“Leasing is a HUGE waste of money” ... 😡😒
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- Опубликовано: 4 май 2019
- One statement that will surely make for a heated debate is when one says that leasing a car is a huge waste of money. A lot of factors are ignored when comparing how things ACTUALLY get calculated in both scenarios, and until you go through two similar scenarios, you won’t know the actual real life differences.
📸 / ari_janessian
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I think people should focus on leasing responsibility, in which lease a car you can afford. I believe consumers feel leasing means they can go multiple tiers above what the would purchase via traditional financing. So if you make 65k , doesn’t mean you can afford a 120k Mercedes. Purchase responsible folks finance or lease! Also put a little aside each month for “wear & tear” if you don’t plan to keep or recycle for same brand! Ari - keep up the amazing work sir!!!
Thank you Edward :)
I lease because I like to have a new car every 2-3 years. I bore easily. Plus, my wealthy boss told me once, “Never buy anything that depreciates in value, lease it if you can afford to.” I agree with her.
if you bore easily, a lease is waaay too long
@@novanae7799, I can live with a 3 year lease and an occasional 2 year. I will not finance something that a) depreciates in value and b) will have me upside down on payments with how often I turn in my car on a 2-3 year basis. I don’t think I’ve ever have had a car for more than 3 years, ever.
I'm currently in a lease with 9 months left. This was my first ever lease and I'm going back to financing. I'll be purchasing a new truck, and I'm the type of person who likes to customize their vehicles. So I've tried both and leasing is not for me.
I lease cars because 1) every few years technology changes and I want that new stuff/feature. 2) I don't want to deal with used car repairs, break downs, sell etc. hustle. 3) I have a cousin who has leasing company, and he gets me sweet deals. 4) if you stay with same manufacturer, they have all kinds of loyalty programs
This video simply shows the ignorance of the public regarding leasing.
The differences between leasing and purchasing are small. It is essentially math.
With a lease you pay an acquisition fee. You do not pay this on a purchase. This fee is usually around $900.
With a lease you can return the vehicle at the end of the lease. You can also buy it, sell it or trade it at any time.
You can buy it at the end of the lease for the same price had you negotiated. At the end you will pay the residual value. During the lease you paid the negotiated price less the residual value. You pay the negotiated price whether you buy or lease then buy. If you negotiate a price of $30,000 and purchase you pay $30,000. If you lease and pay $12,000 during the lease, you will pay $18,000 (the residual value) if you buy at the end of the lease. You pay $30,000 in either case.
With a lease you will pay a lower monthly payment. This is due to the fact you pay less of the negotiated price during the lease period than you would had you purchased the vehicle. For example with the lease you may pay $12,000 of the price. During the same period, you may pay $14,000 of the $30,000 with a purchase. This $2,000 difference would result in a lower monthly lease payment.
With a lease you will pay a bit more in interest. This is due to the fact, noted above, you pay less of the price during the lease. This means the loan balance is higher each month with a lease which results in a bit more interest. Note on a lease there is a money factor which is essentially the interest rate divided by 2,400. The interest paid each month is computed by applying the interest rate to the remaining balance of the loan. Pay less of that balance each month means the interest rate is applied to a higher amount resulting in a bit more interest.
In summary, with a lease you will pay a bit more, mostly due to the acquisition fee, but you have the option of walking away at the end of the lease. There may be some additional costs if you walk away due to over miles or damage.
In the end a lease is most assuredly not a "HUGE waste of money." A lease is simply a different way to pay for a vehicle. Whether it is good or bad depends on the person leasing and his or her unique circumstances.
Thanks for the illustrated breakdown. That explanation hit home. 💪💯
If you want a car payment forever I guess leasing is good lol
@@chriswilson1968 A car payment is only one component of a person's transportation expense. That includes the cost of the car, whether paid for in cash or financed, insurance, registration, gas, maintenance, repairs, alternative forms of transportation. In addition, there are other criteria to consider including the joy, for some people, of driving new.
When discussing things, guessing is rarely a good method. Facts are much better. But you prove my point, many people are basically ignorant about car leasing.
@@jerrylundegaard2592 Anyone who defends leasing is definitely ignorant on the matter I agree.
@@chriswilson1968 The ignorance inherent in your comment is breathtaking. You clearly have zero knowledge of leasing.
The fact is many people who actually understand finance lease vehicles. They lease because they know as opposed to they believe.
Certainly leasing is not for everyone but for many leasing is the wise move.
So, not a defense merely fact.
If you plan on keeping a car for a long time (say, 12 years) then leasing a car every 3 years is going to cost you a lot more money than financing a car for 5 years, and then driving it payment free for another 7. Yes, the maintenance costs on the old car will be higher, but they will never be as high as the lease payments.
On the other hand the old car won't have new amenities or new safety features that you'd be getting every 3 years. Those things are worth money. How much money? That's up to you as a buyer. You have to do the math for yourself to decide whether the value of the features outweighs the cost of the ongoing lease payments.
