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Originally Posted by Tracus
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Originally Posted by GhostyM
Absolutely agreed!
Why own it when it's going to cost you the same whether you buy outright in cash or lease (of course dependent on interest/money factor)? One is just a lot less riskier and if you want to take the risk of owning a depreciating asset.. do that when the lease is over, because now you have at least had 2-3 years to figure out what it's worth to the market and whether it's worth keeping.
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On the lease:
- You are penalized for every extra mile. Be careful how you spend your miles or your math will go down the pipe. Yeah, no Freedom. |
Those miles are proportional to depreciation on the same car. ie the value of your finances vehicle similarly goes down when you add miles.
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- You will be dinged for damage when the lease is up and you have to return it to the dealer. “Wear and tear" is a term that is very flexible in dealer’s eyes
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It is flexible and usually in the leaser?s favor. They give you a guide on how big scratches and dents can be before it incurs a charge. It?s quite generous. I?ve lease returned dinged cars with no charge.
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- Your payment is usually a lot bigger than financing. Wonder why?
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Your payment is lower on a lease.
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- You do pay interest, while financing has a lower interest rate than lease,
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That depends on the lease.
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sometimes is 1% or even zero. Put the money towards the house and use manufacturer’s money.
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That small % savings on financing is very small. You are better off putting the difference between a lease payment and a finance payment towards your house. That?s actually the point of a lease: more liquidity.
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- While you paid to drive a vehicle which you don't own, after the same period of time I own my vehicle. After 4 years you walk, I drive. You have nothing; I do have some money in there. You need to re-lease to drive, I only need to decide if I keep it or not, but I am not forced to have new payments. You never know, life is a funny thing...
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I have a brand new car under warranty after 3 years. Will I save more if I drive an old car? Sure! That?s why I have multiple. Gotta pay to play. Some people want to pay a bit more to have a new car every 3 years. In this case, financing wouldn?t be that smart.
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- We own a "depreciating asset". Funny, you just paid the depreciation for something you don't own.
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It?s the same thing. When you buy your car and sell it later, the new purchase price - your selling price = depreciation. In both cases you?ve paid the depreciation.
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- if during the lase you decided to ditch it, you just paid the depreciation and you paid interest too.
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How is that different than financing?
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- If you like it and want to keep it, well you paid more than the finance guy.
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That?s the fault of the leaser, not the lease.
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- Today there is no such thing like vehicle "prone to breaking". There are owners and owners though. And there is mass media brainwash that feeds you that. If you are respectful with your vehicle and take care of it, you will have a good vehicle. Period. I had vehicles that were considered unreliable yet, they proved to be good vehicles.
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Agreed. Some cars, however, aren't meant to be long term. That's why I lease bmw and I own Japanese.