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Originally Posted by tranquility
We had this debate on another car forum. Suffice to say that ppl who are really rich, e.g. own several late model exotics, all bought outright. Now, some ppl will try to desperately convince others that *borrowing* money is the smarter move, but if those ppl had money, they wouldn't be *borrowing*, in addition to claiming they know much more than those multibillion dollar corporations who only lend money...why didn't they invest in stocks or whatever money is allegedly put to better use like those ppl who finance/lease?
Incredibly, some will disagree and/or get offended by this above simple statement for whatever reason.  |
It depends on how much money you have. If you have so much disposable money that you don't care about it all being invested and performing then sure. if I had $20M would I care about Spending $150,000 in cash for a car? No. If I were near retirement and not looking for growth from my money anymore I wouldn't lease or drive a car this expensive most likely.
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in addition to claiming they know much more than those multibillion dollar corporations who only lend money...why didn't they invest in stocks or whatever money is allegedly put to better use like those ppl who finance/lease?
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Not sure what you are asking here. Are you asking why those companies that lend money don't just invest that money instead of lending it? Because thats not the business they are in. Manufacturer finance arms exist so that manufacturers can sell cars...they often don't make much profit at all, actually.
Individuals can also loan out money like this and make a return, its just more risk than I personally would be interested in taking but its something you can do. I know a few people who lend out hard money like that.