Decisions, Decisions...
- Thread starter EGProject
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need vs want
the audi lease just doesn't add up to me
but my goals/priorities have changed
house>>>car
future>>>now
and this country runs on credit, it is true, but thats not the way it should be
if more people were prudent with their finances and had patience to save and buy things our country wouldn't be in this cluster fuck it is in today
20 years ago you needed 20% down
5 years ago you needed 0% and got an adjustable rate mortgage that you could not afford as soon as rates went up, and thats why we are in the mess we are in today
greed, it all comes down to greed and the almighty dollar
the audi lease just doesn't add up to me
but my goals/priorities have changed
house>>>car
future>>>now
and this country runs on credit, it is true, but thats not the way it should be
if more people were prudent with their finances and had patience to save and buy things our country wouldn't be in this cluster fuck it is in today
20 years ago you needed 20% down
5 years ago you needed 0% and got an adjustable rate mortgage that you could not afford as soon as rates went up, and thats why we are in the mess we are in today
greed, it all comes down to greed and the almighty dollar
EGProject
YEEEEAAHHHHH
Unlike most of my peers I have a 401k, I have some investments, some CD's and about 5-7k in savings at any one time. I am currently saving for a house - but I will need to wait the 2 1/2 years until my student loans are paid off before I can even think of getting a mortage.
Talked to the F&I guy at work, and a few things have come to light. I do not pay excise tax because of how the vehicle is paid for. MA state sales tax is rolled into the term payments. Best part is, that the employee lease plan is not run by normal lease companies.
Looked at vehicle options and apparently the A3 and A3 TDI are included as well. I'm going to hold out for a bit and see where I am beginning of the year. I'm inevitably going to be getting rid of the Fit sometime soon, but I'd rather buy something cash, or lease something rather than finance a car which I will immediately be upside down on due to mileage depreciation.
Talked to the F&I guy at work, and a few things have come to light. I do not pay excise tax because of how the vehicle is paid for. MA state sales tax is rolled into the term payments. Best part is, that the employee lease plan is not run by normal lease companies.
Looked at vehicle options and apparently the A3 and A3 TDI are included as well. I'm going to hold out for a bit and see where I am beginning of the year. I'm inevitably going to be getting rid of the Fit sometime soon, but I'd rather buy something cash, or lease something rather than finance a car which I will immediately be upside down on due to mileage depreciation.
95b16coupe
Well-Known Member
consider the cost of capital. think about how much the lease will be and what you can invest in with the money that you would pay cash.
lets take the home example for a moment. if you spend $30,000 cash on a car that would be 1% interest, it would be better to use that $30,000 cash to pay down a home that is 5% interest.
if you can make more than the interest rate of the car loan using intelligent investments, you should also consider that as well. I'm taking out loans for school and autos because credit is cheap. i can get loans at 4% and if my rate of return is 5% or more, it just makes sense to finance.
lets take the home example for a moment. if you spend $30,000 cash on a car that would be 1% interest, it would be better to use that $30,000 cash to pay down a home that is 5% interest.
if you can make more than the interest rate of the car loan using intelligent investments, you should also consider that as well. I'm taking out loans for school and autos because credit is cheap. i can get loans at 4% and if my rate of return is 5% or more, it just makes sense to finance.
vtecsir1
Senior Member
Great point, half of you guys wouldnt have jobs if we didnt have credit.
The deleveraging that took place in 08 I thought would teach people to pull back on their bad habits. What happened? they stopped paying their houses and still kept buying more than they could afford, I see it every day at my job except its people leveraging their stock so they can buy houses and cars, boats etc.....anyway.
I use credit all the time, responsibly.
EGProject
YEEEEAAHHHHH
My current finance rate for the Fit is 4.9%, considering my new credit with no cosigner its not bad.
Built an A3 TDI/A3 TFSI online and MSRP would be a hair over 32k. Meaning $320 a month. If I don't get killed on tax, title and reg it might be cheaper in the end. Still, I may wait until I can make some money on my Fit and get more than what I owe for it so I can walk away from the deal with 1-2k cash.
You're always upside down on a lease.
In my opinion, if the A3 is really a vehicle you'd like to have, the smart thing would be to let someone else lease it for 6 months or a year, and then BUY the car from Audi at a considerable discount. That way, you're not upside down and you actually have a car that you can keep, or sell, if you want.
I'll contribute to that
well then you must like the idea of being unemployed and living on the streets and starving to death. You think companies like Staples go out and pay the paper mills in cash for 100,000,000 pack of paper to sell or Grocery stores wait and pay cash to stock up on food when they can afford it?
you Sir need a reality check, please don't ever go into business..or get involved in politics...
EGProject
YEEEEAAHHHHH
No one seems to understand this point I'm trying to get across. I DONT want to finance and own an Audi. I simply drive too much and I don't want to have to do services on it 2 times a year. The lease is basically a glorified rental car for 1 year or six months. Nothing down, no residual and no mileage restriction. I get the car, I pay for it - thats it.
As I said before, I'm gonna work towards paying off the Fit and see where life takes me when that happens.
makes sense to me, i say, again, go for it....owning cars suck anyway...by the time your done paying it off, the warranty is gone and that's when the shit hits the fan. If you can drive any brand new audi and get out of a Fit...and you can afford it....not really sure what all the thinking is about..
I'd gladly pay $320 for a brand new Audi A3 TDI only to get a new one every year.
That is a killer deal for a luxuryish car even if you don't own it.....
