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Originally Posted by beemah
hey, lease offers from BMW are very good. if i want to ever buy a car - i will buy the thing in one go cash down. your paying interest on a depreciating asset. real estate is an investment that appreciates. cars dont, hence you pay around 45% of the cars worth in 3 years and get out of the contract. on the other side, you could pay 115% over a period of 5 years, and pay for your wear and tear after, once your warranty expires.
just my thought process.
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My thought process is that if discretionary income is used to buy a car, leasing is not justifiable. Leasing lowers the cash flow, there is no doubt about it. But why lease a BMW? Why not buy outright a Honda Accord if one is looking to minimize cash flow on a car, which yes, everyone acknowledges keeps going down in value over time? Or better yet, why not take money that is discretionary and buy a BMW if one deems it appropriate?
Comparing a car to real estate is just one of those woulda, coulda, shoulda perspective. Yep, I shoulda taken all my money out of stocks in late 2000, bought a Carerra (why not on paper many of us lost 2 of them easily), and then bought a house in LA, and sold it in 2k4 for double the initial investment, we could go on forever. Just buy a BMW and enjoy!