Great job explaining this I just leased a 2024 Tacoma TRD off road for 399 for 36 month/12k miles MSRP was 56133 . Only 2k down My local dealer is trying to get rid of them as fast as they can.
I wish it was for me. I drive 35K every year so leasing is out of the question. My Toyota Camry is 10 years old and I just hit 350K with minimal repairs. Toyota has been good to me when purchasing a vehicle.
I always do 2 year leases. Short commitment and it allows me to always have the next greatest thing. But I won’t ever actually own a vehicle, but I have no desire in owning a vehicle that I will have to worry about breakdown and high maintenance cost. Labor rate and parts are continuing to go up.. my payments typical stay the same (around the $299-499 range depending on the vehicle and they are always under warranty). I don’t do much driving though (i’m commercial truck driver), so my vehicles don’t tend to get much miles clocked on during the lease.
@@tremec6perfectly fine with me. Most Americans don’t pay off their vehicles anyways. They keep them for a little while, then they trade them in and roll over negative equity.. like he said.. leasing ain’t for everybody.. it works for me cause I have no desire in owning my vehicle as tech is constantly changing and as vehicles get older, they become more expensive to maintain.. I like having new and everything under warranty and I get the next best thing every couple years.. I’ll stick to leasing, I enjoy it 👍🏾
@@deseandudley281 The average time an American owns a car is 12-14 years. So most Americans do NOT have a car loan. 4-5 years of loan payments, 8-9 years of no payments.
@@deseandudley281 That's not me. I drive my vehicles for 10-15 years until the wheels fall off. I pay off my vehicle in 5-6 years based on the financing and then ride them 3x longer after they are paid off. Toyotas are something else. Brakes, tires, oil changes. 350,000 miles and still chugging. Rustproof every year and not one spot of rust. Keep on chugging!
Because of watching your videos this year, I was able to purchase a 2024 Jeep Grand Cherokee at $13k under MSRP, as well as a 2024 Ford Explorer ST at $9k under MSRP (and 1.9% for 60 mos!)... you are awesome
If your cars worth more than what the sum of your payments are, you owe nothing if you get out early. I’ve switched out every 6~ months for the better part of 4 years, never rolled negative, and during 2020-23 I was pulling out major positive equity.
I leased my last two vehicles and paid them off after one payment in order to qualify for the $8000 PHEV government rebate that was only offered if it was leased. I thanked my Mitsubishi dealer for bringing to my attention when I attempted to buy it outright.
If you want a Tesla, never buy, only lease. I learned the hard way. $70k Tesla, still owe $50k, worth $33k and I’ve had it for 2 years now. Goal is to break even this year, and get rid of it.
Those of us without payments still need to put money in savings each month so when it's time for another car we have cash in hand to make the purchase.. Only difference is we get paid interest while saving (currently 3.9% on a high yield savings account) instead of paying a lender interest on a loan.
Also on a lease try not to put any money down. If something ever happens to the car and it’s totaled the lease company covers the gap… meaning whatever you put down will be gone forever and you only helped the lease company.
In Missouri, paying the personal property tax at the end of each calendar year is a point of confusion for auto leases. The leasing company sometimes pays the wrong jurisdiction, and it can take weeks to untangle the mess.
Great Video, here in Canada, Leasing fell by the wayside about 10 to 15 years ago and has now sort of made a recovery. The biggest issue with leasing was most car dealerships wanted a 48 month lease so you would be out of warranty, and on the hook for new tires etc. If you are a business then Leasing makes total sense and if you are private then its how you feel about having new cars etc every 2 to 3 years and thats ok too as long as you are aware of the limitations. The biggest issue with leasing and to some degree owned cars as well is the perception that if being leased the vehicle does not need to be maintained.
FWIW, per my accountant, for a $50,000 vehicle it will take 7.5 years to break even on the purchase. After 7.5 years, you are financially better off owning vs leasing for that period (with the expectation that you will own the car until it the upkeep exceeds its value, which he says averages 14 years or 180,000 miles, on average). I buy my cars, having owned all five between 14-18 years (all were Toyota/Lexus).
In a scenario with an equivalent down payment, leasing is ALWAYS gong to mean lower payments. A lease is basically financing part of the car, where as a finance is the full thing. Leasing isn't always the best option for every person, but even a bad lease with bad residuals and a bad money factor will still prove to be cheaper than a finance if you're putting the same amount down
At lease end you will have to come up with thousands for the next lease. A never ending cycle of monthly payments, AND fees! If you end a lease and move on, more fees at lease end (none waived). Sales tax, DMV fees, and more will be a recurring cost.
I love leasing. I'm on my 3rd lease with Volkswagen and it has been great. If I decide to not get another VW, my dealership said I can go to any of their dealerships and get another brand.
I have "bought" two brand new cars. My first one was a 2019 Tundra SX. Life threw me some curveballs, and a year away from having it paid off I had to trade it in. I got laid off from a good paying job of 10 years during the covid plandemic. I got a decent amount of money for it, and now rock a 2023 Camry. My goal is to pay it off and have a relatively dependable vehicle so I dont have a car payment (Hence why I went with toyota). But life happens sometimes :(.
I leased for the first time; Toyota offered 6K off the lease price of our 2024 RAV 4 Prime XSE (they took another grand off as well as I am a repeat customer). We traded in our 2021 RAV 4 Hybrid XSE for 31K(paid off), set up payments of 360/month for three years (15K/year miles) through TFS. I am doing double payments each month (no fee for early payoff from Toyota) to pay it off in 18 months. And the buy price in 18 months will be about 28K. They then cut me a check for 15 K (because the trade in was much higher then requested amount and as retired educators we don't drive that much per year), I threw in a little extra and paid off our house! And in 18 months I will buy our Prime. Thought long and hard but decided to go for it.