@JohnBrothers & @Ari, good points. Although I didn't see every comment under this video, another important additional cost that people fail to mention and/or overlook is insurance and how it factors in for the total vehicle expenditure on new vs used. Once a vehicle reaches a certain age insurance rates should lower; therefore, reducing yearly agregate costs.
The mechanic who rebuilds that 12 year old transmission or engine says different. 💰💰😂
And milage limit of lease is usually 10000miles
@@sithukyaw9019 wrong. 10K, 12K and 15K and even 18K. Get the fact before you speak.
Lease makes sense if you don't keep your car for 10 years. I see a lot of people putting down people that lease but they switch their cars regardless within 5 years. So what if they financed. You still got rid off the car and got into new set of payments. Might as well lease it and enjoy lower payments.
Leasing allowed me to get rid of a used car that I had finance with a lot of problems and into a new car for the same payments for 39 months . I’ll say leasing is beneficial for me
LTHD I’m assuming u traded it in and rolled some money over onto the lease? That’s another benefit of leasing, that u can get rid of negative equity without digging ur self deeper compared to financing a new car and rolling negative equity in.
Thank you sir, I been in a car business for last 5 years and everything you just said is 💯% correct.
Great discussion on this. I bought a certified pre owned with average mileage. 4 years later I was just over 100,000 miles and the engine was toast. Blown head gasket made the car essentially worthless. This was after spending money on normal maintenance past 70,000 miles, including wheel bearings, brakes, wipers, timing belt. Every year I was getting hit with over $1,000 in repairs, at least. Factoring in all that, plus the fact the car had zero value at 4 years, and id say certified pre owned is only a good deal if you get rid of the car when the warranty runs out. So, 2, maybe three years? Or you could lease a new car, enjoy the heck out of it, have no surprise expenses, and change cars every 3-4 years with no worries.
Given that you’re a responsible car owner, then absolutely. Oh the absolute headaches of having an old car are just a “B” to deal with.
leasing is a waste of money if you want a Honda or Toyota and plan to keep it for 10+ years. For people who switch up cars at least once every 5 years or less, leasing makes much more sense then buying imo, won't have to deal with trade-in nonsense, depreciation from accidents, out of warranty repairs. You get a lot of peace of mind for very little if any increase in expenses.
Kyle Fan
Most leases work best at 36-39 months. Much less than 5 years (60 months).
been a viewer since single digits, very informative and honest videos which is something you dont find nowadays. Congrats on your numbers and I hope to see you grow even more
Thank you Rami :)
I feel the same way. I always feel like I have to 'defend' leasing. But the biggest reason I hear from people who don't like leasing is them saying "you pay for years and never own anything".
David Speakman p
Well, you never really own the car. Until 60, 72, or crazy 84 months. And guess what!! When you do own it after that. Now you can start paying for repairs. Then in a few years. You finance another one.I lease because ... Car is covered , threw the lease term.AndI get a new vehicle every 3 years.
@@66pacesetter Yep. Unless you are happy driving a vehicle that you can pay cash for up front then you are not going to own it anyway. If, for example, you are financing at 72 months and you finally pay it off when you make that 72nd payment, you are probably just about ready to trade that hot garbage in and start over with a nice and shiny new one anyway. LOL!
I get 2yrs old yaris for 10k and will keep it for 12yrs. Amount of money I saved on leasing will get me one bed flat in Northern England. At the end of 12yrs I have net income of 350pounds per month and flat will always increase in price. With 350pounds I earn from rental income, I can purchase lexis with 0%interest. After 5yrs I own lexis and my flat now is worth £45000. This guy is uneducated bull crap.
After owning a bmw and spending so much in maintenance , I will only lease any german car and return it before warranty is over. To me, it makes sense to lease a high maintenance car. And to finance a reliable car which car last long time.
Lease all day!!
I've leased Honda's for close to 12 years, I like the idea of a new one every three years.
Ari I tend to drive 12k a year and many deals are for 10k any tricks or negotiation tactics I can use to try and keep the lease price close to the advertised offer?
As someone who prefers to finance over lease you made a great argument. Im the type who likes to pay for convenience, so I understand there are people willing to pay a little less money to drive a newer ride. I still prefer to finance but I don’t disagree with you. Life is about preference. Spend your money how you see fit. Great video
Thank you Levi :)
I very much enjoy driving a brand new car every 3 years, and I can afford it, so leasing is definitely right for me!
I could afford it too but I put the savings in a retirement account. Come back in 20 years and tell me what a great deal it is to lease.
@@mungox1 Christ here we go again with you people.
Because you're a brainwashed consumer.
@@chriswilson1968 I'm a brainwashed consumer because I enjoy new cars? Exactly what sense does that make?
@@SuperArc13 They got you making car payments for life. How are you not brainwashed? You probably upgrade your cell phone every year too and need to wear designer clothing. You like a new car every three years because thats what they want you to like. Common sense and math tell us that leasing is terrible.