This forum is a bit iffy when it comes to questions like what you're asking. Most people on here bought cars with cash or have cars that are fully paid off already. Those cars are worth maybe 5-10K to start with and are now work like 2-5K Even a 2000 Civic SI is worth around 5K right now.
There's very few members that have spent over $15K for a car, let alone over 30K or 50K So the idea of not owning a car outright seems weird. I'm not a fan of leasing but IMO if taxes are not a bitch, its a no brainer for me if I was in your shoes, that is, if you can easily afford $300-350 a month.
That is a killer deal for a luxuryish car even if you don't own it.....
This forum is a bit iffy when it comes to questions like what you're asking. Most people on here bought cars with cash or have cars that are fully paid off already. Those cars are worth maybe 5-10K to start with and are now work like 2-5K Even a 2000 Civic SI is worth around 5K right now.
There's very few members that have spent over $15K for a car, let alone over 30K or 50K So the idea of not owning a car outright seems weird. I'm not a fan of leasing but IMO if taxes are not a bitch, its a no brainer for me if I was in your shoes, that is, if you can easily afford $300-350 a month.
IMO, the only logical time to lease is if you have a business and can write off the car as an expense. You can't do that with a bought car, only a lease.
That is general public based though. If you have an inside deal that doesn't limit mileage, and won't rape you $1000 for every tiny scratch in the paint, wear in the floor mat, rub in the side bolster, etc etc etc upon turn in, perhaps it's a little more favorable.
That is general public based though. If you have an inside deal that doesn't limit mileage, and won't rape you $1000 for every tiny scratch in the paint, wear in the floor mat, rub in the side bolster, etc etc etc upon turn in, perhaps it's a little more favorable.
EGProject
YEEEEAAHHHHH
Actually picked up the 120page packet today at work, and holy shit - we pay no taxes. Basically Audi of America "buys" the car, and you pay them. The program is to get employees into their own product and create a constant stream of used cars with low miles rolling in every 6 months or so. Best part about this is that we pay NO taxes. Nothing, not even sales tax. All we pay is title/reg fees and the payment per month. Since the cars are certified by techs at the end of the run, nothing is penalized to the owner.
This system was originally used for loaner cars, but was expanded to allow people to register the cars and insure the vehicles themselves.
This system was originally used for loaner cars, but was expanded to allow people to register the cars and insure the vehicles themselves.
You're thinking mom and pop. I work for a large company and I deal with LARGE transactions on the daily. We pay in cash. We make our money because people lease, even if its as low as using the LIBOR or Prime +1. Leasing a vehicle is armed robbery, on the franchise/dealer level.
o my bad, i guess if your company pays cash for stuff then all the other corporations do to.....
I'm sure every car dealership pays cash for all their new car inventory to keep on the lot....
For the on topic part:
If you want a new car every year or so and you've already budgeted to have a car payment forever, then do it. Otherwise, pay in cash to have more of your budget freed up, or suck it up for 5 years and let your available funds drop.
For the off topic part:
You dont have to buy cars to have a good credit score. I have a secured credit card and an amex card, both have a self imposed limit of $500 (while they are $1000 and $3000 respectively). I pay each off every month, buy Cigarettes with the Amex and gas with the Bank card. Keeps my credit score high (planning on buying a house or this wouldn't matter) and I don't really live with debt.
I dont ever see the point in debt because, I personally believe that if I'm not saving $1,000 a month I've budgeted wrong and something needs to be cut. I've lived on the ragged edge before pay check to pay check and it's no fun, but it did teach me to live within my means and not completely outside of them.
If you want to be that person that takes trips, goes out to bars 3 nights a week, has an itchy trigger finger on amazon, etc. be my guest. If you wanna be retired at 45 living in a paid off house with 5 million dollars in savings and able to do whatever you want every day for the rest of your life, try it my way. While 5 million is a little zealous I think it's totally plausible (especially the way inflation has been going).
If you want a new car every year or so and you've already budgeted to have a car payment forever, then do it. Otherwise, pay in cash to have more of your budget freed up, or suck it up for 5 years and let your available funds drop.
For the off topic part:
You dont have to buy cars to have a good credit score. I have a secured credit card and an amex card, both have a self imposed limit of $500 (while they are $1000 and $3000 respectively). I pay each off every month, buy Cigarettes with the Amex and gas with the Bank card. Keeps my credit score high (planning on buying a house or this wouldn't matter) and I don't really live with debt.
I dont ever see the point in debt because, I personally believe that if I'm not saving $1,000 a month I've budgeted wrong and something needs to be cut. I've lived on the ragged edge before pay check to pay check and it's no fun, but it did teach me to live within my means and not completely outside of them.
If you want to be that person that takes trips, goes out to bars 3 nights a week, has an itchy trigger finger on amazon, etc. be my guest. If you wanna be retired at 45 living in a paid off house with 5 million dollars in savings and able to do whatever you want every day for the rest of your life, try it my way. While 5 million is a little zealous I think it's totally plausible (especially the way inflation has been going
).
o my bad, i guess if your company pays cash for stuff then all the other corporations do to.....
I'm sure every car dealership pays cash for all their new car inventory to keep on the lot....
I work for a fortune 500 company man.nThe cash position leverage is everything.
Interest compounds. Money is made. They don't lease vehicles to lose money. They lease them to their employees to develop a residual value for purchase. Premium Residual Value is everything at the end of the lease.
ON topic. I say lease the vehicle if you want a new vehicle every 6-12 months. I would if I was that concerned with what I drove 2 days a week(ride the bus).