An idea for the wall, if you stay there for a few years. People that are returning customers should weite on the wall again but in a different color that stands out. To signify a returning loyal customer
He's a car salesman. Only 20% of people even qualify for a "Lease". Leases have less liability. If it's a lemon, you're not on the hook when the lease is over. You possibly could get out early if it's determined to be a lemon. If at the end of the lease, if you want to purchase that vehicle, you will have the first option to purchase it at fair market value. Again, leasing is only for the top 20% of buyers with good credit. ❤
I'm 61 years old and would never lease . I work full time and usually drive around 10,000 miles annually for weekly driving .. however weekend trips and vacation trips to the beach, mountains is unknown and for since I have been in my 20's I have driven between 20-25k miles per year. I treat my cars right and some I have gotten 200, 300 and close to 400,000 miles out of them without any major expenses. A few of my cars have been totaled in my lifetime by some weird things , not my fault. I usually pay off my cars quickly . I did my own math and buying for me is always the Winner !!
I’m 60 and have traditionally been a buyer until my prior and current vehicle. I’ve always had a second “work “ car, so I’m always under mileage at turn in time. I realize that I probably should have been earlier, because I would never keep my financed car more than 2 or 3 years.😊
I would disagree with the no equity built up for leasing. I lease a Toyota every time and I always have positive equity on my car prior to lease end. Then I trade it in for another Toyota and the positive equity is my down payment for the next Toyota lease and lowers my payment. Most people think you just turn it in and that's it even if it is worth more than the residual value. Yes, it makes sense to end the lease and walk away when there is negative equity.
@@TreyMKE I do the same. I never put my own money down on a lease and roll it into the next one. Adds up when you lease 4 cars and each time you have $2000-4,000 positive equity to roll into next lease.
I told people to get a lease if they always have a car payment or if they trade their car in upside-down. I buy used cars between 100,000-125,000 miles and within five years old. I look for cars that are well maintained. I will buy an extended warranty depending on what has been replaced. I need towing and a transmission put under strain, especially in the southern United States, is ready for a rebuild after 100,000 miles. Most engines out there are pretty reliable as long as they have fresh oil, the right amount of oil, and clean air to breathe. I buy Buick and Ford trucks because their owners are pretty good about keeping records. Im buying a 2019 Buick Enclave Avenir tomorrow. I picked that one because it comes with maintenance records. I also know that it was used to tow a 4,000 lb camper trailer twice a year. It was traded in because the couple bought a new trailer because they got tired of living in a 20' one. I waited a year before something popped up. My girlfriend and I bought a 2015 Chevy Equinox with over 200,000 miles on it for $3000 to keep us in a car until then. The transmission is hinting that it wants to go soon. It'll cost me $500.00 to fix it. More if I can find the computer I need to reprogram the transmission. Salespeople, your customers love to talk about their vehicles and toys. It's easier to sell the car a little old lady drove to church on Sunday than it is a red sedan. Don't lie, though. The added bonus is you're making a "friend." Also, convince your dealership to reimburse meals if they don't already. I sold a car to every person I took to breakfast or dinner. They may not have been able to purchase the car, but I got a signature, and the finance manager was able to look for financing. I would even get some to fill up the gas tank. This was during late night deals. They would usually get ripped off on the back-end. If someone fills the tank up, even though they will be reimbursed, they are buying the car. This technique won't work if you have 24-hour gas stations or you don't have a contract with a gas station.
Very informative. You have answered almost all my questions. Thank you. Ive thought about leasing but then again I like the thought of keeping my vehicle. Something of having a title to a vehicle makes me happy. Hence why i have 6 vehicles I own with titles. Why 6, you may ask? Because that's all my driveway can fit 😂
I have never leased a vehicle but it seems that we are moving away from someone actually owning a vehicle even if they purchase it. The carmakers are adopting a subscription service for heated seats, remote start, etc. Modifying a new car is not simple with parts having to be coded into the system of the vehicle. Similar to owing a home computer a person may own the car but agrees to the terms of the software agreement for the car to function. Considering all of that with an ICE vehicle it is a toss up whether to buy or lease. However when it comes to EV’s it is better to lease since they depreciate very quickly.
lease payments are not set in stone, my ford lease went from $480 mo to $385 mo by simply telling them dodge could do it cheaper, I did break the golden rule and was buying based on a payment, but it was my first lease and it did work out in my favor. but you can most certainly negotiate a lease payment without any other changes in $ down or cost of vehicle
Imagine a car dealership telling you that you are going to build equity in a vehicle... Most people roll in all their taxes and fees and they depreciate as soon as you drive them off the lot. You're never gaining monetary value.
Very informative video. I, however, am still rocking my 1989 Honda Crx HF with over 385,000 breakdown free miles on the odometer. So, no leases for me. No new technology to break. So, I wouldn't even recognize an air bag if it hit me in the face. With that being said, it is nice to drive stress free because I don't worry if the car is going to breakdown on me. It never has so far. If you don't want to be seen in my car, then I would refer to you as a pedestrian. I will be fine either way.
@@ChevyDude I just went from New Orleans to Vancouver, Canada and back. I got back less than a week ago. The car has been loyal to me and I am loyal to it. I take the car anywhere, any time, and stress free. Thanks for your generous reply. I don't miss any of your videos.
Trading in a leased vehicle typically doesn’t happen unless you have significant equity in the lease, which is uncommon. Additionally, you don’t receive a tax credit when trading in a leased vehicle. Keep in mind, if you lease a vehicle for 3 years and then decide to purchase it, adding another 5 years of payments, you’re essentially committing to 8 years of payments in total.
I’m leasing now and I’m not to sure what to do next I have a 21 Colorado and I like it cause it has the long bed it’s easier for my 12ft kayak I may go over the message so I have to be careful
If you're over mileage on your lease at the end, you have to pay for the excess miles. If you turn your leased vehicle in way under miles allowed, you get nothing. Fair? I DON'T THINK SO!!!
I'm curious about this issue because I saw on another video that resale scammers are using trouble code scanners to roll back mileage on used vehicles that they want to sell for higher prices. What stops a customer from doing the same thing on a lease? Drive it 100K miles and reset the electronic odometer to 30K right before they return it. 😮
The one thing no one ever talks about and forgets is maintenance cost. Yea there’s paying off the car at 30Gs but how much did you spend on top of that 30Gs for maintenance. What about leasing, what happens when three years go by and the car needs tires now. Do you get charged for that too?
