Holy hell, folks - what are you thinking?

New cars that are fully loaded — with debt

That's nothing less than a slow financial suicide. I cannot fathom putting myself in that sort of financial situation just so I can acquire a depreciating asset, but I guess it's a good thing that there are plenty of people who think that this is a good idea as it's keeping me in a job.

 

That's one reason I love leasing so much. There's no question about what your debt to value differential is at the end of the lease (unless you effed the car up bad and didn't get it fixed).

 

People have no financial restraint and a poor sense of financial responsibility.
I couldn't sleep at night if I were in that kind of situation...

 

I wonder what the frequency of owners is that just "roll" the loan over? If that many people are $4200 upside down, they must be rolling it over when they get a new car after 3 or 4 years.

Sad to start out updside down on a car purchase.

 

I don't even buy cars that cost more then $4,221.
Maybe that's why I'm not in debt...

 

That's what I was thinking! I spend only an hour a day in my vehicles; there's little sense in carrying a monthly payment that's nearing the amount of my mortgage payment.

Giving easy credit to the average consumer is like asking a 5-year-old to run a table saw - sure, it's possible that something productive will come out of it, but more likely than not there will be a colossal f***-up

 

IMHO leasing is just as stupid as a long term loan... you end up with nothing. You would be much better off buying a car you can actually afford. Even better, buy one a year or two old.

 

The most Ive paid for a car is $3500. I doubt I will ever buy a car brand new.

 

I'm certainly no fan of leasing, but ending up with nothing is a hell of an improvement from ending up with thousands of dollars of debt.

 

If you're comparing apples to apples, i.e. purchasing the same car and keeping it the same length of time, leasing it not automatically worse. In fact, for cars that depreciate fast (as in most GM cars), the residual value of the lease is often artificially subsidized, making leases a better value.

To say you end up with nothing at the end of the lease is a little deceptive. What's the difference between leasing a $30,000 car for 3 years with a residual of 20,000; versus buying that same car for $30,000 and then getting $20,000 for it in trade in at the end of 3 years? Virtually no difference. Sure, you "owned" the car for those three years, but either way you spent $10,000 to drive that car over those three years and at the end had nothing to show for it.

I used to be against leasing because I liked the thought of owning something. Call me old fashioned. But since I purchase a new car relatively frequently, I realized after getting screwed by the poor residual on GM cars that I'd be better off leasing and knowing for sure how much it's going to cost me to drive a car over a certain period of time. I now plan to lease my next car. It would have saved me thousands if I'd done it on my present ride.

 

My fiance and I have 4 vehicles. All were bought used except the '05 tacoma, it was bought new in april '04. All are paid for. I hate payments

That's the ONLY thing I'm not looking forward to on the new camaro

My best friend bought an 07 tundra. 0% financing with $540/mo payments for SIX YEARS! With fuel and insurance his truck costs him almost 950-1K per month

(I'm not kidding, he whines to me every week how much he spends on it )

 

We are a credit happy society, cars, homes and just basic credit card debt is the norm. People want things now and that's usually before we can afford it or have the cash on hand. Not only that but the banks and credit instituitons are all to happy to extend that credit and sometimes penalize those who don't go for it on your credit score. I was told recently that my credit score would improve it I had more open credit or instead of purchasing the motorcycle I bought I should have taken a loan out and then paid it off. WTF!

I've been lucky that on the Camaro's I've oned or leased that in the end I was never upside down. My idea was always to have a large down payment and a low monthy payment and while I drive the car keep saving for a new one. I was rewarded with the selling of the last 02 Z28 that I didn't owe nearly what I sold it for and when it was all said and done the Explorer was paid and I put money back in the bank. Ready for the new one execpt that I earn more than I did in 2002 so this will be even easier.

 

No car payments here...haven't since I paid off my 2004 Cobra....in the summer of 2005.

 

No wai would I do a six or seven year car loan.

Sad thing is most of these people going into debt to have a new car are the same ones who can't tell Ferrari from a Ford.

 

I leased my Maxx, and with that and maybe a about 1k in credit card bills, everything else is paid for.