Car Leasing Explained 

The Dave Ramsey Show I'm from Dominican Republic.

This is not necessarily true for 3 simple reasons. 1. The price that you buy a car for will always be higher than what the dealership/manufacturers pay for it. This difference can work to your advantage because depreciation on a higher sum is larger than depreciation on a smaller sum... 2. The interest rates that car manufacturers can get is better than you can get 3. The higher down payment when buying a can can be instead re-invested by you and you will be getting interest on those funds. For these simple 3 reasons (as well as many others less tangible reasons). Leasing can sometimes be the better option. True, over time leasing will probably be more expensive than buying, assuming that you buy and keep the car for more than 3-4 years. But the loss-benefit is close in many cases. His simplistic explanation is less than very intelligent...

Iv lived I America my whole life never left . Iv lived in NY and FL . I'm 23 years old and my whole life was around ment 2 time or more my age and never once heard the term fleasing lol

Worse explanation ever!!! This isn't a Dave Ramsey quality video.

New cars are garbage, Dave. Two words: planned Obsolescence. Also, the fuel injection system is infinitely inferior to carburetor in terms of repairability. Everything is over computerized and near impossible for a layman to repair it himself.

RLWSNOOK410 you're a rookie

You can find them in FantasyLand.

See them all the time here in Nevada. They are usually a Honda, Hyundai, or a Mazda. But they are still out there. We buy vehicles like that all the time. Newish car that is 4 or 5 years old with like 60,000 miles on them for less than $8,000.

This guy has no clue what hes talking about... notice the use of the word "Probably" And when you "Buy" a car... you dont own it... the financing company does. Skip a few payments...see who still "owns" the car.....

Ford, Hyundai, Kia, Nissan, Mitsubishi all sell economy cars with less than stellar reputations. They could easily get that low especially with high mileage or some damage making them lose value. Competitor cars from Toyota, Honda, and Mazda might get a couple thousand more when selling them used.

bludevmike you’re not from the country you’re not cool enough

Sergeant Rizzo approves.

M Detlef what’s that make people watching, like yourself?

Isn't vehicle pronounced vee-hickle?

@M Detlef so how is it pronounced? Voy-hoykle?

AJ Lee not how it works. A third party comes and instructs it then sends it to auction unless the dealership wants to buy the vehicle. And the dealer doesn’t get the car for free. Dealership has to pay a dealer buy out then sell it.

Mar Loz that’s more or less the same thing aj Lee said.

Recertification doesn't restore the vehicle's original value. It gives the buyer a feeling of security.

AJ Lee And the person who leased the car has to return the car and go home empty handed.

This is why I will never lease a car.... they allow you to have the car for an allotted amount of time with loads of restrictions, then you get to the term and they get the car back and try and get you into another lease and unless you wise up, they're making a good chunk of their money off of you

Leased a ram 1500 for my business. Payoff is 24k. 10 k in equity. Way different then a car

npxmnpxm they are reliable

@@Convexhull210 Depends on the model year, in my experience. The newer models just aren't as reliable as the older ones over the long term. The 1999 merger was the beginning of the end of Nissan quality, imo.

npxmnpxm I agree. My Nissan is 10 years old.

I had an Infiniti that lasted 350k miles. It still worked but I the power steering started going out

Tacara Jones not bad!

ismael Ramirez was gona say the same thing lol

Rev up your engines!

Me thinks scotty and dave would get along quite well

Scotty is gonna tear Dave a new one for saying that Nissan makes quality cars lol

A 2019 Nissan is a great car, for the first 12 to 18 months..Dave said the same thing about BMW, yes for the first 2 years from when the car was made, nice ride....longevity .....nope

Do you have a family?

@@xq8152 doubt it

what do u do for a living if u dont mind my asking?

Please answer those questions sir

@@charlesben9104 I do have a family. I am a commerical developer. I build storage units, strip centers & large tunnel car washes.

wishbone20t so did you think you saved money in the end?

