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Apples to Oranges. Not the same market.
Why buy a Rolex when a Timex tells the same time? Why buy a house when an old trailer will do? Why buy an old minivan when you can buy an even older more busted minivan?
If you were making $12k a year, I'd agree you shouldn't be looking at new sports cars. If you're making $150k a year, buy whatever you want. No need to wait till you're 70 and you can't take it with you.
MY POINT, was: I'd much rather drive a RELIAblE, SENSIBLE vehicle and bank the money for retirement.
If you wnat apples to apples: WHY would I buy a $90K Jag when a $60K Jag would do me fine,and bank the difference for retirement....and I"D still own the darn thing.
If you mean BUYING versus LEASING, then there is ABSOLUTELY NO REASON for this thread.
Apples and Oranges are BOTH FRUIT after all...sometimes apples and oranges CAN be compared...
To me it makes no sense as you are essentially "renting" a car.
To me it makes no sense for someone who has never leased a car and apparently has little understanding about leases, to comment on what it means to lease a car.
Quote:
Originally Posted by CGab
I prefer to buy a car I can afford and that works for my family. Pay it off and drive it for a few years having no payments!
You realize that you can do the exact same thing with a leased vehicle, right?
Quote:
Originally Posted by CGab
Not to mention do you know what car insurance would cost on a Jaguar!
Yes, as a matter of fact I do. I also know what car insurance costs on a Maserati and a Mercedes SL.
If you insist on behaving in an essentially irresponsible way (i.e., making car payments forever) then leasing may in fact be a more economical way to behave that way.
Or, you could buy one highly reliable car in your life on a loan, pay the loan off, keep that car till the wheels fall off, then pay cash for all subsequent vehicles using the payments you didn't make once the first one was paid off; keeping the subsequent ones till they fall apart too.
I know some people will say "I just feel like driving a [reliable, paid for] 10 or 15 year old compact Honda (for example) would just be like punishment, boo hoo, I want and need a fancy car so I can feel good about myself..." Well, you might consider whether driving that 10 year old Honda feels so much like punishment when you look at your fancy bank account. Fancy car, or fancy bank account? It's up to you.
Remember, too, the more heavily advertised the proposition, the higher the profit margin for the company advertising it. So, three quiz questions:
1) Between leasing a car and buying it outright, which is more heavily advertised?
2) Based on that, which option do you think yields the car company and dealer more profit?
3) Whose money is it that makes up profits for them?
B. Can make out better on a lease vs owning same car x 10 years.
C. Cannot take your money with you when you die.
Was about to post something similar. Bottom line is that it all depends on the person (e.g., income, financial obligations, personal preference, etc.). While someone may be earning well and afford a Jag, Mercedes, etc. he/she may think that they would rather have a Honda, Toyota, etc. and say travel with other money or save it. There are also others who don't make 'enough' but like to have expensive cars, be it buying or leasing. And the list goes on; you get the idea. Everyone is different and what works for/is preferred by one may be shunned by someone else as impractical, wasteful, etc. Some of us like pick up trucks (myself included) because I find the greatest utility in owning one and like the way mine looks, drives, performs in bad weather, etc. I wouldn't want to instead say have the latest Audi, even if prices were comparable as it just doesn't work for me. Someone else could be the complete opposite; no sense in me arguing with that person as to why they should get a truck.
B. Can make out better on a lease vs owning same car x 10 years.
C. Cannot take your money with you when you die.
A. well, obviously.
B. 1) Tell me exactly how it's going to cost me less to pay a lease payment for a period of years, then pay the buyout at the end and then keeping the car, versus writing a check for the purchase price and walking away.
2) Tell me exactly how it's going to cost me less to lease cars for 10 years always turning them back in, versus buying the same car on a 3 or 4 year note, paying it off completely, and then keeping the car for an additional 7 or 6 years.
C. There are a lot of things you can do with your money besides spending it on lease payments or having it sitting in your bank when you die.
- Buy a nice house
- invest in a business
- Travel
- Educate yourself
- Pay for your children's college educations so they don't start life burdened with student loan debt
- Give money to deserving causes
- Pay the shortfall between Medicare and medical costs, so you don't find yourself living in a crappy nursing home when you get old
B. 1) Tell me exactly how it's going to cost me less to pay a lease payment for a period of years, then pay the buyout at the end and then keeping the car, versus writing a check for the purchase price and walking away.
2) Tell me exactly how it's going to cost me less to lease cars for 10 years always turning them back in, versus buying the same car on a 3 or 4 year note, paying it off completely, and then keeping the car for an additional 7 or 6 years.
C. There are a lot of things you can do with your money besides spending it on lease payments or having it sitting in your bank when you die.
- Buy a nice house
- invest in a business
- Travel
- Educate yourself
- Pay for your children's college educations so they don't start life burdened with student loan debt
- Give money to deserving causes
- Pay the shortfall between Medicare and medical costs, so you don't find yourself living in a crappy nursing home when you get old
- And so on. Get the idea?
C. I've done all those things.
My very nice house is paid for, my kids' 529s are full up (and they are only 5 and 2), I max out retirement AND invest after tax every month, I donate money AND my time to charity, I invested in and built and SOLD a business, I take very nice vacations, I read and learn new skills constantly, I mentor young people, etc.
As for B, I did the math on my last SUV (which I bought and kept for 10 years).
Including repair and maintenance I had to do to keep the SUV going, it would have cost $21 a month more to have leased a new one every 38 months (and had new safety, tech, and greater reliability).
I'm 41, I've worked my ass off while living beneath my means for a long time, and now I'm debt-free and set up to enjoy whatever I want. You might meet me on the street in my t shirt and shorts and flip flops and wonder what the heck I'm doing leasing a car, but you have no idea of my finances and probably don't know about other strangers you're judging.
So in the 80's for example if you saw someone driving a BMW or Mercedes you knew they were doing very well because the average Joe was not able to easily afford one. Fast forward to today and the deals they have on leases now pretty much allow almost anyone to easily afford any car they want. SO yes, leases allow people to afford a car they wouldn't normally be able to afford and I think it downgrades the name brand, but that topic is for another time.
I looked at your lease vs buy calculator and after a period of time leasing is absolutely more expensive than purchasing depending on the length of time you were to keep the purchased vehicle. One thing to also factor in with a brand new vehicle, in my state for instance, is the incredibly expensive registration fee each year on a new car. As the car gets older that dollar amount goes down but for instance I bought a brand new truck last June and it cost me $1200 to register, if I leased it for 3 years that's a huge amount to pay in just registration. (granted the cost would go down slightly each of the 3 years but it is still a lot). Every 3 years I would have to put a down payment on a lease as well as a huge reg fee whereas the car I had purchased would not require a down payment nor would I have a hefty reg anymore.
You never get ahead when leasing a vehicle unless of course driving a brand new vehicle means that you are ahead. The SUV I am driving now was $65k in 2005 yet costs me nothing to drive now and I like it better than if I were to lease a brand new vehicle.
If you buy a car for $50,000 the sales tax at 6% is $3000.
If you lease a 50K car for $500 a month, the sales tax is $30 a month (X36 months) $1080 total.
So if the tax was an issue, you could lease 3 cars before the tax you pay exceeds the tax you would pay on one purchase.
2) Tell me exactly how it's going to cost me less to lease cars for 10 years always turning them back in, versus buying the same car on a 3 or 4 year note, paying it off completely, and then keeping the car for an additional 7 or 6 years.
Great example of leasing vs. buying. Notice how close it gets in certain time periods, ONE major repair to your owned vehicle could nullify the savings
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