Lease special from Honda
07-01-2005, 06:57 PM
#71
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Originally Posted by jasonw,Jul 1 2005, 05:21 PM
Tax deductions are only 10% of it! You gain way more equity than you pay in interest!
Where I live, houses that sold for $30,000 30 years ago are now selling for $1,000,000. You think the owner is worried about how much interest they could have avoided if they rented?
If you pay $500k in interest, you probably save about $150k in taxes. The housing market has easily grown at double of what today's interest rates are historically. I won't even compare how quick prices are doubling currently...
It's better to pay $2,000 a month in interest than $3,000 a month in rent for the same house!
If you are worried about headaches, just get a place with a HOA. Personally, my job gives me headaches too but I still show up...usually...
There's no way you rent isn't gonna double faster than 1x per 50 years in Cali!
Where I live, houses that sold for $30,000 30 years ago are now selling for $1,000,000. You think the owner is worried about how much interest they could have avoided if they rented?
If you pay $500k in interest, you probably save about $150k in taxes. The housing market has easily grown at double of what today's interest rates are historically. I won't even compare how quick prices are doubling currently...
It's better to pay $2,000 a month in interest than $3,000 a month in rent for the same house!
If you are worried about headaches, just get a place with a HOA. Personally, my job gives me headaches too but I still show up...usually...
There's no way you rent isn't gonna double faster than 1x per 50 years in Cali!
My parents bought a decent house 29 years ago for about $200k. It's worth about $600k when looking at comparables.
That's great that you live somewhere that's had that sort of appreciation. But that is FAR FAR FAR from the norm. To think otherwise is utterly foolish.
In two years my rent has gone up $30. Whee. To double my $1620/mo rent will take upwards of 50 years at this rate.
07-01-2005, 07:20 PM
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Originally Posted by jasonw,Jul 1 2005, 03:14 PM
There's GOT to be a kickback. Otherwise how could they negotiate rates?
Anyway, I'm sure potential lease customers have had some exposure to the 'pros and cons" of leasing and I hope if anyone has any more legitimate questions, they'd not feel too intimidated to ask.
07-02-2005, 09:23 AM
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Originally Posted by temin,Jul 1 2005, 07:57 PM
Gain more equity than you pay in interest? Assuming your house doesn't depreciate you're looking at being even with equity and interest.
Same thing goes for a car lease, you think they are going to offer a lease that isn't profitable?
And you can't make a long-term rent projection based on the last few years. Rent goes down with interest rates because more people buy houses. Interest rates are now on the rise...rent hikes will follow...
07-02-2005, 09:28 AM
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Originally Posted by Colin,Jul 1 2005, 08:20 PM
As for your other post regarding paying finance charges... why shoudn't I? I'm using their money so I can keep my money longer. It's only fair to pay them for it.
BTW The dealer charges you for the paper work! Seriously, they would just offer everyone the same low rate if there was nothing in it for them. And the banks would loose out by not giving kickbacks based on profit margins.
07-02-2005, 10:52 AM
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Originally Posted by jasonw,Jul 2 2005, 07:28 AM
Just don't forget what happened when too many people were buying on the margin in the 20's. If you have to beat a certain rate of return just to break even with your liabilities, you may be pushed to more aggressive investments than are wise...
BTW The dealer charges you for the paper work! Seriously, they would just offer everyone the same low rate if there was nothing in it for them. And the banks would loose out by not giving kickbacks based on profit margins.
BTW The dealer charges you for the paper work! Seriously, they would just offer everyone the same low rate if there was nothing in it for them. And the banks would loose out by not giving kickbacks based on profit margins.
Maybe you didnt notice my sig, but I am a dealer, so I think I know what I'm talking about. Poindexter too. Guess what, I still lease! I guess I must be taking advantage of myself. (self abuse?) Hey, as I said in my last post, the point of this thread was to let peple there is a lease special from AHFC. Most people agree that it's a good program but some like yourself don't think that leasing is a good idea. Fine don't lease. I am sure that potential lessors have gotten some useful information here to help them make a choice, but at the end of the day, they need to live with their decision, not you. Let it be.
07-02-2005, 11:08 AM
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No problem. But I think people make the best decisions when they get ALL the information. And yes I make all my financial decisions based on the bottom line. I couldn't imagine basing a financial decision on anything else. I felt that if I'm going to spend as much as I did on a car, I wanted to minimize any additional costs such as finance charges. That's my financial strategy and it has worked very well for me.
07-02-2005, 11:26 AM
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Originally Posted by jasonw,Jul 2 2005, 09:08 AM
No problem. But I think people make the best decisions when they get ALL the information. And yes I make all my financial decisions based on the bottom line. I couldn't imagine basing a financial decision on anything else. I felt that if I'm going to spend as much as I did on a car, I wanted to minimize any additional costs such as finance charges. That's my financial strategy and it has worked very well for me.
07-02-2005, 12:45 PM
#79
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Yes, Colin and I are both dealers but we try not to bring that point into conversations. I don't think either of us would ever say "I'm a dealer and we know everything", but we are professionals and deal with this stuff on a daily basis.
The problem with where you have taken things, jasonw, is not with a lease, it is the fact that you are being so one sided. I'm going to call you a hypocrite (in this thread
) because you say you want people to see all sides of the financial equation, but you base everything off of only your side. You also have a very scewed opinion of financial institutions and dealers. Yes, your opinion had some merit a few years ago, but the automotive business is a different animal today - for both dealers and lending institutions.
The problem with where you have taken things, jasonw, is not with a lease, it is the fact that you are being so one sided. I'm going to call you a hypocrite (in this thread
) because you say you want people to see all sides of the financial equation, but you base everything off of only your side. You also have a very scewed opinion of financial institutions and dealers. Yes, your opinion had some merit a few years ago, but the automotive business is a different animal today - for both dealers and lending institutions.
07-02-2005, 02:15 PM
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Well forgive me if I don't want to base my knowledge on what the dealer says. And I don't just learn from my own mistakes...I learn from other people's mistakes by doing research. I am a consumer advocate to the core and pay close attention to finances. I don't think it's hypocritical to try to balance out another point of view.
If someone's job is to sell me something, I'm not going to trust them plain and simple. I used to be in sales and was very honest but, I'm not counting on other people being the same. It takes a little extra work but, doing your own research will save you in the end.
Certainly there will be situations where leasing is beneficial but my whole point is that it will keep your potential down if you stick to it as a way of life.
If someone's job is to sell me something, I'm not going to trust them plain and simple. I used to be in sales and was very honest but, I'm not counting on other people being the same. It takes a little extra work but, doing your own research will save you in the end.
Certainly there will be situations where leasing is beneficial but my whole point is that it will keep your potential down if you stick to it as a way of life.