Lease vs Cash vs Finance...not that simple anymore is it?
10-14-2008, 06:31 PM
#32
Drifting
For the risk takers, given the current market state, there is potential in keeping as much cash as possible, and making payments.. then piling that cash into the stock market.. where the upside can be huge.. if you believe your stocks are not going to go to zero. If you invest it all in Apple stock, and it gets back to where it was a year ago, about 2x of where it is now... you could probably pay for your car out of that gain.
10-21-2008, 03:14 PM
#33
Instructor
As has been pointed out on threads like this one is the past - there is never one and only one right answer that applies to everyone. However, there is usually one right answer that applies to each individual making the decision.
If anyone really wants good advice on the cash versus lease versus finance question, then give us some more info on your particular circumstances. Even without divulging too much personal info, you can help derive a better answer by indicating how long you plan to keep the car, the rates available to you for financing and leasing (Lease factor x 24 = inherent interest rate), what you consider a reasonable expected rate of return on the money that you would otherwise be saving if you didn't buy the car with cash, your overall comfort level with the debt or lease payment you'd be making, the residual on the lease, the expected resale value of the car after x years, and whether you have sufficient cash reserves (after buying the car) to be comfortable in the event you needed that money. Even these few questions would help this group in steering anyone to the right decision for him or her on how to acquire the car.
Kevin
If anyone really wants good advice on the cash versus lease versus finance question, then give us some more info on your particular circumstances. Even without divulging too much personal info, you can help derive a better answer by indicating how long you plan to keep the car, the rates available to you for financing and leasing (Lease factor x 24 = inherent interest rate), what you consider a reasonable expected rate of return on the money that you would otherwise be saving if you didn't buy the car with cash, your overall comfort level with the debt or lease payment you'd be making, the residual on the lease, the expected resale value of the car after x years, and whether you have sufficient cash reserves (after buying the car) to be comfortable in the event you needed that money. Even these few questions would help this group in steering anyone to the right decision for him or her on how to acquire the car.
Kevin
