If cash is king than why are some people willing to give it away for a depreciating asset like a new or near-new car? Then, they accuse those of us who lease cars of not being frugal enough with our money? What’s up with that? It is precisely because cash is king that it makes no sense to deplete your bank account. Life is temporary and nothing we have can be owned forever. Would any of us pay cash up front for a life insurance policy while not knowing how long it will be needed? Life is full of uncertainties and so it makes sense to pay as we go. I really get annoyed when the so-called, financial experts like Suze Orman advise people against taking on reasonable and affordable monthly loan payments for useful luxuries in life like cars. Yes, there is a such thing as taking on car payments one cannot afford, but is that any less responsible than putting a big chunk of cash down on a used car which is bound to present repair bills?
Buying a used car also presents reliability and safety concerns. I’d much rather have my cash in the bank to prepare for the unexpected. Suze Orman would have us believe that the 5-10K we drained from our bank account is saving us a $200 – $300 monthly payment. Well, guess what? It doesn’t work that way. How many $250 payments can we make before we’ve spent $10,000? And keep in mind, there are going to be more things that come up then just car bills and repairs. Wouldn’t it be nice to have left some of that money in the bank? Despite the opinion of some, living in run-down cars and homes does not mean we are debt free. Cars are like people – they don’t live forever. When you buy a five-year old car, it will be 8 – 10 years old by the time you’re monthly payments would have paid off a loan or lease. What Suze Orman doesn’t realize is that cash is king. So, it is because cash is king that we prefer to keep and save as much as we can and pay as we go for things that lose their value and present greater repair costs as we use them.
Responsible car financing does not make life more expensive. When we choose cars which represent a monthly payment we can comfortably afford we are applying the principle of Cash is King. Leasing cars allows us to drive safer, more reliable cars for the same cost of taking the cash out to buy a used clunker. Honda continues to promote it’s 36-month, no-money down, 35 payment lease on Accords, Civics, CR-Vs and Crosstours. These are appealing, affordable and responsible deals for those of us who can afford $200-$350 monthly car payments. Thanks to people like Ms. Orman, there seems to be this unfair, inaccurate stigma among in our society that those of us who lease cars are not being responsible with our cash. The truth is that we do lease cars because we care about our cash. Monthly Car Lease is your responsible, monthly guide for finding cars to help you live a life where Cash is King.