how long to keep my is before trading in?
#16
i agree that if you plan on keeping the car for a LONG time that purchasing makes more sense than leasing but paying cash is quite possibly the worst idea unless you have ****ty credit and no clue how to invest money. if you have good credit you should beable to finance a car for an absolute maximum of 7% (that is a very high ball figure).
additionally the dollar is losing value every year (about 7% annually right now) and inflation is up at 3% annually so why pay cash when you can pay the dealer in devalued dollars? the next part of this is that with the money you havent put into a cash purchase you can purchase "real" investments (i say "real" investments because a car is never an investment unless extremely rare or classic but is always anexpense). as long as you find an investment that can make you 7% a year (which should be easy unless your an idiot) you enjoy the benefit of not losing a penny on financing and still maintaing the purchase power of the cash not spent at the time of purchase and you get to pay the dealeer back in dollars that have devalued almost 10% annually.
additionally the dollar is losing value every year (about 7% annually right now) and inflation is up at 3% annually so why pay cash when you can pay the dealer in devalued dollars? the next part of this is that with the money you havent put into a cash purchase you can purchase "real" investments (i say "real" investments because a car is never an investment unless extremely rare or classic but is always anexpense). as long as you find an investment that can make you 7% a year (which should be easy unless your an idiot) you enjoy the benefit of not losing a penny on financing and still maintaing the purchase power of the cash not spent at the time of purchase and you get to pay the dealeer back in dollars that have devalued almost 10% annually.
What color is the sky in your world?
Do I need a passport to visit?
#17
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If you own the car, drive until you get sick of it or until something major is about to go.
But do NOT trade it in - the dealer will ream you. Private party, carmax if you feel lazy.
3-4 years is not a long time to own a car. I think i rad that the average car in the USA has been on the road something like 7-9 years? Depends where you live obviously.
If you can afford the loss you would take, then by all means buy a new car every 3-4 years. Just know that your car would most likely last another 4-6 years (unless you drive like 30K miles a year).
Leasing is a whole other deal and I doubt a part of your question since you're "trading it in."
But do NOT trade it in - the dealer will ream you. Private party, carmax if you feel lazy.
3-4 years is not a long time to own a car. I think i rad that the average car in the USA has been on the road something like 7-9 years? Depends where you live obviously.
If you can afford the loss you would take, then by all means buy a new car every 3-4 years. Just know that your car would most likely last another 4-6 years (unless you drive like 30K miles a year).
Leasing is a whole other deal and I doubt a part of your question since you're "trading it in."
#18
as for the lease over finance i simply no longer want to own any vehicle. i go through them too frequently and never want to suffer the depreciation from something that wasnt my fault...with my lease the way i see it i am only paying $21/day to drive this car and i feel no depreciation...seems like the best deal in town to me
and to the fella who said that insurance companies are responsible for the edepreciation and should cut you a check...um no. i wish i lived in that fantasy land but the only thing they are required to do is return the car physically and mechanically to where it was before the occurance. the depreciation is felt on the resale/trade-in side and there is NO way to get them to compensate you for that as it is legally not ther responsibility and insurance companies are in fact businesses worried about the bottom line...so they are not inclined to just write bigger checks to their clients nor the people they hit.
#19
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Sounds awesome
#20
Lexus Champion
Unfortunately we have been conditioned to focus on monthly payments (housing, cars, credit cards) rather than what the long term, final cost is of the product or service. We are a nation of 'payment minimizers', rather than 'wealth maximizers'. We are a nation of financial dunderheads.
#21
either way i put much less down than you and have the know how to make my money work for me so financially it made way more sense for me...no contest!
that said we both keep restating our POVs and trying to convert the other to believing our position. THat will never happen. i used to believe what you do and base on my experiences never will again. so i am retiring from this tired arguement...
Last edited by APBT4Me; 02-23-08 at 08:53 AM.
#22
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if you are gonna drive it into the ground until it has literally zero value than yeah you got a better deal and like i said previously hopefully you never get into an accident b/c if you do and you decide to sell your car you will wish you leased. at that point i will have my brand new whatever i decide to buy and you will be struggling to resell you damaged goods or maybe you'll decide to bend over and let the dealer have their way with you.
either way i put much less down than you and have the know how to make my money work for me so financially it made way more sense for me...no contest!
either way i put much less down than you and have the know how to make my money work for me so financially it made way more sense for me...no contest!
I guess we'll just have to agree to disagree.
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