4 ms·
I don't need a car forever. If I decide to move to Singapore or Honk Kong or even San Francisco/Manhattan proper I will probably not need a car. The Fiat 500e
by shiftpgdn 11y ago
I don't need a car forever. If I decide to move to Singapore or Honk Kong or even San Francisco/Manhattan proper I will probably not need a car.
The Fiat 500e lease example above is a great example because I'm only in for $3600 for 36 months. Name a car that you can purchase outright for $3600 that will never need unplanned service, replacement tires, etc.
- LeifCarrotson 11y agoIt's not about purchasing a car outright for $3600, it's that at the end of the lease you have to (not "get to") walk away. I put 50-100,000 miles on cars that start with about 100,000 that I buy for $3000-$5000. I haven't needed much unplanned service, largely due to luck and buying well-maintained cars. When I am done with the car, I sell it for about $1000-$1500 less than I paid for it. And the insurance on these cars is MUCH cheaper than for a new car. So by not "getting to" walk away at the end, my total cost is not $3600, but $1500. You could buy a car for $10000 and sell it at $6400 if you wanted a newer model. But the big difference is that if I get laid off or have to file for disability or something, I have an asset that I can keep using instead of upgrading if I want, or sell if I need the money. A lease is a liability!
- branchless 11y agoAlso car markets are highly liquid. If you buy a common car there will be a buyer waiting to take it off you.
- LeifCarrotson 11y agoIt's not about purchasing a car outright for $3600, it's that at the end of the lease you have to (not "get to") walk away. I put 50-100,000 miles on cars that start with about 100,000 that I buy for $3000-$5000. I haven't needed much unplanned service, largely due to luck and buying well-maintained cars. When I am done with the car, I sell it for about $1000-$1500 less than I paid for it. And the insurance on these cars is MUCH cheaper than for a new car. So by not "getting to" walk away at the end, my total cost is not $3600, but $1500. You could buy a car for $10000 and sell it at $6400 if you wanted a newer model. But the big difference is that if I get laid off or have to file for disability or something, I have an asset that I can keep using instead of upgrading if I want, or sell if I need the money. A lease is a liability!