Screamin' lease deal--oxy moron?
08-07-15, 04:54 AM
#16
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Investment....
In my opinion.....
1) leasing enables you to get more car for your money. Paying $400 a month for a purchase = nice camry, leasing $400 a month = BMW, Mercedes, etc.
2) Not everyone is aware of their financial security or their timelines for work, moving for work, etc, and as such a two-three year lease is more reasonable than a five-six year purchase.
3) Many people (such as myself and family members) are given incentives to lease - my work gives $200 a month to the lease and $500 towards the down, but if you don't have a car payment - you don't just get free money. In this case, it means that some of us can drive a luxury car for ~150 a month after employer compensation.
4) cars are considered assets but they will NEVER appreciate. Unless its a vintage Ferrari or some other rare, exclusive car, it will never gain in value.
5) the older cars get the more likely that the issues will present themselves. Some of us do not care to deal with a 6-7 year old car that has transmission issues, an 8 year old car that has no AC, a 10 year old car that needs an engine revamp.
6) Technology is rapidly changing in cars, and things like fuel economy, user interface, power delivery, are getting better every year. See: 2014 IS 250 v. 2016 IS 200T. The person who leased the 2014 IS is now going to step into a nice new IS200t and experience a lot of great benefits, the person who purchased that IS still has a few years of payments before they can consider the possibility of jumping.
7) For many people, appearances matter, as a law student and professional IT director for a medical corporation, I can rightfully inform you that people in Los Angeles will indeed actively judge you based on your ride. In that an attorney with a 9 year old car "probably" hasn't won cases in a while, and a doctor without a newer Porsche "probably" got a divorce and lost most of their money to the spouse. (IRL my friend that I work with is a doctor who got divorced and went from a Maserati at $1200 a month to a Honda Accord and all our social work circles knew something happened and 9/10 times the question was "what happened to the car!?"\
Some people want to enjoy their success and find that getting a new car every few years is a great way to do it.
Some people think that paying cash for a car that drops 20% in value once you drive it for a week, and drops 40-50% within 4 years (worse for German cars) is the dumbest "investment" of money one can imagine.
In summary, to each their own, but people do have serious and legitimate reasons for leasing.
Personally, as a car enthusiast - I find leasing the most appealing. I could never imagine keeping a car out of warranty, not to mention 8+ years. I hate the feeling of paying for something that will technologically be inferior in just a few years, I like having the option to quickly shift into a new car if my needs change (for school I got a sedan because it was also going to be the weekend family outing car, but my family just purchased a new family car - so now I can switch into a coupe. If I get married relatively soon I can switch from Coup back to Sedan, and when I have kids I can switch to a small CUV - and for most of that time I will have gone through two totally new cars with new features and new tech and that lovely new car feeling, for less than the person who bought the car (who is still paying) paid).
TL;DR - People have their reasons and those reasons should be respected.
1) leasing enables you to get more car for your money. Paying $400 a month for a purchase = nice camry, leasing $400 a month = BMW, Mercedes, etc.
2) Not everyone is aware of their financial security or their timelines for work, moving for work, etc, and as such a two-three year lease is more reasonable than a five-six year purchase.
3) Many people (such as myself and family members) are given incentives to lease - my work gives $200 a month to the lease and $500 towards the down, but if you don't have a car payment - you don't just get free money. In this case, it means that some of us can drive a luxury car for ~150 a month after employer compensation.
4) cars are considered assets but they will NEVER appreciate. Unless its a vintage Ferrari or some other rare, exclusive car, it will never gain in value.
5) the older cars get the more likely that the issues will present themselves. Some of us do not care to deal with a 6-7 year old car that has transmission issues, an 8 year old car that has no AC, a 10 year old car that needs an engine revamp.
6) Technology is rapidly changing in cars, and things like fuel economy, user interface, power delivery, are getting better every year. See: 2014 IS 250 v. 2016 IS 200T. The person who leased the 2014 IS is now going to step into a nice new IS200t and experience a lot of great benefits, the person who purchased that IS still has a few years of payments before they can consider the possibility of jumping.
