Cardi B, who is known for her unique fashion and creative lyrics and music, is making headlines once again. However this time it is not for her music but rather a recent purchase. Cardi and her husband, recording artist Offset, recently purchased two matching Lamborghinis. Cardi’s Lamborghini is bright blue and Offset’s is kelly green. Cardi’s post on her official Instagram page shows her and her husband with their new cars.
In response to her post, many fans have scoffed at the idea that Cardi and Offset could so easily afford the cars and throw around that large sum of money. These fans have implied that the couple leased the cars rather than buying them outright. Cardi B, who is used to speaking her mind, was having none of it. Rather than starting a discussion or argument on social media, she simply posted a screenshot of her bank account on Twitter. The screenshot, of the Wells Fargo app, shows a deposit of $548,736.97 which was “made in a branch/store”. The comment on her twitter post quickly put the critics to rest: “Wait what happened I leased what? When you go to Wells Fargo and withdrawal you whole car payment. Don’t play with me.”
Cardi’s decision to purchase the Lamborghinis did more than cause a bit of social media controversy; it also stirred up a conversation between financial experts on the merits of buying versus leasing vehicles. Notable car aficionado Jay Leno and financial expert Suze Orman both weighed in. In a discussion with CNBC, Leno said “I always think it’s better to buy a car. Everyone seems to lease now. Everyone thinks you can write off this and write off that, and to a certain extent, you can. But at the end of the lease, you don’t have anything.”
Similarly, Suze Orman recalls leasing as “the most stupid thing I’ve ever done.” Back in 1987, she leased a BMW to show off to her then boyfriend. He was wealthy and Orman wanted to impress him, and as a result, took on an $800 monthly payment, which she quickly realized she couldn’t afford. Looking back, she states she would give the following advice to her younger self: “Don’t spend money you don’t have to impress people you don’t even like because the truth of the matter is later I didn’t even like the person and I’m spending all of this money.”
Looking at the financial implications, it is true that lease payments are cheaper amounts monthly compared to loan payments. The big upside with the loan is that once its paid off, the car is yours and the fixed monthly cost is no longer there. With leasing, however, the check still must be written month after month until the lease ends and then the car goes back to the dealer. Although most experts do not suggest leasing, taking the time to understand the pros and cons is important in understanding which car and type of financing work best for you. If you follow the advice of Orman and buy only what you can afford versus what you want or think you need, you will likely make the best decision.