Quote:
Originally Posted by ElVee
Leasing a car at first does sound very similar to renting vs buying a home. But it's really different. It's better to buy a home, because you're building credit and you will have something to show for it. Renting really is throwing lots of money away, and only makes sense (similar to leasing a car) if you plan to move every few years.
Tons of debt is, unfortunately, just part of the way to go when it comes to home-owning and building credit.  Not so much with a car...unless you get super lucky, a car is never an investment, but a home can be. |
i agree yet disagree to your statement.... i rather not get into detail but i could use numbers to illustrate how renting (+investing the difference) will make you more financially secure. houses are not liquid assets and are by nature very volatile. plus overhead costs that you have to include in home ownership. anyways i'm not against home ownership i just want to dispel the myth that owning a home is always the best option because i can make an argument that i'd rather have 1m in cash (free to do whatever) than a 1m house.
although the renting vs owning is very similiar to leasing vs financing a car. either way at the start you own zilch. at the end of a lease you still own zilch.
with a finance you start with zilch and you owe more than the car's worth on longer term financing (queue interest) but as you pay off the loan you 'build equity' (i really hate using that term) until its paid off and the car's residual value is an asset you now have. depreciating asset albeit.
friken math and azn's...
all in all the first few comments hit the nail on the head. lease if you planon switching in a few years, finance if you wish to keep for longer terms. but always lease a german car
