~3500x10=50,000=100,000

and I wonder why tww is all republicans

12/14/2009 9:24:04 PM

your after tax income is ~$3,500/mo as a teacher?

12/14/2009 9:26:39 PM

not exactly, my rental condo brings in some of that. I don't know why you guys would be surprised by that though. I make PENNIES relative to most science teachers.

12/14/2009 9:30:29 PM

oh i missed where a 21yr old teacher had a rental property

12/14/2009 9:34:44 PM

Quote :

"I've paid off all my debt with the mitsubishi, and have a nice safety net saved already. I can pay my mortgage and all bills and still have 2500 left over each month "

Is it true that you save $2.5k a month?

12/14/2009 9:35:11 PM

This thread proved to me that you are full of shit. I was on the fence. Now it's confirmed.

12/14/2009 9:35:26 PM

Quote :

"I make PENNIES relative to most science teachers."

I really don't know what teachers in other states make, but I do have a friend who has been teaching HS math (with a masters degree) in a public HS in NC for I think 5 years now and I still don't think he makes more than like $45,000 before taxes.

12/14/2009 9:37:26 PM

Lets just get back to the topic. I used to analyze dti ratios for a living, pretty sure I can handle a budget.

Quote :

"oh i missed where a 21yr old teacher had a rental property "

not 21.the age thing doesnt update itself.

if you guys knew half the things I did while working in mortgages, you would probably blame me for the economy.

12/14/2009 9:41:33 PM

What, are you 22? You've only been registered for 199.2 days.

[Edited on December 14, 2009 at 9:44 PM. Reason : n/m]

12/14/2009 9:43:11 PM

...22 is a HUGE difference

12/14/2009 9:44:08 PM

Haha, when you refer to it as "analyzing dti ratios" it sounds enormously more impressive than it is...

Especially since most of it is...

*enter number*
*enter number*
*click*
*click*
*number*
*click*
Would you like fries with that?

12/14/2009 9:50:59 PM

^was just going to post that. Anyone with common sense can "analyzing dti ratios" by hand, yet alone be aided by the calculators out there. Anywho I'll just be a lurker from now on here.

12/14/2009 9:58:16 PM

lets get back to op

12/14/2009 9:59:47 PM

[Edited on December 14, 2009 at 10:18 PM. Reason : ]

12/14/2009 10:16:38 PM

there are many instances when leasing is a much better option than buying new or used. I'm fairly certain you won't fit into any of those situations and will end up in more car than you can afford.

[Edited on December 14, 2009 at 11:29 PM. Reason : .]

12/14/2009 11:27:41 PM

Quote :

"I don't know what you think but teachers are busier than almost anyone"

that is absolutely comical

i have a buddy in my squadron who taught highschool for a few years before joining the Marine Corps. I remarked one day that I wouldn't mind teaching someday after I'm older, tired of doing more demanding jobs, and am financially to the point that I don't need to continue to make as much money. The very first thing out of his mouth was "Yeah, it's easy work..."

Quote :

"whipe thier but everytime"

hahaha, wow.

Those who can, do.

Those who can't...

Quote :

"this is where many people go wrong. just because its necessary to save money doesn't mean STASH AS MUCH CASH AWAY AS YOU CAN AWAY FOREVER. Many people live like that because someone told them to (rightfully so but they took it too far) and they live life without most of the things they want in life and die with all this unspent money that needs to be taxed before its passed on. "

Look, I have a sports car, 2 pickup trucks, a jet ski, a motorcycle, and a trailer. I'm looking for 2 more motorcycles right now. I have several guns, 4 guitars, and 3 guitar amps. Once I'm not not spending half my time away from home, I plan on buying a speedboat and shared ownership of an airplane. I love to travel, ski, and SCUBA dive--none of that stuff is cheap. I am financially responsible, but suffice to say that I'm not a money hoarder. I determined how much I needed to save/invest to retire how I want, and I make it a point to not put away more than that (I keep any extra money seperate, understanding that it's totally OK to spend it on whatever I want without feeling bad about it).

