Re: Does buying a car help build credit?

  "Mike" <[EMAIL PROTECTED]> wrote in message
news:[EMAIL PROTECTED]
  > > A leased car is a losing game (for most folks, in most circumstance,
  > > though, as with many things, not for all folks or for all
  > > circumstances).
  >
  > This is one thing I never understood - why do people lease cars (other
  > than for business use)?  Every commercial I see (not that television
  > is the tree of knowledge or anything) for leased cars shows a car
  > payment that seems similar to what you would pay if you bought the car
  > (with a loan).  The only thing I can see is that you can continually
  > drive a new car year after year.
  >
  > Am I missing some big secret?  If a company will lease you a car for
  > 25% interest (as alluded to in the parent post), wouldn't they just
  > sell you the car at 25% interest?  Either way they can repo the car if
  > you fail to pay, right?

  The car business is mostly one of selling payments these days. Sometimes,
leasing makes more sense for the dealer/manufacturer/lender, so they offer
incentives and POOF, you have W-2 employees leasing cars they should be
buying.

  Why? The dealers need an influx of 2-3 year old, low mileage cars. Leasing
keeps that pool supplied. You may think you're getting a deal, but the guy
with all the money is making the decision for you and you don't even know
about it.

  You'll hear people say leasing is better for businesses. Yes, there are
some tax advantages, but there's another level above that. Pay cash and
lease the vehicle TO the business is a much better way to pay for business
related transportation. That's the goal - get to where you can pay cash.  =)

  As far as low payments, a smart business owner isn't necessarily paying
those super low lease payments that you see advertised (compared to financed
purchase). Smart business owners are often paying MUCH MORE. The first car I
leased had a lease payment of $900. I could have bought it for around $500.
I know I drive a lot, so I leased with the required extra miles. TANSTAAFL
One way, or another, you pay. I just paid with 50 cent dollars.

  Brent D. Gardner, ChFC
  Chartered Financial Consultant
  http://members.cox.net/brentdgardner1378/

  "Be ever questioning. Ignorance is not bliss. It is oblivion. You don't go
to heaven if you die dumb. Become better informed. Learn from other's
mistakes. You could not live long enough to make them all yourself." - Hyman
George Rickover (1900-86), Admiral, US Navy, advocated development of
nuclear subs & ships