How to buy cars (new and used)

[winb83]

Rich people lease them. Notice almost all luxury car commercials are advertising leasing options.

leasing is for people that can't afford to buy cars outright but want to drive them anyway. rich people typically have the money and usually buy cars. regular rich people (not the glittering rich like celebrities) buy slightly used cars for cash. many of them have multiple cars.

leasing is advertised because its the most profitably way for a dealership to sell a car. its also the most expensive way for a buyer to drive a car. all it is is paying the dealership to use the car while it depreciates.

there was a study done and it was released in the book the Millionaire Next Door. that book is a great read.

 

[itsyoung!!]

leasing is for people that can't afford to buy cars outright but want to drive them anyway. rich people typically have the money and usually buy cars. regular rich people (not the glittering rich like celebrities) buy slightly used cars for cash. many of them have multiple cars.

leasing is advertised because its the most profitably way for a dealership to sell a car. its also the most expensive way for a buyer to drive a car. all it is is paying the dealership to use the car while it depreciates.

there was a study done and it was released in the book the Millionaire Next Door. that book is a great read.

rich people lease cars cause they know theres a new body style coming out every few years and they can get the newest and latest body style / features with no attachment to the car

you have to have better credit to lease a car than to finance one

if I was getting a S550 or high end luxury car, it would either be a lease or it would be a CPO with low miles

 

[LezJepzin]

*subs*

I doubt I'm ever going to buy new off the dealership though. The only advantage I see is getting that new car smell.

BTW, my mom's CRV she bought from Mel Rampton Honda in Sacramento came from the showroom from El Cerrito

 

[Classy X]

I highly appreciate this thread OP.

Thanks.

 

[Turbulent]

leasing is for people that can't afford to buy cars outright but want to drive them anyway. rich people typically have the money and usually buy cars. regular rich people (not the glittering rich like celebrities) buy slightly used cars for cash. many of them have multiple cars.

leasing is advertised because its the most profitably way for a dealership to sell a car. its also the most expensive way for a buyer to drive a car. all it is is paying the dealership to use the car while it depreciates.

there was a study done and it was released in the book the Millionaire Next Door. that book is a great read.

if you want a new car every two years or whatever, wouldn't you be better off leasing instead of buying though?

 

[winb83]

if you want a new car every two years or whatever, wouldn't you be better off leasing instead of buying though?

why would you swap cars every two years? all you're gonna end up doing is renting a car for two years to pay the depreciation on it so the dealership can take it back and sell it to a person that gets a virtually fairly new car at your expense. the dealership forces you to take very good care of the car or they charge you out the ass for everything wrong with it and they limit your miles on it.

sure you may want a new car all the time but is that really a need or is it being frivolous?

rich people lease cars cause they know theres a new body style coming out every few years and they can get the newest and latest body style / features with no attachment to the car

you have to have better credit to lease a car than to finance one

if I was getting a S550 or high end luxury car, it would either be a lease or it would be a CPO with low miles

rich people have no need to lease because they're rich and they didn't get that way blowing money on cars. they got rich by being wise with money, being frugal. even so a rich person leasing a car they can actually afford to buy with cash is an entirely different dynamic than a person leasing a car they couldn't afford to buy cash. one person is making a financial decision to save money and the other is using a lease to get something that's really out of their means.

 

[Turbulent]

why would you swap cars every two years? all you're gonna end up doing is renting a car for two years to pay the depreciation on it so the dealership can take it back and sell it to a person that gets a virtually fairly new car at your expense. the dealership forces you to take very good care of the car or they charge you out the ass for everything wrong with it and they limit your miles on it.

sure you may want a new car all the time but is that really a need or is it being frivolous?


rich people have no need to lease because they're rich and they didn't get that way blowing money on cars. they got rich by being wise with money, being frugal. even so a rich person leasing a car they can actually afford to buy with cash is an entirely different dynamic than a person leasing a car they couldn't afford to buy cash. one person is making a financial decision to save money and the other is using a lease to get something that's really out of their means.

