Leasing vs. Buying. What is your side?

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Skimming the previous I see that most prefer owning over leasing-as I'd kinda guessed before reading. This from the 'kind of folks' that frequent Bitog=inquiring type people seeking better knowledge to 'improve'. Along with that is sensible values or those aspiring better things. When I was young and learning, car payments and other payments happened. I gradually realized it was mostly not in my best interest and what really kicked me away was the tax law changes years ago no longer allowing the deduction for consumer interest. I know now I wouldn't be the same place now financially if I continued supporting the financial industry instead of myself. Also 'car guys' love cars and own them!
 
Interesting how much easy to bash those leasing....it's like anything else-you simply need to know how to use it to your advantage.

Easy for those to buy to save money on their "investment", but waste heavy in some other area...or even more than you need. But, it is all in what makes you happy....
cool.gif



Not sure what my future choice will hold....whether it be buy or even lease...just make to make sure I am happy with it....
 
Originally Posted By: LT4 Vette
I was at TireKingdom last year and had a conversation with another customer that I drive my cars 10 years / 200K minimum. He was bragging about his leased Infinity SUV, 3 years and get rid of it cause past 3 years it will give trouble.

I chuckled and said OK. Guy was in his 50's but seemed very vain and image conscience.



Never understood the image thing....why get a lux sedan when a Civic/Cruze will do....or even camry/fusion....
 
I can see the image thing if you're selling real estate or in sales in general. You want to look successful and cart customers around in a decent ride. I leased a Jeep back in 1999 when Chrysler was giving a 1200 rebate for signing a lease agreement, so it ended up being cheaper in the long run even though I ended up buying the Jeep anyway.
 
Originally Posted By: LT4 Vette

I know a woman that purchased / financed her breast implants (LOL
smile.gif
) using her credit card. Then six months later she and her husband declared bankruptcy, they were compulsive with their credit card spending habits.



Smart move...kinda hard to repossess a set of t!ts!
 
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Originally Posted By: stevejones
Originally Posted By: LT4 Vette

I know a woman that purchased / financed her breast implants (LOL
smile.gif
) using her credit card. Then six months later she and her husband declared bankruptcy, they were compulsive with their credit card spending habits.



Smart move...kinda hard to repossess a set of t!ts!

They were having a sale, buy one get one free :)
 
Originally Posted By: supton
Originally Posted By: SteveSRT8
Originally Posted By: MCompact
Dave Ramsey's main complaint about credit cards is that the vast majority of people with credit cards carry a balance and end up paying ridiculous interest rates. He also maintains that when you pay cash you don't tend to spend as much as when you pay with a card- and there are some studies that back that argument up. That said, my wife and I have a budget that we stick to and we do use credit cards- but we do pay them off every month.


Why not use them? If handled responsibly they are like a free loan! We still shop carefully and spend wisely, and a CC is just a convenience.

It seems that folks who use a CC to artificially enrich their lifestyle are always going to be in trouble. Seems financial responsibility should be taught in school at an early age!


It is a nice free loan isn't it. Don't have to walk around with $500+ in cash on a regular basis, or carry checks; one can buy stuff online too. Wise or not I used a CC to make it through the last semester of college. Paid it off pretty quickly once I landed a job.

*

What I don't understand is how cash rewards work. They give me money to use their card? No one gives out money for nothing. I know CC's used to incur an extra cost, and am pretty sure they still do, it's just that the vendor somehow eats the cost.

OTOH, being able to hire cashiers who a) don't have to be able to count/subtract/make change and b) no longer have to carry money enveolopes to/from the bank is probably worth the extra cost.

*

I haven't figured out just yet what I'm going to do to teach my kids financial wisdom, but I'm quite sure I'm not expecting much from the public school on this front.


As I mentioned-I have received thousand of dollars back from my credit cards. Who pays for this cash back? I assume it's those who carry a balance month to month and pay those outrageous amounts on finance charges! I sure don't pay any fees to get the cash back.
 
Originally Posted By: daves87rs
Interesting how much easy to bash those leasing....it's like anything else-you simply need to know how to use it to your advantage.


