On our way out of the dealership (maintenance department) of Honda today, we saw a 2008 Honda Accord parked in front of the dealership. The nosy girl in me, I went ahead and looked how the interiors look like. From out of the blue, a woman came by and asked if this was indeed the 2008 model. I told her it is and she also took a quick peek inside the car.
She told us, she’s shopping for a new car and she’s considering another Honda. Apparently, the lease to her car is up(leases usually end in 3 years) so she needs a replacement. She’s considering leasing again and she went on and on telling us why leasing is good. To her, leasing is the way to go because of the low monthly payments.
After the conversation with her, I couldn’t help but talk to Frank about the pros and cons of leasing. At the end of our little conversation, we still both believe in owning– meaning buying the car outright. Why? Because we both think, leasing is like giving away your money. You’ll never stop paying monthly because you’ll never own it, unless, you decide to buy it after the 3 year lease, in which case, you will start paying monthly again or pay it in full if you have the cash. Whereas, if you buy outright, if you decide to pay in full upon purchase, of course there’s no more monthly payments. Now, you ask me, who would pay for a brand new car in full upon purchase? I know of some, one of them is my FIL. He never had to make monthly car payments all his life. Everytime he needed a new car, he always bought and paid the car in full. To him, it just doesn’t make sense not to pay in full if you have the money, because the interest that you pay can be invested and earn interest for you, instead of you paying interest to the lending institution. It was kind of shocking to me at first, but thinking twice I think his rationale make sense.
Kaya ayan, asawa ko may pinagmanahan *lol*.