8 Year Car Lease = Real Life

[heliumclinton]

Car sales men juug people with the "tell me how much you can afford a month" question.

The biggest jugg ever. Instead of the person negotiating the price of the vehicle.

I mean some people can really only afford to pay $250 every month for a extra year instead of $400 for a shorter term

Especially if you living close to paycheck to paycheck that $150 makes a huge difference in a month

 

[crcballer55]

 

 

Car sales men juug people with the "tell me how much you can afford a month" question.

The biggest jugg ever. Instead of the person negotiating the price of the vehicle.

I mean some people can really only afford to pay $250 every month for a extra year instead of $400 for a shorter term

Especially if you living close to paycheck to paycheck that $150 makes a huge difference in a month

If you're living that tight, you especially can't afford a car payment. Not only are you paying out $250/mo, your car will be worth half its value by the time your terms are up.

 

[nyc street cat]

what a time...

TO BE ALIVE!!!!!

 

[Chopper]

People living paycheck to paycheck also don't need to be in entry level luxury, financed out the ears for 5+ years, but I see it all the time.

Our priorities are just F'd as a society. Uber consumerism is terrible, but the bulk want to keep up with the Jones'

 

[luckyluchiano]

People living paycheck to paycheck also don't need to be in entry level luxury.

Our priorities a just F'd as a society. Uber consumerism is terrible, but the bulk want to keep up with the Jones'

Im middle class and wont dare touch a luxury whip with a 10 foot pole lol, at most I may cop a lexus for my next whip but i dont see that happening for at least another decade. I can afford a German Car note now but im not gonna do it to myself. Ill leave that to those in the upper echelon

 

[Chopper]

I'm with you. I came out of school making good money. Drove a '93 minivan my first six months on the Job then copped a used '06 Sonata in '07 for $13k.

Still rocking it and plan on doing do for a few more years

Haven't had a payment since '10 but been saving a payment worth every month into a future car account, so when the time comes I can get out of the car loan rat race. I'm fortunate to have maintained employment, but also to understand how finances work and not succumb to the pressure of trying to impress others.

 

[crcballer55]

People living paycheck to paycheck also don't need to be in entry level luxury, financed out the ears for 5+ years, but I see it all the time.

Our priorities are just F'd as a society. Uber consumerism is terrible, but the bulk want to keep up with the Jones'

Yet the Jonses are living paycheck to paycheck with a financial noose around their neck each month.

 

[Chopper]

Yet the Jonses are living paycheck to paycheck with a financial noose around their neck each month.

Exactly, and they wear it with "outward" pride. Really too bad. I can't imagine the pressure that has on peoples psyche.

 

[heliumclinton]

If you're living that tight, you especially can't afford a car payment. Not only are you paying out $250/mo, your car will be worth half its value by the time your terms are up.

and if you live paycheck to paycheck you can't afford to save up to buy a car either, so what's the answer?

Financing is a common thing for a reason

 

[letsgetit22]

I've never heard of a 8 yr term for a car. I thought 84 months was the most you can get?

 

[kevenmayne]

This is why I like buying cars that are between 2-5 years old with a solid history. Someone already took the hit and I get a good value on a solid car.

This is what I did. I Bought a 2013 car that was $26.5k, for $17k privately recently. Guy owned the car for less than 2 years and took a $10k hit pretty much, I couldn't believe it.

 

[heliumclinton]

Anybody purchased their car new and still have it today?

 

[crcballer55]

 

If you're living that tight, you especially can't afford a car payment. Not only are you paying out $250/mo, your car will be worth half its value by the time your terms are up.

and if you live paycheck to paycheck you can't afford to save up to buy a car either, so what's the answer?

Financing is a common thing for a reason

Yes you can. You save $250/mo. After a year, you have $3000 to buy a car. Drive the car for a year, keep saving that $250 you would have used for your car payment and put it with the $3000 your car is still worth and buy a $6000 car. Drive that for a year or two and you'll have $9-12000. In a 4 year period, you've just bought a decent used car that will hold its value for a while. Then you can slow down and only save $150-200/mo. and give yourself some more breathing room.

Financing is a common way to buy a car because most people don't realize the financial hit they're taking and only care about the monthly payment.

 

[$tacy]

Car note is finally in the budget and got my credit decent enough to grab something but now I just can't bring myself to do it. I paid 10k for my whip in 2012 and I only got 111k. That extra money every month comes in handy. Hell I been vacationing a lot and paid plan on in the future, unless o get a crazy deal I might ride this joint til the wheels fall off.

 

[hybridsoldier23]

The bottom line is people care too much about what the next man/woman thinks. You're really not going to get ahead in life because you're owning or leasing that Benz. People aren't going to legitamently like you more because of the car you drive and if they do you probably don't want to be around those types of people anyway.

If you can afford to ball out then do it because you like and want to enjoy whatever you're purchasing, not because you need to one up the neighbor. If you can't afford it then don't put yourself, significant other, or your kids in a ****** financial situation for years becuase you just want to look cool.

 

[frshstunna]

Never messed with car notes until an emergency came up and I had to cop a whip ASAP ...once I'm done with this note I'm never getting another one , back to straight cash for my cars

 

[heliumclinton]

 

If you're living that tight, you especially can't afford a car payment. Not only are you paying out $250/mo, your car will be worth half its value by the time your terms are up.

and if you live paycheck to paycheck you can't afford to save up to buy a car either, so what's the answer?


