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Why Lease a car?

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At least in CA, you'll be paying $10K - $30K in property taxes annually
Believe it or not, there are lots of places left in CA where you can buy a home for less than $1-3 million dollars, which is the purchase price your property tax figures imply. The median, even in this current nutso market, is $800k.

And don’t forget those property taxes are deductible, unlike rent. ;)
 
He is smart, he gets millions of suckers to pay him hundreds of millions of dollars to listen to common sense. All he spews is common sense, spend less than you make.
Dave Ramsey's advice goes a long way with medium to low-income earners. However his advice has little use for high income earners who have financial planners and wealth managers.

Most wealthy people I know lease all their vehicles under their businesses. They do it because it costs the least amount of money.
 
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No Renting is the dumbest thing you have ever heard, you just don't understand why. Let’s take that home you mentioned. you buy a home for 400,000 with 10% down. You know owe 360.00. In 5 years it appreciates to 450.000 and you only owe say … 260,000-280,000. So in 5 years your sitting on a possible 180,000 positive investment. If your renting what do you have. Nothing. But you made the landlord a ton of money paying all His mortgage and insurance and taxes payments. What tax advantaged did you get? Barley none. No interest deduction, no tax deduction. Maybe a renters credit?

it’s just dumb to even suggest that rental a home is better than owning.
No. If you rent, you get to keep your capital and invest it somewhere else, rather than paying 20% down payment, real estate fees, title transfer taxes, etc. If you take your down payment and put it in the market in index funds, you could make just as much money while renting and not be responsible for maintaining a house, etc.

Buying a house is just a leveraged investment. You can gain more, if the market goes up, since you only put in a small down payment. You can also lose a lot more, if the market goes down, like when the real estate market recently blew up...

I can't say I followed my own advice, because we bought a house 5 years ago, because it was in the neighborhood we liked and had a garage for me to work on cars and things. That was a harder to do when in apartment buildings.

I recently calculated how much we've gained on our house in the last 5 years of huge appreciation (45% total). But, we would have made just as much money with our down payment in the market in this incredible runup. So, you could argue for either case.

In this overheated housing market, I think it seems like a great idea to rent for a while rather than own.
 
Dave Ramsey's advice goes a long way with medium to low-income earners. However his advice has little use for high income earners who have financial planners and wealth managers.

Most wealthy people I know lease all their vehicles under their businesses. They do it because it costs the least amount of money.
That’s because they own the business. Yes business leases are ok, that’s the point.
 
Pretty smart I would say.

He's "smart" in ways that aren't necessarily helpful to his viewers/listeners. A problem with advice programs like his is that they tend to be too dumbed down and simplistic to be meaningful.

The result can unfortunately lead to ignorant and simplistic opinions like:
“For personal use, Leasing is fleassing. Bad idea. A total loser in the long run” or
“Renting is the dumbest thing you have ever heard” or
“it’s just dumb to even suggest that rental a home is better than owning.”

It can also result in numerical examples that are wrong and/or leave out important factors and thereby exaggerate the potential advantages of something or the potential disadvantages of the doing something else.
 
Believe it or not, there are lots of places left in CA where you can buy a home for less than $1-3 million dollars, which is the purchase price your property tax figures imply. The median, even in this current nutso market, is $800k.

And don’t forget those property taxes are deductible, unlike rent. ;)
Those places are typically in the middle of nowhere.
 
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Of ~275 zip codes in Los Angeles county, less than 100 have median home values in 2021 over $1M, let alone $3m.
Of course there are other fees that get rolled into property taxes. I pay Mello-Roos which adds another $3600 a year on to my tax bill. better than HOA, but still more money. Looking at median values doesn't really show the whole picture since it's just the mean. You could have a few shanties bringing down the mean in a location full of million dollar homes.
 
He's "smart" in ways that aren't necessarily helpful to his viewers/listeners. A problem with advice programs like his is that they tend to be too dumbed down and simplistic to be meaningful.

The result can unfortunately lead to ignorant and simplistic opinions like:
“For personal use, Leasing is fleassing. Bad idea. A total loser in the long run” or
“Renting is the dumbest thing you have ever heard” or
“it’s just dumb to even suggest that rental a home is better than owning.”