@ $178 per month yes. I also like the flexibility of a lease if worked properly. Though I agree with Dave's opinion in most cases. I would absolutely disagree with anyone that says maintaining an older car with 100K+ miles that will be driven more than 20K miles per year is cost effective. The only way it could possibly be done is luck and to not follow any know maintenance schedule. It is recommended that a car with 100K miles needs new struts, timing belt, (brakes, tires, belts, tuneup, battery, flushes, wipers etc. if they haven't already been replaced) that is just maintenance. Just the cost of proper maintenance of a car over 100K miles would exceed the value of most cars. this dose not include any unscheduled repairs (the average trip to the mechanic for a repair is $1,100+) Two repairs per year average and you will pay nearly what I am paying in payments to drive a brand new car. Proper maintenance is a safety issue for not only the driver and occupants of the car but for the innocent lives they will encounter on the open road. In addition older cars are typically not as safe as newer models or as efficient. If you only drive 5-10K miles per year it may come out differently. I have not bought out every lease I have had but I have never paid a single cent for over mileage. I have never turned in a lease with less than 75K miles almost double than the lease term allow. I have a trick and I will use my current GLI as an example. Lets say I wanted to turn in the car and pick up another for $300 per month. I will be @ 75K miles on a 48K mile lease. My buyout is $11,400, the car is a sought after model and would set on the lot at its current mileage for about $17,000. So you see a good chunk of $$ between the buyout and value of the car. I never go to the dealership I call and I tell them here is the deal. I have a 2012 GLI at the end of the lease with 75K miles. I am either coming in to finance the car or if you can allow me to walk away from the car free and clear I will pick up a brand new car today. They only make money on one of those situations. I also tell them i have been in professional sales for many years and I never make a sale unless my prospects have 2-3 bids from my competitors. I will shop your offer, make the first offer your best!

Your repair numbers are way off...I dont spend anywhere near 2k a year in repair cost for my Toyota Rav4. Maybe if you bought a used BMW I guess.

As sure as the fact we will all die someday you will need repairs, as mentioned the average trip to the mechanic is $1,100+. If you drive 20-30k miles or more per year it will happen sooner or later. But that is only repairs lets talk maintenance- you car dose not have special magical "Toyota" struts. Your struts were sourced from the same few companies that all car manufacturers source from, as hundreds of other components on your car. U joints, clutches, tires, brakes the list goes on and on and on. Most strut manufactures recommend replacement around 70-80k miles. This single maintenance can run in the thousands of dollars. It is a safety issue and sadly most people that operate cars with 120K++++ miles never do and endanger not only their own lives but countless others. Guess how many people die in the US every year from improperly maintained cars each year and how many of them were innocent bystanders. Granted most are truly oblivious to what proper maintenance is, what should be replaced and at what time. If you were to add up the proper maintenance (a lot of it being safety related) of a vehicle from between 80-200K miles, and you drive more than 20K miles per year- you are not going to do it for less than $178 per month. If the vehicle is financed at that mileage (with interest) and you are paying a car note on top of maintenance you are certainly not going to do it for $178 per month. "If" the vehicle has one average cost repair per year that is almost $100 per month alone on top of that.

175k miles on my car never had to change struts/shocks...work like a champ still. I work in auto insurance industry most accidents come from distractions not improperly maintained cars...I can recall a few with old tires though but never in 10 years a accident as a result of a bad strut or clutch. Sorry I dont need to be in a car payment all my life...my next car will be around 3 years old and paid for in cash. I am sure there could be a few leases that could be a good deal but majority aren't.

Buy a Honda. they dont fall apart after 5 years

Es Gee what do you do?

John Steele *Toyota

Es Gee You can buy two vehicles that are more affordable and reliable to you. Best option is to buy with cash. There are decent amount of reliable vehicles over long period of time that you may not have to worry about. Google is your friend. Certainly each person has his/her own favorite style and constraint but getting reliable car shouldn't be the motivation of leasing car.

bhbae1 I don't think she meant leasing 2 vehicles simultaneously. Besides owning 2 depreciating assets is not necessarily better than leasing 2 depreciating assets as all you are doing is paying off the depreciation and interest in the form of money factor. The crux of the argument is what makes most financial sense. For automobiles, inventory, model cycle, and timing of the year, all play a huge role in getting the best deal. Buying vs leading new - if ur avg mileage usage is reasonable, I always go leading new. There are deals to be had. People simply don't do enough research to know better.