Actually, the best and Cheapest option is to buy a car and then in about 4-5 yrs trade it in. Comes out cheaper than lease and even more cheaper than finance. Plus if you get a Hybrid, guarantee on hybrid system is 10 yrs. So because of that it looses about 50-55% of its value in 60 months. And costs you at lease $200 or more less monthly at the end.
Can’t really use the “no equity” con anymore. While that was true for a long time, things have changed in the automotive market. I’ve sold 2 cars that I leased since Covid, and made thousands of dollars by doing so.
I've watched alot of your videos but not seeing 1 on What should we do if buying a new SUV. Kinda confused on the sticker price and if or how to get it lower.(I know there is usally mark ups but not sure if all are needed) If you could make a quick video on some tips for this it would be much appreciated.
Tesla now has option to buy once the lease is over. So, should you lease first and then buy if that was the intent originally? Usually the interest rates are lower to lease. Just curious. I’m in the market to get a Model Y and trying to determine which way would be best.
When buying a car, you get EVERYTHING back that you paid in payments except interest and depreciation. Then you can " upgrade" by using the car as a down payment. You can turn that Chevy Cruz into a Range Rover after certain amount of loans. Not that that choice of swap is a good idea
Hi. I'm 75 and drive less than 10k/yr. I'll probably be driving for 10-plus years. I'm working as a driver. I earn about $65k/yr. I'm not sure if I should lease or finance.
Another advantage of leasing is a quick way to get rid of negative equity in a car. I had a older car that I owned for way too much, traded it in on a lease and in 3 years that negative equity is gone, and I’ll be in a better financial situation when I go to get a new car, weather I lease or buy.
I’m on to my 3rd lease car. The first one was thru my job and the payments came out of my weekly pay. I will never get a car thru work again I lost all my no claims and got two tax bills. My second car was over 3 years not 4 I had to get a wheel fixed not a big deal they dropped my current car off and picked my old car up. I was going to buy a car but discovered the prices were un real, while I could afford the £500 a month I was not willing to pay that. So I leased another car. I got the maintenance package this time and it is also over 4 years. I didn’t get an unexpected bill at the end of either lease. Only bad thing that was with my first lease was I lost my no claims as my car insurance was included in the pice. Leasing works for me it’s a lower cost yes I do have to take the car to a garage of their choosing but they will have to give me a hire car. I don’t really do the miles that I select and I’m always under the yearly mileage. In 3 years time I will look into buying again but for now leasing works for me. I like a new car every 3/4 years so it suits me perfectly. It’s not for everyone but it works for me. With the lease company I’m with you can pick any car you want . I don’t want am electric car I don’t do the miles to warrant a diesel and if I have my way I will never own an electric car I would rather do without a car and use public transport even if that means having to take a travel pill before getting on a bus than own an electric one.
How about wanting a new model? Like first year model and not being sure about it? Like the new Ram with the Hurricane engine. Don't know if I want to go away from V8 and may stay with GM.
I did lease a car once and it will be my last leasing vehicle. I like being able to modified my vehicles. They put so many restrictions that even after you are done with your lease there is good chance you broke 1 or 2 of those restrictions and end up paying. This is true for high end vehicles.
Do you still have to pay property taxes on each leased vehicle/ tag registration ? if so that would add up to total expenses as well. I am not sure how that works.
Im not happy to pay $600 per month when I brought my 2023 Subaru Crosstrek two years ago. This $600 per month is cover all my paycheck once a month that I cant put any money in my saving account. Im thinking to trade this car to low my payment down. I do really like driving the Crosstrek but not paying $600 per month. Do you think if I should trade that car to low my payment down? Subaru dealership said they can low my payment down but not sure which way to go. My parent did lease before and they have no problem. I do like change cars every 2 years. I dont drive much only for work 30 min to work and 30 min to home. I dont know what is best way to low my payment down.
This was a great cudeo and very informative and i enjoyed this alot and the leasing thing ive thought about it but i dont think it would work for me at all granres i would love to be able to ride around in a brand new car but ifs to expensive in the long run. Also is there an option to where if u wanan keep the leased car u can purchase at the end of ur lease? Anyways thanks for sharing keep up the great work much love to ya mike have a good one take care god bless and I will see ya on the next one
No you can’t. At the end of your term you have a residual value. It’s closed end so there for you either have equity or you don’t. There is NO WAY to “build”. Any money down on a lease only lowers the payment and any extra money paid towards a lease only lowers the future payments.
You forgot to mention, almost all leases now require a down payment, Yes a down payment even on a lease. Big miss on "Chevy Dude", for not even mentioning it!
In the video you talked about if you end the lease early you pay those fees for ending said lease. I am active duty in the Army and as such I have had to use my PCS orders to cancel an apartment lease before. Is that something you can use if you are military for ending a lease early or is there zero way to get around paying those fees for ending your car lease early? I appreciate your videos sir they have definitely helped me a lot.
Under some circumstances, if you're a member of the military and you're ordered to move or you're deployed, the federal Servicemembers Civil Relief Act allows you to cancel a car lease. I’ve never seen it done and I would definitely find some professional help on that.
@ChevyDude Awesome, thank you for your quick response to my question sir I greatly appreciate it. I'll look into this more as I prepare to buy a car within the next few months and keep it in mind for the future. Thank you again!
If you lease a car and come in under the mileage at the end of the lease will you get money back? If you go over they will charge you per mile Just wondering
I've actually built equity in a least car and used that Equity to lease another car, so that's an incorrect statement.Of course you need to know what you're doing to get that to work
And yes you can build equity when you lease, you if you had an accident and your vehicle was totaled for example the government isn't going to refund you back the taxes that you paid but on a lease you are paying taxes every month instead of upfront, so that why this I leased 10 RAV4s between 2022 and 2023 and I made money on selling all of them to other dealers, because by leasing it my pay off was lower, why because I hadn't paid off all the sales taxes expected for my first month Sales Tax.... I'll save the Rest for the Video.
