And by the time you just got done paying for it, its worth nothing.
$300 x 36 months = 10,800 to drive a car for 3 years…
That same car would be $500 a month if I didn’t lease… and cost me $30,000 to drive for 5 years. Atleast after 5 years its worth $7k. (if you kept up on repairs)
So after 10 years, and your car being 10 years old, I’ve just spent the same amount on 3 new cars…oh and i didn’t pay for repairs. Atleast your car is worth $2000.
If you’re buying something you intend to keep…thats fine. However, the average consumer turn around on a vehicle is 42 months…barely enough to pay off the interest on the loan.
Not to mention the lower out of pocket costs upfront.
Invest your extra $200 youre saving a month into stocks, your 401k or IRA, and at the end of 5 years…pay off a chunk of your house and gain some equity into something that matters.
Buy investments that appreciate, lease what depreciates.
If you took out a 72 month loan because youre overspending…then yes. You’ve only paid off realisticly paid off 3/5’s of the loan @ 40 months. Not to mention, you probably bought a shitty domestic and are upside down a few grand. :mamoru:
Absolutely. However, if you were buying something more than 30k… and have less than stellar credit (which 75% of the nation doesn’t have) then you should really consider leasing. However, if you’re credit blows because of overdue credit cards or a mortage you can’t keep up with…you shouldn’t be buying a new car…let alone a $30K one.
It happens all the time. Theres a few banks around the area that have the option for 78, and 84 month loans…both of them being double digit interest. I’ve even seen 144 month loans available on Ferrari’s, Lambo’s etc etc. :roll2:
do you think that car manufactures are going to slow production because people want to be more “green”…
:lol:
All they care about is the green, and as long as there pockets are lined they wont care… even companys like honda that claim to be “going green” should be slaped because on average there cars only get 5-8mpg better then there direct competetor, which is good dont get me wrong, but fuck if your gonna do something then just do it… dont dick with the idea of one or two cars being “alternative fuels” just start making every one of them that way… If honda did this it would take about 2 years for people to catch on, then there would be a change in the guard…
It could be worse, you could be one of the 20 or so people (just through me) that just purchased a car last month through a special finance program which was mailed to them. Basically a well known finance company pre-approved a bunch of sub-prime buyers @ 13-15%, in the meanwhile including a $5000 credit card to use towards a downpayment carrying a 23% APR. Nothing like double dipping. :uhh: :lol:
I’ll stop you right there. You should probably figure out why you’re driving 60k a year if you’re honestly trying to save money. If you’re not a paid driver or being reimbursed by your job because they make you drive that much chances are you can do something to reduce the number of miles you drive a year. Move closer to your job, get a job closer to your home etc.
60k is 1153 miles a week, every week, all year. That’s 164.x miles a day 365 days a year. Do you live in your car?
Regardless, situations like yours do not apply to 99.9% of the population
My decision was made for me…didn’t have enough money to buy a new car so just bought an older one that gets great gas mileage. Makes perfect sense in the long run.
The point is people don’t look at cost per mile, and that is the important part (or maybe cost per hour if you plow snow or are an inner city taxi or something). For most people who don’t drive a lot of miles it’s cheaper to drive a car or truck that’s paid for and gets 15mpg than to spend $20,000 on a new car that gets 30. 20g with tax interest, new title, insp, tire tax, etc. costs you 25 thousand and change. At $3.50 that is 7143 gallons which will take you 107,000 miles in your 15mpg vehicle. If you subtract $5000 for maintenance of the 15mpg vehicle you can still drive it 85000 miles in five years and be money ahead. Obv for the person who drives 60k per year this doesn’t work out. However for the average person at 12,000 miles per year it does.
:picard: 0 equity > negative equity, which is what you usually end up with if you buy a new car and are looking for lease type payments.
For example, my truck stickered for 41k. I put 0 down, leased for 3 years @ $330 a month. At the end of my lease, I will have spent a total of $11880 on payments, minus the interest income I have on that money chilling in my bank account at 5%, instead of being long gone. Say 11,000 to be very conservative. It’s actually a good deal lower than that.
At the end, instead of trying to go to 800 different places to haggle on trade in values and still getting shafted, I drop it off and negotiate from scratch. Any interest paid on a car note notwithstanding, show me where I’d be able to get 30k on trade for my truck in 3 years and I’d be damn impressed.
For that matter, show me ANY $40,000 car, new or used, that I could drive around for 3 years without coming up with any money up front, for less than $11,000, and how. I dare you.
I’ll save my equity for appreciating assets, thanks.
the reason you won’t get 30 for trade in is because you didn’t pay 40 for it.
one of the big problems with resale on domestics is that nobody (smart) pays close to sticker to prices so resale values are shot to begin with.
but I agree on your basic math… leasing makes perfect sense if you can predict the miles you will drive and also know you’ll want a new car in X years.