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04-16-2008, 07:21 PM | #67 | |
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Prove me wrong. You might also explain why anyone in their right mind would want to build up "equity" in an asset that is worth less every year you own it. Building equity in a house makes sense, because houses appreciate (traditionally); if your house goes up in value 10% each year, buying it is a very good financial decision. But a car does not appreciate, ever (well, maybe some collectors cars do). Cars eventually are worthless. Buying a car is like buying toilet paper. You use it up; it doesn't get worth more. Saying you have equity in a car is like going out and buying $50,000-worth of toilet paper so you can say you have "equity" in a pile of toilet paper. Yes, you do - in the sense that at the moment, the toilet paper is worth more than any debt you have on the toilet paper. But once you use the toilet paper, it's worthless and so is your "equity." Same for a car. John C. PS. Here's a web site that does in fact explain leasing pretty well. http://www.leaseguide.com/lease03.htm |
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04-16-2008, 10:06 PM | #69 | |
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I'll follow up with you when I have a little more time, but I don't want to just blow this off. It's too important to do that. So, for now, let me just explain in the most simplistic way that there are two ways to go: 1. Make lease payments and have NOTHING at the end of the lease term. 2. Make purchase payments and OWN the remaining value of the vehicle at the end of the term. Because I am strapped for time, here is an exerpt from Edmunds Leasing vs. Buying guide... Everything in italics is exactly Edmunds' words, not mine. I have omitted the used car scenario as it does not apply here. Here you go... Simply put, car leasing is more expensive in the long run. However, here is an easy way to look at it. Buying New or Used or Leasing — The 10-year picture In the following example, we show you what it costs to buy and own a new or used car or to lease a car for 10 years. In these examples, we assumed that the car was worth $20,000 when new and was financed at a 6 percent interest rate. Also, in each case, a down payment of $1,000 was made. These figures are estimates to give you a comparative feeling for these different car financing scenarios. If You Buy Your Car: Purchase your car with the help of an auto loan, and you will make higher payments for the first five years, but then you will own it. Over 10 years, this averages $191 a month or a total cost of $22,920, not including insurance, maintenance and the like. If You Lease Your Car: Purchase your car with the help of an auto loan, and you will lease more than three times, each time making an initial payment of $1,000 and monthly payments of $323. For 10 years, this is a total of $41,760. Clearly, car leasing is the most expensive way to go. Source: Edmunds There you have it! I tend to agree with the "KISS" (keep it simple, ------) approach. I agree with Edmunds that leasing is the most expensive way to go. And, I have sometimes seen overly complicated and analytical perspectives on the old topic of leasing vs. buying. Keeping it simple is best, and no matter how you spin it, leasing is generally more expensive, with the major exception of the business write-off... and even under that scenario, the vehicle can still be purchased and be used as a write-off as well. Now, as I said earlier, leasing can have its advantages form a lifestyle perspective, and there is nothing wrong with that... it just comes at a price. :smile:
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04-17-2008, 12:10 AM | #70 | |
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I think you are making over-generalizations. From a practical standpoint, you need to look at the numbers for leasing and buying each and everytime you are looking at getting a new car. It depends on a number of factors which option makes the most sense.
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04-17-2008, 12:23 AM | #71 | |
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As for me... I simply purchase my cars when I want to. I need my freedom... I don't ever want to be locked into any kind of lease! But, anyone can Google the topic and discover tons of information out there. The concensus is that overall, and not in every case, purchasing tends to be a better financial decision... but leasing offers a terrific means for people to drive more expensive cars with minimized cash flow, and that can be a big advantage to many people. That said, in the end the only thing that really matters, in my personal opinion, is what works best for each individual.
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04-17-2008, 07:37 AM | #72 | |
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So I don't think ultimately we disagree. John C. |
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04-17-2008, 07:56 AM | #73 | |
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Regards, TM
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04-17-2008, 09:22 AM | #74 |
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yea I wouldn't think they would honor it but maybe you could hide it when you bring it back in like get a dummy script that will fool their diagnostics
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04-17-2008, 09:27 AM | #75 | |
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04-17-2008, 09:38 AM | #76 |
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Another thing for me about leasing is that a little bit of me dies everytime I get a rock chip and ding if I owned it. It's a different mentality when it's a lease (at least in my little fantasy world).
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04-17-2008, 11:32 AM | #77 |
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Another thing that you have to consider as part of the cost of leasing is the put option that you have. This option comes at a price, and can be partly why money factors are usually higher that a loan rate. As part of the analysis, you have to value how much this put option is worth to you. I have bought and leased cars over the years, and it all depends on how important the put option is, meaning the ability to give the car back. Of course, if you are going to keep the car for a long time, then purchasing the car makes sense. However, for financially savvy folks who can deploy the extra cash left (in a lease) into a higher yielding asset and change cars often, leasing can be the best way to go.
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04-17-2008, 12:35 PM | #78 | |
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I'm assuming you own a pair (of speakers that is).
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04-17-2008, 04:08 PM | #79 |
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04-17-2008, 05:08 PM | #80 |
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Used to be into it. Then moved towards home theater. It kind of went into a lull when when HD discs were in their infancy.
Now, it's about 1ers all the time. The Concertos are nice. I've always liked the finish on Sonus Faber speakers.
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