A car is going to most likely be a monthly expense no matter how you look at it You will eat the depreciation (or pay for it) no matter what you do. Just buy into that idea. You're right it's a depreciating asset. It just depends on what your personal situation is and what you will use the car for and for how long. I personally like a new car every three years. I'm not going to put a monster down payment on it only to find after three years the car is still only worth what the payoff balance is. That can be very frustrating. Cars have gotten so expensive today that sometimes buying it is not worth it anymore because it's taking people 7 years to pay these things off.
Leasing makes sense for luxury brands where maintenance and repairs are expensive out of warranty. Especially with European luxury brands - bad to own a depreciation machine and then get a water pump job bill that costs thousands and thousands of dollars.
In 2016, bought a brand new 2016 BMW X3 35i, fully loaded...top of the line..heads up display, leather seats...the works. have taken good care of it..it is a great car, but I am bored with it. I paid 55k for it...dealer and CarMax said 19000....when I get my 2021 Land Rover Range Rover p380 Velar, I will lease it...
Thank you Ari for your opinion on this you were spot on! 👏🏽 Sure you have the freedom to drive up the mileage all you want when you own but it going to cost you at some point in the future when you want to sell it or trade it in. It’s not so simple for people to have that sentiment about leasing. It depends, it can work but it really depends on a person’s needs and driving habits and deal they sign up for.
I agree with everything you say... Ex "Dave Ramsey" fan here, bought used cars only. I now finally realized that buying new and sometimes leasing is the better value. Example, I buy a car at 125k mile for 1/2 price. At 250k miles it is worth only hundreds of dollars, and it took $$$ of repairs to get there. I should've bought new and unload to the next sucker
Something never discussed. If msrp is 40,000, my residual value is $ 26,000 and the wholesale trade in price is $23,000, and I buy and trade my depreciation cost will be $ 17,000 vs $14,000 with leasing. I was trading in every 3 to 4 years. That really things,
I love leasing. I am never fully committed to the car and after a couple of years I am always ready for something new anyway so leasing makes sense for me.
Informative, thank you. How’s the Hyundai Elantra GT N Line deals looking? Think I’m gonna cross shop some hatches and wagons later this year (a4 allroad most likely).
MarkPharaoh going tomorrow to test a Elantra GT N line and GTI tomorrow
3 ppl argued with me that leasing was a complete waste , until they end up taking their cars to mechanics, realizing that cost of parts and labor drain their checking and savings accoutns, they all now went with leasing and regret not listening ti me 6 years ago. in USA it doesnt make sence to finance or purchas a car, due to the cost of the mechanics labor and parts. overseas maybe not in USA remmeber. with lease you get to enjoy your life driving a new car evere 2 - 3 years.
I agree with you 100%. I use to only lease and then went to buying but learned my lessons . After the warranty ends you pay a fortune to fix the car , also a small accident killed the value of my car . Also the dealer would charge 800- 1K for your 40 , 50 , 60K Mile Maintance. That’s why I leased my last car with your help . Now I know before I have issues with this car or change tires , etc it will be returned with a new warranty , new car smell , and if another accident I know I’ll be returning it anyway . I also didn’t have to take a big chunk of my savings to put down . I feel to drive a new car every 3 years is worth the payment if you can afford it . Life is short and having a decent car is worth it to me .
Ted, I completely agree.. the way some people explain leasing is beyond me. Also... Taking advice from someone about leasing especially if they look at the vehicle as a point a to point b object is awful too.
You don't pay a fortune to maintain well made cars like Toyota, Hyundai, Lexus, etc. BMW, Porsche, Audi, yep, you do because those cars are junk after 50k miles.
I went from financing a bmw to leasing a bmw and will now stick to leasing. 3 years is the max I want to have the same toy for!
duro123 Yeah. I’m ready at 2 years lol
Marshall Fox Me too. I’m 2 years into my Infiniti lease and I wish I could dump it now.
What do I think? I think this was a very informative and accurate video...In a nutshell if ur a person that plans on buying a car paying it off,or buy it out write and driving it until it dont drive anymore,then leasing isnt for that person, If your a person that thinks leasing is just renting a car and throwing ur money away,and that same person buys a new car finances it,in 2-3 years they want to trade it in on something else,Then in alot of cases (and I know quite a few that fell into this next thing) is you trade it in roll some negative equity into ur next one....And in 2-3 years they do it again roll a little more negative equity into your next one...But they OWN it right? Lol ,the only thing they own is a shitload of interest they have been paying,will keep on paying ,Bottom line it all depends on the individual. Nothing wrong with leasing
I appreciate your feedback Frankie :)
I like to switch cars every 3 years.
Me too
Me three.
@@jamesec1949 me 4th..
And you are definitely poor or not wealthy. 35000 pounds get me a two bed flat in Doncaster which will increase in value and give me rental income.
@@sithukyaw9019 next
Great content !! Keep it comin !! 👍
Thank you Nat :)))
How do you approach a lease end but planing to releases.
Hey ari, I noticed you have a lot of leasing videos but I can’t seem to find anything on buying your lease. Like what if you want to lease to make sure you 100% like the car then decide it’s a perfect fit for 10 plus years. Is it a bad idea to buy after?
I hope you found it. I watched some of his videos and he does not recommend buying out your lease. He has many other suggestions.
