Mom Being So Dumb, Help Me Convince...

[JB135i]

Jetta's (VW in general) have terrible reliability records...why do you hate your mom?

If you have to do some kind of a deal put her in an Accord/Camry or Civic/Corrola. Good reliable cars that really hold their value.

[hl0m4n]

nice advice everybody, after spending about 7 hours shopping around today (which i just got home) we finally found a solution. it's actually funny i was watching tv in the morning and found this commercial of a toyota dealer near me that offered mad cheap prius at 0% apr.

so we hit that place up first and fortunately they were right. so we got a brand new prius (all stock) with 0% apr and decided to finance the acura after. so the acura will be her whatever car and prius is the beater.

fucking finally i must say shopping around for cars w/ mom was driving me hectic

[fobunited]

Your logic is flawed in assuming that in the SHORT SHORT SHORT span of 4 years, you will yield the long term average of 10% per year. What if you invested that money in the last 4 years?! That long term average is exactly that... LONG term.

Originally Posted by jaiman

^^And that's called not knowing what the f*ck you are talking about. Lets say you want a car that costs 50k. interest rates are 4% and in 4 years you are going to get rid of the car. You have three options, cash, lease or finance. Financing the car gets a monthly payment of $1128.95, leasing is $665. The difference is $463.95. You take that difference and invest it each month and achieve the long run equity market average of 10% per year. After 4 years you have $27,244.46 in you investment account. You return the car, which we'll say is worth the residual of $24,000. So you have $27,224.46 and have driven a car for 4 years. Then you have the car that was financed which you sell for $24,000. You monthly payment was the same over the entire term (comparing investment and lease with finance cost) and yet you came out ahead by $3,224.26 by leasing and investing the difference.

And as for paying cash upfront? You'd be much better off leasing and investing the cash. If you leased in that scenario and invested the 50k you'd have $73,205 after 4 years and would have paid $31,920 for your lease.

All of this assumes a lease with fairly standard terms right now and doesn't take into account some of the amazing deals you could get on a lease (as an example, last year BMW had 8 or 9k off on M3s in Canada, but the residual value on the lease was based on the price before the discount)


I hate getting sucked in to this argument, but the sanctamonious tone of the anti-leasers gets me everytime.

[jaiman]

Originally Posted by fobunited

Your logic is flawed in assuming that in the SHORT SHORT SHORT span of 4 years, you will yield the long term average of 10% per year. What if you invested that money in the last 4 years?! That long term average is exactly that... LONG term.

the idea would be to do this with EVERY car throughout your life. But thanks for playing along.

[fobunited]

Also if you pay 50k cash, you must have had to save up your monthly payments to save up the 50k. Over the span of 4 years, the money that you would be saving NOT paying monthly payments on a finance/lease deal would also be invested, which you left out.

[jaiman]

Originally Posted by fobunited

Also if you pay 50k cash, you must have had to save up your monthly payments to save up the 50k. Over the span of 4 years, the money that you would be saving NOT paying monthly payments on a finance/lease deal would also be invested, which you left out.

I included the case where you have cash up front, not sure what your are getting at here.