Leasing SFI Jul 22

Life happens regardless of financing been there and felt it. We lost a whole lot in 2012 bad accident. Your health goes down it does come right back. Your finances are being burned up like California wild fires you will lose. Store up for the "wild life fires"

 

Here's life......
Car is worth legitimately $5,000
You owe $4,000
Bank sells for $3,000 at auction.
You now owe $1,000

That's how it happens

 

The borrower has no "equity". The bank owns the "equity" as collateral against the loan. Default the loan and the bank reposses.

If the borrower gets anything. It's after everyone has taken thier cut , the auction house, the repo company, the banks lost interest, late fees and any handling fees.

Pont is, no matter the financing instrument, the borrower is at risk if they default.

 

Yes, the bank owns the equity until the loan is fully paid off and you don't get anything back if one defaults the loan, despite the method of financing. So, the only way to keep the equity that one had put in is one needs to complete the loan, otherwise, you get zero back, no truck and all the money spent on payments, gone. It's renting and as we know, renting is just throwing money away, if there is no intent and/or option to buy it at the end. This is why the plan is to complete the loan, despite how it is financed and try to make sure each payments are made despite various conditions that might occur during the course of the loan.

 

FWIW, I was perusing auctions today. You can find 2019-2020 Cascadia 126s with between 150k-300k miles for around $82-95k. Obviously, you would need cash to purchase these but I think you can find some close to these prices if you search. A better deal is a 3-4 year old Cascadia 125. I'm thinking of getting a 3-4 year old 125 with less than 400k miles for around $65k. Any advice with used Cascadias?

EquipmentFacts.com

 

I’m not sure why you’re arguing about what happens in a repossession. I said nothing about repossession in any of my posts until you did. I agree, if you default the loan you’re screwed either way. I clearly said in my posts that you can SELL the truck to get your equity back out. Fact is, you can’t do that with a lease.

 

But you can sell it for $5,000, pay $4,000 to the bank and keep the $1,000 equity.

 

Sure you can. But if you were on your game that much, you wouldn't be being repossessed.
Jus sayin

 

Not repossessed but sold. The point is if you use traditional financing versus leasing you can build equity. Your name is on the title with a lien holder. You can sell and pay off the loan and have the title released. In a lease purchase the company can go bankrupt before your last payment and you’re sol.