"Mike" <michaelloll[at]hotmail.com> wrote in message
news:cba741c1.0312021104.4c9a7827[at]posting.google.com...
- quote -

The car business is mostly one of selling payments these days. Sometimes,
leasing makes more sense for the dealer/manufacturer/lender, so they offer
incentives and POOF, you have W-2 employees leasing cars they should be
buying.

Why? The dealers need an influx of 2-3 year old, low mileage cars. Leasing
keeps that pool supplied. You may think you're getting a deal, but the guy
with all the money is making the decision for you and you don't even know
about it.

You'll hear people say leasing is better for businesses. Yes, there are
some tax advantages, but there's another level above that. Pay cash and
lease the vehicle TO the business is a much better way to pay for business
related transportation. That's the goal - get to where you can pay cash. =)

As far as low payments, a smart business owner isn't necessarily paying
those super low lease payments that you see advertised (compared to financed
purchase). Smart business owners are often paying MUCH MORE. The first car I
leased had a lease payment of $900. I could have bought it for around $500.
I know I drive a lot, so I leased with the required extra miles. TANSTAAFL
One way, or another, you pay. I just paid with 50 cent dollars.

Brent D. Gardner, ChFC
Chartered Financial Consultant
http://members.cox.net/brentdgardner1378/

"Be ever questioning. Ignorance is not bliss. It is oblivion. You don't go
to heaven if you die dumb. Become better informed. Learn from other's
mistakes. You could not live long enough to make them all yourself." - Hyman
George Rickover (1900-86), Admiral, US Navy, advocated development of
nuclear subs & ships

The payments are somewhat cheaper usually. The only people leasing for
personal use are people that can't afford to buy that shiny new lexus (or
bmw, or toyota, or ford or whatever) but they just gotta have a new one so
they lease it. So instead of paying $375 a month on a purchase they pay $299
on a lease.

I'm with you...leasing is a losing proposition.

"Mike" <michaelloll[at]hotmail.com> wrote in message
news:cba741c1.0312021104.4c9a7827[at]posting.google.com...
- quote -

- quote -

This is one thing I never understood - why do people lease cars (other
than for business use)? Every commercial I see (not that television
is the tree of knowledge or anything) for leased cars shows a car
payment that seems similar to what you would pay if you bought the car
(with a loan). The only thing I can see is that you can continually
drive a new car year after year.

Am I missing some big secret? If a company will lease you a car for
25% interest (as alluded to in the parent post), wouldn't they just
sell you the car at 25% interest? Either way they can repo the car if
you fail to pay, right?

Mike

"Brent D. Gardner, ChFC" <bgardner20[at]cox.net> writes:
- quote -

ThingsPlanetEarth - did you _buy_ (with a loan) or _lease_?

A leased car is a losing game (for most folks, in most circumstance,
though, as with many things, not for all folks or for all
circumstances). There's probably nothing you can do about a
leased car other than either try to sell it (ie. convince someone
to assume the lease, which, nobody in their right mind is likely
to do). If you bought a car with a loan, though, _that_ you can
pay off and be done with. And the sooner the better.

- quote -

Or, at least, only drive cars you can afford to buy with
cash and drive them as long as you like.

If the only way you can afford the car is a lease, you can't
afford the car.

If the only way you can afford a car is a loan, first - do
you have no other car at the moment that you can get by with?
and second - you still can't afford the car, but if you have
no other means of transportation to use while you save enough
to buy an inexpensive used car, do what you have to do, but
go as inexpensively as you can and start saving money.



--
Plain Bread alone for e-mail, thanks. The rest gets trashed.
No HTML in E-Mail! -- http://www.expita.com/nomime.html
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"Things Planet Earth" <thingsplanetearth[at]NOSPAM.CA> wrote in message
news:GPuwb.488578$9l5.403589[at]pd7tw2no...
- quote -

If I were you, I'd do this:

1. Pay off the cars as fast as possible. This means accelerate payments.
Pay extra.
2. After cars are paid off, put payments in savings. This is a MUST!
3. Drive cars until they wear out. Trading every few years is a losers
game, unless you're using them for business, or wear them out that fast.
There's nothing wrong with liking new cars, and buying them if you can
afford them, but borrowing to purchase a depreciating asset over and over
only enriches the lenders.

If you do this, eventually you will be able to write a check for a 'newer'
car. I didn't say 'new' because the best buys are often 2 year old, low
mileage units

Most millionaires drive used cars. Surprised? Read The Millionaire Next
Door, by Thomas Stanley and William Danko.

Some lenders don't report revolving, secured debt until it is 'paid in
full' which may be why your current loan has done nothing for you. You have
to PAY IT OFF.

This may require sacrafice. If you want to get ahead, this is the course
of action you must take.

In article <GPuwb.488578$9l5.403589[at]pd7tw2no> , Things Planet Earth
<thingsplanetearth[at]NOSPAM.CA> wrote:

- quote -

Normally a car loan that is paid consistently on time is a big
help to your credit history. It isn't going to overcome a bankruptcy,
but it will help you recover over time.

I suspect that you are not dealing with a conventional auto lender,
and rather, are dealing with a consumer finance company. Most of
these consumer finance companies have such shoddy business practices
that they either don't report, or their credit reports are filtered
out by the major credit agencies. At 25%, you might just a soon borrow
from the mafia, and that is how they are treated by most credit
agencies.

One thing you can do is pull your credit reports from each of the
three majors, and check to see that your payment history is indeed
being reported. You should be able to get free reports given all of
your turn-downs.

A second thing to try is to join a local credit union, and establish
a relationship. After you get transferred over, check with one of
their loan officers about getting a better car loan.

Third, do you have any home equity? A 125% H/E loan at 10% would
sure beat the 25% you are paying on the cars, and if you have
some equity to work with, you should be able to get the loan despite
your credit record since it is secured with real estate. At least
you should have a shot at making something like this work.

Finally, sell one or both of the cars and get something that you
can afford without having loans. Your history suggests that having
loans in the past have not always worked out for the best in your
case.

-john-

--
================================================== ==================
John A. Weeks III 952-432-2708 john[at]johnweeks.com
Newave Communications http://www.johnweeks.com
================================================== ==================

Both my wife and I bought (and leased) (1 each) vehicles last year to
rebuild our credit which was bankrupt in the past with a repossesion as
well. We are paying 25% interest to rebuild our credit. We have made ALL the
payments right on time now for 17 months in a row. Now when I went to trade
in for another car to get a lower interest rate....guess what...? Every last
bank and lending institution turned me down except of course the 25 %
lenders.
I talked to a few people and they said that *INSTALLMENT* credit such as
buying a car is no good for your credit report. Did the car salesman lie to
me about rebuilding credit (I know they are liars sometimes)? If it is true
that is does nothing positive for my credit report then why don't we just
let the cars get repossesed and go from there because these car payments are
killing us! And of course we owe more than they are worth!

BTW, we already have a mortgage (assumed) and credit cards with balances
under $100 each

Any helpful comments would be greatly appreciated