Quote:
Originally Posted by 04mazdaspeed
Quote:
Originally Posted by jmg
Under a 6 year period, you are paying less for 2 new cars than 1 financed car. After 6 years, your financed car starts to have an advantage when it comes to money out of pocket. If you plan on keeping your car more than 6 years, you buy. If you don't, then you lease. Keep this in mind: The entire lease payment is subject to a business expense, while your financing payment is not. If you are a business owner, this is something to consider.
The appeal of a lease is real, even financially. Yes, you are paying more, but you are getting into a new car every 3 years. You pay less if you want to drive an old car in 6 years. It actually makes perfect sense.
BTW: I own 2 cars, 1 is paid off, the other is very close. And I lease 2 more cars. The only thing that sucks about having this many cars is the insurance.
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I still only find a lease somewhat smart if you can write if off for a business expense. While I can agree if you like changing cars every couple years and can stay under the mileage constrants, then more power to you. But still you will always be in a payment which to me is dumb. I suppose I'm in the minority but at 28 with a house paid off and multiple cars paid off and no debt, for being a lowly blue collar worker, I would say im doing It right. I know some people that choose to lease just to get into a certain car because the payments lower and then the end of the lease, they either have to lease again for buy and take a loan for 60 months just to keep that same payment. I dunno, leasing definitely isn't for me. My point was spend over 1300 a month just to throw it away on rent for a car, I suppose that's only for very rich people. Any while I say that I could afford to spend that as well but I wouldn't do that deal in a million years. |
Look at it this way: leasing for 3 years costs about the same as financing for 3 years and then selling it for a new car. Except that you have less cash flow for 3 years and you have to go to the trouble of selling the car.
I wouldn't necessarily want to have a paid off house either. I'd rather have paid three 30 year mortgage payments for a short amount of time on 3 separate homes and made triple gains on 3 houses over 1 payment to pay the house off in less than 10 years to only make 1/3 of the profit. On the other hand, your have piece of mind that you own your home. Different folks, different strokes.