It seems to me that this is such a highly individual thing--finances, lifestyle, transportation needs--that there is no blanket statement that would be accurate. It's the same as saying cars are always a pain in the a##. That might be true for some people, but not all. Oddly enough, there are people capable of seeing more than one viewpoint--cars are a pain in the A## but also a helluva lot of fun.
It's always better to own something than to rent it. In what rational state of mind or reality does it make sense to pay for something for several years & not own anything at the end of the contracts period?!?
The main thing that is attractive to less educated people about a lease is that allows them to upgrade to a new car ever few years even though at the end of it all they still have nothing to show or own anything. They're just out of that money where as if they had bought a new vehicle they would own it and be able to keep it for years or decades to come.
Honestly, there is no reason for the average person to buy a new car every couple of years. You don't buy a new house every couple of years just because the building codes change or new material that homes are made of becomes available do you? Somewhere along the way the younger generations have become tricked by the marketing firms to believe they need to own the newest car available.
I'll skip trying to impress my neighbors & make the automakers, dealerships & marketing firms rich and keep my 15-20 year old vehicle that runs like a champ and was payed off long ago.
Idk, I had a lease and after it was over I felt empty. I felt like I paid for 3 years and had nothing at the end. And I know that I could buy it, but when I did the math it would of cost less if I just finance it in the beginning. So I just bought an old $5000 Lexus.
I thought about leasing until I called my insurance company and they told me it would cost well over 300 dollars to insure a new 2019 or 2020. I also would like to add tint and a new stereo system in my new used car.
I saw a guy today with a leased Skoda 2018. He was at the body shop garage in a panic as he had scratched the rims and scratched the informant system screen he was getting a quote to fix before he hands it back to Skoda. I’d imagine it will not be cheap to fix all.
I was from the sentiment of feeling they were more or less a waste based on interest rates...etc.
But this explanation helped to open my eyes to additional aspects. Currently driving a 2016 corrola, bought new with 0% during promo, am luckily 1800 ahead of my loan in terms of what carmax would buy it for.
Going to consider this when I either pursue a GS-350 or ES-350... there is a nice feeling of knowing I have made sure to treat the car well, maintaining it as I should etc...
And no, the Corolla does not excite...it just works...I would like to pursue a car that brings excitement next time around
This explains in detail of how it was explained to me and what I try to get through to ppl- Like u and other stated, yes, being responsible and take in all the options one can AFFORD- If one was to like new cars and they are in the perfect spot ($$, mileage, etc) leading is great!! As always, thanks for another great video. Keep safe.
Blanket statements about leasing or traditional financing is not a good idea. It just depends on each situation.
Some cars have terrible resale value like the Infiniti Q50. Those type of cars are just stupid to purchase. Leasing is the only option there. My Q50 is already more than $5000 underwater with 8 months left on the lease.
However, there are cars like the Kia Stinger that have insane resale values and people are getting many thousands over their residuals + remaining payments for those cars even after only 1 year of leasing.
There are certain situations where a lease is actually the best financial option for getting a new car.
Definitely mpeg.. a lot to do with the actual vehicle too not a one size fits all formula for sure..
Jalopnik just posted an article today that stated Kia is practically giving the Stinger away. They showed at least 6 newspaper and Internet ads where dealers are taking $10,000 or more off.
I agree with the Infiniti depreciation. It used to not be that way. I had a 2007 G35X that I kept 5 years and it held its value pretty well. These Q cars are a different story.
Dan Wells yes there is over $9000 of lease cash on certain Stinger models. However, the KBB value of them is extremely high. It makes no sense at all and will probably change soon.
mpgxsvcd .... Sometimes KBB is a bit removed from reality.
Dan Wells absolutely. KBB is not the end all be all. However, it is used quite often and it’s values for the Stinger just aren’t realistic at the moment.
Car insurance companies use KBB values often. That is the one case where people are making crazy sums of money on their totaled Stingers.
Business owners should lease because the payments can be written off.
I like to lease because I get bored with cars too easily so I can have a different one every three years and I only drive about 8k miles annually. It works perfectly for my situation. I cannot imagine driving the same car for 10 years (or the same clothes or same vacation etc etc etc)
Me too Scott. I get bored very quickly.
Scott K exactly why I lease in and out
Scott K Man, I had to double check cuz what u said is pretty much the exact thing I said in another comment on one of his other videos. I thought it was my reply lol. I agree 100% with u tho. I’ve financed 8 cars and have leased 2 so far and I have to say leasing is the way to go for me. I get bored after a few years, I like the new technology and safety features all while under warranty the whole time. Among many other reasons. 👍
Leasing is just a gimmick for the most part. It allows you to use credit for the guarantee to return the car to make a vehicle appear cheaper than it really is. Buying a new car and keeping it 12 years would always be 1/3 to 1/2 less costly than leasing as you lose much less on depreciation near the end of the time you own the vehicle. Obviously if you trade in every 3-5 years both financing options are similar. But still leasing is just a gimmick vs buying with a say a 66 or 72 month loan.
