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He somewhat has a point if you're on track for a $200,000+ year job before you're 30. This obviously applies to very few people.
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Sep 29, 2013 19:50
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the littlest prince posted:This is your friend posting these things, or somebody else? Surely a quantitative analyst doesn't make only £18k per year? This is someone else, I should have clarified.
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Sep 29, 2013 19:59
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My grandmother is Canadian, and her sister is American and lives in rural Louisiana. In order to see her sister regularly, she bought a "winter home" down the dirt road from her sister north of Lake Pontchartrain - an acre of land and a doublewide trailer. It was quite lovely, looked like a real house, and they redid the inside and had all the amenities of home. She and her husband spent about 3 or 4 months out of the year there. They paid in cash, for the land and the trailer. Last year, lightning burned the trailer to the ground. They had never considered buying homeowners insurance, because, really, what's going to happen to a trailer in the middle of nowhere?  So they are out the 30k they spent on the trailer plus the cost of renovations plus the value of the items inside, in addition to the lack of monetary consolation for all the sweat and effort that went into making that a second home (like the beautiful deck her husband built and installed tiny twinkle lights on just to surprise my grandmother one summer).
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Sep 29, 2013 20:08
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I think this guy has an overinflated sense of how many trips and meals you can but with the $1000 you are supposed to save by the time you are 30. Surprise, saving about $20 a paycheck will not give you a lot of money in the end. Anyways, story: Girl I know has a great method of saving for her vacations. She contributes to her 401k and IRA. She then puts her vacations for the year on credit cards. When tax time rolls around she figures out how much of a refund she is getting (never enough to pay off her credit cards. Then she pulls money out of our retirement accounts to pay off her credit cards. If you try to point out that she is paying at least a 10% penalty on this she points out that does not matter because it does not come up until tax time a year later. Suggest she keep the money more liquid instead of putting it into the retirement account and she says if she does that she will just spend it if she can get to it easily. 
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Sep 29, 2013 20:24
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Harry posted:He somewhat has a point if you're on track for a $200,000+ year job before you're 30. This obviously applies to very few people.
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Sep 29, 2013 23:56
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Quants are in absolutely no position to be telling people how to live fulfilling lives. They're barely even human.
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Sep 30, 2013 01:03
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Most people are financially illiterate in every sense of the phrase. They don't know how to budget, balance a checkbook, spend less than they earn or even at a basic level understand that they likely have an addiction to debt and what that addiction actually costs them. They don't know about ideas like compound interest. They believe in financial myths that guarantee a life of poverty. If we had the same epidemic of reading illiteracy, most of you couldn't read the words I'm writing. Teaching financial literacy is difficult for some of the reasons touched on in this thread: money and finance are emotionally and psychologically charged topics. I work for a financial research firm, and I can tell you that even among a population of people who consider themselves financially savvy, I continually see our customers flock towards the worst, riskiest behaviors. People who think they can "game" penny stocks. People who say they want safety, but who buy oil and gold exploration companies. Human beings are hardwired to follow herd-like financial behaviors, and while herdlike behavior may have saved our ancestors from disease, famine, predators and exposure, it's an instinct we need to be taught to avoid in the world of finance. The problem is exacerbated when some of our worst behaviors are incentivized by government, civil society and even our very unit of exchange. Inflation encourages people to take on debt and to spend money as soon as they get it. We certainly shouldn't be surprised when our policies which are by definition designed to get people to spend spend spend (not save save save) have the obvious consequences of spendthrift consumers who eschew thrift for debt. The idea that a people can spend and indebt itself into prosperity needs to be blown sky high. The only way to financial prosperity is to produce more than you consume and to save the difference. It's not the lotto. It's not debt. It's not by theft, graft or luck. Financial illiteracy needs to be looked at with the same shame as not being able to read. Because it's at least as damaging.
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Sep 30, 2013 02:12
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tiananman posted:The problem is exacerbated when some of our worst behaviors are incentivized by government, civil society and even our very unit of exchange. Inflation encourages people to take on debt and to spend money as soon as they get it. We certainly shouldn't be surprised when our policies which are by definition designed to get people to spend spend spend (not save save save) have the obvious consequences of spendthrift consumers who eschew thrift for debt. It's a bit old, but I think this is pretty relate: How to Make Trillions of Dollars.
