4 ms·
If your priority is to always drive a new car, then leasing might make sense. If your priority is building wealth at the expense of looking flashy, it is a ter
by teej 17y ago
If your priority is to always drive a new car, then leasing might make sense. If your priority is building wealth at the expense of looking flashy, it is a terrible, terrible, terrible idea.
My priority is to make my first $1M, then worry about the model year of my car.
- msluyter 17y agoIndeed. Simple formula for minimizing car expenses: Buy a used (3-5 yr old) Honda or Toyota sedan. Drive it until total annual cost of repairs exceeds the cost of another used Honda/Toyota, and/or it falls apart. Repeat.
- yan 17y agoThat's the most economical way to own a car, sure, but there is opportunity cost to driving something you don't enjoy when you're young enough to enjoy it. If you don't care about cars or driving, this is the best option, but if you do, it might not hurt to spend a few extra dollars on something you'd actually enjoy.
- ibsulon 17y agoThat's raising my level of ramen profitibility, no thank you.
- jpwagner 17y agoNot agreeing or disagreeing with OP, but ramen profitibility sucks if your life sucks...
- garethm 17y agoI know someone who drives a Ferrari and really enjoys it - and he's nearly 50. You've got to be pretty old before you're too old to enjoy driving a nice car.
- nazgulnarsil 17y agoI have a $2k motorcycle for fun, the equivalent car would cost $50k (performance wise). That way I don't think about my econobox commuter car.
- lallysingh 17y agoDrive it until the total annual cost of [repairs, inconvenience of breakdown, time lost due to failed vehicle] exceeds the cost of another used Honda/Toyota. As someone who remembers their first high-school vehicle too well, there's value in a level of reliability.
- ido 17y agoOr, if applicable, take the subway/tram/train/bus/bike.
- imajes 17y agoUntil the crucial meeting with your first customer/investor/partner happens and you're stuck on the side of the road waiting for AAA. Seriously, it's not always just about spending the least.
- vaksel 17y agoAgreed, but the quote was from when you are already filthy rich. But it applies to many people in this country, since getting a new car every 4 years is so popular. Personally I'm a fan of finding a good deal on a used car, buying it, driving it for 1-2 years, and then selling it for the same amount I paid for it. Pretty much the only cost this way is a) insurance(which you can save a few extra bucks by getting only liability) b) gas c) 2-3 oil changes. And since you are owning the car for a short period, you won't get hit by any costly repairs.
- Periodic 17y agoThe costs of buying and selling the car, as well as adjusting to a new car, are non-trivial for most people. It's another case of doing more work to make more money. The question should be, "Is doing a better investment of time and effort than simply buying a newer car and keeping it longer?"
- quickpost 17y agoI'll still be driving my piece of shit Civic after I make my first million.
- deleted 17y ago[deleted]
- deleted 17y ago[deleted]
- netsp 17y agoLeasing is a replacement for the buy new, sell after 2-4 years model. That's not an uncomment way to own a care, some places more common then others. That job, it does reasonably well.