That's the biggest factor that it comes down to for me when we talk about leasing. I want to have the ability to modify my car anyway I please, and leasing doesn't allow that. But leasing isn't all that bad as far as cost efficiency and what you get out of it. You get a brand new car, that's gonna barely need maintenance, and once your lease is up, you return it and get a brand new car and a different leasing contract. I, however, will stick to buying used or finance, because I love driving and I love modifying. And I won't get so much anxiety about parking my car near other cars in major parking lots and having to baby the hell out of my car all the time. And yes, I guess you can say I'm also the one that wants to say I 'own' my vehicle.
Love the videos & thank you! Background music a little distracting, I don’t think it’s necessary at all.
I don’t know if “leasing make sense” as a general statement is true or false, but it made sense for me and my family. Anything can happen within the lease term. We wanted to try out a hybrid plug in, and during the course of the lease, we found out we need a more spacious car. Instead of staying in a financed car that we’d be stuck with for x amount of years, i see it as an option to upgrade.
I agree with u ..i tried it out but regretted it and went back to financing. The only benefit of lease is you can change after 3 yrs. The downside is like u have to return it with less damage or u get charge for it. You will pay a disposition fee if u don't borrow again. Yes its a waste of money 💰
Yes it makes sense thank you great videos
Old school ‘purchase’ of all-cash or financing (obviously hard ball negotiation to reduce price) makes sense IF you plan to keep the vehicle for 8 years or more.
can you talk about lease takeover?
Going through this dilemma right now. 74 and eye issues so at some point DMV may say sorry.
Turning my lease truck back in in few months.
Can you lease with zero down payment . I know you have to give your first month payment but can you lease with zero down.
Yes you can. I always do zero down
Well said, depreciating asset, no maintenance worry covered under warranty, love getting a new vehicle every 24,36,39 months-lower payment, 0 down, I'm all in!!! I'm 45 and leased my last 10 cars. Had no credit history when I bought my first car, a candy apple red Dodge Intrepid, paid 550/month for that thing, drove over 100k miles in that car.... established good credit and away I went with leasing.
100% Agreed Eric!
Amen!
I feel the same way, I cringe when someone tells me leases are a waste of money. When you buy a car your stuck with the burden of a depreciating asset. So you can roll down your window (because your bought car is that old) and tell me why your old junker brings you joy as you drive to the repair shop to pay 2k for a new transmission and let me know how much you saved. Either side has its benefits and there is a lot of factors involved in considering to buy or lease . For people to say leasing is a waste of money in a condescending manner is hypocritical considering they probably bought a car that was an emotional choice and not the cheapest money saver on the lot.
it bugs me when I hear it too, like you said every car depreciates haha so I never understood the people who said leasing is stupid, cars are not and investment (in most cases). Even if you wanted to buy used, the interest rates are so high that in most cases you're paying as much as a new car. Literally nothing wrong with leasing a headache free way of buying a car.
Completely agreed brother
Exhaust Sports Auto Plus leasing is a great way to really see if u like the vehicle first. It’s such a headache to finance a car and find out u hate it and want to get out of it but now ur pretty much stuck with it.
lease is renting. what equity do you have after all is said and done.
hi what's the best car to lease this month for 300/ month. 0 out of pocket in San Diego?:)
Toyota Corolla
@@nafisetemadi6446 thanks I will check it out 😊
Lease it and placed as a company expense, for business.
My friend just got Hyundai Tuscan SE Leas for 3 years his total cost was around 13.5K.
CARVANA (n the cheapest place to get a car) has a 3 Year old lease off the lease 35K and Hyundai Tuscan for 16~17K so after tax 18k if he can drive this car for next three years, sell the car at half of its purchase price, he still comes out on the top. The leasing can be attractive to some new car owners, but if you like to save money, I think 3 year old under 35K miles car will be best bang for the buck ( sorry you should not buy bmw, Mercedes, and and audi)
- Depreciation rate is the highest in the first three years.
I got buddies that break my balls because I lease and they buy which I tell them leasing works for me I drive around 5k yr want new trucks every few yrs and don’t have to worry about anything breaking also my payments are lower then if I would finance which I’d be stuck for 5/6 yrs
Meanwhile both of my buddies are trying to buy new truck and are upside down lol leasing isn’t for everyone but the people like myself it’s great
You must be a retired 👴 guy if you only drive 5k miles a year or is that a typo, bruh? 😂
David Hudson nope lol just never put tom of miles on my cars
I mean, in the age when we live above our means i would agree. Leasing can be perfect for the right "candidate" as you put it. For me, rent is a waste of money when i can be paying a mortgage. Personally i would pay cash for a newsed car. Its mine, no payments. But i dont need new new. In closing, leasing is great for some, not for others. Some people need that new new ride..
I purchased my car new 11yrs ago and with over 280,000 miles on it, I'm glad I own it instead of leasing. I've managed to save more than enough throughout the years to purchase another new car outright whenever this one goes, but I expect that to be another few years. If it dies tomorrow, so be it.
My last car lasted until 458,000 miles and was sold to a young guy at the junk yard for $700. Cars are only as reliable as the maintenance you put into it.