I feel like I am fully qualified to say that leasing is stupid 99% of the time without being accused of what you're talking about.

Quote :

"My friend bought a mercedees in 2006 and has had 3 1000 dollar + repairs in the last year after warrrenty [sic] and the people told him it was just "typical wear and tear"."

That's nothing, I had to eat a clutch replacement on my Evo when it was about 18 months old and had just over 20k miles. That's a wear item--a warranty won't save you from that.

Quote :

"are you one of those right wing bible belters that thinks debt and finances are grave sin?"

I'm definitely not one of those, and right out of college, you're probably going to have to finance. You should be trying to work towards NOT needing to finance depreciating assets like cars, though, and leasing is sure as shit not taking a step towards that goal.

Quote :

"taking all your savings and buying a car is totally a bad idea"

True, you need at least a few thousand in an emergency fund...

but he didn't say anything about dropping your last cash dollar on a car.



^ "Many" is probably a stretch, but yeah, there are times when it's the best option. The vast majority of the time, people lease in order to drive more car than they can afford, because all they think about is today and monthly payments rather than the long term and ultimate costs.

12/15/2009 12:44:50 AM

Quote :

"Actually, I think I made it pretty clear what I wanted in the OP. Something only 1 person has even attempted to answer. "

If you asked advice on sticking a metal object in an electrical socket, you would probably mostly get responses saying "Don't stick metal objects in electrical sockets."


_______

I've bought 9 cars, 4 motorcycles, and 2 jet skis. I have no debt except for my mortgage, put a bunch into retirement savings, and have a good bit more sitting in cash than you make in a year (some of that is what I saved while in Iraq, but nearly half is just from saving over the years, with a little from daytrading in my "play" account). I don't make a huge salary or anything, either--I'm in the military.

Cars and money are on the very short list of things I know the most about, and if leasing wasn't so fucking dumb, I assure you that I'd be doing it in order to drive the most awesome car I could.

12/15/2009 1:01:20 AM

Quote :

"i have a buddy in my squadron who taught highschool for a few years before joining the Marine Corps. I remarked one day that I wouldn't mind teaching someday after I'm older, tired of doing more demanding jobs, and am financially to the point that I don't need to continue to make as much money. The very first thing out of his mouth was "Yeah, it's easy work..." "

Your buddy was probably a part-time history teacher and was likely still a joke at that. Teachers teaching five different classes have over a hundred students' papers to grade, lesson plans to make and thats just to be a poor minimum teacher. Teaching is not the job you do to "get out easy" you can half ass many things and make them easy by doing enough to get by. The only argument you could make for teachers like me not being busy is all the vacation time.

Quote :

"a warranty won't save you from that."

These types of wear and tear typically don't take place in the first couple of years.

Quote :

" You should be trying to work towards NOT needing to finance depreciating assets like cars, though, and leasing is sure as shit not taking a step towards that goal. "

This is a very simple-minded approach similar to the toilet tissue example. Just because you can buy something cash doesn't mean you should. Sure, you pay less for it over the longrun but you can do much more with that money while you have it and the interest is just compensation for the time and inflation. Loans allow you to make your money go so much further its worth the interest.

Quote :

""Many" is probably a stretch, but yeah, there are times when it's the best option. The vast majority of the time, people lease in order to drive more car than they can afford, because all they think about is today and monthly payments rather than the long term and ultimate costs."

Again, you're assuming they want to keep the same car for the long term. If someone wants to change cars every year and a half or just isn't quite sure what they want to make a long term commitment to, then leasing is for them and much less costly than buying.

