Re: Rising Food Costs

Nancy Young wrote:

"jmcquown" <jmcquown@xxxxxxxxxxxxx> wrote

I'm quite sure there's something I don't understand and maybe someone can
explain it to me. I knew a woman and her husband who always leased their
cars. They weren't company cars. The amount of money they seemed to lay
out every couple of years seemed outrageous to me compared to just buying
them. Is there some benefit to leasing that I'm missing?

We leased a car back before leasing was something many individuals
did. At that time car loans were insisting upon 30% down. Even if
you got a cheap car, it was a few thousand dollars. Did we have it?
Yes ... except we were looking to buy a house in the next year or so,
and back then you had to put a down payment and closing costs before
you could buy a house. So for no cash down, we got a car that we
needed.

I see car leases where they want thousands down. I fail to see why
anyone would consider that. What's the point, buy a car.

Leasing is mostly good for businesses where they need to have a
relatively new vehicle for appearances and being able to simply return
one and pickup the next lease is good.


It wasn't so long ago you were expected to put money down if you
bought a house. No money down! was a joke real estate scam.
Now you see all these people getting 80/20 loans, they don't even
have to pay the closing costs. Gee, can't see how that could go
wrong. Arggh.

Yes, and no. Certainly there has been plenty of mortgage abuse from all
directions. I do strongly disagree with the size of a down payment
bearing any relation to the risk of the mortgage. That may well have
been the case in years past, when renters were actually able to put food
on the table and put aside savings for a down payment on a house (and
with a single income at that).

Today the world is a very different place and many renters are paying
nearly the same amount for rent as a mortgage payment, if they are a
family, dual incomes are required just to pay the rent and put food on
the table, and saving $20k for a mortgage down payment simply isn't
possible.

Simply looking at those renters history of paying the rent each month
will show pretty clearly if they can make the mortgage payment each
month. A requirement of a large down payment only serves to discriminate
against a large segment of the population that is hard working and could
readily pay a reasonable mortgage on a reasonable house.
.

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