Quote:
Originally Posted by jmg
Ego isn't the only reason to own, it's also more economical if you plan on keeping the car for a long period of time. However there are those who don't use the economics as their primary reason to own. They sometimes say they don't want to "rent". Leasing, to them, is for those who "can't afford" the car. Owning is equated to being able to afford the car. It's pride that influences their decision that they don't want to be seen as someone who resorted to leasing because they can't afford it. Thats fine, since the financial advantages to owning are very real. However some of these same people sell their cars after 3-4 years when they have barely entered the period of time where owning actually starts to shift from becoming less advantageous than leasing to becoming more advantageous. In other words, they defeated the whole purpose of owning.
It gets even more complex. Yes, leasing is a way to have a lower monthly payment and there are many that lease to be able to drive a car above their means, but that is the wrong mentality since leasing isn't actually saving them money in the long term. The trade offs of lower exposure, freedom from market volatility, and the ease of getting in and out of a new car every three years can outweighs the advantages of purchasing over leasing... if you can afford it. In essence, leasing (if you are doing it right) isn't actually for people to get into a car they can't really afford, it's a more efficient and advantageous option for those who can afford to get a new car every 3 years.
Consequently, the purchaser who owns a car for 3-4 years may have prevented themselves from considering the leasing option simply because they through it was for poor people.
Ironically, my more wealthy friends lease a new car every 3 years. My less wealthy friends own a car for 6+ years. In both cases, it's what they both can afford to do.
What about going back to stock is a PIA? I just bring it to the shop. Costs a few hundred bucks but you get so much more from selling the parts. I don't know about you, but in most cases a modified car is actually a detriment to any sale. As for you exhaust example, yes that's exactly what I would do. In fact that's exactly what I am doing. I purchased an MPE for my M3 CS. I had it installed for $270 and my stock exhaust is in my garage. It will cost me $270 to have it reinstalled and I can sell my exhaust for probably $3500-$4000. As an installed mod it will probably only add $1k to the value of the car when I sell it in all honestly. Parting out is the way to go.
Your warranty coverage is the same if you lease or own, the only latitude you have is if you want to modify your car drastically as to change what it is ie and engine swap, ethanol, widebody etc. as long as it goes back to stock you can return the leased car.
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I largely agree with your analysis except on what does or doesn't constitute a PIA !! .
But you didn't comment on the really cool car the Dalai Lama drives according to my link (1965 Austin Healy) !!