Yeah but Leasing you have to put at least 7k before getting the good deal. I went to try to get a Nissan Pathfinder and thats what they told me, needed more space.
I am looking for my first vehicle, I have enough saved for a 20-30% down payment . I know getting a new car isn’t necessarily advised but I do like safety features in the newer models. I am wondering if am better of financing with 0 down and invest my down payment in a etf with a good track record that can bring in regular dividends over the 5 years and in essence help make my financing less costly in interest over the 5 year term? Any help would be appreciated
I am today, since last year a work from home guy. So I rarely even drive. Right now, I technically don’t need a car, in the future, maybe later this year or next year, I may have a hybrid situation. Where I would drive a couple days a week, but not sure. I want to pay the least, and I am a tech guy. Don’t sound like a lease guy versus a bug guy?
Normal cars that are daily driven, not used for business and are not collectible are never an investment, they are liabilities. An investment is a tool that generates value and income, not something that loses 20-30% within a year.
About 4 leases back, I had a 36 month lease at 15k miles per year. I believe I was saving 30$ per month vrs a 24 month lease. The savings wasn’t worth it. I had to purchase extra warranties to cover the car after 36k miles, I had to do brake pads, replace tires, and a car battery that wasn’t covered as it was deemed a wearable part. I have found it safer to stay at the 24month 15k per year. This was a ford lease. Let’s say the 36-15k a year cost me 1150 in maintenance plus the warranty to cover after 36k. Any thoughts on this.? My last 3 I have kept at 24 months.
Also, I have to order my next car after the first. It is a 2025 expedition, ford has the lease rate at the standard 8%, this is with an 800plus credit score, doing the math with the rate set at the standard rate with it being a restyled vehicle, the math is telling me to lease at 10,500 per year and pay the difference on miles at turn in, because the rate is so high, the less money upfront on the lease is a savings , vrs on the backside. Hopefully a better rate will be available on delivery, possibly in April vrs what I’m at when the car is ordered. Any direction would be appreciated.
I'm with Dave Ramsey, for a reason that Dave and Chevy Dude have both overlooked. If I pay $15,600 for a Saturn, and drive it 25+ years (no wife, kids, lifestyle changes), I can skip several generations of car payments -- whether I bought or leased. Cars get more expensive, and expensive to repair and insure, with each generation. When I am ready for another car, I'll probably get a lower-priced used car, and stay below the average US household car budget.
Leasing downsides: Any scratch, scuff, or door ding you will be charged for. Get laid off, new job longer commute, easy to go over on miles. Employer moves to new location. Wife had 30 mile to work each day, new location was 50. From 60 total to 100 per day. Working from home and lease in 2023. Now, required to come into office every day. Will you go over on miles? After 3 years, decide you love it and want to keep it. Finance for 36 months. You make payments on it for 72 months! More after these, not enough space to cover them.
you are wrong about Ford. I have a lease through Ford credit and I can call them direct ro get a payoff so can the dealer that I am buying the new car from. I know this because I did it recenetly. The Ford dealer that I leased the vehicle from can easily check my payoff at anytime.
Nobody should lease! Most people are unable to save for retirement. Most people don't have enough in the bank to carry themselves through a 3 month emergency. Buy and maintain your car. Keep it for at least 10 years (if not more). That's how you'll get ahead of the game.
I’ve been leasing since 2005 but since my latest lease in oct 2023. I realize I prefer to buy so I can flip the car whenever I want. The current rates are insane on leasing.
That was a super honest overview! You gave both sides a fair shake. I'm a buyer but that doesn't mean that's the best bet for everyone.
Great job explaining this I just leased a 2024 Tacoma TRD off road for 399 for 36 month/12k miles MSRP was 56133 . Only 2k down My local dealer is trying to get rid of them as fast as they can.
THAT'S a great deal how come come some deals are asking for at least 5-7k before signing??
Spot on with all the info. I've leased several vehicles and I liked it because I don't drive a lot and get to drive a nice new vehicle each time.
I wish it was for me. I drive 35K every year so leasing is out of the question. My Toyota Camry is 10 years old and I just hit 350K with minimal repairs. Toyota has been good to me when purchasing a vehicle.
I always do 2 year leases. Short commitment and it allows me to always have the next greatest thing. But I won’t ever actually own a vehicle, but I have no desire in owning a vehicle that I will have to worry about breakdown and high maintenance cost. Labor rate and parts are continuing to go up.. my payments typical stay the same (around the $299-499 range depending on the vehicle and they are always under warranty). I don’t do much driving though (i’m commercial truck driver), so my vehicles don’t tend to get much miles clocked on during the lease.
Within 3-4 lease contracts, you’re about 40k-60k and nothing to show for.
@@tremec6perfectly fine with me. Most Americans don’t pay off their vehicles anyways. They keep them for a little while, then they trade them in and roll over negative equity.. like he said.. leasing ain’t for everybody.. it works for me cause I have no desire in owning my vehicle as tech is constantly changing and as vehicles get older, they become more expensive to maintain.. I like having new and everything under warranty and I get the next best thing every couple years.. I’ll stick to leasing, I enjoy it 👍🏾
So you listed all the reason why you don't buy but then follow up with “I don't do much driving.” makes sense. 😂
@@deseandudley281 The average time an American owns a car is 12-14 years. So most Americans do NOT have a car loan. 4-5 years of loan payments, 8-9 years of no payments.
@@deseandudley281 That's not me. I drive my vehicles for 10-15 years until the wheels fall off. I pay off my vehicle in 5-6 years based on the financing and then ride them 3x longer after they are paid off. Toyotas are something else. Brakes, tires, oil changes. 350,000 miles and still chugging. Rustproof every year and not one spot of rust. Keep on chugging!
Because of watching your videos this year, I was able to purchase a 2024 Jeep Grand Cherokee at $13k under MSRP, as well as a 2024 Ford Explorer ST at $9k under MSRP (and 1.9% for 60 mos!)... you are awesome
If your cars worth more than what the sum of your payments are, you owe nothing if you get out early. I’ve switched out every 6~ months for the better part of 4 years, never rolled negative, and during 2020-23 I was pulling out major positive equity.
