Quote:
Originally Posted by pylon
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.
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I understand all that, and I know it isn't usually an option to pay cash for a newer vehicle. I just don't like the idea of always have a monthly payment on something that will eventually be worth nothing. I have no problem driving a 20 year old vehicle down the road, I've done it before. If I made half a million bucks a year I would lease a brand new car every 3 years too, but most of us don't have that kinda dough coming in. My point is, a car is mostly a need, but people tend to put it in the want category and then they can justify getting a new one way more often than needed. I guess I am not the norm because I think a new car every 3.86 years is ridiculous. What kind of asset costs $35,000 and only to be replaced every 4 years?