Quote:
Originally Posted by dmboone25
Quote:
Originally Posted by Teufel_Hunden
Perpetual car payments with nothing to ever show for it. Yes, a car is a depreciating asset, but in the end you do have something of value.
I'm skeptical.
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This is a good topic of conversation. 
I don't even look at a car lease or purchase agreement from the asset point of view, which is why I usually lease. I have only purchased two cars in my life, where I had a note and payment schedule, and I didn't make it to the end of either term before I was ready to get something different. If I could do a one year lease, that might be perfect for me. 
The argument you make is a good one, but with a caveat. It's truly only beneficial to buy a vehicle if you keep it for a decent period of time after it has been paid off (and you presumably do something else with that monthly payment, like investing it somehow). Because when you trade a car in early, you get what the car is worth - whether that's based on a loan or a lease, right? |
Trading is not what I'm referring to, paying the car off and keeping it long(er) term so that the money otherwise used for a car payment can be used for another purpose, investment, for example - or paying a second car off early, home improvement, etc.