I leased my last two vehicles and paid them off after one payment in order to qualify for the $8000 PHEV government rebate that was only offered if it was leased. I thanked my Mitsubishi dealer for bringing to my attention when I attempted to buy it outright.
If you want a Tesla, never buy, only lease. I learned the hard way. $70k Tesla, still owe $50k, worth $33k and I’ve had it for 2 years now. Goal is to break even this year, and get rid of it.
I will never lease it is a waste of money
I will never buy an EV
@@tommysmith2719 if you own a business, leasing makes more sense.
Better than Maserati or any British brand
@@_SHANE_just grab a Maserati 3 or 4 years old .. It'll be 70% off 😂
Most of us will always have a payment especially in states with rust problems,so get a lower monthly and no worries
Those of us without payments still need to put money in savings each month so when it's time for another car we have cash in hand to make the purchase.. Only difference is we get paid interest while saving (currently 3.9% on a high yield savings account) instead of paying a lender interest on a loan.
Also on a lease try not to put any money down. If something ever happens to the car and it’s totaled the lease company covers the gap… meaning whatever you put down will be gone forever and you only helped the lease company.
In Missouri, paying the personal property tax at the end of each calendar year is a point of confusion for auto leases. The leasing company sometimes pays the wrong jurisdiction, and it can take weeks to untangle the mess.
Great Video, here in Canada, Leasing fell by the wayside about 10 to 15 years ago and has now sort of made a recovery. The biggest issue with leasing was most car dealerships wanted a 48 month lease so you would be out of warranty, and on the hook for new tires etc. If you are a business then Leasing makes total sense and if you are private then its how you feel about having new cars etc every 2 to 3 years and thats ok too as long as you are aware of the limitations. The biggest issue with leasing and to some degree owned cars as well is the perception that if being leased the vehicle does not need to be maintained.
FWIW, per my accountant, for a $50,000 vehicle it will take 7.5 years to break even on the purchase. After 7.5 years, you are financially better off owning vs leasing for that period (with the expectation that you will own the car until it the upkeep exceeds its value, which he says averages 14 years or 180,000 miles, on average). I buy my cars, having owned all five between 14-18 years (all were Toyota/Lexus).
Same like me. Toyota rocking 15 years and going!
Lease payments are not necessarily cheaper than purchase. Depends on many factors. Correct (?)
In a scenario with an equivalent down payment, leasing is ALWAYS gong to mean lower payments. A lease is basically financing part of the car, where as a finance is the full thing. Leasing isn't always the best option for every person, but even a bad lease with bad residuals and a bad money factor will still prove to be cheaper than a finance if you're putting the same amount down
4 leases and have never had the truck the entire leasing period. Never. But that’s just me. Peace.
I understand a business wanting to lease. I can't comprehend paying a lease personally spending all that money just to return the car then start over
is just like renting a house or an apartment.
At lease end you will have to come up with thousands for the next lease. A never ending cycle of monthly payments, AND fees! If you end a lease and move on, more fees at lease end (none waived). Sales tax, DMV fees, and more will be a recurring cost.
I love leasing. I'm on my 3rd lease with Volkswagen and it has been great. If I decide to not get another VW, my dealership said I can go to any of their dealerships and get another brand.
I have "bought" two brand new cars. My first one was a 2019 Tundra SX. Life threw me some curveballs, and a year away from having it paid off I had to trade it in. I got laid off from a good paying job of 10 years during the covid plandemic. I got a decent amount of money for it, and now rock a 2023 Camry. My goal is to pay it off and have a relatively dependable vehicle so I dont have a car payment (Hence why I went with toyota). But life happens sometimes :(.
I leased for the first time; Toyota offered 6K off the lease price of our 2024 RAV 4 Prime XSE (they took another grand off as well as I am a repeat customer). We traded in our 2021 RAV 4 Hybrid XSE for 31K(paid off), set up payments of 360/month for three years (15K/year miles) through TFS. I am doing double payments each month (no fee for early payoff from Toyota) to pay it off in 18 months. And the buy price in 18 months will be about 28K. They then cut me a check for 15 K (because the trade in was much higher then requested amount and as retired educators we don't drive that much per year), I threw in a little extra and paid off our house! And in 18 months I will buy our Prime. Thought long and hard but decided to go for it.
Good morning Chevy Dude,,,,,,,,,Yeee Yeee 😊
An idea for the wall, if you stay there for a few years. People that are returning customers should weite on the wall again but in a different color that stands out. To signify a returning loyal customer
Hi, what if I want to lease a vehicle to have lower monthly and at the end of the lease, I just buy the car outright ?
Thank you. This is so informative.
It's misinformation!
He's a car salesman. Only 20% of people even qualify for a "Lease". Leases have less liability. If it's a lemon, you're not on the hook when the lease is over. You possibly could get out early if it's determined to be a lemon. If at the end of the lease, if you want to purchase that vehicle, you will have the first option to purchase it at fair market value. Again, leasing is only for the top 20% of buyers with good credit. ❤
My old leases were easy.. now it sounds like brands are making the lease really challenging to get out or trading the car.
Glad you made this video!
I'm 61 years old and would never lease . I work full time and usually drive around 10,000 miles annually for weekly driving .. however weekend trips and vacation trips to the beach, mountains is unknown and for since I have been in my 20's I have driven between 20-25k miles per year. I treat my cars right and some I have gotten 200, 300 and close to 400,000 miles out of them without any major expenses. A few of my cars have been totaled in my lifetime by some weird things , not my fault. I usually pay off my cars quickly . I did my own math and buying for me is always the Winner !!
I’m 60 and have traditionally been a buyer until my prior and current vehicle. I’ve always had a second “work “ car, so I’m always under mileage at turn in time. I realize that I probably should have been earlier, because I would never keep my financed car more than 2 or 3 years.😊
Leasing is perpetual car payments.
