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First of all, lots of real estate depreciates. Remember the housing crash of 2007?
Second, don't kids yourself about people's debt-load - even what they claim they can easily handle.
Yes I do, and thanks for making more of my point.
I know people who are barely treading water, and some who are banking money while making payments. The point is that there are many of us who are paying the bills and enjoying the things we're making payments on. Although I am glad I've paid off everything but the house. It's one reason I don't step to a different car, as much fun as that might be.
Nothing better than a paid off car. I agree with now saving that money so you can pay cash for the next one.
This same account can also cover repairs.
When we paid off our van, we fell in love all over again..
Paying off you home mortgage is a way better feeling.
Cash is not the negotiating tool it once was. It is all but a liability now if you're buying from a dealer.
I never understood that either. By that logic almost no one can afford their homes.
When I've paid off some cars, I spent a little money to refresh them. A detail, maybe an audio tune up, splurge on better tires, make some repairs on non-essential items, etc. Just something to make the car a bit nicer. Then I start saving.
That seems crazy. I would be extra stingy if I'm buying a car cash.
But leasing means that you always have a car payment right?
Yes, but you're using only the best time period of the car, when it will likely depreciate as much as you're paying, so you'll end up with little to no equity after the lease period. Outside of oil changes, which some forgo anyway, maintenance costs should be near zero for many manufacturers.
Quote:
Originally Posted by kingtodd
That seems crazy. I would be extra stingy if I'm buying a car cash.
Cash isn't useful to a car dealer. They have to protect it and physically take it to a bank, theft is always a concern, and if over $10K they have to report it to the IRS. It's a hassle. Plus, many make money off of financing they provide or offer.
Reputable car dealers can't hide cash transactions like they may have in the past. See "Fargo"!
Congrats! I'd suggest you now start putting $100 - $200 per month into a "car fund" from which you can pay for repairs, or possible get set to buy your next car.
Best Advice
I was just able to buy a car cash because this method.
Yes, but you're using only the best time period of the car, when it will likely depreciate as much as you're paying, so you'll end up with little to no equity after the lease period. Outside of oil changes, which some forgo anyway, maintenance costs should be near zero for many manufacturers.
I was sort of asking how leasing could be better financially than buying. You'll never have equity leasing unless you buy the car since you have to lease or buy another car, so all the lease payments are just renting the car.
I'm trying to decide between leasing a new car or buying and the lease just costs more if I want to buy the car beyond the lease term. At least the lease payments quoted by the dealer and I had already negotiated the final price. If the total of all lease payments did equal the purchase price minus residual value then I would do it.
Last edited by arrieros81; 11-22-2013 at 06:37 PM..
Now you have ample time to set "car" money aside. Aim for the next car to be an all cash purchase or mostly cash purchase.
Cingrats and THIS ^^^^ x10
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