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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Leland Charon who wrote (6122)	10/18/2002 3:43:33 PM
From: MSI	Respond to of 306849

fwiw, cash money for purchases this year, jeep suv, flatbed truck, dump truck, backhoe, diesel generator. All used, tho'

To: Leland Charon who wrote (6122)	10/18/2002 3:58:07 PM
From: Gary L. Kepler	Respond to of 306849

There used to be a saying to buy things that appreciate and lease things that depreciate. I have done both with cars particularly when dealers have provided attractive financing incentives. Companies tend to favor leasing of real estate to free up equity for higher returns elsewhere. To be conservative, just pay cash and then it becomes a sunk cost not to be worried about. And when you pay cash, one does not overspend as is the temptation with leasing a vehicle.

To: Leland Charon who wrote (6122)	10/18/2002 4:08:48 PM
From: Don Green	Respond to of 306849

LC A great deal of auto leases are sold to basket cases financially, mainly because most can't afford a down payment toward buying.

To: Leland Charon who wrote (6122)	10/18/2002 4:45:20 PM
From: Gary L. Kepler	Read Replies (2) \| Respond to of 306849

OT car leasing About 15-20 years ago, one could lease a BMW for nothing down with a favorable imputed interest rate translating into reasonable monthly payments. At the end of the lease, one could sell the car out right and pick up about $1,500 more than the residual value as long as it was well maintained. Then one would roll into another nothing down lease and do it again. So it became pay as you go with sales tax added to the rent so that you paid tax only on the portion used. Keep in mind that you had to negotiate the proper lease terms for it to work. If you pay cash for a car every five to ten years, you are in for some serious sticker shock each time including much higher licensing and insurance costs as you step up to the new much higher value. One does not notice this impact as much when one leases and trades more often even though it may cost you much more in the long run. If you are paying, then pay cash to save money. If the company pays or it is used in business and can be written off, then it probably makes more sense to lease.