Waste Of The Week

We’re not too far into this thing, and already another automobile-related Wastey?

Something tells me it won’t be the last either.

Car Payment Gluttons, you just love paying for your car, every month, for all eternity, don’t you?  Why else are you leasing that car?

Oh but even that’s not enough for you is it?  Noooooo, you like to throw down a big upfront down payment before you drive off the lot, too.  A down payment for something you’ll almost certainly never own!  What an amazing idea!

Just what are you thinking CPGs?  You think you’re too good for that six year old sedan?  You need something with some pop, with a wow factor?  How old are you?!  Nobody cares what kind of car you drive!  They just want you to quit talking on your cell phone and weaving in and out of those two lanes!  They want you to merge before there’s only four feet of road in front of you.

Yeah I see your turn signal.  But you ain’t gettin’ in front me, I saw what you did there, Last Minute Merger.  And don’t think that half-#^&@ over the shoulder waves means anything to me.

Sign-2 - Copy

But I digress.

Leasing a car is a terrible financial move, worse even than financing the full purchase price of a car.  At least at the end of the purchase transaction, you own a car.  In fact, you own the greatest vehicle made in the history of automobiles, a PFC.

A Paid For Car.

Alright, alright, alright, I suppose you road warrior sales folks that rack up 100,000 miles a year might have a good argument for leasing.

Except it’s not 1964 and you don’t exist anymore!  There’s a reason that your allowance on the lease is 12,000-15,000 a year.  That’s the average for just about the whole country.

Even after buying a brand new car, which is not the greatest idea ever in and of itself, you’ll always come out ahead when compared to an endless cycle of leased vehicles, assuming you can control yourself and keep that PFC for ten years or so.

Who am I kidding, did I forget who I was talking to?  Of course you can’t keep that PFC!  As soon as it’s paid for you’re ready to rush down, trade it in and get yourself a brand new shiny chariot, complete with satellite radio and heated leather seats.  You might be a distant relative of the Leasing CPG, but you’re still a CPG.

But since you I brought it up, quit financing new cars every four years, Financing CPG!  I don’t care how low interest rates are.  You’re still gonna’ pay way more for that car than you think.  Do you know why the dealership always wants you to finance with them?  Because they’re making a killing on the deal!

If they’re winning, you’re losing.

But hey, it’s your money and your choice.  But don’t forget that leasing that fleet of vehicles over your lifetime is just another way you’re fleecing yourself.  You’re pushing yourself further and further away from being lazy, and I just can’t get behind that!

 

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No Waste

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20 thoughts on “Waste Of The Week

    1. No WasteNo Waste Post author

      That’s an accomplishment, cars are such a financial waste sometimes. And it’s something people have so much control over!

  1. Insourcelife

    Love the car topic which is pretty obvious on my site as well. My wife and I had 1 car loan each and those were paid off years ago. I can almost guarantee that we will never have a car loan ever again. I would MUCH rather drive a $2,000 beater then borrow money to buy a car. Once we pay off our house I plan on using the same approach and never borrow money for a place to live in again.
    Insourcelife recently posted…Why You Should Learn How to Work on CarsMy Profile

    1. No WasteNo Waste Post author

      They really do love ‘em. They get to make a killing all throughout the transaction.

      All the way up to the point they sell the car after it’s turned back in at the end of the lease.

  2. Brad @ RichmondSavers.com

    How people waste money on cars has to be my biggest financial pet peeve — I just cannot stand it! As you can imagine, I absolutely loved the tone of your article….

    I love the Jaguar commercials where they want you to pay $5,000+ down and then $499 a month just to lease their car for 3 years. So you’re spending $23,000 to just rent their car for 3 years. Insanity!!

    When our daughter was due in a few months we started researching SUVs. We were able to get a Toyota Highlander with only 27,000 miles on it for $16,000 at Carmax. These were $32,000 brand-new at that point, so we got a 50% discount for only 27,000 miles of prior use. We’ve had it for nearly 6 years at this point and it’s still going strong. And we could easily sell it for $12,000. So 6 years of use cost us only $4,000. I’ll take that $55/month “car payment” any day!
    Brad @ RichmondSavers.com recently posted…Quick Tips: AnnualCreditReport.com for Three Free Credit Reports Per YearMy Profile

    1. No WasteNo Waste Post author

      I cannot stand anything about the car dealership experience so I try to go as infrequently as possible.

  3. jestjack

    Somehow I think “waste” just doesn’t cover it. Cars and car ownership are just no longer…well…fun. Just read an article in the Washington Post and the Post Office reimburses it’s rural carriers for the use of their vehicle..73 cents a mile… and the carriers say this doesn’t fully cover the cost. In addition, I’m thinking most folks go well over 20K miles a year as I see 5 year old cars all the time for sale with well over 100K miles on them, So doing the math .73 times 20,000 miles …that’s $14,600 a year OR $1216.66 …A MONTH. Now that’s a waste….

    1. No WasteNo Waste Post author

      Your math is valid, but sometimes folks just have to drive. It’s not feasible for everyone to live an urban, car-free lifestyle.

      But that’s no reason to go wasting a bunch of money on the car needed.

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