Toyota Lease - Too Good To Be True
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Originally Posted By: SlipperyPete
Originally Posted By: grampi
I cannot afford to pay $10K cash for a used car, but I earn a 6 figure income...are you telling me I can't afford a $10K vehicle?
If you earn over $100K and can't lay your hands on $10K, no sensible person should pay any attention to your financial opinions.
I don't understand. If you make $100k/year then getting $10k is a cakewalk--you go sign on the dotted line and pay a bit of interest until you have returned it.
Originally Posted By: grampi
I cannot afford to pay $10K cash for a used car, but I earn a 6 figure income...are you telling me I can't afford a $10K vehicle?
If you earn over $100K and can't lay your hands on $10K, no sensible person should pay any attention to your financial opinions.
I don't understand. If you make $100k/year then getting $10k is a cakewalk--you go sign on the dotted line and pay a bit of interest until you have returned it.
Originally Posted By: supton
Originally Posted By: SlipperyPete
Originally Posted By: grampi
I cannot afford to pay $10K cash for a used car, but I earn a 6 figure income...are you telling me I can't afford a $10K vehicle?
If you earn over $100K and can't lay your hands on $10K, no sensible person should pay any attention to your financial opinions.
I don't understand. If you make $100k/year then getting $10k is a cakewalk--you go sign on the dotted line and pay a bit of interest until you have returned it.
According to him, if a person has to borrow money that person is a financial loser...
Originally Posted By: SlipperyPete
Originally Posted By: grampi
I cannot afford to pay $10K cash for a used car, but I earn a 6 figure income...are you telling me I can't afford a $10K vehicle?
If you earn over $100K and can't lay your hands on $10K, no sensible person should pay any attention to your financial opinions.
I don't understand. If you make $100k/year then getting $10k is a cakewalk--you go sign on the dotted line and pay a bit of interest until you have returned it.
According to him, if a person has to borrow money that person is a financial loser...
Originally Posted By: MCompact
One of the reasons he is wealthy enough to pay cash "FOR EVERYTHING" is because he doesn't use long term loans to finance depreciating assets or use leases to drive vehicles he otherwise could not afford to buy. His belief that automotive leases are the "payday loans" of the middle class is pretty much on point.
I think this depends on what you need the car for, where you're at in life, and what your financial situation looks like.
The ultimate determining factor is cost per mile. In my situation, I'll be adding kids over the next few years. Right now a sedan works fine for my wife, but it may not be enough in four or five years.
So this lease deal could have been perfect for us because the cost per mile compared to the old Camry we purchased might come out to be the same, and it comes with a warranty, and there's an easy way to get out of it so we can upgrade to a larger vehicle later on, and I would still have that pile of cash that I used to pay for the car we bought, and I wouldn't have to spend so much time fixing "old car" issues.
One of the reasons he is wealthy enough to pay cash "FOR EVERYTHING" is because he doesn't use long term loans to finance depreciating assets or use leases to drive vehicles he otherwise could not afford to buy. His belief that automotive leases are the "payday loans" of the middle class is pretty much on point.
I think this depends on what you need the car for, where you're at in life, and what your financial situation looks like.
The ultimate determining factor is cost per mile. In my situation, I'll be adding kids over the next few years. Right now a sedan works fine for my wife, but it may not be enough in four or five years.
So this lease deal could have been perfect for us because the cost per mile compared to the old Camry we purchased might come out to be the same, and it comes with a warranty, and there's an easy way to get out of it so we can upgrade to a larger vehicle later on, and I would still have that pile of cash that I used to pay for the car we bought, and I wouldn't have to spend so much time fixing "old car" issues.
^ to update the previous statement, comparing a new lease against my used car was wrong; the qualifier I did not include was repairs, as long as no major components fail the used car is the better bet.
A lease versus a new car sold at three years places the lease in a more competitive place.
A lease versus a new car sold at three years places the lease in a more competitive place.
Originally Posted By: SlipperyPete
Originally Posted By: grampi
I cannot afford to pay $10K cash for a used car, but I earn a 6 figure income...are you telling me I can't afford a $10K vehicle?
If you earn over $100K and can't lay your hands on $10K, no sensible person should pay any attention to your financial opinions.
Could be that after paying all living expenses the remainder of his income immediately goes towards retirement and/or investments leaving nothing or very little extra in cash. If that's the case then I can understand grampi's comment. But that's hardly the case for the vast "cash strapped" families out there.
Originally Posted By: grampi
I cannot afford to pay $10K cash for a used car, but I earn a 6 figure income...are you telling me I can't afford a $10K vehicle?
If you earn over $100K and can't lay your hands on $10K, no sensible person should pay any attention to your financial opinions.
