RE: Rocketing secondhand car prices spell good news...
Discussion
"If it appreciates, buy it. If it depreciates, lease it."
I understand the benefits of the first. You get to keep the upside.
I don't understand why the latter is oft-quoted as a hard and fast rule when it comes to cars. You're going to pay for depreciation either way, but if you don't buy, you're also effectively paying interest - and the rate is often much higher than the return on any low-risk investment that could be made with the capital.
Pretty much every object in your house depreciates, but nobody rents a TV anymore.
I understand the benefits of the first. You get to keep the upside.
I don't understand why the latter is oft-quoted as a hard and fast rule when it comes to cars. You're going to pay for depreciation either way, but if you don't buy, you're also effectively paying interest - and the rate is often much higher than the return on any low-risk investment that could be made with the capital.
Pretty much every object in your house depreciates, but nobody rents a TV anymore.
HardtopManual said:
"If it appreciates, buy it. If it depreciates, lease it."
I understand the benefits of the first. You get to keep the upside.
I don't understand why the latter is oft-quoted as a hard and fast rule when it comes to cars. You're going to pay for depreciation either way, but if you don't buy, you're also effectively paying interest - and the rate is often much higher than the return on any low-risk investment that could be made with the capital.
Pretty much every object in your house depreciates, but nobody rents a TV anymore.
I think people just use it, and are used with it, to justify new shiney thing.I understand the benefits of the first. You get to keep the upside.
I don't understand why the latter is oft-quoted as a hard and fast rule when it comes to cars. You're going to pay for depreciation either way, but if you don't buy, you're also effectively paying interest - and the rate is often much higher than the return on any low-risk investment that could be made with the capital.
Pretty much every object in your house depreciates, but nobody rents a TV anymore.
Don't give a toss if you buy/lease/rent whatevs, form some I'm sure the appeal of having the latest new shiney thing every few years for a fixed monthly sum is a service they're happy to have, but the idea you can swerve the true cost of it by simply not taking personal ownership is absurd.
Lord.Vader said:
Selling my Vantage this week, offered nearly 20% more than last year, only an old 2008 one.
13 years old this year and hasn’t had a clutch yet.
Are those people who say their car has increased x in y years taking into account tax, insurance, servicing, etc?
Insurance £700, Tax £580, servicing £500, before turning a wheel!
Thats more reasonable for a vantage v8 than when i looked into buying my first in December last year, I was told, hopefully wrongly to triple that service figure. 13 years old this year and hasn’t had a clutch yet.
Are those people who say their car has increased x in y years taking into account tax, insurance, servicing, etc?
Insurance £700, Tax £580, servicing £500, before turning a wheel!
"If it appreciates, buy it. If it depreciates, lease it."
One of the silliest quotes ever. Why add extra costs of finance to a depreciating asset? Whereas it makes perfect sense to finance an appreciating one.
As Abraham Lincoln famously once said Don't believe everything you read on the Internet
One of the silliest quotes ever. Why add extra costs of finance to a depreciating asset? Whereas it makes perfect sense to finance an appreciating one.
As Abraham Lincoln famously once said Don't believe everything you read on the Internet
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