Nah, its like trying to negotiate at a poker table. The dealer always wins

@@burritobrosvideos8060 yea, i suppose if you can't reach their price point, theres another idiot who will come in and pay it lol

Armen Topchyan Have a mobile mechanic have a look at the car prior to purchase. Best $300 ever spent.

Love this

Man, ive never seen anyone but more thought into being wrong haha

Dave doesnt recommend people to buy new cars either...

yep

They're garbage! Used to be OK cars.

Love my Altima!

@@Axl_colts don't forget to come back and let us know when your cvt fails which will probably be pretty soon!

@@nemesis656 If it happens I will!

wreck'em tech I see so many people use poor excuses to go into debt.

You don't need a degree to know this, but you're absolutely right sir

@Eric Sirias its better to buy, ive worked at a dealership and leasing payments are grossed opposed to monthly payments(buying) wether good or bad credit. Dont buy from dealerships, their grosly overpriced. Criaiglsits, auctions or from the manufacture is the best value

@Eric Sirias Obviously you answered that for yourself. Spend the extra $5000 or $6000, its your money. Not everyone selling their car is selling it because theirs something wrong, on average customers sell their current vehicles for an upgrade because of comfort or pure want. You can get a 2015 honda EX or LX accord on craigslist for a great price. 2018 Honda accords are nearly identical in their services and manufacturing. In my experience working at a Honda dealership most people who leased or bought a new car couldn't afford it, so a 100 or 200 more in monthly's to them seemed like a good idea, adding up to 1000s more.

@Eric Sirias A Honda Accord at 200,000 miles will still run. A New car isn't really new, the vehicles you see at dealerships are constantly being test driven and moved. Once a vehicle is on a plan, it drops nearly $10,000 in value because its now "used". If you bought a $30,000 2019 honda accord and tried to sell it the next it the next day, it would quote at almost $21,000. Buying a nice new car don't mean sheet, and I wanted to tell every customer that, save yourself the money. What do you think Dealerships do, new cars still have problems. There their to steal your money, what do I know, go buy a new car you seem dead set on getting a brand new accord.

Option 3: get 6-12 months of income saved in the bank, then, save the cost of the truck, buy the truck outright, have the power to sell the truck or do what you want, because you own the truck, avoiding any type of risk to your name. It's all good untill something happens and you can't make the payment.

EDIT: Reread. Trucks never lose value after 10 years old. Their value is all the same be it 150,000 miles or 200,000 miles.

@@w8stral "Trucks never lose value"? Hahahahahaha 😂😂😂😂😂 That is a great one. Did you hear the one about the Italian chef? He pasta away.

@@chinita1pr Trucks dear friend lose value till a minimum is reached at which point they lose no value until they get scrapped. Same is true of all heavy machinery/equipment

@@w8stral Agreed. Makes sense now after the edit because the original "trucks never lose value" was laughable.

tikijojo They would have to have high miles and problems. I have seen lots of cars in that price range going for about 12k though. That still beats 20k.

He's not being objective in his lease or buy explanation. Everything has pros and cons. He is simply talking about the cons of leasing from a financial aspect.

Isaac Spencer A new Corolla isn't necessary $20,000. After dealer discounts, a base Corolla will sell closer to $16,000 or $17,000, and it comes with maintenance included in a short term lease.

tikijojo Ylif you lease a car you're basically Under-intelligent.

Not too many cars hold there value like a Toyota

I think the point is that Leasing must be more expensive otherwise the company offering the lease would not make a profit and would quickly go out of business.

There are a lot of sheep in Ireland.

@@buckbuchhagen726 😂

That's why I lease. Cause I have no idea what I am doing, so any repairs the dealership pays for it and I don't have to wait in line at the Dmv for plates or registration. Call it lazy but it is easier for me

@@dorisfashion Worried about no out-of-pocket repairs? That's why you buy a used Japanese car that doesn't break down. So that means buying a used Subaru, Toyota, Acura, Lexus, Honda, Mazda, etc. Then you can save tons of cash by buying one 20-25k purchase and pushing that every 10 years while you work and save money. That's the only real way to save money on a car. You keep maintenance and running costs low, and you just keep trying to push that 20-25k purchase further and further out. All those brands, minus Mazda, will also offer you great resale value. Subaru, Lexus, and Toyota offer the best resale value over any other GM, South Korean, or European brand

@@colechapman6976 what about Nissan/Infiniti ?