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Sep 30, 2013 02:39
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I've been undertaking an apprenticeship for my work and have now been introduced to the strange world of terrible financial choices: tradies edition. Here in Australia the government encourages apprenticeships by providing incentives to both businesses and apprentices that stick with the program. Recently some of us were given a lump sum from the government intended for tools. Cue people in my class admitting they spent it on things like holidays, a sweet sound system, etc.  Not sure I want to see what happens when they require something expensive for their apprenticeship later on.
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Sep 30, 2013 04:54
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froglet posted:I've been undertaking an apprenticeship for my work and have now been introduced to the strange world of terrible financial choices: tradies edition. Here in Australia the government encourages apprenticeships by providing incentives to both businesses and apprentices that stick with the program. Recently some of us were given a lump sum from the government intended for tools. I got that, but as a (former) baker, there are very few tools I require. So I just ditched it in the savings account. EDIT: poo poo, I forgot that I knew two people with money issues. The first took out a credit card simply to buy a laptop, when his tyres on his car were bald. Then he got a (almost) new car on dealership credit because his old car was never serviced for about 7 years, and breaking down, which he claimed was because of poverty. The second guy was a real hardcore douche/wigger type, who sticks in my mind as the most dishonest person I had ever met. He claimed that his parents (who happened to perfectly match the bogan/white trash stereotype) granted him gifts of at least $10,000 every so often. A long time after, he was complaining about poverty in his new town, and I asked via Facebook what happened to his supposed fortune. He deleted the complaint. Mr. Welfare fucked around with this message at 08:03 on Sep 30, 2013 |
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Sep 30, 2013 07:50
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froglet posted:I've been undertaking an apprenticeship for my work and have now been introduced to the strange world of terrible financial choices: tradies edition. Here in Australia the government encourages apprenticeships by providing incentives to both businesses and apprentices that stick with the program. Recently some of us were given a lump sum from the government intended for tools. I work at a bank in Aus and let's just say that tradies are either loaded or so far hocked up to their eyeballs that their accounts go into the negative every week, it's pretty amazing considering a lot of them would easily be on 70-100+k a year. I think it stems from a large mentality in the industry is to have a fulli sik stereo or spend a shitload of their paycheck at the pub and the like.
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Sep 30, 2013 11:46
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Guni posted:I work at a bank in Aus and let's just say that tradies are either loaded or so far hocked up to their eyeballs that their accounts go into the negative every week, it's pretty amazing considering a lot of them would easily be on 70-100+k a year. I think it stems from a large mentality in the industry is to have a fulli sik stereo or spend a shitload of their paycheck at the pub and the like. Also houses, every tradie that works in mining has to own at least 2 nearly brand new houses. They're cheap to build if I get mates rates on everything because I know alot of other tradies right?
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Sep 30, 2013 12:12
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tuyop posted:It's a bit old, but I think this is pretty relate: How to Make Trillions of Dollars. That's a good read, but I think it's kind of wrong. The desire to consume isn't the result of some marketing evil genius's cunning plans to brainwash everyone. The desire to consume is innate. It feels good to to buy new, cool things. Amassing material things is more rewarding to our monkey-brains than amassing numbers in a bank account. Marketing does not manufacture desire - it taps into desire to sell things. Advertising has been around for centuries, but until very recently (40 years?) there was significant moral approbation to living below your means. The consequences of living a debt-fueled consumer-based lifestyle have been kicked down the road by ridiculous government policy decisions - like the idea that everyone should own a house if they want to. Not if they can pay for it, but if they WANT one. That created a huge real estate bubble that encouraged more people to take on more debt than at any point in human history. And we're reinflating that bubble now with the same fiscal and monetary policies that fueled the bubble in the first place. The incentives are so perverse that most people get insulted at the idea of saving money. I've been told I'm some kind of rich rear end in a top hat for wondering why people don't save for retirement. I'm sorry but if you're not saving for retirement, you're financially irresponsible. Saving money wasn't always the province of "rich" people. I'm not rich. That's WHY I save money! (USER WAS PUT ON PROBATION FOR THIS POST)
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Sep 30, 2013 16:17
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You really need a background in Anthropology and Sociology to start talking about monkey brains and "natural" behaviors. There's an endless set of confounding variables in any analysis of what a human would do in some kind of social vacuum that it's a pretty stupid thing to say. And regardless, whether demand is manufactured or innate, people can still break away from it and find happiness in consciousness. The chicken or the egg of it is pretty tertiary to the actual application of the knowledge.
