Quote:
Originally Posted by tranquility
All I know is like the other guy said, if one is financially astute, then they shouldn't be changing cars like changing underwear cuz they're gonna take the hit every time they get into a new car; so I guess if we already start w a financially non-astute person who insists upon doing that, sure, I guess that leasing may be a viable option for lessening the gouging. All this other stuff about low rates, possible accidents?!, etc, is just distracting from the fact that for whatever reason the buyer doesn't have the cash upfront or that they have it tied up or 'think' they can make better use of it...which leads to the question, why the heck is the lender lending $ when they could supposedly easily make much more in the stock mkt or whatever the borrower thinks is so awesome? In any event, by lending the dealer is gonna make additional profit off of that, so unless there's a freak deal going on, it will always be way more expensive than buying outright and usually worse than financing I would venture.
|
I don't agree with the financially astute comments. There's a spectrum. You can be financially astute but have a passion for cars. Those who say a car is a bad investment clearly don't have passion for cars. Using that logic, any luxury purchase (vacations, nice clothes, fine dining) is a no-no because they're not purchases a "financially astute" individual would make.
Why are banks lending $ when they could make more in the stock market? If you have to ask that question then you truly don't understand how financial systems work. Lending money out to credit-worthy lendees is a low risk money generator, and allows the banks to hedge against market volatility. That doesn't mean they DON'T invest in the market as well.. they absolutely do. But diversification is the name of the game.
Leasing doesn't automatically mean the individual doesn't have the cash up front. In some cases, sure that's the case. But if you are actually financially astute, you know when to purchase something using which method depending on the situation. Truly financially astute individuals understand that finances don't adhere to rules set in stone, and are instead fluid based on market conditions.