@T. Way lol I suck at lying. I watch these videos for tips and tricks and walk into a dealer and start talking, forgetting everything I just learned. I'm such a sucker,, I just bought a car I didn't even want! 😩 so here I am, watching more videos... I'd love to lease but it seems pretty confusing.
Leasing is great for those that don’t do insane amount of driving. New car every 3 years, better deals, free maintenance and never have to worry about repairs.
@@MA-fu5tm not free. Let me assure you it's be ng paid for every month. Nothing wrong with leasing and nothing wrong with renting an apartment.... Neither of them are the cheaper way to drive or put a roof over a head... Not a thing wrong with it and if people can afford it what's wrong with that!!
You pretty much confirmed what i was thinking. Financial advice guys always advocate against leases, saying what horrible deals they actually are. But if you are somebody who wants be in a new car every 2 years, then leasing is actually a better deal. Especially if you can expense it with your employer or deduct in for your business. For the first part of my life i was extremely frugal. I hated wasting money on cars. I've bought 2 new cars in the past 20 years, and both of them i drove for 10 years. I took care of them, and they took care of me. I paid each off in 3 years, and it was like driving a free car for 7 years. But now at this point in my life, my investments have done well and my income is much higher than my monthly needs. Plus, i drive only a fraction of what i used to do. I'm starting to think that leasing is an attractive option for me.
I am in financing and I work with many financial people, earning well into the six or even seven figures annually. Almost all of them lease. The so-called "financial advice guys" who advocate against leases are actually entertainers such as Dave Ramsey or Suzy Orman. They are not actual financial guys. They are considered somewhat clownish by actual financial guys. Leasing is not for everyone. Leasing is not a horrible deal. As with any purchase, the qualify of the deal depends on the negotiation ability of the person and the unique needs and wants of the person.
@@jerrylundegaard2592 BS.. How can you discredit Ramsay when you technically just said "leasing is not for everyone", which is what Ramsay says. If you make 6 or 7 figures you can afford to do more things financially. For most people that's not the case and for those people is that Ramsay says don't lease.
@@mr.castle Look for the book called *What Would The Rockefeller's Do* (How the wealthy Get and stay that way and how you can too) by Garrett R Gunderson who takes them to task on giving bad financial advice.
Turning in my first leased vehicle (Toyo. Corolla) Oct. 2021. Only driver, pristine condition with the exception of a sign scratch on the bumper (a business card can cover it - and I have 5k wear n tear warranty coverage). I will never buy another car again. All my maintenance and washing (gap insur. too) is covered. In my 50s I'm done dealing with pre-used cars in high mileage (75k plus) and repair shops. LOVE leasing. Glad I found this channel. New sub. Thx for the information.
There is also a hidden benefit to leasing...If you have an accident where the car isn't totaled. You don't need to worry about diminished value. Just get it fixed and turn it in at the end of the lease. No negative equity worries.
Thank you very much for a great video and some very good information. I just do not want to ever have a car without a warranty. Buying a car is one of the worst investments you'll ever make due to the immediate depreciation on all vehicles. My last vehicle cost me a lot of money because my loan term went beyond my warranty and of course something major went wrong with the engine a year after the warranty had expired. Leasing saves you money and piece of mind. If you own a vehicle for too long, you will eventually have to replace the tires, brakes, get a transmission flush, radiator flush, brake fluid flush, 4WD maint, the list goes on. Not to mention having to pay a lot of money if something goes wrong with the engine or transmission. Thanks again!
@@tipsy09 Because you get the advantage of not paying the fees associated with a lease ( since the original lease holder already paid them), lower lease payment if they made a down payment, and shorter term commitment. You just take over the current payment. Got a great deal on a Mercedes. Previous lease holder put down 7500, so the payment was only 620 and only an 18 month commitment on my end when i took it over. They just didn't need the car anymore and you could tell since I think 15K miles when I took it over.
@@tipsy09 Nope, no dealer involved. It's just paperwork with the leasing company. Usual credit check on the one taking over, signing a contract etc. It's all online these days. The dealer has nothing to do with it after either a sale or lease contract is executed. Then you just deal with the lease holder.
I bought my vehicle back in 1996. I have saved tens of thousands of dollars by keeping my vehicle as long as possible. Next year, she gets her historic registration plates. I have enjoyed every mile with my dear RMS Stargazer.
As someone that works in customer service for one of the companies you pointed out I have a bit of advise to those thinking about leasing. I only know what is of the company I work for so I'm not sure if this falls into others. I deal with hundreds of calls from lease customers on a daily basis and I've noticed that some people don't read or understand their contract. 1. You CANNOT get out of your lease with clean hands. You will either owe the full amount of your monthly remaining payments and THEN return and still get your inspection, You can sell to 3rd party, Transfer the lease, with my company the transfer is a full on transfer original owner is no longer responsible, OR you return the vehicle without making the payments and it is then deemed a voluntary surrender which impacts your credit like a reposession and you STILL will owe us the difference between how much the car was bought at auction and the full payoff plus other fees. 2. No your friend/neighbor/cousin/sister/brother/mom/husband/dog cannot buy the car. 3. You will pay property tax depending on your state (no it wont be waived this is based on local taxing jurisdiction not the company) 4. Your monthly payment WILL change if you moved states/zip codes. If you move to an area with a different sales tax rate it can either go up or down. (UNLESS YOU LEASE IN A STATE WHERE SALES TAX IS PAID UPFRONT AT THE DEALER) 5. In some cases if you get a ticket you have to pay us. You dont own the vehicle so the company automatically pays the ticket/citation and bills you for it . 6. there is no principal or interest 7. In some cases you can extend the lease for a longer period 8. You need to get permission from the company to leave the country with the vehicle. A spring break road trip to mexico can cause problems for you when trying to re-enter the US considering you do not own the car. 9. Depending on your state you may need a Power of attorney from the company for registration 10. just check your contract for what is needed for insurance in most cases you dont need everything your insurance company is trying to sell you on
Very accurate information here, my fico went down 30 points in one month and now I know it’s because my lease ended. I’m about to turn in my 2017 Jeep Grand Cherokee lease and I’m get either a 2020 or 2021 Jeep Grand Cherokee lease this will be my 3rd lease. Leasing is the way to go, Always driving a new car and making low pmts and I love not worrying about maintenance
@@danr154 that’s a better credit score than I had at that time. The dealership here in MI is known for $0 down leases so you may just have to find the right dealership / salesman
We are a two car household. One car is owned and the other is leased. My lease payments are $175 per month on a sign and drive zero down lease, and the other car is owned and paid for. When we take a long road trip we use the owned car to keep the miles down on the lease. When my lease is up I research the lease market. If I can't find the deal I want I either extend my lease a few months until I find a good deal or buy an old beater for cash and do some minor clean up and repairs. When I find a lease I like then I sell the beater and either make a profit or break even. That money then makes the first few lease payments for me.
I find leasing cheaper for me. I got my 3 years sportage lease for $225.00 if you buy and keep for seven years your finance charge is much higher per month. I always get the lease price down and never put any money down on a lease. I don’t want to deal with tires, muffler, and general wear and tear. A car after 7 years is not worth much unless it is a Toyota.
Perfect example why you don't want to buy,there is no buying tires,battery, brakes, and not paying for any unpredictable repairs,and you drive a new vehicle every 3 years.
Hellcat BOYZ my latest lease is a 4 wheel drive Hyundai Tuscson, 1,000 miles per month, nothing down tax and titles included; only $275 per month for 3 years. This is better than buying.. I will not need the $400 tune up,and I also save another $400 on new tires. Plus I will get another new car at the end of 3 years with all the newest tech. I only use it 6 months a year. For $10 more per month I could have had 15,000 miles per year.
#Patrick Faiola Any tips on bringing the lease down payment to $0? Yes I have great credit. I look online and all I see are ads for $×,××× due at signing, and $429 p/month for 36 months. Thank you
@@faiolapat Do you just walk into a dealership and ask for their lease deals? Do you pick your lease vehicle per the best cost option available or do you go into the dealership knowing which vehicle you want to lease?
@@user-lc7zt8sk6i I do my research and try to figure out what their cost is. I negotiate the deal a day or two before the last day of the quarter..finally I usually play off two or three dealers and let them know I'm shopping around. I try to figure in where they will get at least a $500 profit plus their hold back fee.. I get each dealer to invest an hour in me before I tell them what I will give them.. they all play their back and forth great game and I hold still.. time of the month and time of the year is very important.. I also got my Tucson in June which means newer models would be coming out a few months down the road.
There are "hidden" fees on a lease. Virtually every dealer attempts to include one or more of those fake fees including document fee, dealer prep fee, electronic filing fee and on and on and on. To a dealer a lease is a sale. A sale to the leasing company at the price the customer is able to negotiate. The main differences between a lease and a purchase are: On a lease you pay an acquisition fee. You do not pay this fee on a purchase. On a lease you usually pay less of the price during the lease period than you would with a purchase. This is the reason a lease has a lower monthly payment.