7) For many people, appearances matter, as a law student and professional IT director for a medical corporation, I can rightfully inform you that people in Los Angeles will indeed actively judge you based on your ride. In that an attorney with a 9 year old car "probably" hasn't won cases in a while, and a doctor without a newer Porsche "probably" got a divorce and lost most of their money to the spouse. (IRL my friend that I work with is a doctor who got divorced and went from a Maserati at $1200 a month to a Honda Accord and all our social work circles knew something happened and 9/10 times the question was "what happened to the car!?"\
Some people want to enjoy their success and find that getting a new car every few years is a great way to do it.
Some people think that paying cash for a car that drops 20% in value once you drive it for a week, and drops 40-50% within 4 years (worse for German cars) is the dumbest "investment" of money one can imagine.
In summary, to each their own, but people do have serious and legitimate reasons for leasing.
Personally, as a car enthusiast - I find leasing the most appealing. I could never imagine keeping a car out of warranty, not to mention 8+ years. I hate the feeling of paying for something that will technologically be inferior in just a few years, I like having the option to quickly shift into a new car if my needs change (for school I got a sedan because it was also going to be the weekend family outing car, but my family just purchased a new family car - so now I can switch into a coupe. If I get married relatively soon I can switch from Coup back to Sedan, and when I have kids I can switch to a small CUV - and for most of that time I will have gone through two totally new cars with new features and new tech and that lovely new car feeling, for less than the person who bought the car (who is still paying) paid).
TL;DR - People have their reasons and those reasons should be respected.
My goal is to NOT have a car payment, period. And my most recent car driving experience has been a 2006 Toyota Solara. Bought it is 2006 and haven't had a car payment in years. But I haven't done anything mechanical to that car other than regular maintenance. I don't even feel technological left behind in that car today. I have navigation, heated seats, it's a V6 with moonroof, leather. And I thought I would happily drive that car for another ten years. My goal is to pay car off so I don't have car payments. I will probably have this car for at least a decade, and in 3 years when I no longer have a car payment (still under warranty), I'll be free of that monthly commitment. I can't stand to owe anyone. We have a mortgage....I don't even like having mortgage debt.
Even if my job gave me the small stipend you receive toward a car lease (does it have to be used toward a lease?), it wouldn't even almost sway me toward leasing.
Your scenario about doctors/lawyers makes me chuckle. Now that I'm older, I think I might put my money on the professional with the 8 year old car. For too many reasons to go into here....but it just made me chuckle.
And lastly, I think it might have to do with the comfortableness of having a car payment in general. In my 30's and maybe even early 40's, I probably just assumed I'd always have a car payment. But once you realize that that's not necessarily true, it changes how you buy car. I never thought we'd be in a position to pay $30k down. Let alone a 3 year loan (the longer term, the lower the payment, the better, or so I thought). But as you get older, and if you've been fortunate enough to build a decent retirement, having no payments or owing anyone is freedom that feels much better than a new car smell every 3 years.
There are probably a very wide age gap in the owner's of the RC. I would be interested in a poll of our ages, but people are so touchy about their age that it would probably would tank. I'm 52 and shout it from a rooftop. ...my friends? Not so much.
Dawn
08-07-15, 05:25 AM
#18
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I guess it is like renting an apartment v.s owning a house, I have been renting apartments for last 11 years. I did own a house before, but I was way to young to take on the responsibilities. therefore I choose to rent again.
But I never lease a car.
But I never lease a car.
08-07-15, 05:36 AM
#19
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In my opinion.....
1) leasing enables you to get more car for your money. Paying $400 a month for a purchase = nice camry, leasing $400 a month = BMW, Mercedes, etc.
2) Not everyone is aware of their financial security or their timelines for work, moving for work, etc, and as such a two-three year lease is more reasonable than a five-six year purchase.
3) Many people (such as myself and family members) are given incentives to lease - my work gives $200 a month to the lease and $500 towards the down, but if you don't have a car payment - you don't just get free money. In this case, it means that some of us can drive a luxury car for ~150 a month after employer compensation.
4) cars are considered assets but they will NEVER appreciate. Unless its a vintage Ferrari or some other rare, exclusive car, it will never gain in value.
5) the older cars get the more likely that the issues will present themselves. Some of us do not care to deal with a 6-7 year old car that has transmission issues, an 8 year old car that has no AC, a 10 year old car that needs an engine revamp.