It can also result in numerical examples that are wrong and/or leave out important factors and thereby exaggerate the potential advantages of something or the potential disadvantages of the doing something else.
Dont get bent, it’s just the truth.

people adjust the truth to fit their narrative. Thats why all the bad *sugar* happening is now but some how ok. I don’t want to learn and study… oh well lets vote for a socialistic society or I don’t want to work hard and Save, but I want a Tesla so, I will lease. Or I want a new phone, or a watch or a vacation or sun glasses or cloths so I don’t need to save for a house, so I will rent. Sound familiar to you?

I taught my kids the value of hard work, saving and living within their means. It’s works.
 
"Why do people lease cars?"

1. I don't like to keep my cars more than 3 years
2. I only drive 10k miles per year
3. I want a fixed exit cost
4. I have no interest in being a used car salesman once every three years
5. I don't want to pay State of CA taxes on the whole purchase price, just the part I use
6. Leases often come with discounted interest rates or other incentives that make the cost really cheap. When I leased my first Tesla they were practically giving away two year leases for some reason, probably to motivate quick turn-over. I got a two year lease with a lower monthly payment than a three year lease was at the time.
 
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Dave Ramsey's advice goes a long way with medium to low-income earners. However his advice has little use for high income earners who have financial planners and wealth managers.

Most wealthy people I know lease all their vehicles under their businesses. They do it because it costs the least amount of money.
I might rephrase the last to say "it costs them personally the least amount of money". The lease through the business costs the business money, which is tax-deductible, and they pay only for their personal use of the vehicle.
 
Dont get bent, it’s just the truth.

people adjust the truth to fit their narrative. Thats why all the bad *sugar* happening is now but some how ok. I don’t want to learn and study… oh well lets vote for a socialistic society or I don’t want to work hard and Save, but I want a Tesla so, I will lease. Or I want a new phone, or a watch or a vacation or sun glasses or cloths so I don’t need to save for a house, so I will rent. Sound familiar to you?

I taught my kids the value of hard work, saving and living within their means. It’s works.
It's sad that the people in this country still have such narrow opinions. Not all of us want to live a minimalist, boring lifestyle just so we can say we own a house or a car. I don't mind spending my money on a new phone, nice vacations and things that make life enjoyable. That beats eating cup o noodles reading this post on my 3G iPhone in the house I own.
 
Of course there are other fees that get rolled into property taxes. I pay Mello-Roos which adds another $3600 a year on to my tax bill. better than HOA, but still more money. Looking at median values doesn't really show the whole picture since it's just the mean. You could have a few shanties bringing down the mean in a location full of million dollar homes.
Mello-Roos is a killer. I would suggest not buying in jurisdictions that tack that fee on. It was an attempt to end-run the Prop 13 property tax caps.
 
It's a killer, but it does pay for the nice brand new park and elementary school across the street so I can't complain. It sure as hell beats paying in to an HOA.
Other places manage to have large parks and schools without Mell-Roos. If they need a temporary tax for a school bond they should put it on the ballot and let people vote for or against it.
 
It's sad that the people in this country still have such narrow opinions. Not all of us want to live a minimalist, boring lifestyle just so we can say we own a house or a car. I don't mind spending my money on a new phone, nice vacations and things that make life enjoyable. That beats eating cup o noodles reading this post on my 3G iPhone in the house I own.
I live quite well and can buy pretty much anything at any time I want. I will be looking into getting my first house around this time next year.
I got bored a few weeks ago and made one of these charts for the last 12 months of my spending, and while I do have a lot of random crap I could cut back on, its not necessary and I like to spend my money to have fun while also thinking about my retirement in 2 years.

225636717_10225600837718638_4414687991904393108_n.jpg
 
It's sad that the people in this country still have such narrow opinions. Not all of us want to live a minimalist, boring lifestyle just so we can say we own a house or a car. I don't mind spending my money on a new phone, nice vacations and things that make life enjoyable. That beats eating cup o noodles reading this post on my 3G iPhone in the house I own.
Oh brother. Another thirsty dying horse. Wonderful.