Miguel

Juts joking, ,of course. Have a fantastic weekend, all of you!

1999Porsche911

Remember people, it does not take much money to become wealthy. Take a penny and double it for 30 days and you'll have $11,000,000. Take $10,000 and only double it 10 times and you'll have the same amount. If you find it easy to double a few thousand dollars, it is no more difficult to double $1,000,000. It just takes more guts.

Assets are meaningless as far as wealth measurement is concerned. You can have $20,000,000 in assets and if it's all leveraged, you're worth nothing. Obviosuly, borrowing against an appreciating asset, if the interest rate is less than the amount the asset is appreciating is a good stratagy, but borrowing on a car or other depreciating asset is foolish, whether or not it is a lease or is or is not written off through a business. It may allow you to live at a level higher than you would normally, but it is in fact, a losing investment no matter how you spin it.

woody-77

It's also a losing investment if you pay cash for it so where is the logic in this...as are most mods put on a car? Any car no matter how you pay for it is a losing investment unless it is something very special....so you lose a few grand financing...but you don't have to deplete your bank account to buy the car you want.

I guess it all depends on the amount of risk you are willing to take.

Mother

As my dad used to say "If you can't afford to pay cash you can't afford it".

woody-77

Most people here can afford to pay cash...some still finance for 2 - 3 years like I did.

1999Porsche911

You are correct that you lose money no matter how you pay for it, so why would you unecessarily volunteer to lose more money by paying to borrow money on it? This is not to say that buying a car by borrowing is always wrong, but from a strict investment standpoint it will always cost you more money.

woody-77

I guess I just don't like seeing my bank account take that big of a hit at one time for any vehicle...different strokes for different folks I guess.

1999Porsche911

I think you would be quite surprised how many people "appear" to be wealthy by their display of cars, home address, etc, that are in fact, barely making their monthly payments. I have been in the money business too many years and know better. Like I said before, what assets you have, mean nothing if you don't own them.

You can even go look at the public records at the county records office and see the amount your neighbors are leveraged with their homes. It is quite an eye openner. Kinda like wearing a pushup bra...it's all show.

kevinrubin

House first --> then P-Car. In fact, house should come before any other luxury...appreciable asset/security, compared to toys...

Of course, if you can have both...ENJOY!

woody-77

Sucks for them...I took my push up bra off when I was 24 and still finance vehicles for 2-3 years....my logic doesn't agree with yours...and yours doesn't agree with mine...but at least we are both driving P-cars.

Mother

Just a risk perspective. Many years ago when I went to purchase my first condo from a finance company/bank I did not have any credit cards but I had all the money to cover the costs etc. The finance company said the bank would not grant me the loan and wanted an explantion of why I did not have them and I explained cash only point of view and I told them to tell the bank that. Later that day they gave me the loan because it showed the bank responsiblity.

rayng

IMHO, P-cars are luxury durable goods and are not assets. So leveraging an appreciating asset (like a home) to buy a steeply depreciating car is not the best use of that asset. If anyone wants a P-car that badly, then rent one for a day to get your fix. At least you'll lose just hundreds of dollars instead of the thousands in depreciation, mods, maintenance, insurance, etc... I don't think cars really impress too many smart and wise people these days. Generally cars are all show.

I couldn't stomach the 997's steep depreciation curve so I got a 996 instead. As I see it, I got 80% of what I want for 40% of the cost.

nycebo

Guys, what is the point of all this? For some, owning a Pcar IS the joy of life. If you have to finance your future to own it now, then it's your priority. I don't tell people how to spend their lives and I trust they won't do the same to me.

And by the way, I take it none of you ever use credit cards, mortgages, business loans, or lines of credit. Frankly, while paying cash is a good strategy, spending on credit is not necessarily the opposite unless one is irresponsible. Then again, one can be just as irresponsible spending cash as well. Frankly, why buy a depreciating asset at all? For those of you who think house prices can't go down, you need only revisit the United States in the 1920s. There is no sure thing in life, cash, credit, or otherwise....save death and taxes (hey, I always wanted to use that line.)

nycebo

Ray, you got closer to 99.6% of what you want. Good on you.

1999Porsche911

I don't think anyone is suggesting that you give up your dreams, whether you have the cash or have to borrow. This thread kinda got sidetracked into what was best financialy, and strictly from that stand point, your answer might be different.

As far as credit card usage, I charge a few hundred throusand dollars a year on cards, using them for everything from buying cars to groceries. Using credit cards is a great way to increase your investment returns as long as you pay them off when the bill arrives. You also get a nice cash rebate at the end of the year.