6) Technology is rapidly changing in cars, and things like fuel economy, user interface, power delivery, are getting better every year. See: 2014 IS 250 v. 2016 IS 200T. The person who leased the 2014 IS is now going to step into a nice new IS200t and experience a lot of great benefits, the person who purchased that IS still has a few years of payments before they can consider the possibility of jumping.
7) For many people, appearances matter, as a law student and professional IT director for a medical corporation, I can rightfully inform you that people in Los Angeles will indeed actively judge you based on your ride. In that an attorney with a 9 year old car "probably" hasn't won cases in a while, and a doctor without a newer Porsche "probably" got a divorce and lost most of their money to the spouse. (IRL my friend that I work with is a doctor who got divorced and went from a Maserati at $1200 a month to a Honda Accord and all our social work circles knew something happened and 9/10 times the question was "what happened to the car!?"\
Some people want to enjoy their success and find that getting a new car every few years is a great way to do it.
Some people think that paying cash for a car that drops 20% in value once you drive it for a week, and drops 40-50% within 4 years (worse for German cars) is the dumbest "investment" of money one can imagine.
In summary, to each their own, but people do have serious and legitimate reasons for leasing.
Personally, as a car enthusiast - I find leasing the most appealing. I could never imagine keeping a car out of warranty, not to mention 8+ years. I hate the feeling of paying for something that will technologically be inferior in just a few years, I like having the option to quickly shift into a new car if my needs change (for school I got a sedan because it was also going to be the weekend family outing car, but my family just purchased a new family car - so now I can switch into a coupe. If I get married relatively soon I can switch from Coup back to Sedan, and when I have kids I can switch to a small CUV - and for most of that time I will have gone through two totally new cars with new features and new tech and that lovely new car feeling, for less than the person who bought the car (who is still paying) paid).
TL;DR - People have their reasons and those reasons should be respected.
1) leasing enables you to get more car for your money. Paying $400 a month for a purchase = nice camry, leasing $400 a month = BMW, Mercedes, etc.
2) Not everyone is aware of their financial security or their timelines for work, moving for work, etc, and as such a two-three year lease is more reasonable than a five-six year purchase.
3) Many people (such as myself and family members) are given incentives to lease - my work gives $200 a month to the lease and $500 towards the down, but if you don't have a car payment - you don't just get free money. In this case, it means that some of us can drive a luxury car for ~150 a month after employer compensation.
4) cars are considered assets but they will NEVER appreciate. Unless its a vintage Ferrari or some other rare, exclusive car, it will never gain in value.
5) the older cars get the more likely that the issues will present themselves. Some of us do not care to deal with a 6-7 year old car that has transmission issues, an 8 year old car that has no AC, a 10 year old car that needs an engine revamp.
6) Technology is rapidly changing in cars, and things like fuel economy, user interface, power delivery, are getting better every year. See: 2014 IS 250 v. 2016 IS 200T. The person who leased the 2014 IS is now going to step into a nice new IS200t and experience a lot of great benefits, the person who purchased that IS still has a few years of payments before they can consider the possibility of jumping.
7) For many people, appearances matter, as a law student and professional IT director for a medical corporation, I can rightfully inform you that people in Los Angeles will indeed actively judge you based on your ride. In that an attorney with a 9 year old car "probably" hasn't won cases in a while, and a doctor without a newer Porsche "probably" got a divorce and lost most of their money to the spouse. (IRL my friend that I work with is a doctor who got divorced and went from a Maserati at $1200 a month to a Honda Accord and all our social work circles knew something happened and 9/10 times the question was "what happened to the car!?"\
Some people want to enjoy their success and find that getting a new car every few years is a great way to do it.
Some people think that paying cash for a car that drops 20% in value once you drive it for a week, and drops 40-50% within 4 years (worse for German cars) is the dumbest "investment" of money one can imagine.
In summary, to each their own, but people do have serious and legitimate reasons for leasing.
Personally, as a car enthusiast - I find leasing the most appealing. I could never imagine keeping a car out of warranty, not to mention 8+ years. I hate the feeling of paying for something that will technologically be inferior in just a few years, I like having the option to quickly shift into a new car if my needs change (for school I got a sedan because it was also going to be the weekend family outing car, but my family just purchased a new family car - so now I can switch into a coupe. If I get married relatively soon I can switch from Coup back to Sedan, and when I have kids I can switch to a small CUV - and for most of that time I will have gone through two totally new cars with new features and new tech and that lovely new car feeling, for less than the person who bought the car (who is still paying) paid).