I would disagree with the no equity built up for leasing. I lease a Toyota every time and I always have positive equity on my car prior to lease end. Then I trade it in for another Toyota and the positive equity is my down payment for the next Toyota lease and lowers my payment. Most people think you just turn it in and that's it even if it is worth more than the residual value. Yes, it makes sense to end the lease and walk away when there is negative equity.
Agreed, however; I would say take the positive equity at lease end in the form of cash back. Putting $$ down on leases are never a good idea.
@BradleyBoardwine I would agree but I also can't afford a $600+ lease payment for a basic RAV4.
Agreed. Sold our 2021 rav 4 to carmax after 2 years and got around $4600 back. Great amount of equity for a 2 year lease with no money down.
@@TreyMKE I do the same. I never put my own money down on a lease and roll it into the next one. Adds up when you lease 4 cars and each time you have $2000-4,000 positive equity to roll into next lease.
Thank you for all your videos and neutral, professional advice. -:)
I told people to get a lease if they always have a car payment or if they trade their car in upside-down.
I buy used cars between 100,000-125,000 miles and within five years old. I look for cars that are well maintained. I will buy an extended warranty depending on what has been replaced. I need towing and a transmission put under strain, especially in the southern United States, is ready for a rebuild after 100,000 miles. Most engines out there are pretty reliable as long as they have fresh oil, the right amount of oil, and clean air to breathe.
I buy Buick and Ford trucks because their owners are pretty good about keeping records. Im buying a 2019 Buick Enclave Avenir tomorrow. I picked that one because it comes with maintenance records. I also know that it was used to tow a 4,000 lb camper trailer twice a year. It was traded in because the couple bought a new trailer because they got tired of living in a 20' one. I waited a year before something popped up. My girlfriend and I bought a 2015 Chevy Equinox with over 200,000 miles on it for $3000 to keep us in a car until then. The transmission is hinting that it wants to go soon. It'll cost me $500.00 to fix it. More if I can find the computer I need to reprogram the transmission.
Salespeople, your customers love to talk about their vehicles and toys. It's easier to sell the car a little old lady drove to church on Sunday than it is a red sedan. Don't lie, though. The added bonus is you're making a "friend." Also, convince your dealership to reimburse meals if they don't already. I sold a car to every person I took to breakfast or dinner. They may not have been able to purchase the car, but I got a signature, and the finance manager was able to look for financing. I would even get some to fill up the gas tank. This was during late night deals. They would usually get ripped off on the back-end. If someone fills the tank up, even though they will be reimbursed, they are buying the car. This technique won't work if you have 24-hour gas stations or you don't have a contract with a gas station.
Very informative. You have answered almost all my questions. Thank you. Ive thought about leasing but then again I like the thought of keeping my vehicle. Something of having a title to a vehicle makes me happy. Hence why i have 6 vehicles I own with titles. Why 6, you may ask? Because that's all my driveway can fit 😂
Excellent video. Thank you
I have never leased a vehicle but it seems that we are moving away from someone actually owning a vehicle even if they purchase it. The carmakers are adopting a subscription service for heated seats, remote start, etc. Modifying a new car is not simple with parts having to be coded into the system of the vehicle. Similar to owing a home computer a person may own the car but agrees to the terms of the software agreement for the car to function. Considering all of that with an ICE vehicle it is a toss up whether to buy or lease. However when it comes to EV’s it is better to lease since they depreciate very quickly.
lease payments are not set in stone, my ford lease went from $480 mo to $385 mo by simply telling them dodge could do it cheaper, I did break the golden rule and was buying based on a payment, but it was my first lease and it did work out in my favor. but you can most certainly negotiate a lease payment without any other changes in $ down or cost of vehicle
Imagine a car dealership telling you that you are going to build equity in a vehicle... Most people roll in all their taxes and fees and they depreciate as soon as you drive them off the lot. You're never gaining monetary value.
Start's off the video by walking outside, the next frame is Mike at his Desk. 😂
Very informative video. I, however, am still rocking my 1989 Honda Crx HF with over 385,000 breakdown free miles on the odometer. So, no leases for me. No new technology to break. So, I wouldn't even recognize an air bag if it hit me in the face. With that being said, it is nice to drive stress free because I don't worry if the car is going to breakdown on me. It never has so far. If you don't want to be seen in my car, then I would refer to you as a pedestrian. I will be fine either way.
That’s amazing. My friend has an HF and he get stupid MPG. He loves that thing.
You will recognize the steering wheel when it hits you in your face...sorry, couldnt resist.
@@ChevyDude I just went from New Orleans to Vancouver, Canada and back. I got back less than a week ago. The car has been loyal to me and I am loyal to it. I take the car anywhere, any time, and stress free. Thanks for your generous reply. I don't miss any of your videos.
You can always buy the lease vehicle or trade it at the end of the lease
Trading in a leased vehicle typically doesn’t happen unless you have significant equity in the lease, which is uncommon. Additionally, you don’t receive a tax credit when trading in a leased vehicle. Keep in mind, if you lease a vehicle for 3 years and then decide to purchase it, adding another 5 years of payments, you’re essentially committing to 8 years of payments in total.
I have never kept a vehicle the full lease or ever paid a disposition fee. I leased to keep payments low to buy when I could afford it and get 0%.
I’m leasing now and I’m not to sure what to do next I have a 21 Colorado and I like it cause it has the long bed it’s easier for my 12ft kayak I may go over the message so I have to be careful
Don’t forget about the usually large down payment of anywhere between three to 6k
If you're over mileage on your lease at the end, you have to pay for the excess miles. If you turn your leased vehicle in way under miles allowed, you get nothing. Fair? I DON'T THINK SO!!!
I'm curious about this issue because I saw on another video that resale scammers are using trouble code scanners to roll back mileage on used vehicles that they want to sell for higher prices. What stops a customer from doing the same thing on a lease? Drive it 100K miles and reset the electronic odometer to 30K right before they return it. 😮
I always lease and break it if I need to thanks to the SSCRA.