12/15/2009 9:36:17 AM

leasing a car is a bad idea

/thread

12/15/2009 9:42:14 AM

I said I was done with the thread, but I decided I would post again to actually agree with mambagrl on something. With several close friends as teachers (I really don't know why so many of my friends turned out to be teachers ) as well my wife being a teacher (unemployed atm because she moved to where I am for my job) I can say first hand that they are always ridiculously busy if not consistently the friends least likely to have time to hang out on the weekends. If you count the time spent on nights and weekends preparing stuff for the time spent in the classroom my wife easily averaged 60-70 hours a week of work+in class time even for elementary school. My friends who are HS teachers seem to be busier than that. She enjoyed it for the most part, so she wasn't complaining about it, but the teachers who are actually doing more than scraping by on the absolute bare minimum effort are usually pretty darn busy with work.

[Edited on December 15, 2009 at 10:02 AM. Reason : ]

12/15/2009 9:47:15 AM

Quote :

"This is a very simple-minded approach similar to the toilet tissue example. Just because you can buy something cash doesn't mean you should. Sure, you pay less for it over the longrun but you can do much more with that money while you have it and the interest is just compensation for the time and inflation. Loans allow you to make your money go so much further its worth the interest."

you don't have to explain opportunity cost to me. It's a simple concept that I figured out, like, 15 years ago. Most of the time, though, used car loans aren't going to have attractive enough terms that it's advantageous to finance, and buying a car brand new off the lot (while you may get a great financing deal) is almost always dumb for its own reasons.

Quote :

"Your buddy was probably a part-time history teacher and was likely still a joke at that. "

No, he was full time for several years. I don't remember what subject. He decided that he wanted to go fly jets while he still could--he could always come back to teach or do whatever else when he was older. This guy is a pretty hard worker...always staying around for the long hours, keeps a notebook with him pretty much all the time, writing down notes on EVERYTHING, always studying, etc. I don't imagine that he was a slacker in his teaching job, either.

Quote :

"Again, you're assuming they want to keep the same car for the long term. If someone wants to change cars every year and a half or just isn't quite sure what they want to make a long term commitment to, then leasing is for them and much less costly than buying."

Look, I've bought 6 cars in the last 5.5 years. Out of the 4 that I've sold (i.e., don't currently still own), I've at least broken even on all but one of them (even after you factor in repairs, taxes, registration fees, etc). Out of the two that I still have, I should be able to approximately break even (give or take a couple hundred bucks) on one, and turn a profit on the other.

Now, granted, most people can't routinely make money on cars they own. Can you imagine how many thousands of dollars I would've been out over those years if I'd been leasing, though? On top of that, now your precious opportunity cost works in MY favor--by having no transportation costs except for gas and insurance (and turning a net profit over the last, say, 4 years), I've had more money to invest and save. Even if I didn't have the ability to do this sort of thing and ended up losing some money on cars, it wouldn't even be close to what I would've pissed away by leasing (and I haven't just been driving beaters--in that list of cars I described, there was a BMW 330ci, two Honda S2000s--one being supercharged and with a bunch of other stuff added, and a Mitsubishi Evo IX that I bought with 7k miles on it.)

Leasing a car is a terrible idea for all but a handful of special cases, and I'm pretty sure you don't fall into them. You aren't going to be satisfied until you do it, though, so go ahead and knock yourself out. You're wasting your time arguing in here--anyone with any damned sense is going to tell you the same thing that we've all said so far. Again, I don't think you want advice--you want affirmation. You aren't going to get it, so just go do what you want to do, and line the pockets of people smarter than you in the process.

[Edited on December 15, 2009 at 1:07 PM. Reason : ^ how long has she been teaching?]

12/15/2009 1:06:47 PM

Out of curiosity, if you're not going to want whatever car you have in 2 years anyway and you're planning on getting rid of it, why do you care if you buy a cheap beat up used POS for 2k as long as it serves your needs? And if you are going to want to keep your car for a long time, why the hell would you consider leasing?