TL;DR - People have their reasons and those reasons should be respected.
Here here!! I agree with you wholeheartedly. As an accountant I find it ridiculous to pay for an asset that depreciates 20 to 50% the second I drive it off a lot. I used to purchase all of my cars and then get rid of them after 3 to 4 years and I found myself losing a great deal of money on the trade-in value. So for the last 21 years I have switched to leasing my cars which has afforded me the ability to get in and out of the vehicle relatively easily. I pay very little cost in maintenance because I have two years of free service. I also have sold a leased car to Carmax and I had a leased car get stolen, completely totaled and was valued at $5000 higher than my pay off of my lease. That $5000 went in my pocket. I write my payment off for business I can well afford to buy another car via a loan, I just choose to lease.
Just because you choose or anyone else on this board chooses not to lease doesn't mean you should judge people and say they are one step away from bankruptcy or they cannot afford to purchase a car, because that's not true it's everyone's choice how they want to finance their purchase I just choose not to throw money into a car that's a depreciable asset and I have no intention of keeping. All my leases are have minimum drive off fees and my payments are something I can afford and I use it as I said for a write off in my business.
.
As I said it's all a matter of choice.
08-07-15, 05:51 AM
#20
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You might also have missed where I said that it's likely that some of these folks lose more money on gambling a year than I make in salary (no....I wasn't saying they have gambling problems....just that they probably make way more than I do).
Each side is being judgmental in their own ways. By saying that "no way would I blah, blah, blah, on a car that depreciates the minute, blah, blah, blah" is just as judgmental by saying it is NOT a good idea to buy.
I now have a good idea why there are so many people leasing these cars though....so thank you all for the informative posts.
But leasing isn't for me because I just hate the thought of "borrowing" someone's car every morning when I pull put of my garage. And I'm definitely not feeling the love of handing the car back to the dealer after making 3 years of payments. I think that might make me gag a bit.
08-07-15, 07:59 AM
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I think its like anything else. Some people like buying nice clothes, some people like taking a lot of trips, some people like having nicer newer cars. I dont think people choose leasing beacuse its the best financial decision for long term savings and retirement planning, you do it because if you like having a new car every few years, trading a car in (losing way more in value than turning in a lease) or the hassle of finding a buyer is not something everyone wants to have to deal with.
08-07-15, 08:09 AM
#23
Lexus Champion
After buying several cars, I switched to leasing a few years ago and I love it.
If I wanted to be more financially responsible in my automotive choices, I'd drive a Corolla. Yes, I can afford to buy a Lexus. However, I choose to lease. I enjoy getting a new car every 2-3 years. I just get bored with a car after 2-3 years and leasing makes it very easy to move to the next car. I scrimp and save in other areas of my life, and work very hard, so a monthly car payment is a luxury splurge for me. And when I get into my car each morning, I never consider it to be borrowing someone else's car. I just feel thankful that my life has allowed me to drive such great vehicles.
And for what it's worth, I have yet to come to a lease end where I didn't have more value in the car than the residual, meaning I get a significant amount of money back. It's definitely not "walking away with nothing".
If I wanted to be more financially responsible in my automotive choices, I'd drive a Corolla. Yes, I can afford to buy a Lexus. However, I choose to lease. I enjoy getting a new car every 2-3 years. I just get bored with a car after 2-3 years and leasing makes it very easy to move to the next car. I scrimp and save in other areas of my life, and work very hard, so a monthly car payment is a luxury splurge for me. And when I get into my car each morning, I never consider it to be borrowing someone else's car. I just feel thankful that my life has allowed me to drive such great vehicles.
And for what it's worth, I have yet to come to a lease end where I didn't have more value in the car than the residual, meaning I get a significant amount of money back. It's definitely not "walking away with nothing".
08-07-15, 08:22 AM
#24
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Very true....
