I think that’s the point. If you are going to compare leasing and call it a “waste of money” then you do have to consider opportunity cost.
If we are going to take a “what actually happened” approach here and talk stocks, investing the 200k in almost any index fund in actuality over the past 5-10 years would have paid the entire lease and likely landed OP in a position to buy a G63 as a bonus today
That’s not pennies. Thus the distinction between the 10 millionaires and the 30 millionaires. The latter probably don’t care. Some of the former would.
It’s the same concept just different level. At some point you have to spend money for the stuff you want. Dying richest person in the grave is relatively meaningless.
Not sure how we got to “carpe diem” from $700 per month for a G63.
It’s not $700 per month. But even if you want to see it that way, the issue is when you start to compare it to a lease without taking into account the cost of money (which the lease includes as the rent charge separately from the depreciation).
none of that requires us to discuss stock markets, recessions, legacy planning or “you can’t take it with you”.
The point was never buying too much car as I suspect many on this website are more interested in value than cost. Just a guess, but I’d think many here would gladly pay 2k per month on a 2 year lease with a 85% residual and very low money factor / MSD’s. Many fewer would want a $500 lease with a 60% residual and 0.03 money factor.
the point was comparing depreciation only in the purchase case to the entire lease payment. That’s simply wrong. It’s surprising that this discussion is not obvious on a site that is dedicated to leasing ostensibly with people who understand what lease payments include.
That is like ignoring the downpayment and the interest part of the mortgage and property taxes when you decide to rent vs buy a house.
the cost of money can differ among individuals which is why cap rate is not dependent on loaned percentage, but there is little difference between writing a check for 210k and getting a 210k loan as both have a cost of money. And certainly you would include the car loan payment on your ($700/month) G63 right?
Sure , there is a value to money ofc and a lost opportunity cost to that cash if you’re paying 200k for a car. I don’t think anyone would say that is not true. Not sure that mean leasing is better, it’s probably fairly close to a wash or the rolling strategy still being better a little better but the true cost being higher than the 700/mo figure but still likely lower than what a lease would cost .
Well don’t forget that I had a 2021 G63. There’s a reason my wife only rolls her eyes when I tell her I have another G63 on order lol.
A guy down the street bought his 2021 maybe 3 months after me and still has it to this day. Talk about a missed opportunity–he probably missed out on $100k of value on the car.