Leasing is not for everyone, but I find it convenient if you're a type of person who gets tired of the car every 3 years (let's say) buying would be a waste of money
How about giving detailed examples of what kind of situations where leasing make sense and doesn’t make sense? Perhaps if you do very few miles per year or lots of miles.
He kind of went over that in the video. Leasing makes a lot of sense if you drive less than the industry average (approximately 12k to 15k miles per year) and your car turnover is about once every 3 years. If you don't plan on owning long-term (typically longer than vehicle warranty when new), then it makes a lot of sense to lease since you're essentially settled the prospective 'depreciation' of the car before you even leave the lot and return it, presumably for another lease. The people I really feel for are like Real Estate or insurance agents/appraisers that drive like 20k+ per year. They really have no good choice other than to purchase 'old reliable' and drive it into the ground, or purchase new and have 100k miles in less than 4 years. I suppose it really just matters how successful they are and if they purchase an extended warranty if mileage goes beyond the standard mileage/year threshold, but I would imagine they're experienced enough in car transactions to understand what's best for them/what they prefer.
Personally, I prefer to keep my cars about 7 to 10 years but purchase > 1year old and
Yeah i wouldnt lease a toyota, but sure as hell would only ever lease a mercedes or jaguar...endless money pits!
LOL
I second that...
here is my take. Are cars and trucks today made to last? NO. do I drive over 12k a year? NO, being retired.
I used to have to drive 60 thousand a year, Lease was not possible. NO company car, lol. For me leasing
makes sense. The Wife also has a car, paid off. Still need 2 cars.
Ari can you do the Audi SQ5 Premium Plus lease? It is the only Audi that actually has decent numbers and it looks like a real beast of an SUV. I think I am going to get the SQ5 when my Q50 lease is up in December unless I can talk my wife into getting the C8 Corvette.
I’ll do that one very soon ... just literally got done filming the Q7!
You lease cars you can’t afford to pay outright. The same way about renting a fridge you or furniture... I’m done leasing and only buying cod.
I only buy cars pre 2000’s bc I just like those type of cars. Plus they are really cheap and I can just treat them as disposable cars haha when it comes to that lease thing idk how people can only drive 10k a year.. I’m pushing 120k a year on average
Lima’s Bean hut I own a 2002 Tahoe which I purchased brand new. I now have 114k on it. I have maintained it and am very happy with it. It has paid for itself many times over
worst part about leasing is milage limit and extraordinary charge if you damage their cars
Dave Ramsey calls them FLEASE'S.
Dave Ramsey is overly arrogant! He has a specific target audience (obviously). I used to like him but it just dawned on me one day listening to him that I don’t like his aggressiveness towards every situation like it’s a one size fits all scenario for everyone.
dave ramsey went bankrupt, now he is preaching to a bunch of dummies
People who make blanket statements like this are, unfortunately, ignorant. And even worse? Those same people have the right to vote! Those of you who disagree know who you are. Ari? Just another quality video. I’m glad you have a vote.😉
EV is better for less wear and tear. Actually how I calculate the leasing expenses is avg. in three years, suppose $15k / 3 years lease for depreciation, that's 5k per year. Compare it to any cars even with Buying, the avg depreciation is the same.
I'm the first viewer watching and liked your video. 🤪
YOU'RE THE MAN SAM
Car is a depreciating asset so leasing is a good option for me
You still pay for depreciation in a lease. The car companies bake all of that into the lease payments, obviously.
Lease is a God-sent option !!!
Great insight!! Thanks again!
Thank you for watching :)
Leasing a car is a GIANT waste of money. Its like buying a house vs renting a house when your rent would match your mortgage. You're just an idiot if you lease. A sucker. A rube. Those contracts are made just for people like you.
For 9 years I can lease three different cars for the same cost as financing one car and then having to keep that car for 10 years. For 9-years I will always be under warranty. Who knows the possible money I would have put into the financed car after any warranties expire. I only drive about 12,000 miles a year anyway so this works for me. I'm also not into modification and customization, so again this works for me. I don't think either one is right or wrong. It just depends on your personal circumstances. When I'm older and I decide to keep a car for 15 to 20 years, then I think it would make sense for me to purchase. So when I'm 70 I may buy a car.
I’m 76. Just leased my first car after over 50 years of ownership. My longevity is uncertain. Leasing nice cars for much lower payments vs purchase with higher payments. Why strap myself with a higher payment and long term ownership if I don’t live that long. Leasing makes sense as you get older. Sounds morbid I know.
Omg this sets me off all the time 🤦🏽♂️👍🏽
Seriously!!
My first reaction when someone says to me leasing is bad is that either they couldn’t get into a lease and are pissed or they just don’t understand how they work.