Thank you for this video! I’m looking to lease. I’m tired of driving my old car, tired of dumping money into repairs and worrying about getting ripped off by mechanics etc. Doesn’t feel like it’s worth owning a car in the long run. So many potholes in my city, people drive all crazy & have no respect for other cars- peeing on them, scratching them with their doors, letting shopping carts roll into them in parking lots..
That's exactly what I'm doing Scott. Turning in my first lease Oct. 2021. I chose Toyo. because I knew if I release from the same company it's a better deal for me. They offered to pay off my lease 5 months early just this past weekend if I would renew with them right now (I'm going like to like: Toyo Corolla). I said no. Why? Because they found out my car is in pristine condition and 12k miles UNDER the 36k mile limit. I got summer vacation comin' and I'm drivin.
Not true, money factor to interest conversion is simple. Lease vs Retail finance rates based on score are just about even. Paying off negative equity is a great thing on a lease. Example 12% interest on current car with $3k negative equity. Person trades in car on brand new car for a lease. You can qualify for a lease as low as a 535 credit score. The new car books really strong and typically has rebates. Your lease amount is not based on sales price. It's based on estimated value after the end of term. So, your credit reports a low amount of debt, your payment is probably the same or less than what you were paying and its under warranty the entire time. After your 3 year lease is up you walk away with 0 balance, your trade negative equity from before is gone, you've built your credit, and now your free to buy outright whatever you want or lease something else. Most new cars come with oil changes and it's under warranty the entire time.
Great video with lots of solid tips! I'm still in the "I'd rather purchase camp" and keep my Toyotas for ten plus years! And with a consistent FICO score over 800 negotiating the best deal has never been an issue!
Ari thank you! I have leased several times and I have experienced first hand some of the things you listed. Turned it in early despite miles being under and no damage I had to pay balance. I've leased on a lower tier level because my credit score was not excellent. I like leasing despite some of the challenges I have had with different car companies.
Never buy a new car unless money is nothing to you. Buy used , buy it cash and upgrade when you can afford to. Hard times happen , job loss happens but bills never stop coming
Many wealthy individuals observe the "Buy that which goes up in value and rent/lease that which depreciates in value" principle. Leasing a car can really benefit someone who drives 10-12k miles/yr., has good credit, and who takes the time to shop for a lease deal whereby the manufacturer guarantees a high lease-end value, therefore offering a low monthly payment, in order to clear excess inventory. i.e. a $199 monthly payment on a $30k car. I was an auto lease manager for a number of years.
@@Glad2BGolden You must research the lease offerings on the manufacturer's websites. The best lease deals are offered on models that are not moving fast enough, or are overstocked near the end of a model year. The manufacturer will subsidize the lease-end value, resulting in a lower monthly payment. PLUS: If the up-front cash asked for seems high, remember ...everything is negotiable! (except for taxes and DMV fees)
You can also terminate if your deployment is more than 180 days so if you’re stuck in a lease you want to end early and don’t care about your kids go on and volunteer for the next deployment 😂😂
Me too, I always purchase outright! You never own the car, you're just making the rich richer. I have clean credit, and never owe any debt to anyone whatsoever, and never will.
Correct. Unless you purchase, you’re just renting a company’s car. I could see going this route if you had a business and could write it off. Otherwise, an idiot move.
@@user-tb7rn1il3q If I don't want to own it, I'm not getting it. Like Rob says "always purchase outright". I pay in full for my cars when I get them. I have a 2019 Kia and a 2020 Buick. Bought and paid for, should last about 10 years. Last two cars I had were a 2006 Mercury & 2010 Kia. Gave them away to people who needed a car, I got plenty of use out of them. BTW, I take excellent care of my automobiles.
Hey looking for advice from fellow subscribers out there for my specific vehicle situation; I recently moved to a new location that consistently has a lot of cold weather, snow, ice and rain. So it was time to get rid of my little basic sedan and get a more practical SUV with all wheel drive, the only way locals manage to get around town here! So went to the local Jeep dealership the beginning of 2020 where fortunately they were running lease special incentives on new 2020 Jeep Cherokee 4x4. As a trade-in they paid off my low mileage, high monthly car payment sedan. Between the Jeep lease incentives, my trade-in...Put my lease monthly ($300 payment ) way lower than my previous car payment. Now I have all the options I need for my new location climate; 4x4 SUV with snow/ ice drivability, remote start with engine block heater, auto de-icing exterior and heated everything interior. So all that being said...My dilemma is, in a year, when this current lease runs out should I just do a lease buy out on this vehicle that I only drive 5k miles per year ( approximately $12k remaining by then on a $33k MSRP vehicle, about $200 per month loan payment for 60 months) Or would a new SUV lease on a similar vehicle in ‘22/ 23’ be a wiser investment. A new vehicle I wouldn’t own but would have a full warranty again for the full duration of the lease. Thanks, Brad
Great video. I always lease new and buy used. Leasing new lets me drive a new car and get rid of it when it hits peak depreciation in the first few years versus owning it. Buying used lets me get a car that I think I am going to keep after someone else takes the hit on depreciation.
@@laszlokovacs6154 My Toyota’s buyout price is lower than the market selling price, BY A LOT. So when the lease is up, I can trade it in and get $3000 for a new car (lease or purchase) or I can buy it out and sell it myself, netting about $3500-4000 extra toward whatever. It actually ends up CHEAPER to lease it up front. Same with my sister-in-law’s Subaru. Plus you have 3 years with it and if it ends up being unreliable or you don’t like it, turn it in without a hassle.
If you're thinking about leasing because you can't afford to buy a used car, you should really think about taking the bus or biking more often and ubering occasionally. Think longer term than monthly.
One good thing about leasing you can get rid of your lease every year or two (swapalease, leasetrader, etc.) and drive a new car every year or two. As long as you lease deal is good there always will be someone willing to take it over.
Leasing is a straight up nightmare. -No Mods Allowed -No exterior modification -Strict rules -24/7 surveillance of car Rather just buy a used one that took a huge depreciation hit 3 years ago and trade in every year for a 3 year old with low miles. A much better deal and you don't owe anyone and your saving 50% or more
what if its a luxury car that has high repair costs after it reaches lets say 80km+? what do u recommend? is it better to lease it. for example a range rover sport or an audi a7
@@insolaceinsolace8868 As long as you can afford it I would lean towards leasing it. As you said - high repair costs and poor reliability history makes buying those used a risk.
I am going to put vinyl stickers on my lease's windows... I don't consider that a mod. If it was on the paint maybe. As far as new sound system, exterior pieces ya you may wait until buying it out I guess.
Leasing is the most expensive way to operate a vehicle outside of renting it straight up from Hertz or Enterprise. I just finance 1-3 year old cars at 1.99% from my credit union. I barely lose any money to depreciation, I let the lessee do that for me 😎😎
Before you regurgitate Dave Ramsey, that statement is only true if you end up keeping the car after your lease is up aka buying it out. Most people who lease know they will only drive the car for a few years and then return it. Also, did you know you can lease 1-3 year old CPO cars as well? Leasing is not for everyone but it does make sense in some situations. If it was truly as terrible as you make it seem, people wouldn’t lease lol.
Lol Dave tends to do that! You just have to do what’s best for you financially. However, leasing to me only makes sense when you’re not on a path to financial independence.
@@thomass789 oh no it’s far from a lame question and more than glad you asked. It’s not a Dave Ramsey term it’s a state of being mainly have enough passive income such as investments in either real estate, individual stocks, ETFs, mutual funds and so on you’re able choose to work instead of having the obligation. Hope that helped! I think there’s so many resources out there that can help you if your interested.
Great video ! I think this is really a question about each person’s lifestyle and preferences when it comes to vehicles. For example I drive about 20 miles everyday for work 5 days a week and do a little extra driving here and there on my days off. I have great credit score and a really good full time job, I’m not rich but I’m comfortable. I honestly don’t know much about cars lol but I love driving nice cars especially German because of all their safety features and the luxury of it. I can afford it and I know a car isn’t a good investment so I’m really not trying to make money off them like I do with a house. For me to drive a car has to be something that I really like so that I feel happy making those payments which I do on time, I understand what it means to take the responsibility. I don’t want to deal with cars breaking down over time and I like new cars so for me and my lifestyle leasing works perfect. I also take really good care of them because I remember my dad always saying that when you pay for things with your own sweat you appreciate and treat them better. I leased my A class 220 2019 in 2020 and I pay $415 , my fiancé negotiated with the dealership for a while and looked over all the fees to make sure a lot of hidden ones were waved and no sketchy tricks were implanted like how long the lease is and such. We actually left the dealership the first day and they called us back with a more ideal payment for me and I’ve been very happy with it and my car. I think that’s what really matters when considering what’s the best choice for everyone when deciding in owning or leasing a car.
Leasing is good for higher income and business owners who want to waste money, and offset that cost in tax deductions. Generally speaking, it is always better to get a good deal from private sellers on used cars. Truth.
@@truballa103 I kept my Q5 and walked away. That was such a crappy deal that it has kinda soured me towards getting another Audi. I’ve been looking into other brands.
