Lease craze

[GoCougs]

So, make payments to yourself to cover repairs instead of making payments to the lease company to pay for repairs. Is there really a difference?

Bought the car outright with cash? you made payments to your savings account to buy it, so again, is there really a difference between making $300 a month payments to your savings account for 5 years to have the cash to buy a car outright?

Yes, there is a total difference - the freedom, power and control that comes from discipline and delayed gratification.

[JWC]

Do they still allow you to bank mileage on a lease? You used to be able to buy miles, then get a refund if you didn't use them.

[veeman]

If everyone only bought cars with cash (cars they could afford), the economy would be in the dumps.  Saving money is terrible for the economy.  Whatever you earn, you should spend, keeping enough savings for 6 months if you should find yourself suddenly unemployed.  And you should keep working until you are physically or mentally completely incapable.  You'll live longer that way. 

[GoCougs]

If everyone only bought cars with cash (cars they could afford), the economy would be in the dumps.  Saving money is terrible for the economy.  Whatever you earn, you should spend, keeping enough savings for 6 months if you should find yourself suddenly unemployed.  And you should keep working until you are physically or mentally completely incapable.  You'll live longer that way. 

Wow, this is misery upon misery upon misery.

[veeman]

I was half joking. Half.

Take in more money than you spend including all loans, and you'll be fine.  I don't plan on retiring.  I'll work until I die or become demented.  I don't ever want to live my life through my kids. 

My Dad is retired and he serves on various committees and plays bridge all day.  My Mom is retired and she does a bunch of social group activities.  They go on about 4 cruises a year, traveling all over the world.  I'm really happy for them.  They're enjoying their retirement while their health is still good and their pensions allow them to not worry too much about money.

I'd rather work, not play bridge, and take two cruises a year when I'm 75.  I have three close work colleagues who are over 70, two are over 80 years old.  Two are half time and one is full time.  That's my plan.  Keep working until I absolutely can't.

[Lebowski]

I was half joking. Half.

Take in more money than you spend including all loans, and you'll be fine.  I don't plan on retiring.  I'll work until I die or become demented.  I don't ever want to live my life through my kids. 

My Dad is retired and he serves on various committees and plays bridge all day.  My Mom is retired and she does a bunch of social group activities.  They go on about 4 cruises a year, traveling all over the world.  I'm really happy for them.  They're enjoying their retirement while their health is still good and their pensions allow them to not worry too much about money.

I'd rather work, not play bridge, and take two cruises a year when I'm 75.  I have three close work colleagues who are over 70, two are over 80 years old.  Two are half time and one is full time.  That's my plan.  Keep working until I absolutely can't.

How old are you and what do you do again?

My ideal I think would be to keep working but in a substantially reduced capacity (basically be able to make my own hours) as I get older.

[veeman]

I'm 42.  I'm a doc.  I obviously can't generalize what I plan for myself to others.  Some people obviously don't like what they do for a living.  Many people will be forced to retire even though they can still work.  It's much harder to earn more than you spend if you finance cars for many people.  But financing a fancy car is not necessarily a bad thing.  It's an unnecessary expense but few material goods are truly necessary.

[GoCougs]

I was half joking. Half.

Take in more money than you spend including all loans, and you'll be fine.  I don't plan on retiring.  I'll work until I die or become demented.  I don't ever want to live my life through my kids. 

My Dad is retired and he serves on various committees and plays bridge all day.  My Mom is retired and she does a bunch of social group activities.  They go on about 4 cruises a year, traveling all over the world.  I'm really happy for them.  They're enjoying their retirement while their health is still good and their pensions allow them to not worry too much about money.

I'd rather work, not play bridge, and take two cruises a year when I'm 75.  I have three close work colleagues who are over 70, two are over 80 years old.  Two are half time and one is full time.  That's my plan.  Keep working until I absolutely can't.

Sounds like you're trying to justify consumer debt.

I just turned 43 and in effect am "retired." I probably won't stay that way but there's a lot more to life than work - expecting to work till you can't work any more sounds miserable.

[Payman]

Sounds like you're trying to justify consumer debt.

