My pops has a mechanic shop and He knows better than to finance his bmw. So he leases and trades up every few years. Theyre not worth the cost of repairs and maintenance after 100,000 miles basically. If you talking about a toyota or a honda then thats something to wanna finance. I’m financing a new honda accord that comes with a lifetime warranty for the power train. My grandkids will be able to drive this car
Mathew Knowles on Meek Mill Talking Down on Leasing Cars
- Thread starter thernbroom
- Start date
No investment is guaranteed. Even with a rental property, if there's no one living in your property you're fukked at that point. But every situation is different. There are many instances in which leasing is a much better option than buying. And you can negotiate great options on the lease for upgrading or purchasing at the end of the lease, at long as you stay within the terms of the agreement. There are no absolutes in finance, because no matter the situation, life happens and what may have worked for you, will not work for the next person.
A car is not a real asset
Assets earn value over time
A house is an asset, ten years from now its gonna be an asset, twenty years from now it will be an asset too
Try selling your 2012 Mitsubishi twenty years from now in 2038
An asset is something that has value. A car has value therefore a car is an asset. but because over time that value goes down it's a depreciating asset which is still an asset until it has lost all value.
The convo was about buying or leasing a “NEW” Car. And leasing is always the better option in this circumstance
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Not imo. If you bought a car for $17,000 and paid it off, and then sold it for $5,000 years later was it really an asset? You paid 100% (more if you count the interest, upkeep and fees) and got back less than a third. People would commit that if that happened with their house.
It’s def an asset. No matter if it lost value, it’s still an asset,
I look at a finance and it's almost as bad as leasing. Buy a car you can afford and buy it cash. That's what living within your means is about buying stuff you can afford.
Buying cars you can afford means you don't have to eat depreciation, interest payments, or carrying full coverage insurance.
Beyond PLPD I self insure my car meaning if I wreck it today I got the money in the bank to buy a car probably worth at least 5 times as much as my beater and not miss a beat and if I wreck that car I could again buy another one.
Because I'm not making $500-$600 a month in car payments and full coverage insurance payments combined I can just bank that and have the financial flexibility to do whatever with that money. Does that involve driving a car nobody would be jealous of besides the guy that walks or rides a bike everywhere? Yeah. At the end of the day my car does what I need it to do. I own it to get where I need to go not turn heads.
Many of these people leasing and financing aren't living within their means. If they lost their job today and couldn't get work soon within 4 months they're completely fukked and doing dumb shyt like clearing out their 401Ks and maxing out credit cards just to live. I could live a year easy just off my emergency fund and I wouldn't have to worry about making any car payments either in that year which is part of the reason why.
Create financial flexibility by paying yourself and not by paying other people interest to borrow their money.
Fake_AGent
Pro
Jay actually said later on in his Decoded book he was wrong here and had a poor mentality, and that its better to lease if you got the money and plans
nikka you dumb.. If you add it all up you're still spending money on something that will depreciate. When you start buying 100k cars get back to me. Just start a business and lease cars..
David_TheMan
Banned
Again stop talking about depreciation of assets when you spend money to rent someone elses asset.
It literally makes no financial sense for a person who values their money to rent a car.
No it wasn't about buying a new car vs leasing. It was literally about why you should lease period.
I simply stated why it makes no sense to lease vs buying at all, financially speaking.
If BMWs are bad buys don't buy them, but to lease and think you are making a good financial decision. sMH
Think about the money put in to lease a car, and what that money could have bought for you.
It makes no sense.
Which makes no sense is you telling other people how to spend their money. Dont be a pocket watcher breh.
David_TheMan
Banned
Not telling people they can or can't spend their money a certain way.
Just saying if you do lease it isn't smart financially.
This nikka is really dumb.. He doesn't understand leverage.
I tried to break it down for him
But aye these past few years he’s the type that woulda bought a 500k car cash
I’m the type that woulda leased for a fraction of that and used the rest on stocks and bitcoin