I'll have to admit, this video is pure gold. Rather than giving speculation or forecasting you provide us with cold hard facts and actual experience to live by. I had no idea what impact a lease would have on my credit score. My 2 questions are: how quickly were you able to rebound your credit score and (2) is it possible to sign 2 leases (each from different dealers/manufacturers) within hours of each other getting a tier 1 rate because the 2nd manufacturer hadn't realized you already signed a lease?
Lease is great for many. Like my self as well. The only exception is if you want or need a vehicle for work or have a need to a suv. You buy a land cruiser second hand low milage. That thing will last for 25 years. It pays out.
Nice video bro. I do lots of content on car leasing and car finance. For me the best way to get into a new car is ALWAYS by leasing If you want finance on something used go for a personal loan.
The dealer I went to did not waive the acquisition fee, but because they really wanted the car I was trading, they did take it out of the cost of the new car.
Money down on a lease is what makes lease attractive. Always put money down on a lease b/c with little money you can greatly reduce your monthly payment. It is about 30 bucks discount per each 1000 you put down. For ex if your lease is 300/mo put 3K down and pay only 210/mo.However, do not put much more than 3K-5K because you are then running the risk of losing that money if you crash/total the car early in the lease. Ask the dealer for more miles for free get as many as 15K miles from 10K lease-for free. At the very least get 12K miles from 10K lease. Dealers are likely to agree to this. This will make the car cheaper for you when the time to return it comes,plus you will avoid overcharge on miles.
In my opinion purchasing cars is only smart for the buyer who wants to keep it for the entire duration of the loan. If you’re wanting a new car every 2-3 years such as myself buying doesn’t make any sense. Cars are depreciating assets and you’ll just be rolling over negative equity every time you go to trade it in.
I drive way to many miles to lease, however my wife is leasing and our dealer has said he will buy her out/transfer to a new lease early if she hits early...but Carmax buy out sounds interesting.
Yeah and I rather forever pay to do a lease than a car to be honest I get bored after while with the car 3 years is good enough to have a car and get a new one
I signed up on a lease trade website to transfer my Tacoma with Toyota Fina and found a buyer (transferee) that wants to take it over. So far it has been a complete frustrating failure on Toyota’s end. They sent him the lease transfer agreement first and were supposed to send him the credit application first, so that through a big wrench in the process. He has been hanging on for a month and I’m about to have to make the lease payment again next week. 😤
Daughter needs a car, looking at leases. The chip thing is messing everyone up. They insist on $$ down - I have had 3 leases w no $$ down. Subaru and Hyundia is what we are looking at. I have perfect credit, my daughter has no credit. any ideas???? She will be in collage, not a lot of driving.
A hellcat for 500 lease payment!?!?!! Where?!?! My credit at the time for leasing a ScatPack was 789 and i pay 575 a month for my scat. For the Hellcat, they wanted around 900.
lmao 500 for a hellcat.. clown.. only way this would've been possible, is if you threw down a huge downpayment. In which if you did, then that my friend is just an amateur move lol
I haven’t had a car payment for 5 years. I like it that way. I tried leasing once it cost me 18k and in the end I had nothing. Keep your car till the wheels fall off and do the simple maintenance yourself if you can
sure, but leasing is not for everyone, sure its nice to have car that you can own and have the wheels fall off, but when you can't do your own maintenance because idk you live in the city then it's not doable, also depends on the car brand, not everyone wants to keep the same car for while as it depreciate and it becomes more fuel dependent. The bottom line is, leasing is like renting an apartment, there's a contract and payments you need to make but you don't need to worry about maintenance and you get a fuel efficient car every 3 years or keep the one you leased at the end of it.
a few companies such as Audi Financial will not allow you to sell to a third party such as CARMAX. You have to buy it and sell it. which usually means taxes in the case of Audi. Kia and Hyundai for instance are just fine with getting a payoff from anyone.
Great info. If you live in a city area, with tons of road salt, and potholes, and you insist on a perfect car, it can be cheaper to lease. If you took out a 5 year loan to buy, then traded it in after 3, it would have been cheaper to lease for 3 years. Imagine living in Vermont or Wisconsin and never having to worry about the car rotting away and staying safer.
I like leasing for 3 years....I never have ever worried about a vehicle breaking down and while I always have a payment it still works out better imo. I have bought also on a 6 year plan and while I kept the car for ten, those last couple years were certainly not cash free...every inspection was over a thousand along with the worry anytime I was taking a long trip...not to mention in the end my driver window wouldnt go up periodically, my AC wasnt working well even after giving it a shot of antifreeze which I wasnt going to pay a couple thousand to fix which is what I was told it would of been and the bottom started to seriously have rust all over. Not to mention it wasnt exactly up to date with the tech and certainly didnt look new. So in those 4 years payment free I still spent a couple thousand///OR....I can have a lower monthly payment and complete peace of mind that the vehicle will rarely have any major issues if ever, and when It starts to age a little bit...BOOM....New vehicle....stress free driving....That to me is well worth a couple thousand extra over the long haul. Obviously ymmv, if your a mechanic and can fix your own vehicle I would buy...but far to many issues arise once a car starts ticking up there and the headaches arent worth owning something that you cant completely trust to not cause problems. It also gives people who otherwise would never be able to pay on a vehicle cause it is out of their price range an opportunity to use that vehicle under lease cause of the far cheaper monthly. Just an opinion.
I agree with what you said at 01:15. Yeah I've never liked leasing. It's like renting. For many people, it's better to own the product than to pay to use it and come away with nothing at the end of the term. And if you plan to do any significant mileage, significant modifications, or significant wear-n-tear, leasing will hose you.
Some people don't like owning depreciating assets and would rather give it right back after a few years plus they wouldn't have the entire MSRP on their credit report.
@@chriswhitaker9720 A vehicle is never considered and asset, it is a tool to get you to places you need to go to make money. The investment aspect of the vehicle is trying to accomplish that with the least negative impact to your long-term financial goals. Buying is almost always the better way to go. There are exceptions, but leasing ties you into a strict contract and perpetual payments. Even 3 years with no car payment can significantly change your personal finances. I've leased a few cars and bought a few. I only buy now.
@@tewksburydriver8624 a vehicle is an asset hence its something of value which can either be up or down as it relates to cash ( it's right in the definition of an asset). I never finance cars because I never want to own something that loses value so quickly. The only thing I care to own is my real estate investments.
Chris Whitaker ... it’s not about depreciation asset, not an asset, it’s about lowering your monthly obligations. Owning a vehicle without a payment is a great thing. Try it sometime, if you hate it go lease a vehicle.
tewksbury driver I do I have a leased C63 S and Raptor. But I don’t put on tons of miles so it works for me. But at the end it’s all about what works best like you said .
In Michigan, leases make a lot of sense if you like a new car every few years, as you don’t get full trade in credit for sales tax, it maxes out at 7K credit. So if you buy a 50K vehicle every few years, the state is making a fortune in sales tax. Only pay tax on the lease payment in a lease. In my example, i lease a 67k msrp truck for $565/mo for 36 months, if i had purchased the truck, i would have $1025 payment for 72 mo, assuming the same out of pocket upfront, $2k in my example.
Buy a new Mercedes for $60,000 and in two years its worth $30,000. Lease it for two years and you are much better off financially. Unless you are thinking about keeping the car for 10+ years then buying a new car is stupid. And who keeps cars for that long these days? My opinion is to lease cars that are 2years old and low milage for maximum of 4 years if you have a milage of no more than 10,000. These things aren't black and white. I last leased a mercedes that was 2 years old 9,000miles in perfect condition and I got the car for $28,000 and the original price for the car was $60,000. I still even had 1 years mercedes warranty on it.
This is a 100% subjective decision based on the kind of car you are wanting to drive. German/Italian car: IF YOU HAVE AN INCOME source and you prefer not pay cash, leasing is the SMARTEST thing to do. These cars lose warranty after 3 years and the engine starts having all sorts of problem. It’s like a new problem every month. Leasing will save yourself a headache. Japanese car: own it. Period
I have leased 16 vehicles since 1995. All for personal use. I have only turned in one of them, a 2005 Land Rover LR3. I rarely put a penny down. But I am very picky about the model I lease. I only lease vehicles that have HIGH resale value. And I always keep the mileage LOW. I will always trade in, not turn in a lease.
Owning a car is a beautiful way to put your money into depreciating asset and to keep driving the same aging car for a long time, while automotive technology and safety keeps progressing.
@@scriabinbartok3465 exactly! When you buy a New car you spend an absorbent amount up front and still pay month to month and maintenance out of your own pocket. And by the time you finish paying it off the value has dropped like crazy and your car starts having crazy expensive issues. And after s few years most people sell their car anyways just to finance another car. If you get a used car you’re paying for someone else’s problems and really outdated and sometimes unreliable parts. If you lease you turn that car in after 3-4 years and it’s someone else’s problem and you get a new car with new technology for low payments. Buying is for fools!
If you have a lot of money to throw away, lease 10 cars in 10 years. If you view cars as transport and want to minimize cost, buy the Toyota or Lexus that appeals to you, either new or three years old, change the oil every 5,000 miles and keep it for 250,000 miles.
