Lease that shiat

w/ 90 k prepay the whole lease
24 month lease on like an 04 Gallardo
20k -25k down
2800/month

On avg.

 

Why drop 90K on an 04 that you will never get back when you can buy one and in the two years time lose no more than $25K max?

 

please explain..

 

Nothing to explain. If you make $90K worth of lease payments you will lose $90K. If you buy the car and sell it in 2 years you will lose 20-25K.

 

Plus tax on the full amount rather than on the 90k, plus the opportunity costs of not having the $175,000 for 2 years.

 

Steve took the words out of my mouth.

It still might be less than $90K, depending on how you utilize the cash you freed up, but you also dont have the hassle of selling the car at the end, or worry about it's depreciation beyond that (probably more than $25K).

 

While I knew you would say that, I disagree because if your money is expensive you can finance the car and still not have to put down the full amount and the money lost on the depreciation will be far less than the lease, ON THIS TYPE OF CAR!

 

If you are a smart investor though, you can actually invest the cash and more than offset the cost of money for financing a car. My investments have outearned by a number of percentage points the cost to finance an auto loan for instance and I am not that savvy of an investor. Why pay cash and save 6% interest if you can invest and make 10%-20% per annum. This however, doesn't work out as well if you switch cars frequently as the interest payments are loaded toward the beginning of the loan. In my day to day business, I use several million dollars of borrowed money and the interest costs can seem quite high. However, the income I generate averages 10 times as much as the interest.

 

How about not leasing or financing a car(s) that you can't afford.

 

Are you crazy? Welcome to america my friend.

Aloha

Byron

 

I hope everyone is paying attention....a pearl of great wisdom was just dropped

 

Thanks AaronK but its hardly great wisdom.....just common sense. Hmmmm maybe thats the definition of great wisdom.

 

What makes you assume the guy asking the original question can't afford the car? Not debating, just asking.

 

Not a matter of "affoeding"

what is someone willing to pay? and how much hassel is involved?

The more you own the more you are reponsible for

I bought my 02 Murcie for MRSP and only kept it for 8 mos. 3 of which i spent travelling car spent 21 total days being repaired.
Ultimately
had no problem selling it, lost my Tax and a few thousand in gas!

 

True, but isn't this ONLY if you don't drive the car more than 5 or 10 thousand miles in this time? I just can't justify the cost per mile.....now if I could put 10,000 miles a YEAR on it and still get within $25k when I sold it after two years.....then I would seriously look at one....


Chris