Financing is a common thing for a reason

Yes you can. You save $250/mo. After a year, you have $3000 to buy a car. Drive the car for a year, keep saving that $250 you would have used for your car payment and put it with the $3000 your car is still worth and buy a $6000 car. Drive that for a year or two and you'll have $9-12000. In a 4 year period, you've just bought a decent used car that will hold its value for a while. Then you can slow down and only save $150-200/mo. and give yourself some more breathing room.

Financing is a common way to buy a car because most people don't realize the financial hit they're taking and only care about the monthly payment.

Waiting 4 years to get a decent car involving buying and selling multiple cars and waiting 1 year to even have a car in the first place (which isn't even a option for most who need to drive) vs paying $250 for 60 months and having a decent car from the start

 

[luckyluchiano]

Waiting 4 years to get a decent car involving buying and selling multiple cars and waiting 1 year to even have a car in the first place (which isn't even a option for most who need to drive) vs paying $250 for 60 months and having a decent car from the start

Lol exactly dude says this like a 3k car aint going to have issues during that span of time which would make it cost more than the 3k u dropped plus 250 you are saving.

Makes more sense to get a 4 no more than 5 yr note you can afford and simply KEEP the car After you are done paying it off. If you want you can just pay your self a note when u finish paying off the car so if yoh need a new car you now have a trade in on top of money saved.

 

[frank mucus]

Leasing is the better option though.

When I bought my Tesla they didn't offer leasing. I paid the car off full, in cash. That's six figures down the drain b. Plus if they offered leasing when I bought it, I could have upgraded to a new vehicle already.

My Tesla is already considered a "classic" model. It didn't come with the autopilot hardware. If I want those I'd have to spend 5 figures to have it retrofitted or lease/buy a new Tesla.

 

[Betonblck]

The significance of this chart can't be understated.

Millenials wonder why they can't get ahead financially? It's because they're trying to stunt on things that go down in value while not saving for emergencies and the future. Until people get out of the mindset of thinking they can afford something because they can "afford" the monthly payment instead of calculating the full value of the item then we're just going to go deeper into this mess.

When you've saved up cash to buy something large like a car your purchasing decisions will be completely different because there's a pain factor that goes along with working hard for your purchase. The fact that terms are going longer and payments continue to increase means that we're still going backwards on that trend and Millenials are continuing to finance away their futures.

View media item 1789432

Most cars lose about 20 percent of their purchase price value before two years have elapsed. Five years marks the Event Horizon for the majority – the point at which their retail value has slipped to about half what they were worth when new. 

This is why I like buying cars that are between 2-5 years old with a solid history. Someone already took the hit and I get a good value on a solid car.

Buying a used car 2-5 years old used to be the best money move but since everyone is doing that the deals aren't as good and financing costs are higher. I think the best bet is buying new, but the last model year that way you get the discount, you have a new car under warranty, and you can get 0% interest rate or close to it.

This also depends on the car, for cars like Hondas and Toyotas, this is the best move. Not for luxury cars

 

[Mark Antony]

The problem is ya'll think too black & white. I used to live in a low wage area, with terrible transit, made even worse by an early start to my first job, late end to my second with a class sprinkled in there. Even with the two jobs I still couldn't keep up with bills and emergencies to save for a car. I had to get a note. This "on paper" life you guys preach sounds good, but it's not real life.

 

[jthagreat]

People living paycheck to paycheck also don't need to be in entry level luxury, financed out the ears for 5+ years, but I see it all the time.

Our priorities are just F'd as a society. Uber consumerism is terrible, but the bulk want to keep up with the Jones'

Very true, but a regular chevy or ford be expensive in my eyes

 

[polosanddunks]

I mean some people can really only afford to pay $250 every month for a extra year instead of $400 for a shorter term

Especially if you living close to paycheck to paycheck that $150 makes a huge difference in a month

Nah I know what you mean but you should always negotiate the price of the vehicle. Not how much you want to pay per month when dealing with the dealers. Once you do that they got you most of the time...

I will never not lease a whip ever again.Unless its like a Toyota or Honda or something. These luxury vehicles I am leasing....

The biggest mistake I almost made was going to be buying a 2012 BMW 650 Coupe. THANK GOD I didn't . That would of been 60-70k down the drain.

 

[Xennial]

I work for BMW of North America and I can say that around 80% of new bmws are leased and with the 3 series or models around that level you can lease them for only around $400 a month which many of the people can afford that are in the $40-50k a year income range

 

[Mark Antony]

I mean some people can really only afford to pay $250 every month for a extra year instead of $400 for a shorter term

Especially if you living close to paycheck to paycheck that $150 makes a huge difference in a month

Nah I know what you mean but you should always negotiate the price of the vehicle. Not how much you want to pay per month when dealing with the dealers. Once you do that they got you most of the time...

I will never not lease a whip ever again.Unless its like a Toyota or Honda or something. These luxury vehicles I am leasing....

The biggest mistake I almost made was going to be buying a 2012 BMW 650 Coupe. THANK GOD I didn't . That would of been 60-70k down the drain.

Thought about that coupe too, are you leasing one now? got a deal?