Quote:
Originally Posted by tibra1
Ok first of all those returns you listed are not likely to re-occur.
Assume an average return compounded for 3 yrs on $75K is more likely in the $10-$15K range
$40K on your lease thats a complete sunk cost
Now keep in mind when you are doing an all cash deal on a car your negotiating power is greater..and I actually got my 2011 at wholesale $54K (Sticker MSRP $69k)
Now mileage will be extremely low on the car, as well as excellent condition..worst case scenario depreciation for 3yrs...say 30% (and this is really alot I expect to recoupe alot more back due to condition)..I estimate after 3 yrs I can get $45K no problem thats roughly $10K
So at the end of three yrs..you spent $25K ($40K less $15K capital gains)...I spent $10K..and I dont have to worry about end of lease date or answering to a finance company..I sell the car at my lesiure.
It really all boils down to having the capital reserves..nothing wrong with it if you dont and choose to go another route my only point was to state my method saves money in the long run
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You're scaring me. Are you really in investments? Tell me what you're buying, because I need to short it immediately.
Unlikely to reoccur or not, it's reality for me. Sweet! Alright, I'll play ball anyway. Lets assume the annualized rate of return for the S&P is around 8%. And no, I'm not paying capital gains because I'm not selling (You're not selling, right? The market is up, you see). And, yes, my lease payments are "sunk" just like your depreciation ($10k).
Ok, ok - scenario one, I pay $40k and make $18k in the market (on $70k), so I lose $22k, Scenario two, I pay $40k and make only $10k in the market (on $36k), so I lose $30k. Ouch and OUCH, right? I lose $10k and $20k more than you, over three years, right? Well, then I paid $500-800/month to rent my mode of transportation, which I needed anyway, when people are paying much, much more to finance. And its an M3, which is a pretty awesome rental if you ask me (but you're not asking me, you're the expert).
And, yeah, you should be concerned about hate. You just tried to compare apples to apples when really you're an orange because you bought at a significant discount. So, you cannot compare yourself to others that cannot buy wholesale, which most cannot, especially when you're trying to make the argument your method is better financially (sure, only to you, but you didn't disclose that). Clients get sold and burned by managers like you (?!) promising false, hypothetical returns all the time. No wonder this dude hates you:
Quote:
Originally Posted by 4sevens.com
You're the exact kind of financial advisor I avoid. If you think there's a one-size-fits-all package then you're delusional.
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