My idea behind lease vs buy is that you get to enjoy a wider range of cars. You can have a BMW 5 series for 6 months and then Jeep Wrangler for 3 months. You get to experience both cars for about what you pay in loan installments. When you buy it you have this big loan or cash negative on your hand, and when you sell it there is a huge drop in new vs used price.
There is another method where you would buy a used car and drive it for 6 months then you can sell it for about the same price of purchase if not more and you can just keep doing that. Though this method probably takes out any car that is 4 years or younger out of the choice pool as those will probably drop more in price for every extra year of usage and another exchange of hands.
@Relentless Power
If you want to take a vehicle, modify it, use it to its maximum, do road trips...sure buying outright is the only choice but for most people who usually just drive their car to work...leasing works great to drive Audis, BMW, heck even something more exotic like a Maserati.
I now consider debt as an addiction. Take a loan responsibly. Seriously, while I can't explain how the human brain works, some people are very careful with their money and debt decisions and its just second nature to them while others seem unable to stay debt free. In fact, they seem to have an urge to take even more debt.
We need debt addiction institutes just like gambling and alcoholic addiction. My guess only is that its just too tempting to them to spend money they don't have on the hopes of paying it some how in the future.
I heard this before, where seriously rich people would still take a loan on stuff they can pay out right like cars and houses. I still don't understand it and is it really better to pay $50K in cash or $50K+7% per annum just on a longer period of time. Supposedly its a cash flow thing, but I guess if the rich does it then it is the better choice. But finance is not a topic to be discussed in this thread.
There is another method where you would buy a used car and drive it for 6 months then you can sell it for about the same price of purchase if not more and you can just keep doing that. Though this method probably takes out any car that is 4 years or younger out of the choice pool as those will probably drop more in price for every extra year of usage and another exchange of hands.
@Relentless Power
If you want to take a vehicle, modify it, use it to its maximum, do road trips...sure buying outright is the only choice but for most people who usually just drive their car to work...leasing works great to drive Audis, BMW, heck even something more exotic like a Maserati.
Sadly many don’t. Someone I used to work with got made redundant recently. Between her car lease, rent, phone bills and the rest I’m really not sure she’ll survive for long. Credit card debt on top of that as well.
I now consider debt as an addiction. Take a loan responsibly. Seriously, while I can't explain how the human brain works, some people are very careful with their money and debt decisions and its just second nature to them while others seem unable to stay debt free. In fact, they seem to have an urge to take even more debt.
We need debt addiction institutes just like gambling and alcoholic addiction. My guess only is that its just too tempting to them to spend money they don't have on the hopes of paying it some how in the future.
Ahh, good for you! Some people get way too into debt.
I don't mind floating some money for a vehicle at a trivially low interest rate (or none at all) to: 1) reduce my concern over the vehicle (i.e., keeping it new, safe, maintenance cost free), and 2) increase my enjoyment of vehicle, plus at any given time I could pay off all our debt, including our house, so might as well keep the cash handy for _whatever_, i.e., cash is king, I can afford to pay cash, I choose not to.
I heard this before, where seriously rich people would still take a loan on stuff they can pay out right like cars and houses. I still don't understand it and is it really better to pay $50K in cash or $50K+7% per annum just on a longer period of time. Supposedly its a cash flow thing, but I guess if the rich does it then it is the better choice. But finance is not a topic to be discussed in this thread.