[Traffic]

What do you think?

[jimbo]

Buy one, they're cheap you can get decent merc and beemers for less than $25k.

[Traffic]

Originally Posted by jimbo

Buy one, they're cheap you can get decent merc and beemers for less than $25k.

I would't bet that a purchase is cheaper when leasing: for 10K HKD/Month I can get a BMW 525 2004-2005.

Market price ~380K HKD
Insurance ~12K HKD/year
Tax ~5K HKD/year
Service/tyres/repairs ~30K HKD/year
etc.
Which means that the car costs me 427K HKD in the first year. And about 47K in every following year.

Now if I save the money and rent - Investing into risk level 1 or 2 funds gives about 17-25% p.a. which covers the rental completely + saves my money

[jimbo]

You've answered your own question then.

Stick to minibuses and taxi's and invest the difference.

[Traffic]

Originally Posted by jimbo

You've answered your own question then.

Not really... in my opinion there is at least 1 problem with leasing - I can not completely choose the car model/type, mostly I have to choose from the exsisting car pool of the company.

Originally Posted by jimbo

Stick to minibuses and taxi's and invest the difference.

walking is even healthier and saves a lot of money

[pauldee9965]

Originally Posted by Traffic

I would't bet that a purchase is cheaper when leasing: for 10K HKD/Month I can get a BMW 525 2004-2005.

Market price ~380K HKD
Insurance ~12K HKD/year
Tax ~5K HKD/year
Service/tyres/repairs ~30K HKD/year
etc.
Which means that the car costs me 427K HKD in the first year. And about 47K in every following year.

Now if I save the money and rent - Investing into risk level 1 or 2 funds gives about 17-25% p.a. which covers the rental completely + saves my money

Good one - any contact that you could share that I could use to lease?

[Traffic]

Originally Posted by pauldee9965

Good one - any contact that you could share that I could use to lease?

Dah Sing Company ( http://www.dchml.com.hk/eng/service_rentacar.php?sid= )
Crown Motors (Toyota&Lexus only, but good rates)
Hertz HK
Avis HK

By the way, if someone knows more pls. share

[freeier]

asians have a certain mindset about owning, instead of leasing.
we tend to like to own cars, house, etc.etc..

even though numerically it can be shown that leasing is much better.

[Traffic]

Originally Posted by freeier

asians have a certain mindset about owning, instead of leasing.
we tend to like to own cars, house, etc.etc..

even though numerically it can be shown that leasing is much better.

I have no problem about leasing instead of owning if it makes sense

[freeier]

actually u can valuate everything in terms of the value of option u have.
u do a lease, u are not oblige to work on getting rid of it when you do not want it (i.e. someone else does that).
means u can add in the premium of such an option, i.e. option to get rid of the car at no cost.
whereas if u buy it u'd have to figure out when you get rid of it would you suffer additional losses beyond the straight line depreciation expected of the 'goods'...

numerically, this option probably can be priced.. but its usually ignored.