07-24-2024, 04:48 PM | #67 | |
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07-24-2024, 05:10 PM | #68 |
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I would argue a FWD 228 is a vehicle that shouldn’t exist at all, it’s bad for BMW’s brand. It’s certainly more interesting than a Corolla though.
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spammysammich1871.50 Polo088161635.50 |
07-24-2024, 09:56 PM | #69 |
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IIRC the Carolla has a manual transmission option thru MY 2023. The GR edition is far more interesting than a 228i for the enthusiast. BMW makes some seriously boring cars these days.
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07-25-2024, 10:39 AM | #70 |
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I’ve been going through this thread and I cannot stop laughing on how those financially responsible, doing correct math, cost per mile, rather doing something with money than spend on the car etc are swapping completely perfect car every three years…
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07-25-2024, 03:59 PM | #72 |
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Not a flame, but what you wrote is not particularly clear. I think it says leasing a car every 3 years is wasteful (?). If you could clarify.
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07-25-2024, 04:08 PM | #73 |
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What I am reading here is that some point out how lease vs buy makes more some we since it can cost less vs eating up depreciation of purchased one and how some would not want to own depreciating assets since actually owning them is meaninglesss to some, yet than justifying that being financially smarter. Some would say that it’s because people drive cars that they otherwise wouldn’t be able to afford ( I am not one of them do not really care honestly who drives what) Now how is getting new vehicle every 3 years financially responsible? I’d like to find that out. There’s gotta be something that some of here don’t know.
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07-25-2024, 04:16 PM | #74 |
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If you could accurately predict what your new BMW will be worth in three-years, you'd be able to determine whether leasing or buying is a better deal for you.
But, since you can't, Leasing makes it so you don't have to care about depreciation or end-value. You know your total cost over the three years and that's it. You can't predict that if you purchase. |
07-25-2024, 04:37 PM | #75 | |
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Life is not about doing what is always the most "financially responsible" thing. You can make an argument that spending money on anything that is beyond the minimum required for you to survive is not financially responsible. Eating out is financially irresponsible, so are vacations, so are televisions and boats and memberships to country clubs, yet people spend on all those things and also take care of what they need to take care of. You have to enjoy your life too. I see you skiing in your avatar, you could have used the money you have spent on skiing to invest, you own older but still expensive and expensive to maintain cars when you could drive something much more economical...does that make you "financially irresponsible"? To some people it might. You and people like you assume that spending a lot of money unnecessarily on a car hurts people like me financially. It doesn't. I am able to do all the financially responsible things I need to do AND spend a lot of money leasing cars that I enjoy. If I weren't able to do that then I wouldn't be spending the amount of money on cars that I do. Leasing is more economical than buying for me given the way in which I use a car, meaning I'm going to replace it in 3-4 years regardless because I want something new. |
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07-25-2024, 04:42 PM | #76 | |
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Why not just say that I do it cause I can and not apply some weird logic behind it ? That’s all. I am not her to tell anyone what to do with its own money. I just fine logic in explaining buy vs lease ridiculous to say the least I am not even sure why you felt being called out here |
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07-25-2024, 05:05 PM | #77 | |
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There is certainly logic in buy vs lease, it all depends on how long you are going to keep the car. if you are happy buying and keeping it for 6+ years then you should buy, if you see yourself trading in 5 years down the line or sooner, then leasing really may make more sense financially. |
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07-25-2024, 05:30 PM | #78 | |
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07-26-2024, 11:01 AM | #79 | |
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Thats great that works for you, just don't present what works for you as being the only intelligent option (not saying you have done that but others do). Debt to me is a tool, if I want to aquire a $140,000 vehicle for 3 years I don't see why I would want to pull $140,000 in cash out of performing investments to avoid paying 4% interest and making monthly payments... |
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07-26-2024, 10:52 PM | #80 | |
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07-27-2024, 11:43 AM | #81 |
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Totally, mortgage interest rates are so low (they are still low) and tax deductible, zero reason to pay cash for a house or to try and pay one off early unless you're going into retirement and just want no bills.
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07-27-2024, 11:58 AM | #82 |
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What do you consider liquidity? Cash, MMF, CD, stock market?
The stock market is less liquid than many people think. It can, and has, dropped 10% in days. Then most folks are extremely hesitant to sell, meanwhile it dribbles down another 10% and you are even less likely to sell. That is not my version of liquidity. Selling stocks can also trigger big cap gains, making matters worse. Home equity can be tapped in days, and with the SALT caps in place now, mortgage debt is not nearly as friendly as it used to be. The new standard deduction essentially gets many the tax break without the actual interest payments. That is win/win for me. I understand the power of liquidity (leverage), but unless you use it, it is merely psychological. And once you do utilize it, it is no longer liquidity. I have too much right now in MMF, due to circumstances, but it is earning me a little over 5%, so I wait. By using that money to buy a used car, As I just did, I am lending to myself at ~5%. far better than what I could get on the open market. And after considering tax on that 5%, it is closer to 4%. I am not so much disagreeing here with anyone, just pointing out alternatives. And staying flexible in my thinking. As has been discussed previously, there is often a balance/disconnect between "I do because I can" and the best financial decision.
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07-27-2024, 12:23 PM | #83 | |
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As for the standard deduction I still do way better itemizing deductions, even with the SALT limitations. |
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07-27-2024, 08:39 PM | #84 | |
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07-29-2024, 08:25 AM | #85 |
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The 2 series as well as the X1, is for BMW what the Range Rover Evoque, and Land Rover Discovery Sport are for Land Rover. They are entry level vehicles designed for younger people who want to drive the Premium luxury Brands, but can't really afford a "Real" BMW or Range Rover. It allows them to create brand loyalty, in hopes those people will move up when they are financially able. Also for those more affluent, they also might show brand loyalty by purchasing one for their children as Graduation and/or Wedding gifts.
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07-29-2024, 02:44 PM | #88 | |
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Ultimately IMO its self defeating as it diminishes the brand, clogs up dealer service departments, etc. |
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