Quote:
Originally Posted by MatthewDavid
Wait... you pay outright for a highly depreciating asset that you flip every three years, but you're telling the OP it is unwise to rack up miles? Ha alright, I must be misunderstanding you.
I drive my M3 about 17k miles per year and enjoy every time I get in the car, traffic or not. I have a higher-mileage lease and put down little upfront. I make my payments without taking any money out of my investments in the market to do so. The money you paid up front, which you presumably took out of the market (unless, even worse, you were all cash), went out the window while the World and S&P equity indices returned nicely positive. Maybe you should think this over.
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I cant explain the concept of maximizing the value of a depreciating asset to people who have already determined they want to drive their cars till it "dies", racking up ridculous miles, are leasing etc..
With regards to money up front..calculate how much you will spend over the life of a lease and how much you will get back ($0)....So to pay in full and enjoy the car reasonably for a few yrs; sell it near end of warranty and get into something new; while recouping 80 -85% of its value makes perfect sense to me..The purchase of a car will in no way impact my investment portfolio and my method in the long run minimizes exposure due to depreciation..
Besides the amount of capital gains you would earn on $75K over say 3 yrs in the market is nothing compared to how much out of pocket you would be on a lease..so your point about keeping money in the market is moot.
In summary..yeah
think it over