Cars depreciate as soon as you buy them. Best to buy a Honda or Toyota. They depreciate slower and still after 10 years you can sell them and still worth something due to reliability. Do Not Lease. That’s perpetual Debt. Invest and save that money. Who in their right mind wants a constant car payment ?.? Pay off your car early and drive it for 10 years or more. Still driving my 2009 Honda CRV . Bought new and still worth about 8-9000 if I sold it now
Don't by brand new get a lease return from the cars are ready to appreciate it and just buy it you're going to have to get full coverage insurance and everything on it anyway so you might as well just buy it
I’ve been leasing for yrs. definitely the best for me. If I stay below the negotiated mileage can the car be worth more at the end of the lease than what purchase price will be? If so , what should I do, just buy it at lease end and then trade it in somewhere else for that extra value?
Yes. My Rav4 is worth more than the buyout price even if I do the 36k miles. You can trade in your lease car and actually get trade-in value. Go in like 6 months before lease end and try at your dealership first.
I have a lease on a 2019 Dodge ram I am currently paying $686 a month and I have 14 months remaining on my lease it was a 36 month lease I can't afford to pay $686 a month because of my current life situation I am trying to have a dealership buy out my lease so that I can get out of the lease and have them pay me cash so that I can go lease a cheaper car and have money for a down payment on that car the most the dealership that I went to was willing to give me was $2,000 in cash and pay off the lease how do I get more than $2,000 in cash because that's not enough to put down on a car lease for a decent payment I really appreciate some advice thanks I appreciate it take care
@@eltiarribero when you go for a lease (in other words loan) the company requires credit checks where they pull your credit score from the credit bureaus. Every time your credit is pulled points come off until you either make the first payment or so.
@@eltiarribero You take a hit for the hard inquiry and new account bring down your average age of accounts. Car leases are reported to credit bureaus like an auto loan, as it’s essentially an installment loan.
I've leased. I've leased and then purchased the leased vehicle at the end of the term (my current situation) and I've purchased used. One thing I have not done is purchase new, and I don't believe that I ever will. I'd go CPO, or otherwise recently used.
Gerald V Not sure how brands do it but for the brands I’ve least (VWGA Umbrella), you can literally lease today and finance it tomorrow. Don’t know if that answers your question
So I leased my truck for $48k, they said when the lease is over I’d owe $27k if I wanted to buy it. My lease is less than a year from being done and I’m looking at the value and I’m at $42k. Would the dealership change that $27k that I would owe to something much higher? I know you said they would not go lower, but would raising be a concern?
Thank you. I just leased the new Venza Limited. My first lease. This answered my questions. One question. With current high trade in values, I traded in a Ford sedan. I used the trade in equity of $ 8500 as a down payment. Is it a mistake to put that much down. No gap insurance was required. Are you better off putting the minimum down and taking gap insurance. We are elderly and decided at our age, leasing made sense.
Yes, it’s a mistake to put down money. How? If you total it now or if it’s stolen, your insurance will pay the lessor for a new car for you. You literally get a new car. However, you don’t get your down payment back. You’ve lost it. If you had a 0 down payment, you would still get a new car. Nothing lost. GAP insurance is under $200 for 3 years. I believe mine was $160 on a Rav4 Hybrid.
You missed the biggest critical factor which is hidden, misinformed, redirects to MF ( interest rate) which they won’t answer it directly 80% of the time. That is where they earn back all the discounts. The interest rate is 5-6% for tier 1. You don’t know until you see on the contract in tiny words and the loan officer won’t mention it and this is the last leg of the game inside his office and you are excited and tired. You just want to get out there fast.
I typically buy a car that's 3- 5 years old, keep them for 3-4 years and then either get bored or have some crazy repair I don't want to face and then start over. I'm seriously researching leases. I'm concerned about mileage. I'm a traveling social worker and I'm starting to drive more now that we're back out in the field. I'm tired of unreliable older cars and the bigger payments of a decent car, are out of reach for my salary. Leasing might be the best way to go. This video answered a lot of my questions. Thanks so much. I need all the good advice I can get!
Lease is a great option for people with a lot of money For most mid class people i recommend to buy 2.5 -3 year old car and sell it 3 years later pay cash of course and keep doing that And broke people just get a cheap used car and pay cash Tired of seeing people buying shit they cant afford If someone has to finance a car they shouldn't be buying it
You can tell he’s not an honest person because he says 600+ is a good credit score. Most creditors don’t consider credit good until 680+. He is in the car leasing business so he’s trying to make it sound like a good idea to lease. It’s not.
The main reason I think buying a 3-4 year old used car is better than leasing is because you use it for 3-4 more years and then sell it and get most of your money if not all of it back. If you choose a good car with low maintenance cost like Korean or Japanese cars then you don’t really spend that much money. What do you guys think?
@@KM-bu1js The loan was 27 months into a 60 month loan. My credit score dropped after 2 leases, again after financing a car loan and a fourth time after paying off the loan early.
10 cars in 10 years = 1 year lease, sounds exaggerating
John... I’ve had 3 business vehicles, 3 vehicles for my mother, and 4 of my own vehicles all under my belt
I’m currently purchasing my 36th car lol. I returned my leased Palisade back to Boch after one year because the lease miles are too low
not really, i have had 40 cars by the time i was 50, at least 12 were leases, in the good ol days.
@@negotiationguides booyah- go you!
@@Lendingyourlight You didn't purchase anything if you were leasing.
As a car salesman. This is the most accurate video on lease tips I’ve seen. Especially the no negotiating the residual.
Car salesman lie all day screw what you think lmaoo
@T. Way lol I suck at lying. I watch these videos for tips and tricks and walk into a dealer and start talking, forgetting everything I just learned. I'm such a sucker,, I just bought a car I didn't even want! 😩 so here I am, watching more videos... I'd love to lease but it seems pretty confusing.
Leasing is great for those that don’t do insane amount of driving. New car every 3 years, better deals, free maintenance and never have to worry about repairs.
Retired, that's me. I just don't know how to negotiate that.
free maintenance... i'd argue you paid for the maintenance in the lease.
It’s free maintenance when you lease at the dealership?
@@MA-fu5tm not free. Let me assure you it's be ng paid for every month. Nothing wrong with leasing and nothing wrong with renting an apartment.... Neither of them are the cheaper way to drive or put a roof over a head... Not a thing wrong with it and if people can afford it what's wrong with that!!
Trying to find a good leasing deal has been painstaking. Based on what I’ve encountered it’s paying the same amount or more than financing to own.
You pretty much confirmed what i was thinking. Financial advice guys always advocate against leases, saying what horrible deals they actually are. But if you are somebody who wants be in a new car every 2 years, then leasing is actually a better deal. Especially if you can expense it with your employer or deduct in for your business. For the first part of my life i was extremely frugal. I hated wasting money on cars. I've bought 2 new cars in the past 20 years, and both of them i drove for 10 years. I took care of them, and they took care of me. I paid each off in 3 years, and it was like driving a free car for 7 years. But now at this point in my life, my investments have done well and my income is much higher than my monthly needs. Plus, i drive only a fraction of what i used to do. I'm starting to think that leasing is an attractive option for me.
I am in financing and I work with many financial people, earning well into the six or even seven figures annually. Almost all of them lease.
The so-called "financial advice guys" who advocate against leases are actually entertainers such as Dave Ramsey or Suzy Orman. They are not actual financial guys. They are considered somewhat clownish by actual financial guys.
Leasing is not for everyone. Leasing is not a horrible deal. As with any purchase, the qualify of the deal depends on the negotiation ability of the person and the unique needs and wants of the person.
@@jerrylundegaard2592 BS.. How can you discredit Ramsay when you technically just said "leasing is not for everyone", which is what Ramsay says. If you make 6 or 7 figures you can afford to do more things financially. For most people that's not the case and for those people is that Ramsay says don't lease.
@@mr.castle Look for the book called *What Would The Rockefeller's Do* (How the wealthy Get and stay that way and how you can too) by Garrett R Gunderson who takes them to task on giving bad financial advice.
All I kept thinking while watching this video is why is the yelling at me!
J. Louis funny😆 because it’s true
Right!
He's from Boston.. That's what they do!
Maybe he's a bit deaf lol 🤣🤣
My first thought too. Watching it as I type and not sure I can make it to the end if he dosent stop it
If Gilbert Gottfried and Ray Romano had a kid.
And Michael Rappaport.
🤣🤣🤣
🤣
LMAO!
Now that is the power of observation!
Turning in my first leased vehicle (Toyo. Corolla) Oct. 2021. Only driver, pristine condition with the exception of a sign scratch on the bumper (a business card can cover it - and I have 5k wear n tear warranty coverage). I will never buy another car again. All my maintenance and washing (gap insur. too) is covered. In my 50s I'm done dealing with pre-used cars in high mileage (75k plus) and repair shops. LOVE leasing. Glad I found this channel. New sub. Thx for the information.
There is also a hidden benefit to leasing...If you have an accident where the car isn't totaled. You don't need to worry about diminished value. Just get it fixed and turn it in at the end of the lease. No negative equity worries.
