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I know for a fact I won't want to be in whatever car I am in now in 2-3 years. So leasing means that I can pay nothing up front, pay a lesser monthly payment, and then in 3 years, if the car is worth more than the residual, trade it in, and if it's not, toss the keys back and wish them well. It's no lose for me. By not sinking a bunch of cash into an asset that is virtually guaranteed to depreciate, I free up cash for other things. I can get a much better rate of return on an investment than I can by sinking it into a car.
To each his own. Some people blow their money on expensive vacations, clothes, furniture, electronics, boats, etc. Relative to these choices, I'd almost say an expensive car is a sensible purchase. You use it every day, perhaps you appreciate its performance and comfort, and while it does depreciate, it at least has some residual value unlike some of the above-mentioned items.
For me though, I actually get a rush out of living beneath my means, car-wise. Most of my coworkers drive expensive luxury cars, lifted trucks, etc. My wife & I have a Honda and a Volkswagen. They're new enough, reliable, pleasant to drive, paid for, and low-key.
I drive a luxury SUV. I bought it used 4 years ago for around 30k and its a 2008. I plan on driving it until its dead. Besides oil changes and tires I haven't sunk a penny into repairs. When I bought it for 30K I thought it was expensive but now I see what used SUV's of the like are selling for and I think I got mine pretty cheap. I will only buy something luxury if its in my budget to purchase..no leasing here, I think its a waste of money but find that many people with these high end luxury vehicles are only able to afford them because of leasing. I don't like renting things, id much rather own and keep costs to a minimum. I get attached to vehicles as I spend a lot of my time in them, they are so much more than an appliance...more like a time capsule. Im not a fan of Subaru but do like the latest commercial when the guy is cleaning out his forester to give to his daughter and he finds things inside that remind him of all different times throughout her life. Reminds me of me.
To each his own. Some people blow their money on expensive vacations, clothes, furniture, electronics, boats, etc. Relative to these choices, I'd almost say an expensive car is a sensible purchase. You use it every day, perhaps you appreciate its performance and comfort, and while it does depreciate, it at least has some residual value unlike some of the above-mentioned items.
For me though, I actually get a rush out of living beneath my means, car-wise. Most of my coworkers drive expensive luxury cars, lifted trucks, etc. My wife & I have a Honda and a Volkswagen. They're new enough, reliable, pleasant to drive, paid for, and low-key.
Same here. I can care less for the "flash" of the car. I drive/lease a 2014 Honda Civic Ex. Drove it off the lot for $0 down and $229/month for 36 months. I have a new reliable car with all the latest tech and that's covered under warranty. It works for me.
Also, to be very clear, my pro-leasing stance is relative to what people can afford. People making $40,000 a year shouldn't be leasing a BMW at $650 a month (or whatever it costs) and using leasing a means to get into a car they couldn't otherwise afford.
Rich people lease luxury cars and expense it on their business. Some with perks of their high paying job allows for car payments as job expense. A lot rich business owners I talk to always buy used and tells me they let the poor people buy it or lease it then they get to buy the car later for 1/2 price.
Rich people lease luxury cars and expense it on their business. Some with perks of their high paying job allows for car payments as job expense. A lot rich business owners I talk to always buy used and tells me they let the poor people buy it or lease it then they get to buy the car later for 1/2 price.
After seeing how some people I know treat their leases, I'd hate to be the guy who buys the vehicle after. I have one friend who literally gets 1 oil change for the entire duration of the lease. He does it a month or so before he has to turn it in. His response when I get on his case about it?.... "who gives a !@#$, its a lease". He does absolutely no maintenance. Doesnt change air filter, cabin filter, etc.. Turns the car in with balding tires, etc. He gets the damaged waived and jumps right into a new lease usually for the same price or less than his previous payments. He owns his own business so his leased SUV is a business expense write off.
Amazing how many 50k+ vehicles I see parked in middle class neighborhoods, and Q7s parked in the lot at Target. Never saw that 25 years ago. Back then if you saw someone driving a new Mercedes you knew they were well off!
Do all these people finance everything to the hilt? I would think the last thing you would want to own if you had any sort of debt whatsoever would be a luxury car.
A lot of those are leased and yes, a lot of people are up to their eyeballs in debt and don't put money in their 401k etc.
Some have money from other sources (inheritance) and some just make higher wages and live in middle class neighborhoods.
I could move to a nicer neighborhood but I like mine and don't want to move. *shrug*
Million different examples we could give but in looking at general us trends...it's predominantly living with little savings and lots of debt.
After seeing how some people I know treat their leases, I'd hate to be the guy who buys the vehicle after.
Depends. I leased a Benz. I treated that car quite well as if I owned it.
My Infiniti was a lease-turn in. Got it with 15K miles. It now has almost 170K miles on it and has been very reliable other than a few bad wheel bearings (which I replaced myself).
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