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Sep 30, 2013 17:21
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dreesemonkey posted:So my bad-with-money friend is interviewing in San Francisco this week for a job. On the bright side I'm guessing it would be a decent raise, he's in IT so I'm guessing he would be making 90k+? Followup for my favorite terrible with money friend. He got the job in San Francisco, got about $4k to relocate so the bought a trailer and towed 1/100th of his possessions across the entire country. Actually not a terrible money decision aside from the fact that he left everything in his house as is. His plan for the house is is to "sell it in the spring" and "get someone to fix it up", which will probably be never since he'll never have money. I am partially in charge of selling his poo poo that he left behind (like pretty much everything), so I tried to sell his xbox that he just bought to my sister's boyfriend but in the end he wanted too much for it. I tried to explain that everyone that wants an xbox already has one, and the new one is coming out in like two months so he's pretty stupid for hardballing on the price when he claims he needs cash and wants to "firesale" everything. So basically I'll put in a bunch of effort organizing stuff to sell and then none of it will sell because he's expecting top dollar. And since I've talked about how disgusting his house is in the past, here's something you'll want to unsee. His dog's water bowl and food dish was above a vent in the floor, which created a "doghair waterfall" to the basement sink right below that vent.  Gross 1 Gross 2
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Sep 30, 2013 17:46
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tuyop posted:You really need a background in Anthropology and Sociology to start talking about monkey brains and "natural" behaviors. There's an endless set of confounding variables in any analysis of what a human would do in some kind of social vacuum that it's a pretty stupid thing to say. Except that we've seen a huge shift in easily-verifiable numbers like "savings rate" at the same time we've seen a political policy shift along the lines of "everyone deserves a house." You don't need a degree in basket weaving to see how these incentives perversely reward reckless behavior.
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Sep 30, 2013 18:03
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tiananman posted:Except that we've seen a huge shift in easily-verifiable numbers like "savings rate" at the same time we've seen a political policy shift along the lines of "everyone deserves a house."
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Sep 30, 2013 20:57
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Hi there! How is your day? I apparently like to jump to conclusions without asking for more information first.
SilverSliver fucked around with this message at 23:40 on Sep 30, 2013 |
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Sep 30, 2013 21:29
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dreesemonkey posted:I am partially in charge of selling his poo poo that he left behind (like pretty much everything)... So now you add yourself to the thread, because your time is worth little to you? 
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Sep 30, 2013 21:34
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SilverSliver posted:What is up with the reoprts from this thread lately? Derails are frowned upon when 1) People are getting angry 2) Begins to seriously lead the conversation away from the OP. There are threads similar to this one that are supposed to be aggregations of stories or pictures which are heavily moderated, i.e. you can expect to be probated every time you don't post a picture or story. Those side discussions tend to just not happen in those threads. Obviously that isn't the case here, but I can see how people's expectations have been calibrated towards threads like these. *Starts a meta-derail to probe the edges of category 1*
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Sep 30, 2013 21:37
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SilverSliver posted:What is up with the reoprts from this thread lately? Derails are frowned upon when 1) People are getting angry 2) Begins to seriously lead the conversation away from the OP.
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Sep 30, 2013 21:49
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moana posted:I probated for it before because it gets loving annoying going through conversation and D&D discussion when this is supposed to be a funny thread with stories. And we appreciate those efforts.. this thread should be "story about people bad with money" or "response to story about people bad with money"
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Sep 30, 2013 22:21
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moana posted:I probated for it before because it gets loving annoying going through conversation and D&D discussion when this is supposed to be a funny thread with stories. Ahhh... gotcha! Next time I'm puzzled I'll just pm you.  Fixing my post up there now.Contribution: I've actually had a few people openly mock me for not owning a car. The fact that I've funelled any and all excess money into buying a house and that it's taking me 9 years total to pay it off does not phase them.(Yes I got it for a good price but I'm pretty proud of that.) Two of these people yes own a car, are in debt up to their eyeballs, drive everywhere in said car and of course pay X amount of dollars for a gym membership because they 'don't get enough exercise'. Iiiiiironny...!
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Sep 30, 2013 23:39
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During my university orientation, our guide was complaining about the cost of parking - which is several hundred dollars per semester - and the cost of her commute in general because she lives like 45 minutes outside of the city. I asked her why she didn't just drive to like a park & ride location in the north and take the rail in or an express bus or something. I mean, she has a bus pass that she can't opt out of included in her tuition. She said that it would add at least 90 minutes to her commute somehow, which is almost totally impossible. Woman was also obese and loudly hurting from like four kilometers of walking over six hours. I just don't get it. Work out the cost per kilometer of driving (my car is about 27 cents), work out the time difference and cost of parking, and calculate an hourly rate. Actually, the same thing happened when I did a couple of college courses a few months ago. I drove in, but saw that parking was $6/day so I found a closed bank parking lot 400m away, timed the walk, and figure out that paying to park closer was like paying someone $60/hour to save me a beautiful walk through a neighbourhood.