Marshall Fox i’v had someone tell me leasing is like renting a car. I said financing doesn’t mean you own the car, I said don’t make a few payments and we what happens. I also said I rather “rent” a car and own my home than own a car and rent my home 😉
Bout to upgrade to my 3rd car in less than 2 yrs
I think leasing is a huge waste of money, but if you're the type of person who is willing to pay a premium to always be driving a like-new car, then it's the way to go. I just prefer to own a car from about 2 years of age until about 10 years of age. It's unlikely that major things are going to break in the first 10 years and I'm not swallowing massive depreciation the entire time I have the car. After about 4 or 5 years, the depreciation isn't so bad like it is the first 3 years, and that's what you're paying for by leasing.
Leasing is the most expensive way to drive a vehicle. That statement may be more accurate, which is the point people are trying to get across. On average, through a study of hundreds of dealers this has become a true statement. That’s how statements become “true”.
The problem is our boomer parents saying “ lease is a waste cause you won’t own it and have nothing left to buy another one when lease is up”. I hear this all day long and the boomers just think different and/or they are the type to keep a car for 5 yrs or longer.
The only time you should lease is if you only need a car for 2 years. Anything longer, and its literally better to buy.
You don't even realize how far your statement is from the truth.
@@sunshadow9704 "You don't even realize how far your statement is from the truth."
ruclips.net/video/JkTteUjmZUw/видео.html
Now childishly reply again with "no you're wrong" without any points of your own. You fucking loser.
@@thaddeusstevens1344 You may request a refund from the school and college (assuming you went through one) . Second, be careful what you say. If you meet me on the street, you would not even open your duty mouth.. Third, This is last exchange with you. I don't maintain conversations with low life folks who is using f. words.
skip the music, please
Wish I could book you on the Dave Ramsey show...he referees them as Fleeces
soNso2 Ramsey is right. If you wanna be rich, you lower your expenses. Leasing for 12, 20. 50 years is more expensive than buying a car for those years. Do you get something for leasing sure. A shiny new car every 3 years. If u want that great, but it costs more. It has to. Save would eat ari up over this (I’m still a fan). Ramsey also hates new cars. So think of it as lifestyle. Leasing is a waste of money like a Porsche is a waste of money, if you got it and want the lifestyle then do it. But everyone I know that leases without a business (for right off) is broke no money living the lifestyle from Porsche to new accord every 3 years. Still love Ari.
@@lazstan Ramsey is wrong, because he doesn't tell his audience that instead of enjoying single life given to all of us, car owners spend time to fix their old junk vehicles. This is especially true for some type of vehicles such as BMW, MB or Audi. If Ramsey only cares about how much money you can take to grave , then yes, he is right. I bet when Ramsey goes to restaurant or buys new shoes, he isn't looking for what other people didn't finish and second hand shoes.
No one trades in a vehicle they basically steal it from you if you do
Cash is king, buy a reliable used car
If you are happy to drive a car wit the cash you can put down today then what you say makes sense. problem is, most people are not happy to drive what they can pay cash for today as it would mean having to drive a 10 year old hot garbage klunker. If you really want to save money, why buy or lease a car at all? Take the bus or a cab when you absolutely have to. Ride a bike, take the train, etc. You would save a fortune on financing/leasing payments, insurance, gas, maintenance, repairs, car washes and tires. At the end of the day, having a car is VERY expensive.
Everyone knows the dealer and a Broker or Sales representative drools when a prospective customer wants to lease. They make a much better profit margin on leasing. It's FLEECING! Yes, if you want to get into a new vehicle and you have no credit or savings and your a young person who hasn't built up any savings or any credit. As long as you've held a job for a while and you can then spend less money per month than say financing which is more per month. Plus, financing is a bad idea to do from the dealer. You won't be getting a good deal off MSRP on a vehicle if you finance with the dealer. That's if they offer a low interest rate. There getting money back in finance through them using their finance company. Use your bank or credit union if you can. Then you might be able to negotiate with the dealer for a better price. I understand why this Broker is talking about advantages of leasing. He's making a profit. He's working with dealers to make both a profit for himself and the dealer. He was a BMW sales representative and knows all the ins and outs of making a profit margin for himself and his dealer, owner of the dealership. Now, after successfully being a car salesperson he's now making more money than if he was still selling BMWS. Or, if he's not he'd still be selling BMW'S. Right? When the lease agreement is up, they sell your former leased vehicle for a big margin of profit. For example, my father's loaded RDX A-Spec 2016 is up for buyback at $25,000. He leased because of all the investment he has and wanted to not pay for the vehicle and tie up any investment on the vehicle. So, he's leasing with his best buddy who is a car Broker. Got him a pretty good deal. Now buyback after 4 yrs of leasing of a $46,000 2016 fully loaded RDX Acura is $25,000 buyback. If, you look at all the dealer's in the area selling used RDXs and all of them weren't even fully loaded? The selling price was not $25,000 like his buyback on the 2016 fully loaded RDX but all were asking $27,000 to $28,000 on 2016's not fully loaded with more miles on all the vehicles, dad's being around 30,000kms by the time he gives it back or purchasing it at buyback price, and they weren't even fully loaded RDXs. Your paying more in the long run into leasing, your payment is less per month than if you bought it financing the vehicle. Whether you buy or lease, obviously it's going to depreciate. That's also depending on the vehicle and brand you buy. A luxury vehicle doesn't hold its value. Unless it's a Porsche. They have been the highest resale luxury brand for a very long time. Also, vehicles like Subaru, Toyota, Honda will hold a better resale value. Subaru generally hold over 60% of the value after so many years and mileage approximately. Whereas most luxury brands hold 30 or a bit over % only. The ever popular cult following of the Jeep Wrangler, which is unreliable and received a dismal and worst IIHS safety tests rating for its 2019 model only got a 1 out of 5. That's pathetic and dangerous vehicle to be driving. Yet, it has the highest resale value of any vehicle out there at approximately 84%! Almost all vehicle Manufacturers get at least a 4 out 5 IIHS safety rating. Subaru over the last decade or more receive a 5 out of 5 on its entire lineup.
