Leasing questions

Howdy,

Yes you can do that if you like. I look at it this way however. If you are leasing, I don't see the value in using equity to drive down the payment. If you sell the vehicle outright, assuming you own it and not lease it, you will make much more by going private party. Then you have this equity in your account. I never give up liquidity on a lease. I would rather have the chunk of change in my account than spend it on something I am renting - as you do when leasing. Others may have a different view on this but the above is my operating model.

Thanks, John

Q3User said:

John thanks for the feedback.
Yes we own the current car outright (in about 2 months).

If I hear you right:
Cash in hand is better than paying the lease off up front.

Good point.

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I like to keep the cash on hand for emergencies or whatever. If you sink it into the lease you cannot get at that money. If you need a water tank or something like that, it's nice to have the cash on hand.

Leasing lets me get into new cars frequently which is a cost I accept! Cars are an emotional purchase for me so I plan to spend money on cars and expect I will always have some kind of car payment as a result. However I budget for this and don't spend money on things like golf/tennis/Vegas weekends/etc. I chose to spend it on cars. BUT.. I don't use my liquidity to buy down a lease.

rnlabas said:

I like it : a straight-up aware spender ... I'm similar in emotion, just choose to create a positive NPV for myself -

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That certainly works if you keep the car! I know I am going to rotate it out after a short period of time. I cannot help myself!!