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Old 10-28-2005, 04:20 AM   #111
EDawg
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Join Date: Jan 2004
Location: CA
Posts: 4,773
My Ride: :/
Quote:
Originally Posted by yzracer420
I like your train of thought, but anyone giving investment advice and telling you to LEASE won't get much respect. Leasing is like rent, throwing money away.

anyone who believes that is ignorant. leasing a car is in no ways similar to renting a house. the reason renting house/apt is a bad idea compared with buying/owning a house is because houses tend to appreciate in value. you are "throwing away money" when renting a house/apt because that same money, if applied to buying and owning a house has a chance to grow. this is not the case with cars. if you buy a car, it's value will depreciate throughout your period of ownership. so what this means is that there is a COST associated with owning a car. this is the reason why leasing can be a good idea. lease payments for the most part cover depreciation of a vehicle and a little extra. when you are leasing and not tying up your $40K cash, you can invest that money and potentially get a return that will be greater than that "extra cost", in which case you will end up having an overall automobile expense that will be less than the depreciation costs of a $40K car that you paid cash for.
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