Toyota Lease - Too Good To Be True

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Originally Posted By: SlipperyPete
Originally Posted By: grampi
I guess they think everybody has a money tree in their back yard and should just pay cash for their vehicles...I liked the "just make four $500 payments and pay it off" comment...not everybody has the income to do that...


Not to put too fine a point it, but borrowing on things like older used cars makes it far more difficult to ever get to a comfortable financial situation regardless of income level.


Unfortunately for some, they may not have any other choice...
 
I'd put at least another 100K on that vehicle. It will go the distance & pay cash for a new one down the road. One of the reasons I luv my Crown Vic is its durability. I plan on running it for 300K-500K miles. That's a huge savings in the big picture! If you have a durable vehicle & a Camry is just run that thing into the ground.
 
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It's a 13 year old car that resides in salty New England. It may not have many years ahead of it regardless of how well the engine runs. Not saying the right answer is to replace but it is coming into it's problematic years,
 
Originally Posted By: bubbatime
Originally Posted By: grampi
I guess they think everybody has a money tree in their back yard and should just pay cash for their vehicles...I liked the "just make four $500 payments and pay it off" comment...not everybody has the income to do that...


The guy has $2000 for a down payment on a new car, yet owes $2000 on a 13 year old car. Last I checked, interest rates were NOT good on old cars such as this, probably in the 6-8% range, or worse. If you have the $2000 now, just pay off the car.


He would probably have to insure it to the hilt also.

I don't want to preach, but some questions just Beg for financial advice, weather they ask for it or not.
Kind of like a guy that Chain smokes and asks what is best for his cough, but doesn't want to be told to quit smoking.
 
I'd lease the new car, it will be under warranty and you won't be surprised by any big repairs.

IMHO if money is tight being able to budget for a lease payment isn't as terrible as say next month your 02 needing a transmission.
 
Originally Posted By: grampi
Originally Posted By: SlipperyPete
Originally Posted By: grampi
I guess they think everybody has a money tree in their back yard and should just pay cash for their vehicles...I liked the "just make four $500 payments and pay it off" comment...not everybody has the income to do that...


Not to put too fine a point it, but borrowing on things like older used cars makes it far more difficult to ever get to a comfortable financial situation regardless of income level.


Unfortunately for some, they may not have any other choice...


They may have to drive an embarrassing $500 car instead of something they would prefer, but they absolutely have a choice.
 
Earlier this year, maybe last, a local Ford dealer had a Focus or Escape for $19 month lease. Reading the fine print revealed a couple thousand down, and a huge balloon payment at the end of the lease. Of course the "deferred" payments incurred about 21% interest charge. All in all, it was a horrible deal.
 
Originally Posted By: mtndew_dad
Why are people so down on the guy for making payments (and only $70/month) on a used car. Do you assume he bought it new and still hasn't payed it off? Sounds like he made a wise decision to buy a cheaper used car as a second vehicle, and he financed it.

I agree, pass on the lease "deal". Also, private party value appears to be $3500-$4000. Used Camry's in reasonable condition are easy to sell, but that seems irrelevant at this point.


If you cannot pay cash for a used car, you cannot afford it.
 
A lease always gives you the ability to always drive a new car. With the right numbers a lease can work. Last time I checked leases were growing in popularity (probably due to the outrageous prices of new cars). Last year leases were 22% of new car purchases now they are at 25%.

It's impossible to tell someone not to lease a car without looking at the whole picture.


With all due respect to one financial radio guy who is wealthy enough to pay cash FOR EVERYTHING!
 
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One of the reasons he is wealthy enough to pay cash "FOR EVERYTHING" is because he doesn't use long term loans to finance depreciating assets or use leases to drive vehicles he otherwise could not afford to buy. His belief that automotive leases are the "payday loans" of the middle class is pretty much on point.
 
Originally Posted By: MCompact
One of the reasons he is wealthy enough to pay cash "FOR EVERYTHING" is because he doesn't use long term loans to finance depreciating assets or use leases to drive vehicles he otherwise could not afford to buy. His belief that automotive leases are the "payday loans" of the middle class is pretty much on point.


I agree. Pop Rivit's comments are often disliked because he goes straight to the core of the matter without sugar coating the subject. The raw truth is the worst at striking a touchy nerve.
One doesn't come to having the "cash for everything" by looking at low monthly payments.


Originally Posted By: coopns
the financial experts[/b]: I would appreciate you holding off on dispensing your "expertise". I bought 3 years ago with 90K on it for 5K. 5 year loan from the bank. 4 Kids, mortgage...not a lot left over at the end of the month. Lot of 'variables' that you may not be aware of.

