Other than the Warriors showing that they can win without Kevin Durant, there has been a lot of other exciting news that occurred throughout this past week.
I’m going to start off with the Uber IPO release last week and how it opened with the highest value in the past few years at $82 Billion. Which unfortunately was on the lower end of the recommended amount that could have been chosen by Uber. Some people were saying that Uber’s IPO may be closer to the $200 Billion range. But, after seeing the large hit and very disappointing start to the IPO of their competitor Lyft they decided to play it conservative (safe).
A few weeks ago, Lyft opened with their IPO and nothing went the way they predicted. Losing billions of dollars within the first few days of their release date.
As E-40 said; “Go Hard or Go Home” and that is not the way that Uber approached their IPO. This decision has already come back to haunt them. The decrease in their stock price since opening has already made them lose $6 Billion in the valuation. All of the companies that invested in the IPO of Uber have lost millions of dollars in the process. Now, there have been instances where this has happened in the past and the company through time became one of the most valuable corporations in the world… cough, cough….. Facebook, Apple, and Alibaba.
Regardless, if you learn anything from Uber, I hope you learn to not look to others for how you see the value of your business. Value your business based on the numbers and stick with your gut.
Let me move on to this week’s News & Topics:
- Trump administration is about to put tariffs on $300 Billion of Chinese goods. This will definitely hurt the economy.
- Price of a Tesla Model 3 is not $35,000 anymore; it is now $35,400.
- Uber went down 11% and that is now the biggest first day loss in US IPO history
- Panasonic is struggling to meet battery demands for Tesla cars
- Amazon acquired PillPack for $750 Million, which was reported to be on track to make $229 Million in revenue this year.
- Nvidia’s stock price continues to plummet after the trade war escalates.
- Bank of America makes raises minimum wage to $20 for its employees
The Financial Seed: Buying vs. Leasing
Come on now it’s 2019, you can have less than $1,000 in your bank account and still drive a 2018 Charger, knowing that you cannot truly afford it. Which leads me into what this week’s lesson will be; Buying vs. Leasing.
Leasing is a great option for people who love cars and know that they will desire a new one every few years. Not saying that they cannot afford to buy one, but that it just wouldn’t make sense because this individual would want to get rid of it within the next 2-3 years. Let me backtrack a bit and explain what “leasing” is in more of a definition aspect.
A lease is “a contract by which one party conveys land, property, services, etc. to another for a specified time, usually in return for a periodic payment.” All in all this means that you never own the property, you are just using it for a limited amount of time and have to contractually return it before that time is up.
Financially this route may be cheaper on a monthly basis compared to the monthly payments you have to take on in the instance you set up a plan to purchase the vehicle. Although, there are some things that may cause the amount paid to rise exponentially. Such as the mileage requirements on the leased vehicles and if there is any damage to the vehicle.
What are the benefits of buying your vehicle instead? Well there are a few options you can take in this instance. One is buying from a dealership and drafting a 60-month payment contract or $250 per month and the other is going to purchase a $3,000 used car all out right. The first option will allow you to in time payoff the total and then own the car for years after the payments have ended. Freeing up a couple hundred dollars per month for investment purposes until the car dies. For the second option, you will take a large financial hit initially but then you won’t have to make any payments on the vehicle for years. Giving you the time to build your financial basis to properly budget and save for the car you can financially afford.
To me the choice between Buying vs. Leasing is clear……… Buying is always the better choice!
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