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> who would drive a car for more than five years anyway? Just get a new one when the warranty expires. That sounds ridiculous to me but it's probably a pretty
by ssharp 11y ago
> who would drive a car for more than five years anyway? Just get a new one when the warranty expires.
That sounds ridiculous to me but it's probably a pretty common sentiment with people who spend 100k on a car, considering there are lots of people buying 25k cars who do the same, despite it probably not being a wise financial decision.
- gambiting 11y agoWell, here in UK you structure the lease in such a way you pay 50% of the car's value over 3 years and then get a new one at the end(and just carry on paying). For example you can have a brand new Nissan Juke for like 150 pounds a month. If you make a decent wage it's crazy not to buy new.
- ssharp 11y agoCars have steep deprecation over the first two years. After that, deprecation flattens out. When you continuously lease every two to three years, you're paying far more depreciation expense than if you kept the car longer or bought used. It's still a value judgement. If you value having a new car every two to three years, which also means you won't be doing maintenance other than oil changes, then you might be willing to pay the extra money.
- ams6110 11y agoYes, luxury cars are as much a fashion statement as they are transportation. Most owners will want to stay current and will trade the car after a few years even if nothing is wrong with it. Owners just build in the monthly lease or loan payment to their cash flow budget. I'm on the opposite end of the spectrum, I only buy used cars for cash and have not had a car payment in almost 20 years.
- alistairSH 11y agoDon't forget that in the US (and UK, possibly) many of these cars are leased as part of senior employees' compensation packages.