Sounds to me like someone who is
Drum roll please
Short on CA$H. Or. Can't really afford to be driving a new Prius but is locking himself into a multi year contract with nothing to show for it at the end of the day.
Invest the difference? What? What returns do you expect to get for chump change invested? Lol
Sounds to me like someone who is
Drum roll please
Short on CA$H. Or. Can't really afford to be driving a new Prius but is locking himself into a multi year contract with nothing to show for it at the end of the day.
Invest the difference? What? What returns do you expect to get for chump change invested? Lol
This is the last time I will play with you THEROK. You're obviously trying to get a rise out of me. I will break this down for you one last time and then I'm done dealing with you. I don't come here to talk to children. I share my finance principles with my 12 yr old son and he gets it...THEROK are you smarter than a 7th grader?
<> Firstly the lease is for people with good credit
<> The payment is less cuz you pay for 3 yrs of value and defer the rest...you want to defer as much as possible so you can decide 3 yrs from now whether you want to own it or not and to keep payments as low as possible for the 3 yrs of "testing time"
<> The interest I paid was under 1% compared to 5-7% for excellent credit purchasers, that's BIG SAVINGS and more buying power for nav, pano roof etc...or for just saving
<> I paid $0 down payment so that is cash to invest and save
<> I am not paying taxes for the full amount cuz I only own part of the car...if it's stolen or total lost in an accident I'm out the partial $...a buyer is out the full amount and will pay the full amount again to buy another. Also, insurance companies don't factor taxes into payoffs after theft or total loss accidents.
<> If the car is worth the residual (amount owed in 3 yrs) I will buy it if I want to own it and still love it...if the car is worth far less, I will give it back and take my "smart money" in another direction whether with that manufacturer or not
<> The residual is a guaranteed trade in value---that's all it is! You have the control, NOT the dealer. If you do a traditional purchase and trade in 3 yrs YOU LOSE. I don't. I CHOOSE, based on my guaranteed value on the contract.
I pay almost $400 a month for a $35k car. A purchase would be about $700 a month x 60 mos, if financing $35k. That means you paid taxes of about $3000 cash and still pay $300 more in payments for the first 3 yrs of the 5 yr purchase contract. I will take the $300 x 36 months ($10800) and invest it + the $3000 cash paid for taxes=$13800!!!!!.
This is the chump change investment you are talking about, but don't have enough sense to understand.
I am driving the same car as the guy that commited and bought it, just no where close to as exposed as he is. AGAIN...I will say this.
A car is NOT an asset. Only people that have nothing more valuable than their car think this way. Do you really think wealthy people are stupid enough to pay $400,000 for a Ferrari??? No, they lease and get another in a yr or 2. They lease even shorter terms than an average Joe like me, because of their image and need to have the newest of everything. Wealthy people have people to tell them that they will pay for a car forever, or at least as long as they drive they will. These advisors let them know it will either be in the form of payments or maintenance.
I choose owning my Runner outright and having one car that is new, with warranty, no maintenance and the option to trade with no hassle based on a guaranteed value every 3 yrs...my wife drives these leased cars and I am proud to know she will never call me on the side of the road in an old broke down car cuz I had to own a liablilty thinking it was an asset.
I understand how to invest and save and rent my "paid off" homes/condos to people like you...those that just don't get it. I've paid these homes off from renters that thought like you THEROK. The renter covered the mortgage payment plus 25% and I added 75% to equal 200% of the payment being made monthly. I then set the payments up on weekly payments to lower the interest on the mortgages and financed the homes for 15 yrs. I also added 1 payment to each home loan each year. The results were that the homes were paid in full in 11 yrs. I have the deeds to those homes in my safety deposit box. I don't need to give my financials on a truck forum, but I can damn sure tell you that I'm far from short on cash or buying beyond my means by getting a Prius.
JD I hope you enjoy the Volt if you buy it. I tried to steer you to the Prius for the reasons I have clearly stated above in great detail. The Volt is a great car and should serve you and your family for many years. Again, enjoy it!!!!!