“Good point about the poor people in flashy cars. That’s one of my biggest beefs about leases…they enable people to drive cars that they can’t afford.”
A perfect example of this syndrome is an old acquaintance of mine from high school days, whom I see occasionally. While our salaries during our working years were very similar, and our retirement benefits are almost the same (his actually a bit higher than mine), our financial positions are very different.
I pay cash for my mid-priced cars, maintain them better than the mfr specifies, and tend to drive them for 9 or 10 years–by which time I have saved enough to pay cash for my next car. This other guy gets a new Cadillac–on lease–every 3 years or so.
My mortgage is paid off–early.
He rents a small apartment in a sketchy neighborhood.
There are other differences, but suffice it to say that I am in a much more comfortable position than he is.
What made the difference between my situation and his?
He has had the “gambling monkey” on his back for at least 50 years, and I would rather eat dirt than go to a gambling casino, whereas he goes to casinos at least a couple of times each month.
This guy can no more afford the fancy car that he drives than he can afford any other luxury, but, as he told me…“When I pull up to the hotel in Atlantic City, it is very important that I am driving a flashy car”. And, as you probably guessed, Atlantic City is where he leaves most of his money. But…he gets to drive away in a flashy car, even if he has no money in his wallet when he leaves.
It all comes down to a question of values, I suppose.