Quote:
Originally Posted by eatrach73
Jean Paul Getty said: lease into the things that depreciate, and buy the things that appreciate. You figure that out.
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My former employer was Fortune 20. On capital equipment they paid cash--because they had it. There was an entire dept. crunching numbers and this is what they came up with (under the treasurer's helm), you better believe they could justify buy over lease.
When you haven't got the cash flow, in a business situation, but an item is needed to make $$$, you lease. When you have to drive a BMW and you need cash flow, you lease. How many people would be driving BMW's if leasing did not exist? We already know the numbers, BMW's would be about as common as they were in our grandpa's days, i.e. far less common.
p.s. I googled the above quote fully expecting it to show something about JP Getty. Instead, it turned up nothing. But when all is said and done, if a person says they MUST have a new car every 3 years, there can be a case made for leasing. But that is an emotional decision, not a rational one. It's like getting a new phone every 20 mos.--who came up with "20 mos.?" The wireless phone carrier.