8 Year Car Lease = Real Life

I would have to guess that you are in the minority for people paying off 7 year loans early.

Only thing I think a 7 year auto loan would be good for is to keep your DTI low, only if you plan on paying it off early.
 
Car leasing is the most expensive way to own a car which has been discussed ad nauseam in threads in the past.

People making 40k a year are out here leasing with a perpetual car payment, many of which are luxury vehicles, and wonder why they are living paycheck to paycheck and approach retirement with no savings and relying on the pittance that is social security to live. 76% percent of Americans are living paycheck to paycheck but somehow everyone seems to be able to "afford" to lease a car.

Read Dr. Tom Stanley's books Millinoaire next door and Stop acting rich.

Either way its your own personal decision to make but if you want to build wealth there are a lot better ways to do it than leasing


http://business.time.com/2011/09/01/car-lessees-driving-themselves-into-a-ditch/

Car Lessees Driving Themselves Into a Ditch
By Zac Bissonnette @ZacBissonnetteSept. 01, 2011Add a Comment

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As the U.S. tries to fix its long-term macroeconomic problems, an increasing number of consumers are apparently busy worsening their own microeconomic problems. John Sternal, a spokesman for LeaseTrader.com, recently told DailyFinance that, “What we’re basically seeing now is, instead of one out of every five people leasing, we believe one out of every four are leasing. In the world of automotive, that is a very significant uptick.” And in the world of personal finance, this is a very significant tragedy.

Here’s the deal: Car leasing is a terrible financial plan. As Thomas J. Stanley reported in his book Stop Acting Rich, about 80% of millionaires have never leased a car. They didn’t lease cars before they were rich and now that they’re rich, they still don’t lease cars. Consumer Reports noted back in April that “leasing generally is the most expensive way to drive a new car. … But there’s another big factor that makes leasing more expensive. Lessees often end up in a cycle of getting a new car every few years, the period during which cars lose their value the fastest. That typically leaves them paying much more than if they bought a new car with a loan and kept it for four years or longer.”

(GALLERY: 5 Ways to Repair a Trashed Credit Score)

There have been so many good behavioral changes that are coming out of the recession: Couponing has made a roaring comeback and even become the main thrust of a reality TV show, thrift stores are chic, libraries are seeing their traffic surge, and people are buying homes that they can afford.

There are many guides to getting the best deal on a car lease, and more than few websites with long, convoluted discussions about whether it’s a good option. But what consumers really need to know is this: People who end up with strong financial lives don’t lease cars.
 
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Cant count another mans pocket or know his credit score/salary. It is what it is.I just know what ive dealt with on leasing vs. car auctions/outright owning.I dont know about financing.

Do what you feel is financially right for you.Just be smart.
 
i find that hard to believe...........people def lease cars who got the money but its the 40-50k crowd that leases nice cars and obviously cuts it close along with all other needs and living expenses
 
Buying 2-3 yrs used with cash or low interest financing(if you qualify, used cars tend to have higher rates) is always the best option. You are still under warranty/new model, and cars already took the major depreciation hit.

Then sell every 2-3 years, get something else and you probably won't lose much.
 
Man if you make 35k a year and chose to lease bmw do you. Not everyone wants to retire at 50 and/or buy a house.

I make a decent amount of money-especially for my age, and I have always driven in something that was economical. (My current car is hardly a lady killer) As a birthday gift to myself I have already decided that I am going to treat myself with a nice vehicle (25-30k) I might get an entry level luxury or an suv, but I am debating between used and lease and there are benefits to both. I have never spent my money and am buying this as a reward for my hard work. 
 
BlackIntellect said:
Man if you make 35k a year and chose to lease bmw do you. Not everyone wants to retire at 50 and/or buy a house.

I make a decent amount of money-especially for my age, and I have always driven in something that was economical. (My current car is hardly a lady killer) As a birthday gift to myself I have already decided that I am going to treat myself with a nice vehicle (25-30k) I might get an entry level luxury or an suv, but I am debating between used and lease and there are benefits to both. I have never spent my money and am buying this as a reward for my hard work. 
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Treat yourself, don't cheat yourself!
 
Unless you live in a place with a very low cost of living, you shouldn't be leasing a BMW with a $35K salary unless you are that guy that lives with mom's with a BMW out front.

$35K is about $2,000/month net. Let's say you spend $800 for rent + 500-700 for bills and food, that leaves about $500 for a car payment, and nothing else saved for the month. That doesn't leave any money to buy Jordans or incidental expenses like speeding tickets, and you can forget about going on vacation.
 