Thank you very much for a great video and some very good information. I just do not want to ever have a car without a warranty. Buying a car is one of the worst investments you'll ever make due to the immediate depreciation on all vehicles. My last vehicle cost me a lot of money because my loan term went beyond my warranty and of course something major went wrong with the engine a year after the warranty had expired. Leasing saves you money and piece of mind. If you own a vehicle for too long, you will eventually have to replace the tires, brakes, get a transmission flush, radiator flush, brake fluid flush, 4WD maint, the list goes on. Not to mention having to pay a lot of money if something goes wrong with the engine or transmission. Thanks again!
I’ve found the best approach is to use a site swapalease and take over someone’s lease. Saved tons that way.
Why is that the best approach
@@tipsy09 Because you get the advantage of not paying the fees associated with a lease ( since the original lease holder already paid them), lower lease payment if they made a down payment, and shorter term commitment. You just take over the current payment.
Got a great deal on a Mercedes. Previous lease holder put down 7500, so the payment was only 620 and only an 18 month commitment on my end when i took it over. They just didn't need the car anymore and you could tell since I think 15K miles when I took it over.
@@johniii8147 I’m assuming both of you go to the dealer together to get it all transferred? What about existing damage on the car and stuff?
@@tipsy09 Nope, no dealer involved. It's just paperwork with the leasing company. Usual credit check on the one taking over, signing a contract etc. It's all online these days. The dealer has nothing to do with it after either a sale or lease contract is executed. Then you just deal with the lease holder.
@@johniii8147 so what if there’s damage?
I bought my vehicle back in 1996. I have saved tens of thousands of dollars by keeping my vehicle as long as possible. Next year, she gets her historic registration plates. I have enjoyed every mile with my dear RMS Stargazer.
Mothman.....
And you save The planet a lot of trash too.
As someone that works in customer service for one of the companies you pointed out I have a bit of advise to those thinking about leasing. I only know what is of the company I work for so I'm not sure if this falls into others. I deal with hundreds of calls from lease customers on a daily basis and I've noticed that some people don't read or understand their contract.
1. You CANNOT get out of your lease with clean hands. You will either owe the full amount of your monthly remaining payments and THEN return and still get your inspection, You can sell to 3rd party, Transfer the lease, with my company the transfer is a full on transfer original owner is no longer responsible, OR you return the vehicle without making the payments and it is then deemed a voluntary surrender which impacts your credit like a reposession and you STILL will owe us the difference between how much the car was bought at auction and the full payoff plus other fees.
2. No your friend/neighbor/cousin/sister/brother/mom/husband/dog cannot buy the car.
3. You will pay property tax depending on your state (no it wont be waived this is based on local taxing jurisdiction not the company)
4. Your monthly payment WILL change if you moved states/zip codes. If you move to an area with a different sales tax rate it can either go up or down. (UNLESS YOU LEASE IN A STATE WHERE SALES TAX IS PAID UPFRONT AT THE DEALER)
5. In some cases if you get a ticket you have to pay us. You dont own the vehicle so the company automatically pays the ticket/citation and bills you for it .
6. there is no principal or interest
7. In some cases you can extend the lease for a longer period
8. You need to get permission from the company to leave the country with the vehicle. A spring break road trip to mexico can cause problems for you when trying to re-enter the US considering you do not own the car.
9. Depending on your state you may need a Power of attorney from the company for registration
10. just check your contract for what is needed for insurance in most cases you dont need everything your insurance company is trying to sell you on
Very accurate information here, my fico went down 30 points in one month and now I know it’s because my lease ended. I’m about to turn in my 2017 Jeep Grand Cherokee lease and I’m get either a 2020 or 2021 Jeep Grand Cherokee lease this will be my 3rd lease. Leasing is the way to go, Always driving a new car and making low pmts and I love not worrying about maintenance
Don't you have to cough up like 3 grand at the start of every lease though?
@@danr154 nope, I’ve paid $700 or so before for a hemi ram, just for reg/title etc
Mitsubishi Outlander PHEV is much better car from Jeep
@@LJ...69.
How good does your credit have to be for that? Im at 740-750 and cannot get away with that.
@@danr154 that’s a better credit score than I had at that time. The dealership here in MI is known for $0 down leases so you may just have to find the right dealership / salesman
We are a two car household. One car is owned and the other is leased. My lease payments are $175 per month on a sign and drive zero down lease, and the other car is owned and paid for. When we take a long road trip we use the owned car to keep the miles down on the lease. When my lease is up I research the lease market. If I can't find the deal I want I either extend my lease a few months until I find a good deal or buy an old beater for cash and do some minor clean up and repairs. When I find a lease I like then I sell the beater and either make a profit or break even. That money then makes the first few lease payments for me.
I find leasing cheaper for me. I got my 3 years sportage lease for $225.00 if you buy and keep for seven years your finance charge is much higher per month. I always get the lease price down and never put any money down on a lease. I don’t want to deal with tires, muffler, and general wear and tear. A car after 7 years is not worth much unless it is a Toyota.
Perfect example why you don't want to buy,there is no buying tires,battery, brakes, and not paying for any unpredictable repairs,and you drive a new vehicle every 3 years.
Hellcat BOYZ my latest lease is a 4 wheel drive Hyundai Tuscson, 1,000 miles per month, nothing down tax and titles included; only $275 per month for 3 years. This is better than buying.. I will not need the $400 tune up,and I also save another $400 on new tires. Plus I will get another new car at the end of 3 years with all the newest tech. I only use it 6 months a year. For $10 more per month I could have had 15,000 miles per year.
#Patrick Faiola
Any tips on bringing the lease down payment to $0? Yes I have great credit. I look online and all I see are ads for $×,××× due at signing, and $429 p/month for 36 months.
Thank you
@@faiolapat
Do you just walk into a dealership and ask for their lease deals? Do you pick your lease vehicle per the best cost option available or do you go into the dealership knowing which vehicle you want to lease?
@@user-lc7zt8sk6i I do my research and try to figure out what their cost is. I negotiate the deal a day or two before the last day of the quarter..finally I usually play off two or three dealers and let them know I'm shopping around. I try to figure in where they will get at least a $500 profit plus their hold back fee.. I get each dealer to invest an hour in me before I tell them what I will give them.. they all play their back and forth great game and I hold still.. time of the month and time of the year is very important.. I also got my Tucson in June which means newer models would be coming out a few months down the road.
Great analysis of leasing. There is so much misinformation about leasing and car sales in general. (Worked at a dealership for 35 years)
wouldn't be any misinformation about leasing coming out of dealerships LOL.
There are "hidden" fees on a lease. Virtually every dealer attempts to include one or more of those fake fees including document fee, dealer prep fee, electronic filing fee and on and on and on.
To a dealer a lease is a sale. A sale to the leasing company at the price the customer is able to negotiate.
The main differences between a lease and a purchase are:
On a lease you pay an acquisition fee. You do not pay this fee on a purchase.
On a lease you usually pay less of the price during the lease period than you would with a purchase. This is the reason a lease has a lower monthly payment.
Thank you for this video! I’m looking to lease. I’m tired of driving my old car, tired of dumping money into repairs and worrying about getting ripped off by mechanics etc. Doesn’t feel like it’s worth owning a car in the long run. So many potholes in my city, people drive all crazy & have no respect for other cars- peeing on them, scratching them with their doors, letting shopping carts roll into them in parking lots..
Hahahaha that was so funny when I read your story, is that’s at USA ?.
Exactly why I wanna lease. Try leasing something reliable like a Honda Accord
Leasing is the way to go if you like getting new cars every 3 years. If you stay with the same dealer you can get some great deals!
That's exactly what I'm doing Scott. Turning in my first lease Oct. 2021. I chose Toyo. because I knew if I release from the same company it's a better deal for me. They offered to pay off my lease 5 months early just this past weekend if I would renew with them right now (I'm going like to like: Toyo Corolla). I said no. Why? Because they found out my car is in pristine condition and 12k miles UNDER the 36k mile limit. I got summer vacation comin' and I'm drivin.
I disagree... buying is still the better option even if you plan to only keep it for 3 years.
@@chrislancaster1982 Depends on the type of car.
So basically pay a car payment for 10 years to own absolutely nothing. Lmao
@@bigj7574 A lease is 3 years. Nobody gets leases for longer than that since it makes more sense to buy at that point
Thank you so much for this video… I am upside down in my vehicle right now and I think leasing will help me get out of that hole of negative equity
Not true, money factor to interest conversion is simple. Lease vs Retail finance rates based on score are just about even. Paying off negative equity is a great thing on a lease.
Example 12% interest on current car with $3k negative equity. Person trades in car on brand new car for a lease. You can qualify for a lease as low as a 535 credit score. The new car books really strong and typically has rebates. Your lease amount is not based on sales price. It's based on estimated value after the end of term. So, your credit reports a low amount of debt, your payment is probably the same or less than what you were paying and its under warranty the entire time. After your 3 year lease is up you walk away with 0 balance, your trade negative equity from before is gone, you've built your credit, and now your free to buy outright whatever you want or lease something else. Most new cars come with oil changes and it's under warranty the entire time.
You don’t earn ANY equity on a lease.