I just turned 43 and in effect am "retired." I probably won't stay that way but there's a lot more to life than work - expecting to work till you can't work any more sounds miserable.

Denying yourself some simple pleasures of life because you refuse to take on a simple loan sounds miserable. You can't take it with you, so live a little.

[GoCougs]

Denying yourself some simple pleasures of life because you refuse to take on a simple loan sounds miserable. You can't take it with you, so live a little.

If I want a simple pleasure I just save and/or budget and/or plan for it, and pull the trigger when it feels right. That way, I get those simple pleasures AND have zero worry about consumer debt. So far so good.

[12,000 RPM]

What is there to worry about with consumer debt

If you use it right it can be better than cash. At least with current rates

[Payman]

Consumer debt keeps the stores open and drives the economy.

[AutobahnSHO]

Consumer debt keeps the stores open and drives the economy.

NO.

Imagine if all the money people are spending on interest was instead spent in the stores!!     

Banks would suffer some then re-vamp their operations and/or fold. But industry and the economy would gradually take off even more.


-------- -----------

The only stores I saw open later Saturday afternoon on the little downtown street where I live were 3 "payday loan" places.
Disgraceful.

[Payman]

NO.

Imagine if all the money people are spending on interest was instead spent in the stores!!     

Banks would suffer some then re-vamp their operations and/or fold. But industry and the economy would gradually take off even more.


-------- -----------

The only stores I saw open later Saturday afternoon on the little downtown street where I live were 3 "payday loan" places.
Disgraceful.

Disagree. 70+% of large furniture store chain revenues are customer financing. I imagine it's at least the same percentage for automobiles. People would hang onto that living room set forever if it meant they had to pay $3000 cash to buy a new one, interest be damned.

[AutobahnSHO]

Disagree. 70+% of large furniture store chain revenues are customer financing. I imagine it's at least the same percentage for automobiles. People would hang onto that living room set forever if it meant they had to pay $3000 cash to buy a new one, interest be damned.

nah, people are always getting married/ moving/ upgrading.

Things would slow for 5yrs maybe as people readjust then the economy would be better than ever without the parasitic interest.

[AutobahnSHO]

OH BTW
This morning heard the same company radio ad (from my original post) advertising 2yr/24k miles lease on a new civic for $88/month, and only $88 down.

That seems far more reasonable than $5k up-front. Probably popular too!

[Payman]

nah, people are always getting married/ moving/ upgrading.

Things would slow for 5yrs maybe as people readjust then the economy would be better than ever without the parasitic interest.

How would the banking industry fare in this scenario?

[AutobahnSHO]

How would the banking industry fare in this scenario?

They'll figure out some other slimey way to make money....     
It would take 5-10yrs for the economy to adjust/rebound.

I know I'm an optimistic utopian dreamer, and people will never stop doing what's bad for them. Oh well. I'm not going into debt for consumer junk anymore. (I was paying probably $900US/month in creditcard debt couple years ago.)

House and car are it.     


-Although JCPenney had a deal on Labor day. I was buying my son a suit and nice shirt. $200. "open an account today and get 35% off!!!!"   So I saved $70 and I'll pay the bill in full and close the account.

Also found out I now have an 801-804 credit score. (Experian and Transunion)

[BimmerM3]

If I want a simple pleasure I just save and/or budget and/or plan for it, and pull the trigger when it feels right. That way, I get those simple pleasures AND have zero worry about consumer debt. So far so good.

+1.

What is there to worry about with consumer debt

If you use it right it can be better than cash. At least with current rates

Yeah, but "using it right" means that you're only using it to buy things that you can already pay for in cash, not using it to buy things you can't really afford, so either way you have to save for what you want.

Plus, it doesn't even have *that* much to do with the debt itself. It's about the mindset of realizing how unnecessary most shit is that people take on consumer debt for. Minimizing expenses and investing in low-cost, well-diversified funds is a pretty sure fire way to get ahead in life. But most people (including myself to some extent - see: S2000) have a hard time resisting all the fancy stuff, and many of those people get trapped in a cycle of debt.

Consumer debt keeps the stores open and drives the economy.