I think its like anything else. Some people like buying nice clothes, some people like taking a lot of trips, some people like having nicer newer cars. I dont think people choose leasing beacuse its the best financial decision for long term savings and retirement planning, you do it because if you like having a new car every few years, trading a car in (losing way more in value than turning in a lease) or the hassle of finding a buyer is not something everyone wants to have to deal with.
Very true about travel though. People just spend money differently. We'll drop $10k EASILY for our 20 day trip in Thailand this Oct/November. Cash of course (I don't think ANYONE takes vacations they can't pay for up front). We save every month for our annual vacations and have been since we got married in 1991. But I am sure to other people, spending $10k on a vacation for 20 days is the biggest waste of money ON THE PLANET.
Just different priorities...and travel for us is probably in the top 3 of importance. Other people don't even care if they leave their living room.
08-07-15, 08:24 AM
#25
Lexus Test Driver
Here is what I don't understand..
Why do people who don't like leasing for one reason or another always feel the sense of urgency to tell those who do like leasing that it's terrible to lease and that you're making a poor financial decision etc, even when they are not asked for their opinion.
Some people feel that dropping $50K cash on an asset that depreciates 20% plus moments after taking delivery is a poor financial decision. So if it makes you feel great that you can brag that you paid cash good for you. But lets be fair, It goes both ways and there are pros and cons to both as some other posters have mentioned.
But for someone to say people lease because they can't afford to buy the vehicle outright is an ignorant statement. How do you know what the reasoning or financial position is of someone who once again you don't even know?
I get it, its a public forum and people are free to discuss whatever they want. But if someone prefers to lease why do some people care so much what someone they don't even know does with their own money..
So what's the problem if someone prefers to finance or pay cash and someone else prefers to lease?
I am not going to knock either, I say to each his own..
Why do people who don't like leasing for one reason or another always feel the sense of urgency to tell those who do like leasing that it's terrible to lease and that you're making a poor financial decision etc, even when they are not asked for their opinion.
Some people feel that dropping $50K cash on an asset that depreciates 20% plus moments after taking delivery is a poor financial decision. So if it makes you feel great that you can brag that you paid cash good for you. But lets be fair, It goes both ways and there are pros and cons to both as some other posters have mentioned.
But for someone to say people lease because they can't afford to buy the vehicle outright is an ignorant statement. How do you know what the reasoning or financial position is of someone who once again you don't even know?
I get it, its a public forum and people are free to discuss whatever they want. But if someone prefers to lease why do some people care so much what someone they don't even know does with their own money..
So what's the problem if someone prefers to finance or pay cash and someone else prefers to lease?
I am not going to knock either, I say to each his own..
08-07-15, 08:29 AM
#26
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Here is what I don't understand..
Why do people who don't like leasing for one reason or another always feel the sense of urgency to tell those who do like leasing that it's terrible to lease and that you're making a poor financial decision etc, even when they are not asked for their opinion.
Some people feel that dropping $50K cash on an asset that depreciates 20% plus moments after taking delivery is a poor financial decision. So if it makes you feel great that you can brag that you paid cash good for you. But lets be fair, It goes both ways and there are pros and cons to both as some other posters have mentioned.
But for someone to say people lease because they can't afford to buy the vehicle outright is an ignorant statement. How do you know what the reasoning or financial position is of someone who once again you don't even know?
I get it, its a public forum and people are free to discuss whatever they want. But if someone prefers to lease why do some people care so much what someone they don't even know does with their own money..
So what's the problem if someone prefers to finance or pay cash and someone else prefers to lease?
I am not going to knock either, I say to each his own..
Why do people who don't like leasing for one reason or another always feel the sense of urgency to tell those who do like leasing that it's terrible to lease and that you're making a poor financial decision etc, even when they are not asked for their opinion.
Some people feel that dropping $50K cash on an asset that depreciates 20% plus moments after taking delivery is a poor financial decision. So if it makes you feel great that you can brag that you paid cash good for you. But lets be fair, It goes both ways and there are pros and cons to both as some other posters have mentioned.
But for someone to say people lease because they can't afford to buy the vehicle outright is an ignorant statement. How do you know what the reasoning or financial position is of someone who once again you don't even know?
I get it, its a public forum and people are free to discuss whatever they want. But if someone prefers to lease why do some people care so much what someone they don't even know does with their own money..
So what's the problem if someone prefers to finance or pay cash and someone else prefers to lease?