Great video with lots of solid tips! I'm still in the "I'd rather purchase camp" and keep my Toyotas for ten plus years! And with a consistent FICO score over 800 negotiating the best deal has never been an issue!
Ari thank you! I have leased several times and I have experienced first hand some of the things you listed. Turned it in early despite miles being under and no damage I had to pay balance. I've leased on a lower tier level because my credit score was not excellent. I like leasing despite some of the challenges I have had with different car companies.
Never buy a new car unless money is nothing to you. Buy used , buy it cash and upgrade when you can afford to. Hard times happen , job loss happens but bills never stop coming
Had the same car 21 years, this one 10 lol
Truth
Unless you can write off the cost as business expense. The only time it makes sense.
@@midlifecrisis7888 Even then it does not, you just don't have to pay taxes on the money you lose.
If it appreciates buy it
If it depreciates lease it
Many wealthy individuals observe the "Buy that which goes up in value and rent/lease that which depreciates in value" principle. Leasing a car can really benefit someone who drives 10-12k miles/yr., has good credit, and who takes the time to shop for a lease deal whereby the manufacturer guarantees a high lease-end value, therefore offering a low monthly payment, in order to clear excess inventory. i.e. a $199 monthly payment on a $30k car. I was an auto lease manager for a number of years.
How do you find these low monthly payments?
@@Glad2BGolden You must research the lease offerings on the manufacturer's websites. The best lease deals are offered on models that are not moving fast enough, or are overstocked near the end of a model year. The manufacturer will subsidize the lease-end value, resulting in a lower monthly payment. PLUS: If the up-front cash asked for seems high, remember ...everything is negotiable! (except for taxes and DMV fees)
Fun fact: You can terminate a lease with military orders with no fees what so ever
@@takethepowerback83 you bring your orders to the dealership and tell them you’re PCSing and that’s literally it.
Makes sense. You cant drive your car to Afghanistan
You can also terminate if your deployment is more than 180 days so if you’re stuck in a lease you want to end early and don’t care about your kids go on and volunteer for the next deployment 😂😂
@@peppersaltman1805 PCS is just moving to another base. No need to go overseas or combat.
PCS will get you out of a apartment contract aswell
Thanks for sharing your views on leasing. Just a bit of feedback, no need to yell, maybe relax a bit.
I love owning my cars. That is freedom for me. I have never leased, nor will I ever.
Me too, I always purchase outright!
You never own the car, you're just making the rich richer. I have clean credit, and never owe any debt to anyone whatsoever, and never will.
Correct. Unless you purchase, you’re just renting a company’s car. I could see going this route if you had a business and could write it off. Otherwise, an idiot move.
Right I have never leased a car either I like owning them.
You don’t want to own a German Luxury car. Leasing is the way to go.
@@user-tb7rn1il3q If I don't want to own it, I'm not getting it. Like Rob says "always purchase outright". I pay in full for my cars when I get them. I have a 2019 Kia and a 2020 Buick. Bought and paid for, should last about 10 years. Last two cars I had were a 2006 Mercury & 2010 Kia. Gave them away to people who needed a car, I got plenty of use out of them. BTW, I take excellent care of my automobiles.
Hey looking for advice from fellow subscribers out there for my specific vehicle situation; I recently moved to a new location that consistently has a lot of cold weather, snow, ice and rain. So it was time to get rid of my little basic sedan and get a more practical SUV with all wheel drive, the only way locals manage to get around town here! So went to the local Jeep dealership the beginning of 2020 where fortunately they were running lease special incentives on new 2020 Jeep Cherokee 4x4. As a trade-in they paid off my low mileage, high monthly car payment sedan. Between the Jeep lease incentives, my trade-in...Put my lease monthly ($300 payment ) way lower than my previous car payment.
Now I have all the options I need for my new location climate; 4x4 SUV with snow/ ice drivability, remote start with engine block heater, auto de-icing exterior and heated everything interior.
So all that being said...My dilemma is, in a year, when this current lease runs out should I just do a lease buy out on this vehicle that I only drive 5k miles per year ( approximately $12k remaining by then on a $33k MSRP vehicle, about $200 per month loan payment for 60 months)
Or would a new SUV lease on a similar vehicle in ‘22/ 23’ be a wiser investment. A new vehicle I wouldn’t own but would have a full warranty again for the full duration of the lease.
Thanks, Brad
I love you! You make me so happy I leased my 21 Challenger Scat pak I have so many options in a few years! Thanks for the advice
Great video. I always lease new and buy used. Leasing new lets me drive a new car and get rid of it when it hits peak depreciation in the first few years versus owning it. Buying used lets me get a car that I think I am going to keep after someone else takes the hit on depreciation.
You paid for the high depreciation. Your argument is wrong.
@@laszlokovacs6154- Depends on the car. High residuals help in the car I pick. If the residual is low, then I'll buy used.
@@laszlokovacs6154 My Toyota’s buyout price is lower than the market selling price, BY A LOT. So when the lease is up, I can trade it in and get $3000 for a new car (lease or purchase) or I can buy it out and sell it myself, netting about $3500-4000 extra toward whatever. It actually ends up CHEAPER to lease it up front. Same with my sister-in-law’s Subaru. Plus you have 3 years with it and if it ends up being unreliable or you don’t like it, turn it in without a hassle.
If you're thinking about leasing because you can't afford to buy a used car, you should really think about taking the bus or biking more often and ubering occasionally. Think longer term than monthly.
One good thing about leasing you can get rid of your lease every year or two (swapalease, leasetrader, etc.) and drive a new car every year or two. As long as you lease deal is good there always will be someone willing to take it over.
Leasing is a straight up nightmare.
-No Mods Allowed
-No exterior modification
-Strict rules
-24/7 surveillance of car
Rather just buy a used one that took a huge depreciation hit 3 years ago and trade in every year for a 3 year old with low miles.
A much better deal and you don't owe anyone and your saving 50% or more
Good points!
what if its a luxury car that has high repair costs after it reaches lets say 80km+? what do u recommend? is it better to lease it. for example a range rover sport or an audi a7
@@insolaceinsolace8868 As long as you can afford it I would lean towards leasing it. As you said - high repair costs and poor reliability history makes buying those used a risk.
I am going to put vinyl stickers on my lease's windows... I don't consider that a mod. If it was on the paint maybe. As far as new sound system, exterior pieces ya you may wait until buying it out I guess.
Do mods that you can take off.
Leasing is the most expensive way to operate a vehicle outside of renting it straight up from Hertz or Enterprise.
I just finance 1-3 year old cars at 1.99% from my credit union. I barely lose any money to depreciation, I let the lessee do that for me 😎😎
Before you regurgitate Dave Ramsey, that statement is only true if you end up keeping the car after your lease is up aka buying it out.
Most people who lease know they will only drive the car for a few years and then return it. Also, did you know you can lease 1-3 year old CPO cars as well?
Leasing is not for everyone but it does make sense in some situations. If it was truly as terrible as you make it seem, people wouldn’t lease lol.
Just watched your video a second time. Made me feel good about leasing my new Venza. After watching Ramsey video, thought, WHAT HAVE I DONE?
Lol Dave tends to do that! You just have to do what’s best for you financially. However, leasing to me only makes sense when you’re not on a path to financial independence.
@@justinejones2581 is "financial independence" a Dave Ramsey term? Sorry if this is a lame question, but I don't follow him.
@@thomass789 oh no it’s far from a lame question and more than glad you asked. It’s not a Dave Ramsey term it’s a state of being mainly have enough passive income such as investments in either real estate, individual stocks, ETFs, mutual funds and so on you’re able choose to work instead of having the obligation. Hope that helped! I think there’s so many resources out there that can help you if your interested.
Great video ! I think this is really a question about each person’s lifestyle and preferences when it comes to vehicles. For example I drive about 20 miles everyday for work 5 days a week and do a little extra driving here and there on my days off. I have great credit score and a really good full time job, I’m not rich but I’m comfortable. I honestly don’t know much about cars lol but I love driving nice cars especially German because of all their safety features and the luxury of it. I can afford it and I know a car isn’t a good investment so I’m really not trying to make money off them like I do with a house. For me to drive a car has to be something that I really like so that I feel happy making those payments which I do on time, I understand what it means to take the responsibility. I don’t want to deal with cars breaking down over time and I like new cars so for me and my lifestyle leasing works perfect. I also take really good care of them because I remember my dad always saying that when you pay for things with your own sweat you appreciate and treat them better. I leased my A class 220 2019 in 2020 and I pay $415 , my fiancé negotiated with the dealership for a while and looked over all the fees to make sure a lot of hidden ones were waved and no sketchy tricks were implanted like how long the lease is and such. We actually left the dealership the first day and they called us back with a more ideal payment for me and I’ve been very happy with it and my car. I think that’s what really matters when considering what’s the best choice for everyone when deciding in owning or leasing a car.
Leasing is good for higher income and business owners who want to waste money, and offset that cost in tax deductions. Generally speaking, it is always better to get a good deal from private sellers on used cars. Truth.
Doesn't help if you want new.