maybe it is to be frivoulous, who knows. maybeit's just to swag on hoes. i didn't say i would personally do it. but that's what dude said he wanted (ride in a brand new car every few years). so given his wants and needs, wouldn't leasing be his best option?

and i'm sure lots of rich people lease cars to ride in a new car every year. not all rich people are frugal. and not all people are frugal on the same stuff. some rich people are probably frugal on their house and clothes but go go ape shyt when it comes to cars. some probably are reasonable on cars, clothes, etc but trick on hoes like simps.


personally if i was filthy rich and could afford it, i'd probably lease a new car every year just for the feeling. you seem to think that all rich people are the same and have the same spending habits and philosophies.


but i actually agree with your theory on buying a 1-2 year old car and letting someone else pay for the instant depreciation and getting the best of both worlds (fairly new car AND cheaper price). but why not respect the fact that not everyone thinks the same and not everyone has the same desires and needs?

 

[R.E.N. Spells Ren]

I see this myth that that rich people got rich by being "smart" with money still persists. They got rich by making a ton of money. You ain't saving up money to be a millionaire. If Pookie wasn't obsessed with Jordan's and stunting, he'd be at most a few thousand dollars richer.

They were smart in their career/business dealings. Not necessarily smart with money at all. You'd think the crash of 08 would've shown you this...

 

[Turbulent]

I see this myth that that rich people got rich by being "smart" with money still persists. They got rich by making a ton of money. You ain't saving up money to be a millionaire. If Pookie wasn't obsessed with Jordan's and stunting, he'd be at most a few thousand dollars richer.

They were smart in their career/business dealings. Not necessarily smart with money at all. You'd think the crash of 08 would've shown you this...

i agree with this. some rich people are super frugal, some are super extravagant. some are frugal on certain stuff and extravagant on other stuff. rich people are not all the same.

 

[R.E.N. Spells Ren]

i agree with this. some rich people are super frugal, some are super extravagant. some are frugal on certain stuff and extravagant on other stuff. rich people are not all the same.

Exactly! And the same can be said of poor people. Some are extra frugal clipping coupons and scaled back....others blow the little they make on stupid shyt. Both are still poor.

 

[Turbulent]

Exactly! And the same can be said of poor people. Some are extra frugal clipping coupons and scaled back....others blow the little they make on stupid shyt. Both are still poor.

it's funny cause i never thought about it on the flipside but you're right on this as well.

 

[R.E.N. Spells Ren]

it's funny cause i never thought about it on the flipside but you're right on this as well.

yea, and I don't want anyone to confuse my comments as being anti-saving. Saving is great, but it's for buffering yourself against life's invariable unexpected events. I just hate when folks act like it's the difference between rich and poor.

 

[Huellz Santana]

Why would you need a new car every 4 years? Are you rich?

not rich. but i got enough disposable income to buy a car outright from working and not having kids.

i guess i'll just get a car that's 2 years old "used" that shyts good enough for me.

the reason i wanna dump em every 4 years is cuz I feel like at 100K miles its all downhill from there.​

 

[winb83]

I see this myth that that rich people got rich by being "smart" with money still persists. They got rich by making a ton of money. You ain't saving up money to be a millionaire. If Pookie wasn't obsessed with Jordan's and stunting, he'd be at most a few thousand dollars richer.

They were smart in their career/business dealings. Not necessarily smart with money at all. You'd think the crash of 08 would've shown you this...

You don't have to make a ton of money to be a millionaire through. You can take an average income and invest and be frugal over a long period and retire a millionaire. Many people don't become millionaires till they get older.

 

[winb83]

Exactly! And the same can be said of poor people. Some are extra frugal clipping coupons and scaled back....others blow the little they make on stupid shyt. Both are still poor.

There are also people who have high incomes and are broke constantly. Many NFL players that make multi-millions retire and within a few years are broke. Being rich is more about long term resource management than high income. Of course high income comes into play but extravagance beyond means no matter your income won't make you rich.