OC car ownership

S

screwrealestate_IHB

New member
<p>So to follow up on my previous car comment, my friends and I were wondering about this. What % of luxury cars in the OC are actually owned versus leased? I know on craigslist you can get a lease transfer of a nice Mercedes or Beamer for only $750/month (yea, only). Or, what % of luxury cars in the OC were paid for on Home Equity? Any stats out there?</p>

<p>Station wagon Anyone? Only $768</p>

<p>http://orangecounty.craigslist.org/for/421219879.html</p>
 
i woudl not be surprised if it was higher % of leases relative to other places in the US. last yr i took my parents mercedes to the dealer and in the service lounge saw an older lady arguing with somebody. apparently they couldnt give her a loaner because she didn't have a credit card. she had a late model E class and was dressed up in a very frou-frou showy way. i dont know how she managed to drive that car without any credit. maybe a sugar daddy bought it for her.





ironically it just like the tagline in the benz commercials -- "in socal, things arent what they seem -- you could be driving a mercedes benz!"
 
<p><strong>O.C. August auto sales drop 17%</strong></p>

<p>"Blame it on housing," said Art Spinella, auto market analyst for CNW Market Research in Bandon, Ore. "Buying a car with a home equity loan is a California pastime and when home equity drops, it's tough to get a home equity loan."</p>

<p><a href="http://www.ocregister.com/money/auto-sales-real-1853603-estate-orange">www.ocregister.com/money/auto-sales-real-1853603-estate-orange</a></p>
 
At Irvine BMW over 75% of the new BMWs are leased. This info is from an employee there from 2 years ago. Who knows how accurate it is or what a difference 2 years makes.
 
<p>acpme...."maybe a sugar daddy bought it for her".....oh come ON ! </p>

<p>How about if she paid cash for it and doesn't believe it credit cards (like my gram).</p>
 
Ok this might be a stupid question but who in their right minds would buy / lease a car of a HELOC? Aren't those lines a couple 100bps over prime? If you have decent credit you can get a sick rate on practically any car out there...as long as it is not a brand new model that has been launched.
 
<p>You can get a HELOC for PRIME minus .75 now. Plus the HELOC is a 30 year IO payment, and tax deductible. This is the reasoning people use to do it.</p>

<p>If your HELOC is @7.5% and you buy a 75k BMW, your monthly payment will only be $468 a month. A typical 6 year car loan @5.9% would give you a monthly payment of $1,240 a month!</p>

<p>Now you see why some people couldn't resist this.</p>
 
<strong><em>"..maybe a sugar daddy bought it for her."





</em></strong>Maybe she simply forgot her credit card at home?





I have a friend who has so many handbags, often when she switches to a different one she left her credit cards behind. Her driver's license is attached to her keys, that she never forgets when she goes out.





As for leasing a car, my impression is that leasing costs more than buying. If they can afford the lease, why not just buy it? They all need tax deduction?
 
LM, in the long run though...how much does the HELOC car buyer actually pay for the 75K Beemer ? Isn't that the rub ?
 
yikes! i really got in trouble for that one, eh?





to clarify, it sounded like the issue was that she didnt have any credit, not just she didnt have a credit card on her. she was understandably upset but also a bit obnoxious. the whole "do you know who i am? this is mercedes benz and i drive a mercedes benz and expect mercedes benz-like service" sort of attitude. although i know you can't judge and know a persons life history just from a quick observation, i'm just mentioning this little anecdote because she fit the description of someone living off the bubble we so often talk about here.
 
LendingMaestro....but you are leveraging your house for 75K and paying interest only. So at the end of the day when you go to sell the car 3yrs later your car is worth half of what it was, you just paid almost $17,000 in interest, and 9 ppl out of 10 are going to use the equity in their car to pay off the loan or pay it down...pretty stupid when you can get a low interest rate for little down if you ask me.
 
<p>Mino, that would be true if people were logical and concerned about the bottom line. Instead, most OC people are interested in the monthly payment amount. . . (see 1% teaser rate for home loans)</p>
 
<p>Mino, </p>

<p>Stop thinking logically and in a financially sound way. People don't care about actually paying things off. They don't look forward towards the horizon; they are looking towards Friday, and which club they will valet their mercedes at.</p>
 
Well regardless of my "logical" the ppl that would use this are of the utter senseless...and I am not sorry if I offended anyone on this site that had done this.





Man I wish I knew how many ppl did this, got rid of their car in 2yrs, and then did it again....I bet there are alot of ppl out there that did this sort of thing.
 
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