I tried to lease an Audi Q3 earlier this year with a credit score in the mid 700s, and they wanted me to put down $2000 and trade in my current Q5
Don’t chu dare keep your q5 n keep ur 2k
Never put over 500$ ever in a lease
@@truballa103 I kept my Q5 and walked away. That was such a crappy deal that it has kinda soured me towards getting another Audi. I’ve been looking into other brands.
@@avidbookaholic1 Audi’s are great just make sure the dealer don’t rob u that’s all
I'll have to admit, this video is pure gold. Rather than giving speculation or forecasting you provide us with cold hard facts and actual experience to live by. I had no idea what impact a lease would have on my credit score. My 2 questions are: how quickly were you able to rebound your credit score and (2) is it possible to sign 2 leases (each from different dealers/manufacturers) within hours of each other getting a tier 1 rate because the 2nd manufacturer hadn't realized you already signed a lease?
ive had the same car for 20yrs and still counting...
Lease is great for many. Like my self as well. The only exception is if you want or need a vehicle for work or have a need to a suv. You buy a land cruiser second hand low milage. That thing will last for 25 years. It pays out.
Great presentation, well done and easy to understand
Nice video bro. I do lots of content on car leasing and car finance. For me the best way to get into a new car is ALWAYS by leasing If you want finance on something used go for a personal loan.
Thanks so much Ari. You provide valuable information to public at no cost.
The dealer I went to did not waive the acquisition fee, but because they really wanted the car I was trading, they did take it out of the cost of the new car.
I love having a car paid off... zero payment beats any lease payment.
Exactly ppl are dumb
I totally agree
A car is never zero payment. Wait until something breaks or wears out.
When you're gonna fix it it will cost
Dinngg0 I agree with you I also love having a car that's paid off, zero payment beats any lease payment.
Money down on a lease is what makes lease attractive. Always put money down on a lease b/c with little money you can greatly reduce your monthly payment. It is about 30 bucks discount per each 1000 you put down. For ex if your lease is 300/mo put 3K down and pay only 210/mo.However, do not put much more than 3K-5K because you are then running the risk of losing that money if you crash/total the car early in the lease. Ask the dealer for more miles for free get as many as 15K miles from 10K lease-for free. At the very least get 12K miles from 10K lease. Dealers are likely to agree to this. This will make the car cheaper for you when the time to return it comes,plus you will avoid overcharge on miles.
In my opinion purchasing cars is only smart for the buyer who wants to keep it for the entire duration of the loan. If you’re wanting a new car every 2-3 years such as myself buying doesn’t make any sense. Cars are depreciating assets and you’ll just be rolling over negative equity every time you go to trade it in.
I drive way to many miles to lease, however my wife is leasing and our dealer has said he will buy her out/transfer to a new lease early if she hits early...but Carmax buy out sounds interesting.
Yeah and I rather forever pay to do a lease than a car to be honest I get bored after while with the car 3 years is good enough to have a car and get a new one
I signed up on a lease trade website to transfer my Tacoma with Toyota Fina and found a buyer (transferee) that wants to take it over. So far it has been a complete frustrating failure on Toyota’s end. They sent him the lease transfer agreement first and were supposed to send him the credit application first, so that through a big wrench in the process. He has been hanging on for a month and I’m about to have to make the lease payment again next week. 😤
Daughter needs a car, looking at leases. The chip thing is messing everyone up. They insist on $$ down - I have had 3 leases w no $$ down. Subaru and Hyundia is what we are looking at.
I have perfect credit, my daughter has no credit. any ideas???? She will be in collage, not a lot of driving.
I have only leased, so far 7th one in 5 years and my highest payment ever has been $500 which was for a hellcat
A hellcat for 500 lease payment!?!?!! Where?!?! My credit at the time for leasing a ScatPack was 789 and i pay 575 a month for my scat. For the Hellcat, they wanted around 900.
Mike SOMDOW Lol he’s lying
Mike SOMDOW Snethkamp Chrysler in Detroit Michigan (Chrysler employee discount)
Mo D why would someone lie about how cheap the payment is???
lmao 500 for a hellcat.. clown.. only way this would've been possible, is if you threw down a huge downpayment. In which if you did, then that my friend is just an amateur move lol
I haven’t had a car payment for 5 years. I like it that way. I tried leasing once it cost me 18k and in the end I had nothing. Keep your car till the wheels fall off and do the simple maintenance yourself if you can
leasing is very stupid
Exactly
sure, but leasing is not for everyone, sure its nice to have car that you can own and have the wheels fall off, but when you can't do your own maintenance because idk you live in the city then it's not doable, also depends on the car brand, not everyone wants to keep the same car for while as it depreciate and it becomes more fuel dependent. The bottom line is, leasing is like renting an apartment, there's a contract and payments you need to make but you don't need to worry about maintenance and you get a fuel efficient car every 3 years or keep the one you leased at the end of it.
Had to dial the volume down about 40%. Why are east coasters so god damn loud?
a few companies such as Audi Financial will not allow you to sell to a third party such as CARMAX. You have to buy it and sell it. which usually means taxes in the case of Audi. Kia and Hyundai for instance are just fine with getting a payoff from anyone.
How about lexus? Thanks
Great info. If you live in a city area, with tons of road salt, and potholes, and you insist on a perfect car, it can be cheaper to lease. If you took out a 5 year loan to buy, then traded it in after 3, it would have been cheaper to lease for 3 years. Imagine living in Vermont or Wisconsin and never having to worry about the car rotting away and staying safer.
I like leasing for 3 years....I never have ever worried about a vehicle breaking down and while I always have a payment it still works out better imo.
I have bought also on a 6 year plan and while I kept the car for ten, those last couple years were certainly not cash free...every inspection was over a thousand along with the worry anytime I was taking a long trip...not to mention in the end my driver window wouldnt go up periodically, my AC wasnt working well even after giving it a shot of antifreeze which I wasnt going to pay a couple thousand to fix which is what I was told it would of been and the bottom started to seriously have rust all over.
Not to mention it wasnt exactly up to date with the tech and certainly didnt look new.
So in those 4 years payment free I still spent a couple thousand///OR....I can have a lower monthly payment and complete peace of mind that the vehicle will rarely have any major issues if ever, and when It starts to age a little bit...BOOM....New vehicle....stress free driving....That to me is well worth a couple thousand extra over the long haul.
Obviously ymmv, if your a mechanic and can fix your own vehicle I would buy...but far to many issues arise once a car starts ticking up there and the headaches arent worth owning something that you cant completely trust to not cause problems.
It also gives people who otherwise would never be able to pay on a vehicle cause it is out of their price range an opportunity to use that vehicle under lease cause of the far cheaper monthly.
Just an opinion.
I agree with what you said at 01:15. Yeah I've never liked leasing. It's like renting. For many people, it's better to own the product than to pay to use it and come away with nothing at the end of the term. And if you plan to do any significant mileage, significant modifications, or significant wear-n-tear, leasing will hose you.
Some people don't like owning depreciating assets and would rather give it right back after a few years plus they wouldn't have the entire MSRP on their credit report.
@@chriswhitaker9720 A vehicle is never considered and asset, it is a tool to get you to places you need to go to make money. The investment aspect of the vehicle is trying to accomplish that with the least negative impact to your long-term financial goals. Buying is almost always the better way to go. There are exceptions, but leasing ties you into a strict contract and perpetual payments. Even 3 years with no car payment can significantly change your personal finances. I've leased a few cars and bought a few. I only buy now.
@@tewksburydriver8624 a vehicle is an asset hence its something of value which can either be up or down as it relates to cash ( it's right in the definition of an asset). I never finance cars because I never want to own something that loses value so quickly. The only thing I care to own is my real estate investments.
Chris Whitaker ... it’s not about depreciation asset, not an asset, it’s about lowering your monthly obligations. Owning a vehicle without a payment is a great thing. Try it sometime, if you hate it go lease a vehicle.
tewksbury driver I do I have a leased C63 S and Raptor. But I don’t put on tons of miles so it works for me. But at the end it’s all about what works best like you said .
thank you, for scaring me away from this idea… Way too many potholes for me to learn this cool system.
In Michigan, leases make a lot of sense if you like a new car every few years, as you don’t get full trade in credit for sales tax, it maxes out at 7K credit. So if you buy a 50K vehicle every few years, the state is making a fortune in sales tax. Only pay tax on the lease payment in a lease. In my example, i lease a 67k msrp truck for $565/mo for 36 months, if i had purchased the truck, i would have $1025 payment for 72 mo, assuming the same out of pocket upfront, $2k in my example.
There’s nothing better than not having a car payment.
Maybe to you. To others there's nothing like driving an Audi A7 everyday.
Buy a new Mercedes for $60,000 and in two years its worth $30,000. Lease it for two years and you are much better off financially.
Unless you are thinking about keeping the car for 10+ years then buying a new car is stupid. And who keeps cars for that long these days?
My opinion is to lease cars that are 2years old and low milage for maximum of 4 years if you have a milage of no more than 10,000.
These things aren't black and white. I last leased a mercedes that was 2 years old 9,000miles in perfect condition and I got the car for $28,000 and the original price for the car was $60,000. I still even had 1 years mercedes warranty on it.
Dealers don't let you lease older cars do they? They only lease current model year stuff I thought.
