It seems like getting him a 3yo used car should be a good option to him. Someone already eat the first 3 years depreciation and he can ride the car to ground.
Nothing. And you should. And also, this financial advisor thinks you should still drive a shitbox and pay for it cash.
And that was my point. The guy gives bad advice.
Yes that was my original point. If I had to pick a general side though I would generally side with financing and think people prob get marked up rates, extra bs fees and fail to understand the terms more so with leasing than financing.
I love cars. Automotive Engineering is what I studied in college and Iâve worked at a dealership since I was 18. Leasing cars is NOT the MOST financially savy way to have a vehicle for transportation.
When I left Empire Volvo to take the job at Brooklyn Jeep, I only did it for the money. I was diving a 2003 Infiniti I35 and was paying just under $100 a month in insurance. I was able to use almost all of my income on paying down my condo. I used my income from Jeep, and both rental incomes to kill off the largest personal debt I have, my mortgage. Not having expenses likea nice lease and higher insurance costs certainly helped but it wasnât fun. That being said, not many people have the luxury of finding cars for sub $2,000 dollars that run and drive well
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Itâs not bad advice from a financial standpoint. Yes I appreciate your point that a 10 yr old accord is not the same experience as a new 5 series.
Leasing can def be good if itâs a biz car, or if the manufacturer is offering lease only promotions ( such as how EVs work at present due to higher income folks not qualifying for the subsidy). It also can be good for high depreciation models where the value at lease end may not be what the bank thinks it will be ( seems less common today than it was 5+ years ago). There are a host of other situations where leasing has benefits. There are also plenty where it does not.
Thinking leasing is universally better though probably shows you donât fully understand the math involved
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coughs in CT200H
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I wouldnât. The problem is that when people often say âfinancing is better than leasingâ, what theyâre really saying is âpurchasing a vehicle and holding it for a long time is better than changing vehicles oftenâ. That may be true more often than not, but it isnât leasing that is being compared, it is holding time.
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Sure but leasing generally precludes holding those cars so it is at least somewhat relevant unless you thinking leasing and buying out is superior to financing which I think is generally unlikely.
Yes, youâre right. I donât understand the math. 
In any case, enjoy your EQB
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When I leased my 2017 Challenger Hellcat for $725/mo I figured I couldâve bought a brand new CAMRY for less⌠So, leasing doesnât make sense but it gives us better options to FLEX 
Since then, I havenât leased anything over that amount (Not including the âFOR PROFITâ Covid leases) I am still contemplating buying a LEXUS and keeping it for a very long timeâŚbut Iâm still too young to do that too haha
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Now now, mortgage with a fixed low interest is not something you should pay off 
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Plenty of financial gurus on here, what do we need a video for lol.
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I would agree but I need to free up my income lol. Even though my 1st rental property is paid off, my second one (the 5 family) is not. Once I have the personal mortgage done, I can throw EVERYTHING at the 5 family rental. Hopefully I can get a second 5 family (the sister house to the one I bought) some time in 2027/2028. If I can get that one paid off by 2031 I can finally retire.
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FTFY
1010101010
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I would further caveat it with âpurchasing an (affordable) vehicle and holding it for a long time is better than changing vehicles often.â Strategy only works on cars like Camrys that will, on average, drive a long time and have very manageable maintenance costs. Make it an X7 and the math is very different.
Something of a non-sequitur but for what it is worth, I think I might be able to achieve a TCO comparable to buying S*** boxes by buying new Japanese sedans/compact SUVs at a decent discount when the opportunity emerges and driving them for 2-3 years before selling them private party. Used Corolla and Camry values are insane due to dumb people following Dave Ramseyâs advice.
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Iâve figured life out. Drive shit boxes for the rest of my life, and let my kids drive the exotics with my money after I die.
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Nice/new cars cost more money than bad/old ones. If you like money more than cars donât spend so much money on cars.
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Money up front is worth more than money later.
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Donât buy CJDR, JLR or VW/Audi.
Now you know everything anyone really needs to know about buying cars, for free.
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but but but I want an R8 soooo badddd
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Fun Fact if you max out your IRA and 401k (30k a year) from 18 to 68 years old, you will have 18 million or so.
That will continue to generate ON AVERAGE about 1.4 million per yearâŚThat is enough to be considered generational wealth lol
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This whole conversation is geared towards the majority of Americans for whom the decision is not whether to drive nice cars themselves or leave their kids enough money but whether it is to drive a nice car themselves or contribute to their retirement savings. If the decision for a family is between two weeks in Lake Como and a Highlander or one week in Hawaii and a X7 then they can drive whatever they want.
But for the nearly half of Americans with no retirement savings there is no risk of their kids driving exotics based on an inheritance. The risk is having to work at Walmart as a greeter into their 80s.
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