RL Leasing - Achille's Heel
07-17-2007, 09:51 AM
#81
Go Big Blue!
Originally Posted by Mike_TX
But anyway, I think we've beaten this horse pretty much to death for now. I've yet to see a discussion of leasing vs. buying end differently, although hope springs eternal. We're back to the good advice to consider your own financial situation and your needs and make the buying choice that works best for you. Just look at all the options..
07-17-2007, 10:47 AM
#82
Burning Brakes
Originally Posted by Mike_TX
Well, DW, you'll note I watered down the market return to 8% in my example (being conservative, as I noted). But water it down more to 6% and you'll still do double the 3% Mikey mentioned.
You guys might want to check into Ted Aranson's "Lazy Man's Portfolio", which returned 13.7% last year, all with non-actively-managed funds. And he's consistently beaten all the traditional indices for years. You might want to rearrange your 401k!
.
You guys might want to check into Ted Aranson's "Lazy Man's Portfolio", which returned 13.7% last year, all with non-actively-managed funds. And he's consistently beaten all the traditional indices for years. You might want to rearrange your 401k!
.
07-17-2007, 11:10 AM
#83
Go Big Blue!
You shouldn't take any financial advice from others. Do your own homework based on what works for you. Period.
Sorry to beat this dead horse, but, one more point; Leasing is a cash flow tool. In that situation it works great. But, I never saw how it was cheaper then financing or paying cash. If leasing was so great we'd be doing it with everything that depreciates. How many people are leasing their furniture? Or that big screen TV in your family room? You're not? How come?
There are plenty of "rent to own" companies out there ready to do it, and, plenty of people that take advantage of it every day. The reason you probably are not leasing your furniture or electronic equipment is because the price point is low enough that you can just pay cash? Sound familiar now?
For the same reason you'd never consider leasing your TV (and feel sorry for those that have too), someone with enough cash would never consider leasing or financing a car (and feels sorry for US). It's just a more expensive way to do it. Leasing (and to a lesser extend financing) DOES have it's advantages and meets the needs of some. However, it's just a cash flow advantage, not a TCO advantage.
Sorry to beat this dead horse, but, one more point; Leasing is a cash flow tool. In that situation it works great. But, I never saw how it was cheaper then financing or paying cash. If leasing was so great we'd be doing it with everything that depreciates. How many people are leasing their furniture? Or that big screen TV in your family room? You're not? How come?
There are plenty of "rent to own" companies out there ready to do it, and, plenty of people that take advantage of it every day. The reason you probably are not leasing your furniture or electronic equipment is because the price point is low enough that you can just pay cash? Sound familiar now?
For the same reason you'd never consider leasing your TV (and feel sorry for those that have too), someone with enough cash would never consider leasing or financing a car (and feels sorry for US). It's just a more expensive way to do it. Leasing (and to a lesser extend financing) DOES have it's advantages and meets the needs of some. However, it's just a cash flow advantage, not a TCO advantage.
07-17-2007, 12:47 PM
#84
Trolling Canuckistan
Originally Posted by neuronbob
Hmmmmm....interesting point that I will remember the next time I'm in the market for a car. Negotiating a high-mileage 3-year lease would not be a bad idea. The current RL would still be a bad lease deal in that situation, no?
The TL lease from last month worked out well for the 30K per year driver, but you had a good residual (not great) and an incredible money factor.
07-17-2007, 05:34 PM
#85
AcurAdmirer
Originally Posted by dwboston
I have a rule: never take investment advice on an automotive internet forum.
That's second only to "Don't take car buying advice from anybody on an automotive forum." (Pssssst: Index funds suck.
).
.
07-17-2007, 07:30 PM
#86
Burning Brakes
Originally Posted by Mike_TX
(Pssssst: Index funds suck. )
)
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