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It is impossible to tell which is the correct way to go without hearing both sides of the story. You have listed some good rationale, but without your husband explaining his reasoning, it cannot be determined.
Do you realize the "lease" is factored on the depreciation of the vehicle? So whether you pay cash, make payments or lease the car is going to lose the same amount in depreciation?
Buy a 20K car and it is worth 10K after 3 years. You lost 10,000 any way you slice it.
Leasing isn't evil folks, it is simply math.
04-30-2016, 10:10 AM
i7pXFLbhE3gq
n/a posts
Quote:
Originally Posted by City Guy997S
Leasing isn't evil folks, it is simply math.
You're fighting a pointless battle.
Math doesn't matter. Lease = bad, the end. Never mind that it's functionally exactly the same as financing a car, the only difference being that you know from the beginning exactly how much it'll be worth in 2/3/whatever years.
Last edited by i7pXFLbhE3gq; 04-30-2016 at 10:19 AM..
Do you realize the "lease" is factored on the depreciation of the vehicle? So whether you pay cash, make payments or lease the car is going to lose the same amount in depreciation?
Leasing isn't evil folks, it is simply math.
Good idea... So maybe I should lease my TV, Microwave, Stove, Lawn Mower. Heck, why not just lease my house with all the appliances. Certainly something to consider, ain't it
It is impossible to tell which is the correct way to go without hearing both sides of the story. You have listed some good rationale, but without your husband explaining his reasoning, it cannot be determined.
Why would you pay to terminate a lease, assuming you cannot get someone to sub-lease, and have no equity in the vehicle, to buy a used car? That would effectively raise the price of the used car above market, and with liability only, you have no recourse if your vehicle is totaled. $220/mo. is a fixed transportation cost, whereas your beater car will have ongoing maintenance and repair costs that could greatly exceed that figure. It makes no sense to pay to get out of a fixed price contract to purchase outright a lesser vehicle with no warranty and diminished insurance coverage. And, with the fixed cost, you have a modern vehicle with safety features, a warranty, and reliability, not bad for the expenditure when you think about it.
And, many times, dealers will overlook minor dings upon return, and get the paintless dent repair guy to take care of the car, provided you are buying/leasing from them again -- it's all up for negotiation. I know someone who brought in a battered, from Manhattan street parking, BMW 3-series, and they were not fined, since they negotiated a lease on a new vehicle.
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Good idea... So maybe I should lease my TV, Microwave, Stove, Lawn Mower. Heck, why not just lease my house with all the appliances. Certainly something to consider, ain't it
Some people don't realize that an automobile "leasing" company is a business. Dents, torn seats, interior damage and things like that are not normal wear, therefore these aren't considered normal depreciation.
Some people don't realize that an automobile "leasing" company is a business. Dents, torn seats, interior damage and things like that are not normal wear, therefore these aren't considered normal depreciation.
You might be surprised to discover that people aren't nearly that stupid.
It's made abundantly clear up front that if you return the car at the end of the lease, you'll have to pay for anything that isn't normal wear and tear. That obviously includes things like returning it all smashed up, with ripped seats, reeking of cigarettes, etc.
Quote:
Good idea... So maybe I should lease my TV, Microwave, Stove, Lawn Mower. Heck, why not just lease my house with all the appliances. Certainly something to consider, ain't it
Fun fact, if you go to a John Deere dealer, they'll be happy to lease equipment to you...
And millions of people do, in fact, lease their house with all the appliances. Although unlike a car lease, that generally does not come with the option to buy at the end.
I really have no idea what argument, if any, you're actually trying to make. Did you just feel the need to post some worthless, sarcastic non-response to the post?
There is no One True Way to get what you want/need. If leasing makes sense for a particular item, then lease it. If financing makes more sense, do that. If paying cash makes the most sense for something, do that.
This one size fits all nonsense does nothing but display financial extremism driven by ignorance.
Last edited by i7pXFLbhE3gq; 04-30-2016 at 12:37 PM..
I have a nice leased car I pay $220 a month. It's reliable and we also have good insurance with State Farm.
$220 per month for how many years? Then how much when you return it? And how much do you pay State Farm? If your car malfunctions, do you pay for repairs? How many miles does it have? What make, model, and year? Did State Farm pay to have the dents repaired?
I have a nice leased car I pay $220 a month. It's reliable and we also have good insurance with State Farm. I got 2 dents in the car and found out our insurance won't go up....still my husband is saying we are terminating the lease and I need to get a cheap used car and also drop insurance except for liability. So it's cheaper to get and unreliable car that I would spend money fixing, and or could break down completely, risk not getting to work, not having enough coverage etc....Isn't that warped logic?
He's being obtuse and trying to "punish" you. Or something. Or maybe you are a horrible driver and belong in a beater. I don't know. His logic isn't warped any more than leasing a car is warped logic. There are many right ways of doing it.
Has your husband looked at what it will cost to "terminate the lease?" You can't just say, "ok, I'm done." You have to either sell the car at an amount equal to or greater than the buyout, or stroke a check for the buyout and sell it.
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Exactly right.
