Bugeater
Enthusiast
joe117,
You dont necessarily have to wait for a lease to expire to sell. He may have waited though...
You dont necessarily have to wait for a lease to expire to sell. He may have waited though...
Leased Viper is Sickening
- Thread starter A1998
- Start date
Franko
Enthusiast
Joe 117,
In most leases (read the fine print) you can pay off your lease at any time with no penalties. So you can sell at anytime.
My interest only saved me $10k in one year, not a whole bunch since the majority of interest is within the first 5 years but again, that 10k (just for the first year savings) has helped me leverage my money. As far as being in debt, without being somebody that starts blabbing about how much $ they have (i hate that) i can tell you that debt is not a problem. But i do understand that in most cases, especially here in CA that you are 100% correct as far as getting interest only loan being the only way they can afford the home they want.
The $5k was on my '02 Vette. Got it at a very good deal and sold it after 2.5 years and "made" $5k. Not a ton but again considering i didn't own it i think i did ok. I also do have a ****** that i plan to keep forever so of course that car is not leased or financed.
Big Medicine,
No PMI on my loan because my loan to value is at 60%. There should never been PMI because you should never go above 80%. If you do then you get a equity line to avoid PMI.
People, i'm not trying to prove anything here! All i'm saying is how i've been able to budget my funds over the last 5 years. You all have to understand that here in So Cal the real estate market has not been normal! The mortgage programs avaliable here are not avaliable in all parts of the country because most other places have not appreciated like it has here. I know Vegas and Long Island has been experiencing what we have.
Now i know somebody will probably mention that the CA real estate market will crash like it did in the early 90's. I've prepared myself so that if it does thats ok because i'll be able to get my dream on in LaJolla for $500k! Win Win situation for me (hopefully).
Again, just sharing my experiences.
Frank
In most leases (read the fine print) you can pay off your lease at any time with no penalties. So you can sell at anytime.
My interest only saved me $10k in one year, not a whole bunch since the majority of interest is within the first 5 years but again, that 10k (just for the first year savings) has helped me leverage my money. As far as being in debt, without being somebody that starts blabbing about how much $ they have (i hate that) i can tell you that debt is not a problem. But i do understand that in most cases, especially here in CA that you are 100% correct as far as getting interest only loan being the only way they can afford the home they want.
The $5k was on my '02 Vette. Got it at a very good deal and sold it after 2.5 years and "made" $5k. Not a ton but again considering i didn't own it i think i did ok. I also do have a ****** that i plan to keep forever so of course that car is not leased or financed.
Big Medicine,
No PMI on my loan because my loan to value is at 60%. There should never been PMI because you should never go above 80%. If you do then you get a equity line to avoid PMI.
People, i'm not trying to prove anything here! All i'm saying is how i've been able to budget my funds over the last 5 years. You all have to understand that here in So Cal the real estate market has not been normal! The mortgage programs avaliable here are not avaliable in all parts of the country because most other places have not appreciated like it has here. I know Vegas and Long Island has been experiencing what we have.
Now i know somebody will probably mention that the CA real estate market will crash like it did in the early 90's. I've prepared myself so that if it does thats ok because i'll be able to get my dream on in LaJolla for $500k! Win Win situation for me (hopefully).
Again, just sharing my experiences.
Frank
Big Medicine
Enthusiast
The rate is lower on IO/ARMS than on most traditional financing arrangements. I'm doing one. Cumulative interest will also be lower at the end of 3 years, if I'm still here. Although I will add I'm not using the strategy to "buy more house"; I'm still sticking to my limits while improving monthly cash flow & investment participation.
Whew what a thread. As someone who has spent a career in the leasing industry (medical and IT) I'm fairly regulary AMAZED at the misinformation out there.
Wasn't it Morgan Stanely the person who coined the phrase "Purchase what appreciates, lease what depreciates".
For business' it makes better sense to lease because they can generally deduct lease payments from their taxable income.
An important point that the person who started this thread missed - its NEVER a good idea to lease when your objective is to OWN at the end. You'll take one in the can every time. If, on the other hand, you generally change rides fairly regularly, well that leasing MAY be for you. You need get out your calculator and do a little present value analysis.
Personally I have never leased an auto. I put on too many miles. When we purchase my boat I'd been dreaming about last year ( a Doral 360 SE) I did a LIBOR based equity loan. The interest rate is SUPER low and you have the option to repay principle at your leisure.
Good luck. To others considering this as an option - READ THE CONTRACT!!!!
Wasn't it Morgan Stanely the person who coined the phrase "Purchase what appreciates, lease what depreciates".
For business' it makes better sense to lease because they can generally deduct lease payments from their taxable income.
An important point that the person who started this thread missed - its NEVER a good idea to lease when your objective is to OWN at the end. You'll take one in the can every time. If, on the other hand, you generally change rides fairly regularly, well that leasing MAY be for you. You need get out your calculator and do a little present value analysis.
Personally I have never leased an auto. I put on too many miles. When we purchase my boat I'd been dreaming about last year ( a Doral 360 SE) I did a LIBOR based equity loan. The interest rate is SUPER low and you have the option to repay principle at your leisure.
Good luck. To others considering this as an option - READ THE CONTRACT!!!!
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