RA010324

He just says he's putting $4,000 on the credit card....if you read his entire post I quoted he goes on to say:

Which is insane......and yes, putting $4,000 down on a car is too much as well.......that much cash is MUCH better spent elsewhere. It makes no sense to pay $4,000 for something that loses at least $5,000 in value the moment you drive it off the lot.

Neo

iTrader: (3)

Everyone's needs and approaches to finances is different. Some people manage debt by not having any (or minimizing it). Some will extend themselves and tie up capital somewhere else to earn money to make back some of the debt. I don't see any problem with each approach.

colbydog

Hey guys. 1st post. Ususally just a lurker.

I usually take out a loan against my life insurance policy to pay for my cars and pay myself back over time. Sure it cost interest, but the net cost when you pay yourself back is (depending on the policy) 1% or so. Some charge more than others, but you don't worry about qualifying for a loan, and you are giving yourself back your money with interest.

Just a thought.

...Scott.

RA010324

Except one approach allows you to "lose less". You're ALWAYS going to lose $$$ when you have a new car....that's just a given....the idea is to lose as little as humanly possible. Because I leased my IS with no $$$ down I'm putting out as much as $100+ less per month into it compared to a purchase with $5000 down. Now, that $5000 plus $100 per month could be earning me $$$ in a conservative investment instead. I divert much of my funds into my 401K which has the added bonus of allowing interest free loans up to the value of 50% of my portfolio. The best part is that I'm still at the "break even" point on my IS250 in 2 years and I can turn around and get another brand new car having paid much less for the use of the car in the 2 years prior and I won't have to come up with any $$$ to get the next one.

edman688

If the idea is to lose as humanly possible, then leasing a car is just about the dumbest thing you could possibly do.

RA010324

I don't understand what you're trying to say. Leasing is only a bad option for people who want to keep the car forever.