Lots of things drive the economy. Money invested in the stock market gives companies capital that they use to expand their business. Even money invested in crappy bank savings accounts gets used so that the banks can lend it out to create the consumer debt. If consumer debt is necessary, then people with money to create the products and funds leading to the consumer debt are also necessary. I'd rather be on the side that has the money, personally.

Disagree. 70+% of large furniture store chain revenues are customer financing. I imagine it's at least the same percentage for automobiles. People would hang onto that living room set forever if it meant they had to pay $3000 cash to buy a new one, interest be damned.

Uh, good? People get rid of perfectly good stuff all the time just because something shinier came along.

They'll figure out some other slimey way to make money....     
It would take 5-10yrs for the economy to adjust/rebound.

I know I'm an optimistic utopian dreamer, and people will never stop doing what's bad for them. Oh well. I'm not going into debt for consumer junk anymore. (I was paying probably $900US/month in creditcard debt couple years ago.)

House and car are it.     


-Although JCPenney had a deal on Labor day. I was buying my son a suit and nice shirt. $200. "open an account today and get 35% off!!!!"   So I saved $70 and I'll pay the bill in full and close the account.

Also found out I now have an 801-804 credit score. (Experian and Transunion)

Yeah, the economy will adjust and the bankers will be fine. Banks existed before the massive consumer debt and they'll continue to exist afterwards, if we ever get past the trend as a society.

[Lebowski]

If you use it right it can be better than cash. At least with current rates

How so?

[Eye of the Tiger]

OH BTW
This morning heard the same company radio ad (from my original post) advertising 2yr/24k miles lease on a new civic for $88/month, and only $88 down.

That seems far more reasonable than $5k up-front. Probably popular too!

OK, now that is a deal. How do I get that?

[AutobahnSHO]

OK, now that is a deal. How do I get that?

Honda in Aiken SC

[AutobahnSHO]

DOH maybe it was $188/month????

It was 5:30am as I was heading to work.........

[BimmerM3]

OH BTW
This morning heard the same company radio ad (from my original post) advertising 2yr/24k miles lease on a new civic for $88/month, and only $88 down.

That seems far more reasonable than $5k up-front. Probably popular too!

Now that actually is a pretty good deal. That's only $2200 all in.

[Eye of the Tiger]

DOH maybe it was $188/month????

It was 5:30am as I was heading to work.........

No way, I want $88/month.

[Eye of the Tiger]

Honda in Aiken SC

Oh, I like Aiken. It's a nice little downtown with two bars to hop between.

[Payman]

DOH maybe it was $188/month????

It was 5:30am as I was heading to work.........

Probably $88 bi-weekly.

[Payman]

They'll figure out some other slimey way to make money....     
It would take 5-10yrs for the economy to adjust/rebound.

I know I'm an optimistic utopian dreamer, and people will never stop doing what's bad for them. Oh well. I'm not going into debt for consumer junk anymore. (I was paying probably $900US/month in creditcard debt couple years ago.)

House and car are it.     


-Although JCPenney had a deal on Labor day. I was buying my son a suit and nice shirt. $200. "open an account today and get 35% off!!!!"   So I saved $70 and I'll pay the bill in full and close the account.

Also found out I now have an 801-804 credit score. (Experian and Transunion)

I've done similar, and for the past 3 yrs have had mortgage, car lease (ugh), and 2 small credit cards. Built my credit up as well.

I just think consumer debt is a necessary evil to keep the economy going, and there's nothing wrong with it if you're smart about it.

[AutobahnSHO]

I just think consumer debt is a necessary evil to keep the economy going, and there's nothing wrong with it if you're smart about it.

Too many people use credit when they shouldn't. I used to and I'm DONE with that crap.  On the other hand my wife used to use a credit card to accumulate points and just pay it off every single statement.

[Payman]

Too many people use credit when they shouldn't. I used to and I'm DONE with that crap.  On the other hand my wife used to use a credit card to accumulate points and just pay it off every single statement.

Problem is everything requires a credit card these days. Try upgrading your airline seat or ordering an inflight sammich without one.