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Oct 1, 2013 00:23
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People have a massive blind spot around their cars. I got started riding the bus about as soon as I got settled after moving. I did the math and excitedly explained to my co-workers that even estimating the operating cost of my car at a bargain price $0.20 per mile, I was saving about $115 a month by riding the bus (after company contributions, a bus pass is cheaper than a parking space). None of my co-workers were interested. Of course, one of them just bought a brand new Prius, with a loan, to "save" on his commute. Also, before I moved, I was stuck commuting 150 miles per workday. A little receipt tracking showed I was suddenly paying about $300 per month for gas alone in my 15 year old Honda Civic that gets 32-35 mpg on the highway. I have a friend making the same drive in a full size SUV. I need to sell the Civic, and I've hinted that he should buy it for the money he'd save. But I'm pretty sure he couldn't to get the $2000ish together to buy it without a loan. He's a good friend, so I'd be willing to agree to a payment schedule. Seriously, if he just paid me half of what he would save in gas then he'd probably have it paid off in a year. Of course, I can't point that out because it would be rude.
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Oct 1, 2013 02:56
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SpelledBackwards posted:So now you add yourself to the thread, because your time is worth little to you? Yea pretty much. I certainly don't have enough on my plate being busy as poo poo at work, side projects, doing home renovations, and wrangling a 2 year old. Now I get to sell someone else's stuff too. Fun.
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Oct 1, 2013 14:25
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I work on campus and my wife was a PhD student (finally she graduated). When we both were commuting to campus every day, she insisted that we must buy a parking pass for $300/year. This pass allowed us to drive onto campus in rush hour traffic and park in the commuter lot, which was a 10-minute walk from her lab and a 10-minute walk from my office. I could alternatively wait about fifteen minutes for the "commuter lot bus" to arrive. From the time we left our apartment to the time I arrived in my office was roughly 35 minutes. Alternatives to this, which did not require $300/year, gas money, or the stress of driving in traffic included: -Walking 8 minutes to the bus stop (rather than 10 minutes from the commuter lot to my office) and taking the bus directly to her lab or my office. -Getting a bike and riding directly to my office in only 20 minutes. As soon as she graduated I did not renew the parking pass and I just do one of the above options, saving probably $500-$600 year. Her reason for why we needed the pass was that she didn't feel safe walking through our (admittedly not great) neighborhood early in the morning or late at night. Many of my co-workers still pay $300/year to do this, and I really don't understand why. If you ride the bus you may spend 10-15 minutes longer on your commute, but you can just read or do something else rather than sitting there and staring at the road. If you ride a bike you get exercise and often can move faster than cars in rush hour traffic. I only see the benefit in parking passes for campus/city parking if you live nowhere near work and have no option other than driving. Even then I would seriously evaluate whether moving closer to work might not ultimately reduce your wasted commuting time for a marginal cost increase (or MAYBE save you money) and hassle of moving.
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Oct 1, 2013 17:51
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At least you guys were splitting the parking pass rather than two cars, two passes, etc. 
Delta-Wye fucked around with this message at 22:51 on Oct 1, 2013 |
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Oct 1, 2013 17:58
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systran posted:As soon as she graduated I did not renew the parking pass and I just do one of the above options, saving probably $500-$600 year. Her reason for why we needed the pass was that she didn't feel safe walking through our (admittedly not great) neighborhood early in the morning or late at night. For some people, it's worth $300/mo plus extra travel time to not worry about getting mugged or worse.
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Oct 1, 2013 22:01
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Haha people like that always feel scared of muggings or whatever regardless. There's always something to be scared of and something that you can buy to try to alleviate that fear!
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Oct 1, 2013 22:29
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There are places those fears are entirely justified; if someone doesn't feel comfortable walking trough a neighborhood I don't think $300 a year would be too high a price to pay for peace of mind. Heck I wish I could find parking this cheap near work, the cheapest I've seen was about $200 A MONTH, and that's if we rolled it into the lease for the office space. Taking the bus saves me about $350 a month. Of course that means my BRAND loving NEW (a year ago) car sits in the driveway rusting but hey... It's me, I'm the one who's bad with money. Brand new Camry, financed at 1.9% with 10k down a year ago, put a whopping 3000 KM on it so far. My dumb rear end should bought a used Yaris or something.
