Crazy Financial Comments

Crazy Financial Comments

If the title wasn’t obvious enough, this series will be about the most ridiculous comments we hear in conversation and we hope it will be interactive where you, our readers, can supply some of your own stories in the comment section. In fact, this post was spurred by a comment from a reader last time.

Car Leases – Crazy Comment (more story than comment)

Today’s Crazy Financial Comment is more of a story but it works for this either way.

We have a friend, we’ll call her Marge 🙂

Don’t let the name Marge fool you. Marge is young.

She has an issue where she gets “bored” with her car every couple of years. Well that’s understandable, who doesn’t like a new car or a new to you car, right? We sure do, just look at our car payments (>$600 a month). The problem is that Marge recently purchased a newish car for herself as a reward for finishing a milestone at school. She worked all the way through school and her old car was getting up there in age. She did the “right” thing for the most part and bought used, did research on a reliable car, and didn’t buy something that she really didn’t need.

Flash forward a couple of years and Marge got “bored” with her car and wanted to change cars again.

The problem: She was still upside down on the last car loan.

Solution:

Marge finds a dealer who will roll her negative equity from the last purchase into a new lease! Wow, isn’t that so kind of him!

So now Marge has a brand new lease including negative equity from her prior purchase. Wow!

 

We’re not saying that leasing is inherently bad. It has it’s place and we would argue that Marge is the right person to lease. She consistently wants to upgrade cars and leasing likely is the best approach for her as it satisfies her “need” for change without putting into situations like this again. But there was nothing wrong with her previous car and we would bet that if we asked her if it was a smart decision now, she would say no.

 

Discussion

We’d really like to hear what some of you have to share about Crazy Financial Comments so please leave us a comment below, we’d love to hear from you.

4 thoughts on “Crazy Financial Comments”

  1. I had this exact thing happen to me in college. I had a perfectly good car at the time, but it was a magnet for thieves. The damn thing was broken into at least five times a year–it was ridiculous. I decided I wanted a Honda Fit, which was a reliable and spacious car perfect for college.

    I had zero idea about financing and I let my dad handle everything. Both of our names were on the car loan. WELL. As it turns out, the loans for two other cars were rolled into this car payment. That meant that a pretty reasonably priced Honda gave me a $450/mo car payment. And I kept the damn payment through school and a few years out of school. It was absolutely ridiculous.

    I had zero idea about financing and I let my dad handle everything. Both of our names were on the car loan. WELL. As it turns out, the loans for two other cars were rolled into this car payment. That meant that a pretty reasonably priced Honda gave me a $450/mo car payment. And I kept the damn payment through school and a few years out of school. It was absolutely ridiculous.

    1. I have heard of parents sabotaging their kids financial status before. It’s almost never on purpose, just parents trying to help their kids get what they think is something they need and teaching them the way they’ve done it.

    1. Welcome! Thanks for the encouragement!

      We haven’t been tracking the data very long so I would call this estimate unreliable at best… but based on current savings rate versus expenses we should be financially independent in 15 years. That would make us 45 years old so even with anticipated increases in spending due to children we think 50 years old is very reasonable.

      We’re also working on reducing expenses and hope to remove a lot of debt this year so that number may come back closer too.

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