Brad I appreciate all your insight, and it’s unfortunate that it was wildly inaccurate because it was very well written.
I don’t even think they made a A Spec RDX in 2016.
The goal of this channel is not for me to make a profit... maybe on RUclips ads passively? Every single one of my videos is for you to get the deal done on your own, with each negotiation guide breaking down both scenarios whether you lease or purchase, and incentives for both for you to make your decision.
I literally give ZERO care about which direction of financing you choose. I charge my customers a flat fee and get paid the same amount regardless.
I understand you may think you know what my intentions are, but please don’t state them as if they are true because you are ignorant to what i am doing altogether, or you are purposefully stating wrong information about me. Either way you are wrong.
I left BMW to help with the operation of my families catering business, not to come on RUclips “and make a profit”.
How you choose to interpret the content I am providing on RUclips is 100% up to you, and I think my subscriber base can attest to the fact that I am literally selling them NOTHING in these videos.
@@negotiationguides I believe that was the first year for an 'Advance' Acura RDX, but it's possible the 2015 had an Advance option. A-Spec came out in 2018, I think. It was definitely when or just after the face-lift (as there were never any, 'genki' RDX A-specs made). Of course the Buy-back will be less than what dealerships will sell, they have to make a profit. Why would they buy back at the price they'd sell, just to sell it for an even further 4k to 5k beyond what market price would suggest? You literally price yourself out of the market for no reason.
Of course they get money back financing through them: this works because the bank will offer 1.5% on a finance, but will tell you the interest rate is 4.5%. Your advice of going through your own Bank/Credit union is solid for a negotiation tactic, but typically dealers will find a better 'raw' interest rate for you, but they'd prefer to finance through them as they can control what they can skim from the top and have you pay. Again, they're in the business of making money, not being charitable, although I've worked a couple deals where something makes much more financial sense regarding someones specific circumstance. Regardless, understanding how to derive your apr from payments and principal will help you have greater footing regarding the negotiation of your payment plan (if you finance rather than lease). It also helps with 'stopping points' assuming you have a maximum budget in mind and a tangible place to walk-away. I've done that with dealerships where they advertised one price, I asked about it, they tacked on fees and came back with a sales price principal greater than what was originally negotiated, then tried to have me sign the deal sheet.
Cars will depreciate: Yeah...that's kinda the primary point of deciding to finance a new car vs leasing a car. Financing a pre-owned (depending upon age) isn't really a fair comparison logically, although it is used as a comparison when it comes to humans making decisions (even I do it, which is why I prefer > 1 year and
@@negotiationguides Bullocks...They made an A-spec for the Acura ILX (NOT RDX) in 2016, which is a rubbish car, unless you like it ;)
like the videos but contacted his website and never heard a peep
Can you resubmit so I can look out for it?
Leasing is a waste of money it’s not a misconception... you either buy it or rent it.
If I was broke as fuck and wanted to get a status car I would lease..
Everyone else go ahead and finance.. pay it off and move on.
Change the name to renting and tell me it again.
Ari, again, NOT less features! Fewer features, man! (Your English teacher...who happens to be from Greece! BTW, I am hooked on your educational and entertaining videos. Keep up the excellent work. You are appreciated and admired!)
Japanese car -> Finance it
German/Luxury car -> lease it
Leasing is an awesome way to have amazing cars without paying them off. Leasing is same as financing as with with financing you don’t own the car. Think you do? Stop making payments 😊
I stopped making payments after 4 years (paid it off) and drove my last new car for another 8 years and only had to do routine maintenance. You have to do your homework and only buy cars that are known for their reliability. I won't buy a newly designed car until it has been out for at least four years.
Leasing is an incredible waste of money if you’re doing so rather than buying a used late model low mileage toyota corolla and driving it forever
Anthony thank you, however I mentioned this is not the case and desire for a lot of people viewing this type of video..
Ari Janessian That’s the strongest argument for the non leasing crowd. That being said, I love getting a new car every few years and not having the onus of ownership in case anything goes wrong.
U know that saying.... I wouldn’t be caught dead in that.... shit I wouldn’t be caught alive in a Corolla lol
Who the hell wants an old, used corolla? And then drive it forever? Maybe if I were 18 again?
I did the numbers and either way YOU lose
If you not capable of getting a good job and must keep a car for 10 years, then you made some bad career and educational choices in your life. Not my fault