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Oct 1, 2013 22:50
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FrozenVent posted:My dumb rear end should bought a used Yaris or something. Wisdom for us all. And we've all done dumb things. This one time, I went to law school. It only cost me about $80k, excluding opportunity costs. And I still don't work as a lawyer. With each passing year it becomes more unlikely that I ever will. At least you can sell the car and pay off most of the loan, if you wanted to. My buddy with the full sized SUV commute also just leased a new BMW coupe for his wife with the money he gets from the job that requires this commute. I'm pretty sure it isn't economically feasible for him to move to the job's location, for several reasons. So he knew he'd need a more efficient car when he decided to lease the BMW. And because it's a lease, he couldn't afford to commute in it. It's like every decision me makes boxes him in more and more. All of this is infinitely more frustrating to watch because I personally know that he has demonstrated capacity as a exceedingly smart and diligent man.
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Oct 2, 2013 01:13
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Why do people lease cars? Seriously? There just doesn't seem to be any positives to it. (I get that it can make senses for companies with a fleet of vehicles, I just don't understand individuals doing it)
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Oct 2, 2013 01:16
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^^Sometimes leasing can be really attractive. I just saw a deal for some tiny little Nissan for $139/month. It required $2k down, but it got somewhere close to 40mpg. For me, for example, I have a pickup truck as my only vehicle. If I were to get a job with a 20 mile commute each way, it would literally save me money to lease such a vehicle, assuming I don't go over the allotted miles each year. Selling the truck isn't an option, as I use it to haul ladders with some frequency and we haul poo poo around in it all the time. Driving my truck 40 miles per day would be almost $3200/year in fuel at $3.50/gallon. Plus my truck is 10 years old and will have maintenance costs. Leasing that car for 3 years is $6865. The same commute would use about 1.2 gallons of gas per day, 6 gallons per week, for a yearly cost of $1100. $3200 * 3 = $9600, not counting things that will inevitably need replacing on a 10 yr old truck. $6865 + 1100*3 = $10165. Almost the exact same price, and you will have 0 maintenance costs during that time. Sure you could buy some $2500 commuter car and hope for the best, but again that's a gamble. If no major mechanical issues come up, you save a ton of money over leasing. Engine or transmission has a problem, suddenly you're paying as much as if you had just leased a car. For the record, I've never leased a car nor advocated for most people to lease a car. About the only scenario where I see it making sense is the one above. Even then, if I was really looking to do this, I would probably buy a used car before leasing. I can understand why others would want the peace of mind that the car won't break down on them, however. ________________________________________ Sometimes its just really expensive to park. When I last worked at a huge university, my options were 1. pay $125/month for underground, climate-controlled parking, literally connected to the building where I worked. 2. Pay ~$80 a month for outdoor parking in a huge gently caress-off lot, 10-15 minute walk from the building I worked or catch the campus bus, but unless it was rainy or cold, you were better off just walking versus waiting for whenever the bus might show up. 3. Pay ~$45/month for a city-wide bus pass. 4. Drive to the neighborhoods surrounding campus and look for street parking. COMPLETE GAMBLE, but free. I opted for 1 and never regretted it. Yes it was very expensive, but having a car that isn't freezing in the winter or scalding hot in the summer is worth something. Additionally, the extra time to walk from the lot far away is a considerable factor. I tried riding the bus before committing to the parking pass. The best I could do, was to drive to a nearby church (2 miles away), park there and wait for the bus, which would take me close to work, but would require another 1 or 2 transfers, depending on whether the Express buses were running at that particular time. When riding the bus with these transfer, my commute went from about 25 minutes to 55 minutes (walking out of my house to sitting down in my desk chair). That's an extra hour per day. I did option 4 when I started, until I figured out it was terrible. Some days you might spend 5 minutes looking for a spot to park and then luck-out and get a spot only 10-15 minutes away. Other days you might spend 20+ minutes looking for parking, saying "gently caress it," and then paying the daily parking rate of about $6-7/day. While I did hate paying the $125/month, and always had to justify it to people, it was worth it considering the other 2 options were not much cheaper and certainly took much more time. johnny sack fucked around with this message at 01:52 on Oct 2, 2013 |
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Oct 2, 2013 01:26
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Volmarias posted:For some people, it's worth $300/mo plus extra travel time to not worry about getting mugged or worse. Don't they worry about getting in a car crash?