I am not going to knock either, I say to each his own..
08-07-15, 08:30 AM
#27
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Perceptions....
Here is what I don't understand..
Why do people who don't like leasing for one reason or another always feel the sense of urgency to tell those who do like leasing that it's terrible to lease and that you're making a poor financial decision etc, even when they are not asked for their opinion.
Some people feel that dropping $50K cash on an asset that depreciates 20% plus moments after taking delivery is a poor financial decision. So if it makes you feel great that you can brag that you paid cash good for you. But lets be fair, It goes both ways and there are pros and cons to both as some other posters have mentioned.
But for someone to say people lease because they can't afford to buy the vehicle outright is an ignorant statement. How do you know what the reasoning or financial position is of someone who once again you don't even know?
I get it, its a public forum and people are free to discuss whatever they want. But if someone prefers to lease why do some people care so much what someone they don't even know does with their own money..
So what's the problem if someone prefers to finance or pay cash and someone else prefers to lease?
I am not going to knock either, I say to each his own..
Why do people who don't like leasing for one reason or another always feel the sense of urgency to tell those who do like leasing that it's terrible to lease and that you're making a poor financial decision etc, even when they are not asked for their opinion.
Some people feel that dropping $50K cash on an asset that depreciates 20% plus moments after taking delivery is a poor financial decision. So if it makes you feel great that you can brag that you paid cash good for you. But lets be fair, It goes both ways and there are pros and cons to both as some other posters have mentioned.
But for someone to say people lease because they can't afford to buy the vehicle outright is an ignorant statement. How do you know what the reasoning or financial position is of someone who once again you don't even know?
I get it, its a public forum and people are free to discuss whatever they want. But if someone prefers to lease why do some people care so much what someone they don't even know does with their own money..
So what's the problem if someone prefers to finance or pay cash and someone else prefers to lease?
I am not going to knock either, I say to each his own..
There will always be perceptions--one way or the other.
Leasing is a mild topic....just look at the debates on thousands of other topics.
This is nothing....no one has to get their panties in a bunch either way.
It works for some, not for others. Who cares what anyone thinks anyway. Do what you want to do....I don't feel the need to change anyone's opinion either way. Who cares....?
I'm done....good posts (there was some informative posts on this topic and I appreciate that).
Dawn
08-07-15, 08:42 AM
#28
Lexus Test Driver
Maybe I'm reading your response wrong, but if you're saying I'm preaching you have to be kidding me.. So everyone can "preach" about why it's bad to lease and I basically say let everyone do as they like and you say I'm preaching?? Thanks for your contribution to this thread
08-07-15, 08:51 AM
#29
Lexus Test Driver
There will always be perceptions--one way or the other.
Leasing is a mild topic....just look at the debates on thousands of other topics.
This is nothing....no one has to get their panties in a bunch either way.
It works for some, not for others. Who cares what anyone thinks anyway. Do what you want to do....I don't feel the need to change anyone's opinion either way. Who cares....?
I'm done....good posts (there was some informative posts on this topic and I appreciate that).
Dawn
Leasing is a mild topic....just look at the debates on thousands of other topics.
This is nothing....no one has to get their panties in a bunch either way.
It works for some, not for others. Who cares what anyone thinks anyway. Do what you want to do....I don't feel the need to change anyone's opinion either way. Who cares....?
I'm done....good posts (there was some informative posts on this topic and I appreciate that).
Dawn
08-07-15, 01:08 PM
#30
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Couple things. It doesn't seem to occur to you to pay cash or a large down payment so your payments would or could be "Camry" sized. Well, let me just give you a different scenario. I put $30k down so my car payments are less than my best friend who just bought her brand new Camry with zero down. Her loan is for 5 and mine is for 3 years. Would she have put money down or paid cash if she could? Absolutely.
My goal is to NOT have a car payment, period. And my most recent car driving experience has been a 2006 Toyota Solara. Bought it is 2006 and haven't had a car payment in years. But I haven't done anything mechanical to that car other than regular maintenance. I don't even feel technological left behind in that car today. I have navigation, heated seats, it's a V6 with moonroof, leather. And I thought I would happily drive that car for another ten years. My goal is to pay car off so I don't have car payments. I will probably have this car for at least a decade, and in 3 years when I no longer have a car payment (still under warranty), I'll be free of that monthly commitment. I can't stand to owe anyone. We have a mortgage....I don't even like having mortgage debt.