@@colechapman6976 still a risk buying used. it may break down; it may not. either way, it's a risk. leasing a new one prevents that risk. I think both buying new and leasing new have their ups and downs, depending on the individual. to be honest, buying new would probably be the best imo.

And you still have Payments to enjoy with your rebates, and still broke.

Perfectly said.

We lease BMW’s…for a reason…not buy. No way I’m paying to repair one. It’s a depreciating asset.

@@Skyking6976 you know better, but my idiot uncle did just that 🙄 Loved his beamers so much he didn't care how much it cost to fix them unless the mechanic told him it wasn't worth putting money into anymore Prob only cause he got tired of fixing the same old cars...

sounds good, but you're not factoring in a) losing your ability to make money and maintaining a payment, b), the cost of doing that time over time decade after decade in relation to your net worth. It might be convenient when everything is going well, but it isn't the full story.

I leased a car because I couldn’t afford to finance it at that time cause they asked me more for the financing and I needed a car I was to scared to buy $4000 car so that was my choice and I don’t regret I did it. Now that I’m finally in better place I can afford to finance one when I return it in a few weeks.

Leasing new Camry is like 20 cents per mile. Financing and driving till the wheels fall off a new Toyota Camry is 10 cents per mule. Buying a slightly used Camry after leasing is 7 cents per mile.

how do you get a camry for nothing down? It's usually 2-3k down.

You don't "have the option of giving it back at the end for no cost." Just based on what you claim, you will have paid at least $8200 over the lease term (likely much higher), and have nothing to show for it when you're done.

Agree. I think there's been a twisting of words in taht leasing is cheaper. it's pretty much always been leasing you can drive more for less but I've not seen it discussed as being cheaper. It's actually slightly more expensive to do but you reap a lot for that extra costs in terms of options, time frame to exercise those options and risk that is mitigated. Not to mention all that comes with getting new cars all the time.

Hmm. As a contractor i have always purchased vs leasing because of mileage. Leasing seemed like a rip off to me because you pay the same or more and have less to show for it. Leasing as a business write off would only really work if yoir cost to get places was more than actalully leasing

Matt Bond cash is always better

I need a lower monthly payment now, and I plan on buying out the car in the future. When the value you goes down after I lease it, I can afford those new parents to "buy" the vehicle. I may spend a little more over all yes. But every month I will be paying much less, and get exactly the vehicle I want. I don't see much loss bere

@@joshuamclean4588 no, its definitely not with rates this low and tax incentives for business deductions.. learn how to play the game better

Dave Ramsey only cares about the financial details of a leased car. Your buying preference he couldn't care less about. If you want to lease, go ahead.

Don’t bother trying to reason with this guy. He makes a bunch of terrible assumptions, uses skewed numbers, and disregards common sense to get to his opinions. He’s simply wrong.

Dave is smart to dumb people

Just drive a toyota or honda...the only truly reliable cars out there.

True but even maintenence costs will never approach the expense on a budget relative to a monthly car payment

You can lease a new camero for 370 a month and if the engine blows thatd be 5k outta pocket 5k is like 1.5 years of paymets of the 3 year lease

@@moneygrinds4216 That's assumimg you pay, if an engine goes and it costs 5k to repair you simply get rid of the car. As long as you don't finance a used car that scenario shouldn't happen. You're still better off buying vs leasing as long as buy the right car with adequate research on your end.

@@fkcavs what about the fact your always in the new one when you lease like thats so much value considering thats what everyones payment is all about looking the freshest

and not everyone wants to keep a car 10+ years and have to deal with maintenance or issues.

Exactly. But some people just don't get it. They get too hung up on the fact that they're renting the car, instead of owning it.

And you don't own the car until you pay off your loan. Until that happens, the bank owns the car.

And??

Red Apple Wellness yea if u are buying the car for 5 years both ways if buy or lease u owe money but on buying if u want to trade your car within 2 years u cant

ksmithdc same for buying houses except you never own the house even after mortgage is paid. The government owns it forever. Default on taxes after buying a house with cash its taken away!