Forget all that man who cares about retiring one day... No but seriously I know too many adults that are in their mid 40s early 50s and will never be able to retire due to their wreckless youth. It's pretty sad, but you know not everyone wants to retire someday. Different strokes for different folks.
 
BeezyGotSole said:
Forget all that man who cares about retiring one day... No but seriously I know too many adults that are in their mid 40s early 50s and will never be able to retire due to their wreckless youth. It's pretty sad, but you know not everyone wants to retire someday. Different strokes for different folks.
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Yes, but not wanting to retire one day and not being able to are completely different things. Money gives you options in life. Keeping a car payment limits those options and will ultimately cost you several hundred thousand or a million once you're older.
 
Leasing makes more sense when you own a business or are invested in a partnership that leases a car on your behalf. Might as well make use of the tax code to your benefit. Otherwise I agree financing is smart unless you have a lot of disposable cash and a large income where the lease and insurance costs you 5% of your yearly post tax salary or less. Thus **** why not if that is what you want to indulge in. At the end of the day let people make the dumb mistakes, let the dealers finance them their loans because we are an economy that's driven by consumer spending. Someone is benefiting and expanding the economy for everyone.
 
Biggie62 said:
Leasing makes more sense when you own a business or are invested in a partnership that leases a car on your behalf. Might as well make use of the tax code to your benefit. Otherwise I agree financing is smart unless you have a lot of disposable cash and a large income where the lease and insurance costs you 5% of your yearly post tax salary or less. Thus **** why not if that is what you want to indulge in. At the end of the day let people make the dumb mistakes, let the dealers finance them their loans because we are an economy that's driven by consumer spending. Someone is benefiting and expanding the economy for everyone.
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What are the tax benefits of leasing instead of buying? Either way, you get to depreciate the asset, right?
 
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crcballer55 said:
What are the tax benefits of leasing instead of buying? Either way, you get to depreciate the asset, right?
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For leasing I believe u can write it off 100 percent. If u finance a car and own a business u can write off the mileage. I think it's 50 cents per mile and also any repairs and stuff
 
crcballer55 said:
Yes, but not wanting to retire one day and not being able to are completely different things. Money gives you options in life. Keeping a car payment limits those options and will ultimately cost you several hundred thousand or a million once you're older.
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Everyone wants to stop working someday (some people say they don't because they know they can't), but if they chose to not put away any money for retirement then they have to live with not being able to retire. They chose that path. Nothing wrong with it, but I see alot of complaints when it comes time to start thinking about retirement.

I'm not talking about people that literally can't retire because they didn't make enough and had no extra money to put away. I'm talking about the people that make decent money and choose to not put away any money.

Lol CRC I'm on your side with the leasing I've looked at investment calculators to see how much money the lease payments could generate me if I invested the money instead. It sounds nice to have a new car every 3 years but I can't get down with an eternal car payment.
 
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iSMELLshoes said:
 
crcballer55 said:
What are the tax benefits of leasing instead of buying? Either way, you get to depreciate the asset, right?
Click to expand...
For leasing I believe u can write it off 100 percent. If u finance a car and own a business u can write off the mileage. I think it's 50 cents per mile and also any repairs and stuff
Click to expand...
https://turbotax.intuit.com/tax-too...-Taxes/Business-Use-of-Vehicles/INF12071.html

With either one, the deduction is because it's considered a business expense. With a lease, you have a payment in perpetuity. When a car is financed or purchased outright in cash at some point, the maximum deduction is reached because it's no longer depreciating and you don't have any more payments.

As with anything in the tax code, you can't deduct something unless it's coming out of your pocket. If you're deducting something from your taxes because you HAVE to spend the money, that's one thing. But with a lease you're cutting into your net profit so keep from paying the government, right?
 
Where y'all from where people keep leasing luxury cars? I probably know 2 people with luxury joints, its all about the hemis here. Dudes that make 12k a year spend their yearly salary copping srt8 chargers.
 
BlackIntellect said:
After you lease a vehicle, you can purchase at the depreciated price
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Which isn't smart.

Xennial Xennial Nobody mentioned early retirement. Just retirement in general. Lol is it really considered pushing off retirement if it takes 50 years to retire with a 10% savings rate. People can't retire even if they wanted to, there is a difference.
 
A lot of useful information in this thread. Personally, I will likely buy my next car outright. It won't be something sexy, but I don't like having a car note
 
al audi al audi Detroit. This young dude I did know that had a 09ish range traded it in for a challenger tho. Only dudes riding foreign are the scammers for real and most of them don't. Like I've never seen this ******ed logic of 35k a year people leasing luxury whips, thank God I haven't.
 
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