80% of athletes are bankrupt within 5 years of retiring, so I wouldn't consider them the best example to use. But let's use your example of wealthy individuals. I guessing most of the people you see paying with cash you'd never know their occupation. Something like 75-80% of millionaires have never leased a car in their life. It could be different for deca-millionaires on up, but let's just say the "average" millionaire. Those 25% that do lease can easily afford to since most vehicles are a rounding error in their net worth. I think we're all familiar with Steve Jobs leasing a new Mercedes every 6 months just so he wouldn't have to put a license plate on it. While not a smart financial decision. He could have bought the entire Mercedes dealership and had several billion left over afterwards. For the average person, a lease payment is several percentage points out of their monthly budget.Again, it depends on your purchasing power. A good client of ours, name rhymes with "Birds say", buys all his new whips outright with cash. Obviously if you have the disposable income to buy the car, then its best to buy it. BUT you're eating up all of the depreciation the longer you drive, have the car etc.
If financial advisors dont advise people to lease, why the hell these multi million dollar athletes/execs leasing cars from us then? I guarantee they have FA's too
Really just depends on your situation. Leasing aint for everyone if that's what you're saying, I agree.
If you bought the car outright for $18,000 after someone else leased it for 3 years, that would be a great deal. However, if the car is worth $25,000 new and you bought it for $18,000 after 3 years with a $200/mo. payment, you're still coming out behind if you had bought a $7000 car and driven that for the 3 years. In that case, you could have at least sold it for $4-5k (or more) and used that towards the newer car. New cars are very rarely an appreciating asset unless it's a diesel or hybrid during a gas price hike.
Why not just buy it under the business name? The math doesn't change just because the name does. Either way, you get to depreciate the asset on your taxes.
CRC, i dont know if this applies to the majority of NT, but what are your thoughts on leasing if you own your own business and can manage to lease the vehicle under the business name as a business vehicle? Do you think that the benefits of leasing (assuming you find a great lease offer with low upfront costs, higher residual, and low lease rate) outweight the benefits of buying/financing?
repped.
repped.
Tire and Rim protection is a scam. SMH. I'll never add that again.I pay under 750 for my e class and that includes the tire and rim protection I added to the vehicle.
Yeah that E Class coupe has little incentive $$ behind it. E Class sedan would be more affordable. Last I checked you could lease one for 27 months for 20,000 miles for like $750 including taxes and fees.
We had a special a month or two ago that was sign and drive (still had to pay first month's payment and documentation fee up front). So essentially, you could get into a new 2014 E Class and drive it off the showroom floor for under a grand when my mans put down $3200 for a Pathfinder.
Car industry is crazy man. Just depends on your credit score and when you're looking to get into a new whip
I wasn't 100% sure how good my deal was but after reading this I'm looking pretty good.
I understand what you're saying here, but you misread what I wrote.
Seeing that one our clients is the guy in your avy, we actually do know exactly their occupation and their income unless they pay cash. Like I've said multiple times, it really depends on your financial situation and car purchasing method. Some people just like getting into a new car every 3 years especially luxury cars.80% of athletes are bankrupt within 5 years of retiring, so I wouldn't consider them the best example to use. But let's use your example of wealthy individuals. I guessing most of the people you see paying with cash you'd never know their occupation. Something like 75-80% of millionaires have never leased a car in their life. It could be different for deca-millionaires on up, but let's just say the "average" millionaire. Those 25% that do lease can easily afford to since most vehicles are a rounding error in their net worth. I think we're all familiar with Steve Jobs leasing a new Mercedes every 6 months just so he wouldn't have to put a license plate on it. While not a smart financial decision. He could have bought the entire Mercedes dealership and had several billion left over afterwards. For the average person, a lease payment is several percentage points out of their monthly budget.Again, it depends on your purchasing power. A good client of ours, name rhymes with "Birds say", buys all his new whips outright with cash. Obviously if you have the disposable income to buy the car, then its best to buy it. BUT you're eating up all of the depreciation the longer you drive, have the car etc.
If financial advisors dont advise people to lease, why the hell these multi million dollar athletes/execs leasing cars from us then? I guarantee they have FA's too
Really just depends on your situation. Leasing aint for everyone if that's what you're saying, I agree.
Think NFL owners
Again, it depends on your purchasing power. A good client of ours, name rhymes with "Birds say", buys all his new whips outright with cash. Obviously if you have the disposable income to buy the car, then its best to buy it. BUT you're eating up all of the depreciation the longer you drive, have the car etc.
If financial advisors dont advise people to lease, why the hell these multi million dollar athletes/execs leasing cars from us then? I guarantee they have FA's too
Really just depends on your situation. Leasing aint for everyone if that's what you're saying, I agree.
80% of athletes are bankrupt within 5 years of retiring, so I wouldn't consider them the best example to use. But let's use your example of wealthy individuals. I guessing most of the people you see paying with cash you'd never know their occupation. Something like 75-80% of millionaires have never leased a car in their life. It could be different for deca-millionaires on up, but let's just say the "average" millionaire. Those 25% that do lease can easily afford to since most vehicles are a rounding error in their net worth. I think we're all familiar with Steve Jobs leasing a new Mercedes every 6 months just so he wouldn't have to put a license plate on it. While not a smart financial decision. He could have bought the entire Mercedes dealership and had several billion left over afterwards. For the average person, a lease payment is several percentage points out of their monthly budget.
If you bought the car outright for $18,000 after someone else leased it for 3 years, that would be a great deal. However, if the car is worth $25,000 new and you bought it for $18,000 after 3 years with a $200/mo. payment, you're still coming out behind if you had bought a $7000 car and driven that for the 3 years. In that case, you could have at least sold it for $4-5k (or more) and used that towards the newer car. New cars are very rarely an appreciating asset unless it's a diesel or hybrid during a gas price hike.
CRC, i dont know if this applies to the majority of NT, but what are your thoughts on leasing if you own your own business and can manage to lease the vehicle under the business name as a business vehicle? Do you think that the benefits of leasing (assuming you find a great lease offer with low upfront costs, higher residual, and low lease rate) outweight the benefits of buying/financing?
Why not just buy it under the business name? The math doesn't change just because the name does. Either way, you get to depreciate the asset on your taxes.
If you only focus on the payments of something, you'll always be broke. Figure out the total cost of operation of the things you buy (House, Car, Electronics, apparel {sometimes paying more for quality is actually cheaper} ) and you'll find yourself in a better position both financially and mentally too. I just paid cash for a newer car last year. With the history of the vehicle I bought, the first model year 5 years prior was going for the same amount as the model I bought, meaning I'll probably be able to sell it in about 5 years and not take a major hit on the resale value unless something major happens.
You own a house or nah?