The one thing no one ever talks about and forgets is maintenance cost. Yea there’s paying off the car at 30Gs but how much did you spend on top of that 30Gs for maintenance.
What about leasing, what happens when three years go by and the car needs tires now. Do you get charged for that too?
Great, Video!! Thank you
If I'm buying a car outright then why am I paying a monthly fee for it?
Actually, the best and Cheapest option is to buy a car and then in about 4-5 yrs trade it in. Comes out cheaper than lease and even more cheaper than finance. Plus if you get a Hybrid, guarantee on hybrid system is 10 yrs. So because of that it looses about 50-55% of its value in 60 months. And costs you at lease $200 or more less monthly at the end.
Can’t really use the “no equity” con anymore. While that was true for a long time, things have changed in the automotive market. I’ve sold 2 cars that I leased since Covid, and made thousands of dollars by doing so.
I've watched alot of your videos but not seeing 1 on What should we do if buying a new SUV. Kinda confused on the sticker price and if or how to get it lower.(I know there is usally mark ups but not sure if all are needed) If you could make a quick video on some tips for this it would be much appreciated.
Leasing is the most expensive way to own a vehicle. Only buy. Only pay cash.
Boom! Finally the truth!!
Why leave out lease rates and rebates? That is a huge factor in determining a monthly payment.
Tesla now has option to buy once the lease is over. So, should you lease first and then buy if that was the intent originally? Usually the interest rates are lower to lease. Just curious. I’m in the market to get a Model Y and trying to determine which way would be best.
When buying a car, you get EVERYTHING back that you paid in payments except interest and depreciation. Then you can " upgrade" by using the car as a down payment. You can turn that Chevy Cruz into a Range Rover after certain amount of loans. Not that that choice of swap is a good idea
Hi. I'm 75 and drive less than 10k/yr. I'll probably be driving for 10-plus years. I'm working as a driver. I earn about $65k/yr. I'm not sure if I should lease or finance.
Another advantage of leasing is a quick way to get rid of negative equity in a car. I had a older car that I owned for way too much, traded it in on a lease and in 3 years that negative equity is gone, and I’ll be in a better financial situation when I go to get a new car, weather I lease or buy.
What if you want to pay cash for the car? Does it even make sense to lease?
I’m on to my 3rd lease car. The first one was thru my job and the payments came out of my weekly pay. I will never get a car thru work again I lost all my no claims and got two tax bills. My second car was over 3 years not 4 I had to get a wheel fixed not a big deal they dropped my current car off and picked my old car up. I was going to buy a car but discovered the prices were un real, while I could afford the £500 a month I was not willing to pay that. So I leased another car. I got the maintenance package this time and it is also over 4 years. I didn’t get an unexpected bill at the end of either lease. Only bad thing that was with my first lease was I lost my no claims as my car insurance was included in the pice. Leasing works for me it’s a lower cost yes I do have to take the car to a garage of their choosing but they will have to give me a hire car. I don’t really do the miles that I select and I’m always under the yearly mileage. In 3 years time I will look into buying again but for now leasing works for me. I like a new car every 3/4 years so it suits me perfectly. It’s not for everyone but it works for me. With the lease company I’m with you can pick any car you want . I don’t want am electric car I don’t do the miles to warrant a diesel and if I have my way I will never own an electric car I would rather do without a car and use public transport even if that means having to take a travel pill before getting on a bus than own an electric one.
How about wanting a new model? Like first year model and not being sure about it? Like the new Ram with the Hurricane engine. Don't know if I want to go away from V8 and may stay with GM.
I did lease a car once and it will be my last leasing vehicle. I like being able to modified my vehicles. They put so many restrictions that even after you are done with your lease there is good chance you broke 1 or 2 of those restrictions and end up paying. This is true for high end vehicles.
Haven't checked out ur channel since I was in project v
What about down payment, can you elaborate on that?
Question Chevy Dude or anyone...how can you tell how long a new car has been on the lot?
Do you still have to pay property taxes on each leased vehicle/ tag registration ? if so that would add up to total expenses as well. I am not sure how that works.
Im not happy to pay $600 per month when I brought my 2023 Subaru Crosstrek two years ago. This $600 per month is cover all my paycheck once a month that I cant put any money in my saving account. Im thinking to trade this car to low my payment down. I do really like driving the Crosstrek but not paying $600 per month. Do you think if I should trade that car to low my payment down? Subaru dealership said they can low my payment down but not sure which way to go. My parent did lease before and they have no problem. I do like change cars every 2 years. I dont drive much only for work 30 min to work and 30 min to home. I dont know what is best way to low my payment down.
This was a great cudeo and very informative and i enjoyed this alot and the leasing thing ive thought about it but i dont think it would work for me at all granres i would love to be able to ride around in a brand new car but ifs to expensive in the long run. Also is there an option to where if u wanan keep the leased car u can purchase at the end of ur lease? Anyways thanks for sharing keep up the great work much love to ya mike have a good one take care god bless and I will see ya on the next one
You can build equity in a lease
No you can’t. At the end of your term you have a residual value. It’s closed end so there for you either have equity or you don’t. There is NO WAY to “build”. Any money down on a lease only lowers the payment and any extra money paid towards a lease only lowers the future payments.
You forgot to mention, almost all leases now require a down payment, Yes a down payment even on a lease. Big miss on "Chevy Dude", for not even mentioning it!
In the video you talked about if you end the lease early you pay those fees for ending said lease. I am active duty in the Army and as such I have had to use my PCS orders to cancel an apartment lease before. Is that something you can use if you are military for ending a lease early or is there zero way to get around paying those fees for ending your car lease early? I appreciate your videos sir they have definitely helped me a lot.
Under some circumstances, if you're a member of the military and you're ordered to move or you're deployed, the federal Servicemembers Civil Relief Act allows you to cancel a car lease. I’ve never seen it done and I would definitely find some professional help on that.
