Reply to How are there so many $60, $70, $80+ thousand dollar cars on the road??

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Reply to "How are there so many $60, $70, $80+ thousand dollar cars on the road??"

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[quote=Anonymous][quote=Anonymous][quote] Literally everyone who leases a car is dumb.[/quote]

Actually, anyone who believes this is the one lacking financial acumen. We leased a car last summer and prepaid the 36 month lease. It is a luxury electric vehicle that was under a manufacturer subsidized lease, plus the dealer matched the federal tax deduction being offered for other electric care but not the one we bought. So - we saved roughly 10k on the price we would have paid had we bought the vehicle outright, leaving that money for us to invest. We will buy the car at the end of the lease but kept 50% of the cost and the use of our cash for an extra three years.[/quote]

I leased a car recently for the first time and I don’t get this. I asked about pre-paying the lease and there was no advantage. You don’t get any discount. So why wouldn’t you keep the money earning until you have to make the payments?

Then I did end up buying the car at the end with cash, because I like it fine and it was a good deal. But when I did the math, even though the money factor (interest rate basically) had been low, I would have had to make a very high return on the money to come out ahead vs just buying the car with cash in the first place. The only reason I came out okay is that used car prices stayed so high. [/quote]

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