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Suze Orman says lease it

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Anonymous
Not applicable

Re: Suze Orman says lease it


@Anonymous wrote:
72 - 40 = 32 😄 Leasing is not like renting. Leasing is a financial tool. Leasing shows up on your credit report, renting does not. Use leasing 2 help increase your installment credit score. If you buy a vehicle and it takes you 72 months to afford the vehicle is where the problem occurs. Suzy talks about financing a vehicle for only three years who can afford to finance a $32,500 new vehicle for three years, oh i forgot, she can. Susie does not talk about how to manipulate the credit score system into your favor by short term financing or leasing of a new vehicle. Using the formula from the fair Isaac Corporation office or better known as FICO you would increase your FICO score by 70 points if you finance a vehicle for 3 years. So, for me to be able to afford a 3 year note the best way is to lease a vehicle for two 3 year terms that would increase my FICO score 140 points in 6 years. Susie should have been preaching that you should buy a pre-owned vehicle 2 to 3years old, letting someone else take the hit for depreciation not you. This would be the only way I would purchase a vehicle and keep it 5 to 10 years but I'm trying to increase my FICO score to 800

Please provide links to back this up.  You are sharing opinion here.

 

Oh, and who can afford to buy a $32,500 vehicle in a 3 year note?  Those who don't get themselves in negative equity situations and can also bring some cash down.

Message 11 of 44
Anonymous
Not applicable

Re: Suze Orman says lease it


@Anonymous wrote:
No this is not Suze information. I tried to make a comment on her site.

I don't understand this post.  If it is not Suze Orman information, why are you using her info. in the title of the post?  Such titles are clickbaiting people...

Message 12 of 44
Anonymous
Not applicable

Re: Suze Orman says lease it

So, you are telling me that you would put $6,000 to $10,000 cash down on a depreciative new vehicle and finance it for 3 year and pay $800 a month? 

Message 13 of 44
Anonymous
Not applicable

Re: Suze Orman says lease it

No, this is not Suzy information and yes, I am commiting on what she is saying about leasing 

Message 14 of 44
Anonymous
Not applicable

Re: Suze Orman says lease it


@Anonymous wrote:

So, you are telling me that you would put $6,000 to $10,000 cash down on a depreciative new vehicle and finance it for 3 year and pay $800 a month? 


What I am saying is that if you have made sound decisions on your car purchases in the past then you likely could have a trade in + cash.  You keep harping on depreciating asset, and yes, that is true on cars.  But what if you buy say a 2 year old certified pre-owned? 

 

Now, if the selling point of the lease remains "you are always in a new car", then to me that indicates priorities are not in order.  If it is for the excuse of vehicle liabliity then that is stretching it a bunch.  Cars/trucks today are significantly better in how long they last given they have been properly maintained (routine servicing, oil changes, etc.). 

 

Outside of business leasing I will maintain that the majority who do so are fixated on having the new(ish) as possible flash.  If folks want to be a slave to a car payment, or a glorified car rental payment, then so be it.  I have found as my years go on that I do enjoy nice, even very nice, but have found ways to do so without strapping myself with monthly payments. 

 

Isn't life a bit more stress free the less bills and overhead you have?

Message 15 of 44
StartingOver10
Moderator Emerita

Re: Suze Orman says lease it


@Anonymous wrote:

So, you are telling me that you would put $6,000 to $10,000 cash down on a depreciative new vehicle and finance it for 3 year and pay $800 a month? 


I wouldn't buy a new vehicle. I would buy one that is one to two years old.

 

Yes, I put down a substantial down payment. 

 

I don't finance, except for once, for 72 months. And  I always pay off early.  I like driving a vehicle with no payments. I like having a vehicle I can drive where I want without having to watch my milage. I'm a Realtor and I don't want to box myself in by limiting my milage or having to pay the big fees due at the end for going over the alloted contract mileage. 

 

I don't see any benefit to leasing which is more similar to renting than owning. You own nothing. You end up with nothing but a bill at the end. There is no equity - ever - in a lease despite terminology to the contrary when you talk with a car guy. Some people have made it work for their circumstances and that is fine. But the vast majority of people that post here that end up leasing do so because they can not afford the vehcile.  It is not unusual to see some of those posters come back here fairly soon and ask how to get out of the lease because they are in financial difficulty. 

 

I would say that if you consider leasing just to get the lower payment, then you need to re-examine your budget and your priorities to see where you are realistically. Maybe you don't need that high end Audi or Tesla... just sayin'

Message 16 of 44
Anonymous
Not applicable

Re: Suze Orman says lease it


@Anonymous wrote:

No, this is not Suzy information and yes, I am commiting on what she is saying about leasing 


Just because she is a well respected financial professional doesn't mean she is always right.  Even the smartest person in the room gets things wrong from time to time.

Message 17 of 44
Anonymous
Not applicable

Re: Suze Orman says lease it

Great! I'm glad to here that you purchase a two year old certified vehicle. That would be the only way I would buy a vehicle. BUT since you are in the real estate market you understand the importance of good credit. I'm not saying to lease all of your life, just use it as a financial tool to manipulate the installment category of your credit report. Your average person don't have liquid cash  (THAT'S GREAT FOR YOU)  to use on a vehicle, they need it for a home. So, that why I say leasing works best for someone trying to build there credit in a short period of time. The link for credit scoring points is  www.FICO/formula.com

Message 18 of 44
Anonymous
Not applicable

Re: Suze Orman says lease it

AMEN TO THAT!

Message 19 of 44
Anonymous
Not applicable

Re: Suze Orman says lease it


@Anonymous wrote:

Great! I'm glad to here that you purchase a two year old certified vehicle. That would be the only way I would buy a vehicle. BUT since you are in the real estate market you understand the importance of good credit. I'm not saying to lease all of your life, just use it as a financial tool to manipulate the installment category of your credit report. Your average person don't have liquid cash  (THAT'S GREAT FOR YOU)  to use on a vehicle, they need it for a home. So, that why I say leasing works best for someone trying to build there credit in a short period of time. The link for credit scoring points is  www.FICO/formula.com


The installment category is solved with a purchase as well (loan).  OR, if you don't have a need for a new(er) car you can search the forum here for those who have done a small secured installment loan for the same purpose.

 

The average person don't have liquid cash?  Are you under 25-28 years old?

 

You link is invalid.

Message 20 of 44
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