12/15/2009 1:35:53 PM

I think leasing really only makes sense if you are dead set on getting a new car every few years. If you look at the numbers here:

http://www.edmunds.com/advice/buying/articles/47079/article.html

They use 5 years as the interval and it turns out financing a new car and leasing a new car end up being the same out-of-pocket cost after 5 years but the true cost differs by the value of the car that you now own. If you stopped at the 3 year mark, leasing would be about $11k cheaper out-of-pocket, meaning you'd need to trade-in or sell your (financed, now owned) car for at least that much to break even total cost (not a stretch but you have to remember the lease payment in this example are almost half per month than the loan payment and the lease downpayment was 1/3).

Getting (leasing or financing) a new car every 3 years is excessive to me but so are many things that people do. It's just a threshold based on preference/point-of-view. The fact that somebody wants to buy or lease a new car every 3 years doesn't surprise me considering everything else people do to keep up with the Joneses. It's about like credit card debt in that most people understand that it costs more over time to accumulate cc debt but they still do it so they can have it (whatever it is) now.

12/15/2009 3:24:04 PM

The thing is, with that sort of stuff, is that if you'll just be patient once and break the cycle, you can finally get ahead and surpass the joneses.

If you'll dig through my posts, you'll also see me criticize the Dave Ramsey types, but they aren't half as dumb as their opposites.

12/15/2009 4:02:00 PM

Quote :

"Again, I don't think you want advice--you want affirmation. You aren't going to get it, so just go do what you want to do, and line the pockets of people smarter than you in the process. "

I never asked for advice or affirmation. I never asked anything to deal with comparing and contrasting the pros and cons of leasing to buying. Go back and read me what I asked.

12/15/2009 5:52:26 PM

Quote :

"If you asked advice on sticking a metal object in an electrical socket, you would probably mostly get responses saying "Don't stick metal objects in electrical sockets.""

12/15/2009 6:22:14 PM

Quote :

"you end up with higher payments and then after the warrenty runs out (if you foot the cost for one in the first place) you have to pay thousands of dollars for random repairs ON TOP of the monthly payment. By the time the car is payed for you're tired of it and sell it and get 1/10th of what you've put into back just to start over again."

You're doing it wrong.

12/15/2009 9:28:42 PM

^great post

so nobodys going to actually attempt to answer the op and its all gonna be "omg leasing is the debil"?

12/15/2009 10:22:17 PM

I'm no expert on this matter...but I believe the reason nobody is answering your questions is b/c its obvious you're an alias/troll and the answers to your questions are readily available on the interwebs. I mean, do you really expect us to buy that you worked in banking but have no clue how a car lease works?

But here, I'll humor you...the answers to your questions can be found in the articles located here...

http://www.howstuffworks.com/search.php?terms=leases

[Edited on December 15, 2009 at 10:37 PM. Reason : .]

12/15/2009 10:36:58 PM

I'll answer your question if you raise $1000 for me. If I'm wrong I'll give it back.

12/15/2009 10:37:16 PM

What does mortgage banking have to do with car leases?

"You really want us to believe you're a goldsmith if you don't know how criminal appeals work?"

Quote :

"I'm no expert on this matter...but I believe the reason nobody is answering your questions is b/c its obvious you're an alias/troll "

wrong because then they wouldn't be trying so desperately to "save me" from leasing

[Edited on December 15, 2009 at 10:47 PM. Reason : as if i said]

Quote :

" If the dealer determines that your car has more than normal wear and tear on it, you'll be charged extra fees for repairs"

sounds like an opportunity for bullshit. Is there no set of rules for this or is it just the dealer's judgement? how does it normally turn out

[Edited on December 15, 2009 at 10:50 PM. Reason : its not black and white]

12/15/2009 10:42:45 PM

No body is answering the question because if this is true

Quote :

"I tried reading about it online but it was just confusing as hell. I'm very familier with regular buying and mortgages and thought leasing would be the car equivalent to renting an apartment but when I found out it had downpayments and all kinds of tricky wording I got really confused."

then you have no business trying to lease a car because you will get screwed.

12/16/2009 9:52:34 AM