at the time. Sometimes the most economical choice is not necessarily the best financial choice.
Personally speaking, I would never pay cash as I believe that cash in hand is KING. I am inclined to lease my next car (IS250 or 325i) and will only finance my purchase if the finance rate is significantly below the least rate. Intrest paid is not as bad as it is made out to be as inflation will reduce the future-value ot the amount you pay.
The point is each person has to assest their finances and also assest what options they are likely to have if things should take a turn for the worse in the future.
I have a friend who paid cash ( over 35k) for his car and lost his job a few months later. He had to take a huge hit on the resale of the car to avoid loosing his home. Paying cash was not the best option for him.
Once I overheard a conversation where this guy wanted to get rid of his luxury car and use the money to put a deposit on a new home, but he could not find someone who was willing to take-over his lease. So leasing may not have been the best option for him.
I took a loan for a car and about two years afterwards I was involved in an accident but the insurance company refused to write-off the car. It was repaired but it drove like crap afterwards. I had to practicaly give the car away when I sold it. Financing was not a good option for me. I was also paying interest on the taxes which was a bad idea.
I believe the decision to finance/purchase/lease should be base on each individuals circumstances at the time. Sometimes the most economical choice is not necessarily the best financial choice.
Personally speaking, I would never pay cash as I believe that cash in hand is KING. I am inclined to lease my next car (IS250 or 325i) and will only finance my purchase if the finance rate is significantly below the least rate. Intrest paid is not as bad as it is made out to be as inflation will reduce the future-value ot the amount you pay.
The point is each person has to assest their finances and also assest what options they are likely to have if things should take a turn for the worse in the future.
#26
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that's right
it is more likely things will turn for the worse in the future.
there are too many improbable factors in the general health of USA and world affairs.
there are too many improbable factors in the general health of USA and world affairs.
#27
Flame...Great reply, The last vehicle I purchased for my wife (2003 ES300) I took out a second mortgage on my winter vacation condo in Vail, CO and used the money to purchase the car. I got $6K under the MSRP of $34K because I had cash. Cash is King. The ES is breaking even now and I have enjoyed having the title of the car in my hands and also writing off the interest accrued in repaying the second. Mind you the 2nd motgage payments are $157/month for 10 years. Don't know if it was a good idea or not - time will tell...
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