Its not a junk car if it went 250 miles. plenty of "nice" cars out there with low miles that are in the shop all the time.

Not interest

if you're paying cash for new luxury cars you need to see a financial planner.

The ONLY time when the car lease makes sense is if you works for the car company and the lease is an employee only package.

MattV2099: Guns & Food matt v woah

BREAK YOURSELF FOOL

Operate

BigFire not only that, my parents finance for tax write offs

@DJ Ness you hate blacks, just say it outright

no, keep your cash in the investments they are in making money. would you ever go to your financial planner and ask them to show you a place to invest money that will lose upwards of 75% of your investment in the first 5 years? NO. cars are expenses, treat them as such. they are not investments.

Anddres Torres Absolutely. You just have to be picky, do your homework on the make/model and the car itself, and have the car checked by a mechanic if you don't have the knowhow.

bought my car in 2013 for 1200 it's still running strong

True, but treasures are rarely there when you actually need them to be.

Most Craigslisters think rust is gold plate though.

The lies your telling

LiftOrGTFO if you plan on keeping your Audi less than 5 years you should absolutely lease it. Dave is a jack of all trades, master of none. Get someone who knows leasing to explain it to you and you will understand.

Audi's don't typically lease well as they don't subsidize or incentivize them much. They don't want to nor have to. Look at a $65 Audi vs say an $65k Infiniti and there will be upwards of a $200-250mo difference in lease payments.

ms3er it’s true.

Leasing luxury cars is more sensible than leasing normal cheaper cars. Luxury brands are hit even harder by depreciation. 2 years ago, I bought a 2014 Lincoln MKS Ecoboost AWD, fully loaded, for $19,800. 60k miles on it, when it was new the sticker price was 63k. Whoever bought that car probably took a huge hit when they traded it in to the Audi Denver dealership, and I got a loaded luxury sedan in great shape for the price of a new Kia.

@@robertboehme4375 I wonder of the "experts on leasing" are worth 20M or more....

Not if you buy the 6 year 100,000 mile warranty--only $3,000 and will save you a lot

@@chadhaire1711 Try a $8000 or more warranty that is limited and only for certain models

@@stuna101a Try proving it.......you number is bogus

If you are rich and can swap luxury cars every 2-3 years while not being burdened and still prioritizing saving/investing for your future then yeah, go nuts on a luxury lease. The problem is thats not the case for the majority of leases. The exception doesnt define the trend.

@@codyh9155 you don't have to be rich. If you can afford a constant lease payment of a few hundred dollars your set. If you can't budget $300 a month for a car payment and insurance you've got bigger things to worry about.

That's the definition of stupid and something too many people do-leasing a vehicle they can't afford. Without penalty? You paid the penalty in higher costs.

Try carnivore diet and omad.

@@aliendroneservices6621HAHAHAHA!!

Have you heard about things like Insurance?

Car accident on a bought car = $500 deductible. It's only a huge loss if you're broke.

@@anthonya606 insurance pays the estimated value, which decreases drastically once off the lot. That's how you get the huge loss...

News flash ‘’ Gap Insurance’’

And, always driving the latest tech and safety.

you joking right 🤔🤔🤔🤔. If you don't think you are making the bank and car manufacturers rich then you are really stupid. They won't be pushing leases if it wasn't making them rich and they wouldn't even be in business.

Just because you're making the manufacturer rich doesn't mean it has a negative impact on your finances. It all depends on your situation.

Caleb Pendergast in this case it does not matter the situation. Car leases are designed to take way more money from you instead of paying the car with cash up front. You end up spending thousands of $ more just use your calculator and do the math.

koolyo2foots all these youtubers be ripping off banks and stealing thei money!!! us people buying cars with cash have been doing it wrong!!!

Rideshare Consultant - All the parts you mentioned not needing to buy is simply due the limited miles you’re allowed to drive when leasing. Or, yes, you do in fact pay for all those things if you exceed your mileage allotted and begin getting charged per mile. Oil change, do that yourself for $20-$30 and you can use top of the line filter and oil at that price. Tire rotation? At most, $30. A lease if basically for your work commute, if you do any drivings on the weekend you’ll be playing the mileage game.

So, you are lazy and want someone else to do the work? