Cars We Drive!

JayJay · Sep 12, 2010

Originally Posted by epb

Drool worthy!

rach2jlc · Sep 12, 2010

Originally Posted by Piobaire

I would, but like vampires, leased cars cannot be photographed.
It's like those people who pay more in taxes/maintenance/insurance/upkeep than I do in rent and everything else, and yet tell me that I'm the idiot for "throwing away" my money because I don't want to be saddled with owning a house/condo. There is a strange, counterintuitive, wholly irrational devotion in many people (in the US especially) with "ownership." My parents are such people, and I just don't get it.

BossTweed · Sep 12, 2010

I feel like owning/renting a house is substantially different than owning/renting a car. It's not necessarily a depreciating asset, so you're actually building equity. Whereas paying off a car loan, you're really not.

Pilot · Sep 12, 2010

Originally Posted by rach2jlc

It's like those people who pay more in taxes/maintenance/insurance/upkeep than I do in rent and everything else, and yet tell me that I'm the idiot for "throwing away" my money because I don't want to be saddled with owning a house/condo.

There is a strange, counterintuitive, wholly irrational devotion in many people (in the US especially) with "ownership." My parents are such people, and I just don't get it.

X 100000000000000000000000000000000000

I don't plan on purchasing a house for a very long time. I might settle down into a condo when I'm 50.

ArnoldBlack · Sep 13, 2010

house prices are still increasing in the uk, the ones in my road have gone up on average 75k even in this recession. sadly there are no modern cars except the odd special edition supercar that have a hope in hell of appreciting.

impolyt_one · Sep 13, 2010

Originally Posted by username79

My argument was more targeted versus buying a used car as many seem to advocate that as the holy grail.

Since I am ordering an M3, I have done the comparison. Residual is 59%. The lease deal is roughly equivalent on paper to the 1.9%/60mo deal currently offered in terms of TCO. However, if you factor in what happened with the E46 M3, where trade-in values for 2006 M3s were about 35-38% of MSRP in good cases, with the probability that this may happen again with the introduction of the new model during the 3 year period, it makes darn good sense to lease.

Correct me if my reasoning is off..

I will buy you a set of ACS Type V's for your M3 if you roll them, even if you lease that ****.

Trompe le Monde · Sep 13, 2010

Originally Posted by jet

lol @ classifying saab with the real euros

used to love hondas until i grew up

does growing up mean having more time to tinker with cars? because all i do is change the oil and tires and it'll just run and run.

Trompe le Monde · Sep 13, 2010

Originally Posted by Piobaire

Me? If it's in my garage and I have the keys? It's "mine" for all intents and purposes.

Until it hits 10k miles and then it's yours to look, not yours to drive. (unless you like to pay a dollar to drive to the end of the block and back)

Piobaire · Sep 13, 2010

Originally Posted by Trompe le Monde

Until it hits 10k miles and then it's yours to look, not yours to drive. (unless you like to pay a dollar to drive to the end of the block and back)

This is just a stupid response. You gauge your lease mileage based on historical use. Only an idiot would get a 10k lease if they projected they would drive greatly in excess of that, or planned to purchase at lease end. I get 15k a year. Never had a problem with miles and I even drive my leases across the country, once per lease. Also, even my Mercedes is only .20 a mile for overage.

Trompe le Monde · Sep 13, 2010

Originally Posted by Piobaire

This is just a stupid response. You gauge your lease mileage based on historical use. Only an idiot would get a 10k lease if they projected they would drive greatly in excess of that, or planned to purchase at lease end. I get 15k a year. Never had a problem with miles and I even drive my leases across the country, once per lease. Also, even my Mercedes is only .20 a mile for overage.

If you have comfort in the pretense that something is "yours" while its under the dealership's tether, more power to you.

Piobaire · Sep 13, 2010

Originally Posted by Trompe le Monde

If you have comfort in the pretense that something is "yours" while its under the dealership's tether, more power to you.

This does not address the counter to your erroneous post. It merely restates your shallow understanding of financial tools.

deaddog · Sep 13, 2010

Originally Posted by Piobaire

You prefer owning. This is great. I think people should do with their cars as they wish.

Where I take issue is with faulty logic. If you are trading in, in four years, leasing makes more sense from a dollars and cents POV. Not every decision that should be strictly financial is made on that basis, no matter how people try to justify it.

While I generally agree with Pio's economic analysis of leasing vs buying new cars, be sure to check your state tax laws. In Illinois you get screwed leasing - you have to pay sales tax on the ENTIRE value of the car even though you are only leasing for X number of months. Sounds nutty but its true - just pulling numbers out of the air, lease a 60,000 car for 24 months and pay sales tax of $5850 (at 9.75%), or 243.75/month - the same amount of sales tax as if you purchased the car. Total BS that kills the lease market in Illinois.

This helps drive me to the decision to buy one-two year old cars with low miles. Sure there is risk but the depreciation helps to mitigate.

Trompe le Monde · Sep 13, 2010

Originally Posted by Piobaire

This does not address the counter to your erroneous post. It merely restates your shallow understanding of financial tools.

I'm happy your financial tool comes packaged with a skewed sense of superiority.

ramuman · Sep 13, 2010

Originally Posted by Trompe le Monde

I'm happy your financial tool comes packaged with a skewed sense of superiority.
I don't think piobaire comes across as smug. He merely stated he leases for a set of well-defined reasons - two big ones being protection against prices in the used car market and lower up-front payments over the term of the car's life he plans to use. I'm not sure I agree with his points on maintenance etc. as all new cars would have warranties/maintenance (as I noted in a previous post), but leasing seems to work fine for him and it's hard to fault his logic for his case. Nearly every car is a depreciating asset so you're really only considering where you want that cost to go. It can either go into equity on the car which you'll get some back in some reduced form when you trade-in/sell or towards guarding yourself against the factors he mentioned. I don't think leasing makes sense for someone like me, but that hardly doesn't mean it doesn't make sense for anyone else.

Trompe le Monde · Sep 13, 2010

Originally Posted by ramuman

two big ones being protection against prices in the used car market and lower up-front payments over the term of the car's life he plans to use.

Car depreciation trends and rates are very well defined. Not exactly volatile like the equity market.

It's a personal decision... so to teach his/her own... but to think of car leasing as a sophisticated financial instrument is to have a misguided sense of hubris...

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