Bought a new Toyota RAV4 today. Paid cash. Ecstatic that I got $4,700 in trade for a dying minivan with 120K miles.
Stroked a check for $18,800. We tend to keep cars 8-9 years or until they drop. Given our net worth - close to FIRE - this is a modest purchase. Unfortunately, even when you pay cash you have to sign all of the paperwork with the finance guy, who shook his head when I handed over the check. "Man, you really should lease," he said.
"Why's that?" I asked.
(DW sensing tone in my voice: "Let it go, honey.")
Finance Guy: "You're losing out on all of that interest."
Me: "We keep cars 8-9 years. You lease you pay a ridiculous premium for three years. It's the most expensive way to have a car."
Finance Guy: "Yeah, but I get a new car every three years."
Me: "How much would you say you've spent on cars in the last decade?"
Finance Guy (doing some calculations): $58,000 in the last eight years. (Works for Toyota, drives a Lexus).
Me: "See,wife and I here have spent $110,000 on TWO cars over the last 28 years, $129K if we count this Rav4. We've made a lot of "interest" on that money I didn't spend on cars."
Finance Guy: "Man, you got to live a little. Can't take it with you." (Quite a salesman for Toyota, don't you think?)
Me: "You might want to listen to some Dave Ramsey."
Finance Guy: (pointing to cell phone) "Oh, I listen to him all the time. He's a big fan of leasing cars."
Me: "I think you got the wrong guy."