What’s worse financially: Leasing a car or the cloud?

Posted on 01. Nov, 2013 by in Technology

Honda CivicIf you are like our firm, there is a constant struggle with right-sized technology. This author glibly poo-poo’s car leasing and likens renting space on the cloud to leasing a car (not, in his opinion, a good idea).

But,  just as with car leasing,  cloud solutions are not necessarily bad. It depends on a number of factors and your unique situation.

What’s worse financially: Leasing a car or the cloud?

Gene Marks, The Progressive Accountant

I love my mom. But she’s not always the smartest when it comes to making financial decisions. Case in point: just last week, and without telling me, she leased a new Honda Civic. I wish I had known she was going to do this because if I did I would have strongly advised her otherwise.

Leasing a car is rarely a smart financial move. To get the deal done, she had to cough up a few thousand dollars in up front fees (and got a ridiculously low trade-in on her 2006 Mini Cooper with less than 30,000 miles on it). She’s now paying a monthly fee. She’s still responsible for all the maintenance. And when the term ends in three years, she’ll have to turn the car in.

Leasing a car never makes good financial sense, particularly when you’re buying Hondas which last a long time and have a great resale value. She could’ve just as well bought the car and financed it with a low-interest bank loan. Then she would have been able to drive it forever (yes, she’s 74-years old but trust me … the woman is in better shape than I am). Ask any financial professional: this was not a great decision. Read more …

Comments are closed.