Pop
Member
Registered: 8th May 03
Location: Reading
User status: Offline
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quote:
Originally posted by John
Just to have something to show for my money, same reason I wouldn't rent a house really.
I know it works out better for some people but I looked into it a few months ago and it was paying out an awful lot of money for something I didn't own (unless I paid a stupidly expensive balloon payment)
That's fair enough. I have always bought my cars outright as well. Next time we change though I'll probably lease it. The main reason is that I don't want my hard earned money tied up in a depreciating asset.
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Ian
Site Administrator
Registered: 28th Aug 99
Location: Liverpool
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I don't agree that you should own something just so you can say that you own it.
For example, if you bought a house in 2007 and want to sell it now, you've probably lost money and you've also got fees to advertise and fees to process it.
If you bought a new car and paid a monthly payment on it and it depreciated faster that you paid it off (likely in the first 18-24 months) then you've got fees to advertise, or a poor offer on trade in, or if you set the finance up this way, a clause in the agreement where you can walk away. Most of which will mean you come away with nothing and have nothing to show for your money, and in many cases you will have actually spent out more just to be in the same position.
The goal is to pay as little as possible for the time you own it. Not to treat it as some status thing of saying 'I own it', when in fact you no more own it than you own the taxi you got home from town the other week.
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John
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Registered: 30th Jun 03
User status: Offline
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I wouldn't do it that way either, paying cars over 5 years with no deposit etc is probably worse, my scenario is if you are putting down a decent deposit and over 3 or less years.
People who pay a car over 5 years with no deposit will be in a worse situation.
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