Buy vs Lease?

dLockers said:
Artificially inflated by whom? Some kind of illuminati of the car industry?
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Just the car industry I would suggest?

I know two self made millionaires locally.
Neither of them waste money on cars.
One of them is Nigel Bancroft of Triumph TR5 fame. (He has the best in the world).
His cars increase in value, not decrease.
You can beat the system or certainly avoid taking the bigger hits.
 
I think millionaires investing in classics is probably drifting away from the topic of 'how best to purchase/finance my next car' that the OP was after :p
 
inflames said:
100% agree.

I personal think PCP is a awful debt cycle, that I have seen a few friends get caught up in. Just so they can have a brand new car and the bragging rights. I save up to buy my cars, in the past I have taken out personal loans for cars I wouldn’t do that again. But I can understand why people do, as long they are sensible and can afford the debt.
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That's the danger really. It encourages people to get into a debt cycle of buying new car every couple of years when you'd think twice if you had to pay it as a loan or outright purchase.
 
Kenai said:
I think millionaires investing in classics is probably drifting away from the topic of 'how best to purchase/finance my next car' that the OP was after :p
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He made his money through cars and property.
What I’m saying is leasing isn’t ideal.
There are exceptions such as a person who has no money and needs reliable transport to earn money. (Not a Golf R to brag at the bar)
 
SkodaMart said:
He made his money through cars and property.
What I’m saying is leasing isn’t ideal.
There are exceptions such as a person who has no money and needs reliable transport to earn money. (Not a Golf R to brag at the bar)
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Well no, what you've been saying is that new cars are a waste of money entirely, which is a completely separate conversation to whether leasing stacks up against other equivalent purchase methods.
 
SkodaMart said:
Yes of course I would have bought my house cash. The reason I didn't was the price exceeded my current funds at the time.
My mortgage is the only debt we have, sadly an unavoidable one.

I dont lease cars, I buy ones I can afford, which means no Golf R's here.
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And the price of cars often exceeds the driver's current funds.
Your mortgage debt isn't unavoidable, you made a choice to get into debt to have a mortgage.
 
Lopéz said:
And the price of cars often exceeds the driver's current funds.
Your mortgage debt isn't unavoidable, you made a choice to get into debt to have a mortgage.
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Yes but he’s happy with that as he has one so he agrees with it, he just likes to tell everyone what he doesn’t like and frames it as he doesn’t understand why others do. It’s just juvenile thinking, I don’t like it, so don’t understand why others do. Why even care what other people want to do with their money?
 
Lopéz said:
And the price of cars often exceeds the driver's current funds.
Your mortgage debt isn't unavoidable, you made a choice to get into debt to have a mortgage.
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How is a mortgage debt unavoidable?
Renting is at least twice the price?
You have options when choosing a car.
 
Kenai said:
Well no, what you've been saying is that new cars are a waste of money entirely, which is a completely separate conversation to whether leasing stacks up against other equivalent purchase methods.
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Many new cars offer utterly shocking value for money, this is true.

On the other hand some don’t.
I know a lad who had a MK2 Focus RS from new.
He lost £2000 in 6 years.
Even then that was PX, he could have easily got his purchase price back with a private sale.
Some cars make more sense than others, and it’s not always obvious which ones have the best residuals.
 
Bear said:
You have choices when buying a house where you might not have to take out a mortgage and buy what you can afford. Psycho Sonny loves to point out dirt cheap homes you can buy
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And then spend the next 20 years of your life renovating it.
I’ve already done that once.
I was mortgage free at 35.
 
SkodaMart said:
And then spend the next 20 years of your life renovating it.
I’ve already done that once.
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Perhaps but that’s a choice you made, you chose to waste money on debt interest instead of doing something up which could have been affordable. You traded debt for something you saw value in i.e. saving time and effort. Others trade debt and depreciation to finance a new car they like as it has value to them, be it having a manufacturers warranty or being able to drive something that exceeds their current funds etc. People will sacrifice money on things they see value in
 
Bear said:
Perhaps but that’s a choice you made, you chose to waste money on debt interest instead of doing something up which could have been affordable. You traded debt for something you saw value in i.e. saving time and effort. Others trade debt and depreciation to finance a new car they like as it has value to them, be it having a manufacturers warranty or being able to drive something that exceeds their current funds etc. People will sacrifice money on things they see value in
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No. I needed somewhere to live and it was all we could afford at the time.
Trust me there was no thought behind it. It was necessity
 
Many people live happy contented lives without a car.
Every single person alive needs somewhere to live.
It’s a totally pointless argument.
 
Kenai said:
They're firmly untwisted, just pointing out you are consistently posting nothing but anti new car guff rather than any sort of sensible criticism of financing itself.
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That’s because many new car purchases are literally financial suicide, no matter how they are funded.
Some cars as I’ve said have very strong residual values so my comments don’t apply to all.
If you are earning so much that money comes easy then let it go easy too. (I’m certainly not in that position)
The richest people I know (self made men) don’t waste money of cars that depreciate.
They either buy ones that don’t or run old stuff that’s already worthless.

Nothing more to say.
Make of it what you will.
 
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