Quote:
Originally Posted by 8sPOT
Valid points, but how can someone justify making a monthly payment essentially for as long as they drive?
I bought a 1 year old Honda Ridgeline (the very vehicle Backlund drives, we are Ridgeline pals) in 2007 and paid cash for it. Now I plan on having that thing until like 2025 or something, and I have zero monthly payments. Obviously I have to make sure it is maintained properly but it just seems to be the way to go.
Also, you can go to return a leased vehicle, and if you're over the km allowance it's gonna cost you.
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If you read it, you would realize I made a direct comparison of using leasing as the method of finance to outright purchase the car as well. But it gives you the option to hand the keys back sooner if you do not want it going forward. Most people do not have 30K to drop on my desk, and if they did, they are stupid when I can finance a car at around 3% right now. Use your cash to make some money for you, not to pay off a depreciating commodity in one fell swoop. I have had guys in front of me that make half a million bucks a year, and could pay for the thing with one paycheck, yet they still lease. In fact, almost all of the people I would classify as rich, lease their personal vehicles. They usually only buy the ones that are gifts to their kids.
Also your logic is cool if you want to drive a 20 year old vehicle in 2025...off of warrant for 15 of them to boot. Most people don't and neither will you.
Almost everyone goes into new car ownership with the intent of owning it forever, yet the industry average in Alberta is 3.86 years last time I checked. Which coincidentally is just before the average time most warranties expire on new vehicles.