I come here for advice/recommendations and friendly comments, not to be judged on my financials.


This is an open forum and you provided the financial details. Be prepared for all types of replies.

Quote:
...not a lot left over at the end of the month...


This proves that the financial comments weren’t far off after all
wink.gif
 
The only thing I know if I would have listen to that "radio financial guy" who pays cash for everything I wouldn't have been able to retire at 56 years of age....


I will not discuss the details here but let's say the wife and I were highly leveraged at one point in our lifes.
 
Originally Posted By: CKN
The only thing I know if I would have listen to that "radio financial guy" who pays cash for everything I wouldn't have been able to retire at 56 years of age....


I will not discuss the details here but let's say the wife and I were highly leveraged at one point in our lifes.


I think the primary point that the "radio financial guy" has is that you need a plan. If your plan got you to where you wanted to be, mission accomplished.
 
Originally Posted By: Jarlaxle
Originally Posted By: mtndew_dad
Why are people so down on the guy for making payments (and only $70/month) on a used car. Do you assume he bought it new and still hasn't payed it off? Sounds like he made a wise decision to buy a cheaper used car as a second vehicle, and he financed it.

I agree, pass on the lease "deal". Also, private party value appears to be $3500-$4000. Used Camry's in reasonable condition are easy to sell, but that seems irrelevant at this point.


If you cannot pay cash for a used car, you cannot afford it.


I cannot afford to pay $10K cash for a used car, but I earn a 6 figure income...are you telling me I can't afford a $10K vehicle?
 
Originally Posted By: grampi
Originally Posted By: Jarlaxle
Originally Posted By: mtndew_dad
Why are people so down on the guy for making payments (and only $70/month) on a used car. Do you assume he bought it new and still hasn't payed it off? Sounds like he made a wise decision to buy a cheaper used car as a second vehicle, and he financed it.

I agree, pass on the lease "deal". Also, private party value appears to be $3500-$4000. Used Camry's in reasonable condition are easy to sell, but that seems irrelevant at this point.


If you cannot pay cash for a used car, you cannot afford it.


I cannot afford to pay $10K cash for a used car, but I earn a 6 figure income...are you telling me I can't afford a $10K vehicle?

I guess not then? Doesn't really matter what your income is, if your expenses burn all of it up on a monthly basis. Personally, we try to minimize fixed expenses so we have extra cash laying around. The trick is not to burn up the extra cash on too many luxuries, but my wife keeps us inline...
 
Define "afford". I doubt many of us here could "afford" to be laid off and then never work a day again. It's nice to pay cash for a vehicle but perhaps we should pay cash our house too? Or better yet, not buy anything until we have our retirement paid off?

I question how many of us could afford to be out of work for more than six months, or have to work at half our prior earnings if we work at all.
 
Originally Posted By: IndyIan
Originally Posted By: grampi
Originally Posted By: Jarlaxle
Originally Posted By: mtndew_dad
Why are people so down on the guy for making payments (and only $70/month) on a used car. Do you assume he bought it new and still hasn't payed it off? Sounds like he made a wise decision to buy a cheaper used car as a second vehicle, and he financed it.

I agree, pass on the lease "deal". Also, private party value appears to be $3500-$4000. Used Camry's in reasonable condition are easy to sell, but that seems irrelevant at this point.


If you cannot pay cash for a used car, you cannot afford it.


I cannot afford to pay $10K cash for a used car, but I earn a 6 figure income...are you telling me I can't afford a $10K vehicle?

I guess not then? Doesn't really matter what your income is, if your expenses burn all of it up on a monthly basis. Personally, we try to minimize fixed expenses so we have extra cash laying around. The trick is not to burn up the extra cash on too many luxuries, but my wife keeps us inline...


My expenses don't even come close to burning up all of my income, but that doesn't mean I've got 10 grand laying around that I can plop down on a vehicle...the statement "you can't afford a used car if you can't pay cash for it" was a stupid one...many people in this forum seem to think you're a complete financial loser if you have to borrow money to buy anything...it is possible to borrow money to purchase things and still be financially responsible...
 
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Originally Posted By: grampi

I cannot afford to pay $10K cash for a used car, but I earn a 6 figure income...are you telling me I can't afford a $10K vehicle?


If you earn over $100K and can't lay your hands on $10K, no sensible person should pay any attention to your financial opinions.
 
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