Could be that after paying all living expenses the remainder of his income immediately goes towards retirement and/or investments leaving nothing or very little extra in cash. If that's the case then I can understand grampi's comment. But that's hardly the case for the vast "cash strapped" families out there.
Originally Posted By: KrisZ
Could be that after paying all living expenses the remainder of his income immediately goes towards retirement and/or investments leaving nothing or very little extra in cash. If that's the case then I can understand grampi's comment. But that's hardly the case for the vast "cash strapped" families out there.
Exactly, and I'd bet the farm that these "cash strapped" families don't have any idea where their money is going- no budget, and no plan. But they "need" a new car every 2-3 years because they don't want to "waste money" on repairs...
Could be that after paying all living expenses the remainder of his income immediately goes towards retirement and/or investments leaving nothing or very little extra in cash. If that's the case then I can understand grampi's comment. But that's hardly the case for the vast "cash strapped" families out there.
Exactly, and I'd bet the farm that these "cash strapped" families don't have any idea where their money is going- no budget, and no plan. But they "need" a new car every 2-3 years because they don't want to "waste money" on repairs...
In my opinion, if you absolutely want to lease, lease a Toyota, Honda or Subaru. There tends to be very little funny business in their contracts, the buyouts are reasonable and turn-ins in my experience are completely drama free.
Do they make the best financial sense for the average consumer? Absolutely not.
Do they make the best financial sense for the average consumer? Absolutely not.
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Originally Posted By: SlipperyPete
Originally Posted By: grampi
I cannot afford to pay $10K cash for a used car, but I earn a 6 figure income...are you telling me I can't afford a $10K vehicle?
If you earn over $100K and can't lay your hands on $10K, no sensible person should pay any attention to your financial opinions.
I make nowhere near $100K, but I have to agree with this. That scenario doesn't even make sense.
Originally Posted By: grampi
I cannot afford to pay $10K cash for a used car, but I earn a 6 figure income...are you telling me I can't afford a $10K vehicle?
If you earn over $100K and can't lay your hands on $10K, no sensible person should pay any attention to your financial opinions.
I make nowhere near $100K, but I have to agree with this. That scenario doesn't even make sense.
Originally Posted By: Mykl
Originally Posted By: MCompact
One of the reasons he is wealthy enough to pay cash "FOR EVERYTHING" is because he doesn't use long term loans to finance depreciating assets or use leases to drive vehicles he otherwise could not afford to buy. His belief that automotive leases are the "payday loans" of the middle class is pretty much on point.
I think this depends on what you need the car for, where you're at in life, and what your financial situation looks like.
The ultimate determining factor is cost per mile. In my situation, I'll be adding kids over the next few years. Right now a sedan works fine for my wife, but it may not be enough in four or five years.
So this lease deal could have been perfect for us because the cost per mile compared to the old Camry we purchased might come out to be the same, and it comes with a warranty, and there's an easy way to get out of it so we can upgrade to a larger vehicle later on, and I would still have that pile of cash that I used to pay for the car we bought, and I wouldn't have to spend so much time fixing "old car" issues.
That's exactly where a lease makes sense.
Originally Posted By: MCompact
One of the reasons he is wealthy enough to pay cash "FOR EVERYTHING" is because he doesn't use long term loans to finance depreciating assets or use leases to drive vehicles he otherwise could not afford to buy. His belief that automotive leases are the "payday loans" of the middle class is pretty much on point.
I think this depends on what you need the car for, where you're at in life, and what your financial situation looks like.
The ultimate determining factor is cost per mile. In my situation, I'll be adding kids over the next few years. Right now a sedan works fine for my wife, but it may not be enough in four or five years.
So this lease deal could have been perfect for us because the cost per mile compared to the old Camry we purchased might come out to be the same, and it comes with a warranty, and there's an easy way to get out of it so we can upgrade to a larger vehicle later on, and I would still have that pile of cash that I used to pay for the car we bought, and I wouldn't have to spend so much time fixing "old car" issues.
That's exactly where a lease makes sense.
Originally Posted By: 01rangerxl
Originally Posted By: SlipperyPete
Originally Posted By: grampi
I cannot afford to pay $10K cash for a used car, but I earn a 6 figure income...are you telling me I can't afford a $10K vehicle?
If you earn over $100K and can't lay your hands on $10K, no sensible person should pay any attention to your financial opinions.
I make nowhere near $100K, but I have to agree with this. That scenario doesn't even make sense.
"Laying your hands on" $10K is not the same thing as paying cash...I can "lay my hands on" pretty much as much as I need...
Originally Posted By: SlipperyPete
Originally Posted By: grampi
I cannot afford to pay $10K cash for a used car, but I earn a 6 figure income...are you telling me I can't afford a $10K vehicle?
If you earn over $100K and can't lay your hands on $10K, no sensible person should pay any attention to your financial opinions.