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Oct 2, 2013 01:53
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You have control over that. At least you think you do. Plus there are areas where you're more likely to get mugged than get in a crash. Thankfully I don't live anywhere near them.
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Oct 2, 2013 01:55
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systran posted:I work on campus and my wife was a PhD student (finally she graduated). When we both were commuting to campus every day, she insisted that we must buy a parking pass for $300/year. This pass allowed us to drive onto campus in rush hour traffic and park in the commuter lot, which was a 10-minute walk from her lab and a 10-minute walk from my office. I could alternatively wait about fifteen minutes for the "commuter lot bus" to arrive. From the time we left our apartment to the time I arrived in my office was roughly 35 minutes.
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Oct 2, 2013 02:13
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The trick to buying cheap cars is being willing to try to repair them yourself. But they do break. Most repairs aren't so complex that you can't do it yourself with the help of Automotive Insantiy and YouTube. Repairs that are prohibitively complex and expensive enough to eat up your cost savings are probably about as rare as a serious car wreck. There are risks, but they are only risks. Overpaying or over-insuring is a guaranteed loss. Oh, and FrozenVent, please do seriously consider selling the car. I just realized that you're probably also required to fully insure that car as it sits in your driveway. If you got a cheap enough car, you could drop your insurance back to liability only. That's probably worth a few hundred bucks each year. You'll have to run the numbers, but it eyeballs close enough to make it worthwhile to run them. You'd just have to be willing to face the emotional nard-stomp from making payments on a car you no longer own. On topic: my co-worker that bought the Prius announced last week that for the past few months he's been spending $400 a month on eating out for breakfast and lunch every workday. But hey, he recognized it was a problem and hasn't eaten out at lunch since.
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Oct 2, 2013 02:25
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Folly posted:Oh, and FrozenVent, please do seriously consider selling the car. I just realized that you're probably also required to fully insure that car as it sits in your driveway. If you got a cheap enough car, you could drop your insurance back to liability only. That's probably worth a few hundred bucks each year. You'll have to run the numbers, but it eyeballs close enough to make it worthwhile to run them. You'd just have to be willing to face the emotional nard-stomp from making payments on a car you no longer own. I'm pretty much right side up on it, I owe about 18k or so on the thing, and obviously it's low mileage. I'm seeing a lot of the same model going for 18k or so at 40k kilometers. I wouldn't save much on insurance; right now I'm paying 800 or so a year for comprehensive and liability, my 2002 Malibu was ~300 a year for liability only. (Before you ask, I signed the Malibu over for the cost of the tow. I'd still be driving it otherwise.) Buying the drat thing was a mistake (Just started a new job, didn't have a car, grossly overestimated my car needs) but not a life-altering one. Factoring in repairs and taxes I'd probably come out just better than even selling it and getting a used subcompact. I'll definitely crunch the numbers though.
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Oct 2, 2013 02:49
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| # ? May 14, 2024 00:37 |
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FrozenVent posted:Why do people lease cars? Seriously? There just doesn't seem to be any positives to it. I too, used to think leasing was dumb as poo poo. BFC helped me realize otherwise. Because of it, I'm leasing a car right now! Why lease? It protects you from risk. I've only committed myself to paying for half of the car over the three years I'm leasing it (and, thanks to promotions, I've effectively taken out a 0.1% APR loan to pay for that half of the car). Once those three years are up, I get to choose whether or not I want to keep the car and pay for the other half. If it's turned out to be a lovely car and it's not worth that much, then I can just walk away (rather than being stuck underwater on a loan). If it's worth more than that, then I can pay for the other half and I'm no worse off than if I'd just bought the car in the first place. Leasing isn't just throwing money away in rent with nothing to show for it... you're paying for the depreciation of the car while you use it. If you buy the same car outright, you're still throwing just as much money away on a depreciation. You just think you've come out ahead because you end up with something worth $10k, not realizing you paid $10k more to get it. Leasing can still be pretty bad on average, for two reasons. First, it focuses on monthly payments even more so than the typical car buying experience, making it even easier for people to unwittingly accept awful deals with terrible interest rates. Second, it encourages you to lease another car at the end of your lease... which is just about as bad as buying a new car every two or three years.
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Oct 2, 2013 03:21
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