Quote:
Originally Posted by flamesaresmokin
Thats all well and good if you never want to own anything. You can end up with 21 grand down on a car after a typical 5 year lease and you'd still have to buy it for what its now worth or end up with nothing to show for all your payments.
To own a honda accord after a lease you would end up paying 35-37 grand for a car that was originally worth 30 grand to begin with.
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why would you want to own something that is not only going down in value, but as it ages is going to cost more and more to maintain?
if you pay cash for a car, say 25k, you have just turned 25k into 20k instantly and after 4 years, that 20k is now 12k or so.
i can lease that car for a cost of about 14k over 4 years and take the other 10k and invest it. after 4 years, i have an appreciating asset (the 10k) and you have a depreciating one (the car). and as the car ages, it starts costing more and more until you have to do it all over again.
why dont you "owners" see a hunk of metal in your driveway that represents tied up & depreciating capital? fact is, at low interest rates, you dont want equity in a car, let the bank own as much of it as possible. its a waste of capital.