Even if my job gave me the small stipend you receive toward a car lease (does it have to be used toward a lease?), it wouldn't even almost sway me toward leasing.
Your scenario about doctors/lawyers makes me chuckle. Now that I'm older, I think I might put my money on the professional with the 8 year old car. For too many reasons to go into here....but it just made me chuckle.
And lastly, I think it might have to do with the comfortableness of having a car payment in general. In my 30's and maybe even early 40's, I probably just assumed I'd always have a car payment. But once you realize that that's not necessarily true, it changes how you buy car. I never thought we'd be in a position to pay $30k down. Let alone a 3 year loan (the longer term, the lower the payment, the better, or so I thought). But as you get older, and if you've been fortunate enough to build a decent retirement, having no payments or owing anyone is freedom that feels much better than a new car smell every 3 years.
There are probably a very wide age gap in the owner's of the RC. I would be interested in a poll of our ages, but people are so touchy about their age that it would probably would tank. I'm 52 and shout it from a rooftop. ...my friends? Not so much.
Dawn
My goal is to NOT have a car payment, period. And my most recent car driving experience has been a 2006 Toyota Solara. Bought it is 2006 and haven't had a car payment in years. But I haven't done anything mechanical to that car other than regular maintenance. I don't even feel technological left behind in that car today. I have navigation, heated seats, it's a V6 with moonroof, leather. And I thought I would happily drive that car for another ten years. My goal is to pay car off so I don't have car payments. I will probably have this car for at least a decade, and in 3 years when I no longer have a car payment (still under warranty), I'll be free of that monthly commitment. I can't stand to owe anyone. We have a mortgage....I don't even like having mortgage debt.
Even if my job gave me the small stipend you receive toward a car lease (does it have to be used toward a lease?), it wouldn't even almost sway me toward leasing.
Your scenario about doctors/lawyers makes me chuckle. Now that I'm older, I think I might put my money on the professional with the 8 year old car. For too many reasons to go into here....but it just made me chuckle.
And lastly, I think it might have to do with the comfortableness of having a car payment in general. In my 30's and maybe even early 40's, I probably just assumed I'd always have a car payment. But once you realize that that's not necessarily true, it changes how you buy car. I never thought we'd be in a position to pay $30k down. Let alone a 3 year loan (the longer term, the lower the payment, the better, or so I thought). But as you get older, and if you've been fortunate enough to build a decent retirement, having no payments or owing anyone is freedom that feels much better than a new car smell every 3 years.
There are probably a very wide age gap in the owner's of the RC. I would be interested in a poll of our ages, but people are so touchy about their age that it would probably would tank. I'm 52 and shout it from a rooftop. ...my friends? Not so much.
Dawn
Considering my GF just leased an IS250 for a total cost of $8700 for two years, and by the math she could go through 3 and a half leases (7 years) for the same $30,000 - I personally think people like her are getting the better deal.
1) She has the opportunity to switch cars, get better tech each time - in fuel economy, navigation, better UIs, more comfort features, etc.
Personally I think the solara example is a bad one for you to give - because its a car from a car company that has NEVER focused on technology. Change this to an Audi and your three year lease cycle will take you from 1) brand new model to 2) the models refresh in 3 years with updated tech to 3) brand new model (6 year point) with brand new tech.
cheaper cars don't really go through a refresh and go through longer cycles before updates.
2) Her cars will always be in warranty, and always have the services done for free
3) Her leases will be a fantastic way to build a lasting credit history so that when she buys a home she has the credit to get the best rates.
4) In the case of an accident she is not worried about the insane depreciation of her asset, and total losses are the lenders problem not hers (though this could be an issue for people with poor insurance policies).
Now if we were talking about renting an apartment v. buying a home - I would have a different tune. Renting property is inherently a bad idea, mainly because your living situation is at the whim of someone else - a landlord who might want to sell, who decides he doesn't like you and wont fix problems that arise, who will consistently raise your rent each year, etc. Buying guarantees you a home for life at the same price for life, and is an asset that GAINS equity. I love real estate as an investment. But not cars.