@@danr154 Not in the UK. I just changed the figures to $.
I don’t keep cars longer than 2 years. So would leasing work better for me?
This is a 100% subjective decision based on the kind of car you are wanting to drive.
German/Italian car: IF YOU HAVE AN INCOME source and you prefer not pay cash, leasing is the SMARTEST thing to do. These cars lose warranty after 3 years and the engine starts having all sorts of problem. It’s like a new problem every month. Leasing will save yourself a headache.
Japanese car: own it. Period
Just pay cash for a good 10 or 20 year old vehicle with low miles and drive it till it drops.....keep it maintenance and change the oil.....
I have leased 16 vehicles since 1995. All for personal use. I have only turned in one of them, a 2005 Land Rover LR3.
I rarely put a penny down. But I am very picky about the model
I lease. I only lease vehicles that have HIGH resale value. And I always keep the mileage LOW.
I will always trade in, not turn in a lease.
Leasing is a beautiful way to guarantee that you will always have monthly payments and never own a thing
@Kai Kai wrong. Buy cars with cash and then invest your would-be payments! Haven't had a car payment in 15 years
No truer words have never been spoken....spot on with that statement!!
Its also a great way to keep the car companies rich and YOU broke!!& have nothing to show for it.....ill pass.
Owning a car is a beautiful way to put your money into depreciating asset and to keep driving the same aging car for a long time, while automotive technology and safety keeps progressing.
@@scriabinbartok3465 exactly! When you buy a New car you spend an absorbent amount up front and still pay month to month and maintenance out of your own pocket. And by the time you finish paying it off the value has dropped like crazy and your car starts having crazy expensive issues. And after s few years most people sell their car anyways just to finance another car. If you get a used car you’re paying for someone else’s problems and really outdated and sometimes unreliable parts. If you lease you turn that car in after 3-4 years and it’s someone else’s problem and you get a new car with new technology for low payments. Buying is for fools!
I had to put a grand down on my current lease and get a co-signer because I had never leased a car before and I never owned a car under my name.
Very informative! I am about to lease my first bmw. I am learned a lot from you. Thanks for all the good insights
If you have a lot of money to throw away, lease 10 cars in 10 years. If you view cars as transport and want to minimize cost, buy the Toyota or Lexus that appeals to you, either new or three years old, change the oil every 5,000 miles and keep it for 250,000 miles.
Toyota Financial requires GAP, so it’s required to be paid for at the dealership, but it was like $200 or something.
Should've renamed the video to "15 reasons to avoid fleecing"
🤣😂
Chau Nguyen 😆😄
I tend to buy cars but trade them every three to four years or so, so I’m exploring leasing to see if it’s more suited to my lifestyle.
Cars depreciate as soon as you buy them. Best to buy a Honda or Toyota. They depreciate slower and still after 10 years you can sell them and still worth something due to reliability. Do Not Lease. That’s perpetual Debt. Invest and save that money. Who in their right mind wants a constant car payment ?.? Pay off your car early and drive it for 10 years or more. Still driving my 2009 Honda CRV . Bought new and still worth about 8-9000 if I sold it now
Yes. Thanks for making the case against leasing
Don't by brand new get a lease return from the cars are ready to appreciate it and just buy it you're going to have to get full coverage insurance and everything on it anyway so you might as well just buy it
Where are all these leases with no down-payment? Dude even at my local VW dealer they want like 3k up front. And my credit is like 730.
A lot of these folks are lying.
@@rm5282 naw I just turned in my 2019 Acura TLX for a 2021 aspec TLX and only had to deposit 500.00 which paid my car note for the following month.
Excellent education. I’m not a fan of leasing after doing it once and being heighten not to get it dirty, etc…
I’ve been leasing for yrs. definitely the best for me. If I stay below the negotiated mileage can the car be worth more at the end of the lease than what purchase price will be? If so , what should I do, just buy it at lease end and then trade it in somewhere else for that extra value?
Yes. My Rav4 is worth more than the buyout price even if I do the 36k miles. You can trade in your lease car and actually get trade-in value. Go in like 6 months before lease end and try at your dealership first.
I have a lease on a 2019 Dodge ram I am currently paying $686 a month and I have 14 months remaining on my lease it was a 36 month lease I can't afford to pay $686 a month because of my current life situation I am trying to have a dealership buy out my lease so that I can get out of the lease and have them pay me cash so that I can go lease a cheaper car and have money for a down payment on that car the most the dealership that I went to was willing to give me was $2,000 in cash and pay off the lease how do I get more than $2,000 in cash because that's not enough to put down on a car lease for a decent payment I really appreciate some advice thanks I appreciate it take care
So you said your cs dropped 20 - 40 points after the lease. How long did it take before it went back to normal?
2 months
@@negotiationguides what's the correlation between leasing and credit going down? 🤔 Thanks.
@@eltiarribero when you go for a lease (in other words loan) the company requires credit checks where they pull your credit score from the credit bureaus. Every time your credit is pulled points come off until you either make the first payment or so.
@@eltiarribero You take a hit for the hard inquiry and new account bring down your average age of accounts. Car leases are reported to credit bureaus like an auto loan, as it’s essentially an installment loan.
@@mshai2818 Makes no sense that just a "check" lowers your credit. You are just shopping rates as your score drops in the interim. The system sucks!
I've leased. I've leased and then purchased the leased vehicle at the end of the term (my current situation) and I've purchased used. One thing I have not done is purchase new, and I don't believe that I ever will. I'd go CPO, or otherwise recently used.
Hello, what is the typical term to finance a leased buyout car?
Gerald V Not sure how brands do it but for the brands I’ve least (VWGA Umbrella), you can literally lease today and finance it tomorrow. Don’t know if that answers your question
Leasing for 3yr/36k the buying it work out for you? Was the residual price fair?
Very very helpful, especially the last tip
Is BMW a good car to lease? I want to get rid of my GLK 2015
So I leased my truck for $48k, they said when the lease is over I’d owe $27k if I wanted to buy it. My lease is less than a year from being done and I’m looking at the value and I’m at $42k. Would the dealership change that $27k that I would owe to something much higher? I know you said they would not go lower, but would raising be a concern?
Great video friend please lower your mic i almost went deaf
Thank you. I just leased the new Venza Limited. My first lease. This answered my questions.
One question. With current high trade in values, I traded in a Ford sedan. I used the trade in equity of $ 8500 as a down payment. Is it a mistake to put that much down. No gap insurance was required. Are you better off putting the minimum down and taking gap insurance. We are elderly and decided at our age, leasing made sense.
Yes, it’s a mistake to put down money. How?
If you total it now or if it’s stolen, your insurance will pay the lessor for a new car for you. You literally get a new car. However, you don’t get your down payment back. You’ve lost it. If you had a 0 down payment, you would still get a new car. Nothing lost. GAP insurance is under $200 for 3 years. I believe mine was $160 on a Rav4 Hybrid.
Doesn't your head heard being tilted back all the time?
You missed the biggest critical factor which is hidden, misinformed, redirects to MF ( interest rate) which they won’t answer it directly 80% of the time. That is where they earn back all the discounts. The interest rate is 5-6% for tier 1. You don’t know until you see on the contract in tiny words and the loan officer won’t mention it and this is the last leg of the game inside his office and you are excited and tired. You just want to get out there fast.
What about an open lease
I typically buy a car that's 3- 5 years old, keep them for 3-4 years and then either get bored or have some crazy repair I don't want to face and then start over. I'm seriously researching leases. I'm concerned about mileage. I'm a traveling social worker and I'm starting to drive more now that we're back out in the field. I'm tired of unreliable older cars and the bigger payments of a decent car, are out of reach for my salary. Leasing might be the best way to go. This video answered a lot of my questions. Thanks so much. I need all the good advice I can get!
Lease is a great option for people with a lot of money
For most mid class people i recommend to buy 2.5 -3 year old car and sell it 3 years later pay cash of course and keep doing that
And broke people just get a cheap used car and pay cash
Tired of seeing people buying shit they cant afford
If someone has to finance a car they shouldn't be buying it
You can tell he’s not an honest person because he says 600+ is a good credit score. Most creditors don’t consider credit good until 680+.
He is in the car leasing business so he’s trying to make it sound like a good idea to lease. It’s not.
The main reason I think buying a 3-4 year old used car is better than leasing is because you use it for 3-4 more years and then sell it and get most of your money if not all of it back. If you choose a good car with low maintenance cost like Korean or Japanese cars then you don’t really spend that much money. What do you guys think?
How much does buying drop your credit score? I'm an 850 FICO now.
It doesn't matter if you buy or lease, your credit score drops 35 points. Pay off a loan early, same 35 point drop.
Why would it drop if you pay a loan early? How early are you referring to?
@@KM-bu1js The loan was 27 months into a 60 month loan. My credit score dropped after 2 leases, again after financing a car loan and a fourth time after paying off the loan early.
U said there are no hidden fees what about capitalization costs?
Hi is a 7.5 k miles a year car lease living in NYC good? Please help?
It’s called a fleece for a reason.
Thank you
ally doesnt let me sale my car to a third party for the same buyout. ridiculous