So define how average Joe uses it to my advantage. Average Joe doesnt own a business, is just an employee. Has a mortgage, a few kids, etc.

What exactly does paying higher financing fees and replacing cars after paying for their worst depreciation period, plus any wear items, do for average Joe?

The only thing I can imagine is opportunity cost for time and money spent on failed parts, but in reality, at 3 years, 36k, thats not an issue, and with most modern cars, isnt an issue for a good while after that.
 
Originally Posted By: JHZR2
Originally Posted By: CKN
Originally Posted By: Jimkobb
I think a lot of people here would benefit from listening to Dave Ramsey on the radio . I may not make a lot of money but when I do retire I will be as debt free as one can be. I say that because there always will be living expenses , taxes ,utilities ,food, etc.



If I would have listened to him I wouldn't have been able to retire at 58 years of age. You know, it's easy for a multi - millionaire to say "pay cash for everything!" I have credit cards-and they pay me to use them and they get paid off at the end of every month. I have had $1,000.00s of dollars of benefits from my credit cards.

He does give some sound advice - one should be out of debt to enjoy retirement- I just disagree on how to get there.


Seriously? So somehow the "thousands" in freebies from the credit cards were the deciding factor that let you retire at 58??!? You must have a pretty darn low cost of living if thousands of dollars of freebies were the determinant...


Not exactly - it was the leveraging of several pieces of real estate that allowed me to retire early. I was up to my eyeballs in real estate loans - but all loans were paid off within terms by having the properties continuously rented. Now, those properties are all paid off and providing an income stream, since obviously I am too young to receive any funds I have paid in to "the system".
 
Leasing usually only makes sense if you can write off the lease costs for tax purposes, ie: lots of mileage for real estate agents, people who drive to different clients every day etc. Permits the image of luxury to customers and basically a write off. For the average driver, IMO expensive, one never gets out of payments similar to renting an apartment
 
If anybody wants to tout their financial acumen, there are lot better places to gloat than here. Go to bogleheads where people ask question on how to protect their $50 million!
 
Originally Posted By: LT4 Vette

I know a woman that purchased / financed her breast implants (LOL
smile.gif
) using her credit card.


Pics . . .?
 
Originally Posted By: JHZR2
Originally Posted By: daves87rs
Interesting how much easy to bash those leasing....it's like anything else-you simply need to know how to use it to your advantage.


So define how average Joe uses it to my advantage. Average Joe doesnt own a business, is just an employee. Has a mortgage, a few kids, etc.

What exactly does paying higher financing fees and replacing cars after paying for their worst depreciation period, plus any wear items, do for average Joe?

The only thing I can imagine is opportunity cost for time and money spent on failed parts, but in reality, at 3 years, 36k, thats not an issue, and with most modern cars, isnt an issue for a good while after that.


Sadly, I've seen leases that barely get oil changes... Most people I've seen barely care for he car (unlike us here) and will spend very little (if at all) besides that car payment and gas. Sadly, the reason why many companies offer a few free years of service so it comes back in decent shape. To some comsumers, you drive it, not care for it. Sad, but they take advantage of that...

Another reason might simply be the type of car you will be driving. Say you get hondas normally, but you d a decide you want a chevy cruze. Not sure if you think it might be a dud, not simply as good as the honda. Yeah, you might pay a bit more, but then you are not stuck with a POS or a car you hate, in which you might trade in and lose your hiney on anyways....


Like I said, it's not going to be for everyone, but I simply can't bash someone for leasing, as I simply do not know what they have in mind. I try not to assume that everyone is a sheep....
smile.gif
 
Originally Posted By: LT4 Vette
No pictures.

A pig with lip stick and breast implants is stil a pig...




Good point....
 
Originally Posted By: daves87rs
Originally Posted By: LT4 Vette
I was at TireKingdom last year and had a conversation with another customer that I drive my cars 10 years / 200K minimum. He was bragging about his leased Infinity SUV, 3 years and get rid of it cause past 3 years it will give trouble.

I chuckled and said OK. Guy was in his 50's but seemed very vain and image conscience.



Never understood the image thing....why get a lux sedan when a Civic/Cruze will do....or even camry/fusion....


Ego and Pride.
 
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