I make nowhere near $100K, but I have to agree with this. That scenario doesn't even make sense.
"Laying your hands on" $10K is not the same thing as paying cash...I can "lay my hands on" pretty much as much as I need...
Originally Posted By: grampi
Originally Posted By: 01rangerxl
Originally Posted By: SlipperyPete
Originally Posted By: grampi
I cannot afford to pay $10K cash for a used car, but I earn a 6 figure income...are you telling me I can't afford a $10K vehicle?
If you earn over $100K and can't lay your hands on $10K, no sensible person should pay any attention to your financial opinions.
I make nowhere near $100K, but I have to agree with this. That scenario doesn't even make sense.
"Laying your hands on" $10K is not the same thing as paying cash...I can "lay my hands on" pretty much as much as I need...
I get that. But honestly, if you're living modestly and making six figures in an area with a fairly average cost of living, it should be pretty easy to dump $10K into an easily accessible savings account and not have all the money locked away in some sort of investment that would penalize you for using it early. I think it's good to put as much as you can into a higher yield investment, but it's also good to have accessible cash on hand. I'm not talking about burying it in jars, but being able to get a certified check now for a somewhat significant amount is probably a good idea. Not just for cars, but things like home HVAC, etc.
Making $100K+ a year and not being able to go to the bank now and get $10K does not make sense to me, but do what works for you. That's just my opinion and my opinion is free. Granted, my opinion may be skewed by the fact that I do not have and do not want kids, but there are people with low 6 figure incomes who pay cash for new cars (if modest ones, not a $50,000 living room on wheels).
Originally Posted By: 01rangerxl
Originally Posted By: SlipperyPete
Originally Posted By: grampi
I cannot afford to pay $10K cash for a used car, but I earn a 6 figure income...are you telling me I can't afford a $10K vehicle?
If you earn over $100K and can't lay your hands on $10K, no sensible person should pay any attention to your financial opinions.
I make nowhere near $100K, but I have to agree with this. That scenario doesn't even make sense.
"Laying your hands on" $10K is not the same thing as paying cash...I can "lay my hands on" pretty much as much as I need...
I get that. But honestly, if you're living modestly and making six figures in an area with a fairly average cost of living, it should be pretty easy to dump $10K into an easily accessible savings account and not have all the money locked away in some sort of investment that would penalize you for using it early. I think it's good to put as much as you can into a higher yield investment, but it's also good to have accessible cash on hand. I'm not talking about burying it in jars, but being able to get a certified check now for a somewhat significant amount is probably a good idea. Not just for cars, but things like home HVAC, etc.
Making $100K+ a year and not being able to go to the bank now and get $10K does not make sense to me, but do what works for you. That's just my opinion and my opinion is free. Granted, my opinion may be skewed by the fact that I do not have and do not want kids, but there are people with low 6 figure incomes who pay cash for new cars (if modest ones, not a $50,000 living room on wheels).
That's why I said "if you live in an area with a fairly average cost of living."
Oh man here we go again.
I did the 2014 Rav 4 as a lease.
Advertised at 199 per month with 999 down, which includes the first payment.
The truck for 199 is not available in three states around here, so I ended up paying 229 for a slightly higher optioned truck.
999 covered the first payment.
Taxes and tags were 2100 if I require correctly.
So 229 for 24 months, 24k mile allowance.
Buyout is 18k.
I will toss it back at them and buy a used camry next time.
It includes 2 years of toyota care scheduled maintenance
Advertised at 199 per month with 999 down, which includes the first payment.
The truck for 199 is not available in three states around here, so I ended up paying 229 for a slightly higher optioned truck.
999 covered the first payment.
Taxes and tags were 2100 if I require correctly.
So 229 for 24 months, 24k mile allowance.
Buyout is 18k.
I will toss it back at them and buy a used camry next time.
It includes 2 years of toyota care scheduled maintenance
Originally Posted By: 01rangerxl
Making $100K+ a year and not being able to go to the bank now and get $10K does not make sense to me, but do what works for you. That's just my opinion and my opinion is free.
You're talking about something completely different. My original comment was in response to the person who basically said if you can't pay cash for a used vehicle you're a financial moron, which I totally disagree with. While I couldn't pay cash for a $10K vehicle, I can certainly get that much in a matter of minutes if I need it, but this isn't the same as paying cash.
Making $100K+ a year and not being able to go to the bank now and get $10K does not make sense to me, but do what works for you. That's just my opinion and my opinion is free.
You're talking about something completely different. My original comment was in response to the person who basically said if you can't pay cash for a used vehicle you're a financial moron, which I totally disagree with. While I couldn't pay cash for a $10K vehicle, I can certainly get that much in a matter of minutes if I need it, but this isn't the same as paying cash.
Taking a loan on a car should always be based on avoiding being underwater at any time during the term of loan.
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