@ChevyDude Awesome, thank you for your quick response to my question sir I greatly appreciate it. I'll look into this more as I prepare to buy a car within the next few months and keep it in mind for the future. Thank you again!
there is an old saying- "rich people own thier houses and lease their cars, and poor people own cars and lease (rent) housing".
ive never leased, do u have to return the car to the same dealer or can you return it to another dealer by the same manufacturer?
If you lease a car and come in under the mileage at the end of the lease will you get money back? If you go over they will charge you per mile
Just wondering
I've actually built equity in a least car and used that Equity to lease another car, so that's an incorrect statement.Of course you need to know what you're doing to get that to work
I've heard of people leasing a vehicle for 3 years to see if they like it, and then buy it if so. Seems like more money in long run, any thoughts?
On a lease you can sell it to and different car lot. They just pay it off.
Not with many of the lease companies anymore after 2020.
Leasing is for one to drive a car that they can't afford
And yes you can build equity when you lease, you if you had an accident and your vehicle was totaled for example the government isn't going to refund you back the taxes that you paid but on a lease you are paying taxes every month instead of upfront, so that why this I leased 10 RAV4s between 2022 and 2023 and I made money on selling all of them to other dealers, because by leasing it my pay off was lower, why because I hadn't paid off all the sales taxes expected for my first month Sales Tax.... I'll save the Rest for the Video.
Yeah but Leasing you have to put at least 7k before getting the good deal.
I went to try to get a Nissan Pathfinder and thats what they told me, needed more space.
I am looking for my first vehicle, I have enough saved for a 20-30% down payment . I know getting a new car isn’t necessarily advised but I do like safety features in the newer models. I am wondering if am better of financing with 0 down and invest my down payment in a etf with a good track record that can bring in regular dividends over the 5 years and in essence help make my financing less costly in interest over the 5 year term? Any help would be appreciated
Pay cash for a used car. You are losing money from depreciation and interest. The "spread" you are making is not going to help you build wealth.
@@zachjones2346 thank you for the advice. This is such an important purchase I want to make the best long term decision.
Ok but how about leasing to escape the crazy interest rates? The fed is cutting rates atm and 3 year lease to wait it out.
Still interest in leases, they just call it “Money Factor”
Im thinking of leasing my 1st car.. shooting for an Audi/Porsche.
😂
I think BMW does better leases…. But enjoy either way! I own my Audi and BMW but lease my wife’s Hyundai… mostly cause it’s a Hyundai. 😂
I am today, since last year a work from home guy. So I rarely even drive. Right now, I technically don’t need a car, in the future, maybe later this year or next year, I may have a hybrid situation. Where I would drive a couple days a week, but not sure. I want to pay the least, and I am a tech guy. Don’t sound like a lease guy versus a bug guy?
Also, if you do a 2 year lease versus a 3, like when you buy, does this make your payments go up?
how do salespeople make money moving leases though? I get his the dealership makes money, but what about the sales guy
Leasing has ALWAYS a limited mileage per year. The higher the mileage, the higher the annual quota, and there is always a limit you can not surpasse.
Normal cars that are daily driven, not used for business and are not collectible are never an investment, they are liabilities. An investment is a tool that generates value and income, not something that loses 20-30% within a year.
I drive just enough that leases don't make sense and I pick cars that I get at least a decade of no or low maintenance out of.
You can get lease end buy the car and decide to sell it to carvanna
Buying is better cuz u keep the car as long as u want
About 4 leases back, I had a 36 month lease at 15k miles per year. I believe I was saving 30$ per month vrs a 24 month lease. The savings wasn’t worth it. I had to purchase extra warranties to cover the car after 36k miles, I had to do brake pads, replace tires, and a car battery that wasn’t covered as it was deemed a wearable part. I have found it safer to stay at the 24month 15k per year. This was a ford lease. Let’s say the 36-15k a year cost me 1150 in maintenance plus the warranty to cover after 36k. Any thoughts on this.? My last 3 I have kept at 24 months.
Also, I have to order my next car after the first. It is a 2025 expedition, ford has the lease rate at the standard 8%, this is with an 800plus credit score, doing the math with the rate set at the standard rate with it being a restyled vehicle, the math is telling me to lease at 10,500 per year and pay the difference on miles at turn in, because the rate is so high, the less money upfront on the lease is a savings , vrs on the backside. Hopefully a better rate will be available on delivery, possibly in April vrs what I’m at when the car is ordered. Any direction would be appreciated.
I'm with Dave Ramsey, for a reason that Dave and Chevy Dude have both overlooked. If I pay $15,600 for a Saturn, and drive it 25+ years (no wife, kids, lifestyle changes), I can skip several generations of car payments -- whether I bought or leased. Cars get more expensive, and expensive to repair and insure, with each generation. When I am ready for another car, I'll probably get a lower-priced used car, and stay below the average US household car budget.
and your thoughts on lease with a buyout at the end?
Leasing downsides: Any scratch, scuff, or door ding you will be charged for. Get laid off, new job longer commute, easy to go over on miles. Employer moves to new location. Wife had 30 mile to work each day, new location was 50. From 60 total to 100 per day. Working from home and lease in 2023. Now, required to come into office every day. Will you go over on miles? After 3 years, decide you love it and want to keep it. Finance for 36 months. You make payments on it for 72 months! More after these, not enough space to cover them.
Bought my car in June.. already put 13K miles on it.. so I cannot lease
you are wrong about Ford. I have a lease through Ford credit and I can call them direct ro get a payoff so can the dealer that I am buying the new car from. I know this because I did it recenetly. The Ford dealer that I leased the vehicle from can easily check my payoff at anytime.
I’m referring to non ford dealers.
Exactly. He is wrong about Honda. This is total misinformation
A car is not an “investment”
Nobody should lease! Most people are unable to save for retirement. Most people don't have enough in the bank to carry themselves through a 3 month emergency. Buy and maintain your car. Keep it for at least 10 years (if not more). That's how you'll get ahead of the game.
Can't keep a car for 10 years in the rust belt!!
I’ve been leasing since 2005 but since my latest lease in oct 2023. I realize I prefer to buy so I can flip the car whenever I want. The current rates are insane on leasing.