SmartBuy

[HumbleAg]

Originally posted by usetosellhummer:
Smart buys are for stupid people.

I guess I need to give back my engineering degree and MBA.

Blanket statements are for stupid people.

Smart buy can make sense for several reasons:

1) If car has a high residual value (as H3 does), but anticipated depreciation is high (these don't always correspond), then smart buy can be less money if you only keep the vehicle a couple of years. Trading out of a 5 or 6 year note on a depreciated car can cost a bunch.

2) Some states (like the great state of Texas) have personal property tax on leased vehicles, this is passed on to the lessee. No such thing with smart buy (or a standard purchase).

3) Some people want to keep their debt ratio down (a $300 note vs a $500 note can make a difference if you are buying a house).

That said there are some serious criteria you need to consider for a smart buy (or a lease).

1) Mileage is critical. Going over a bit can be ok, but going way over can leave you with a large bill at the end.

2) Condition is critical. If you normally trash your cars, you'll pay for that as well (plus you'll probably rot in hell).

3) Getting out early is always going to cost you a bundle, don't do it if you can stick with the term. (not as bad as " 'til death do us part", but can be as expensive).

4) Planning to purchase at the end (of eiather lease or smart buy) is usually poor planning. You'll end up paying way more than if you finance for a longer term. Just plan on driving and dumping.


I believe this will qualify as my longest post ever on here, but since I felt personally attacked, I feel much better about it.

My best advice: do whatever you have to do to get the H3. I'm loving mine and still grin every time I get in it.

Good luck!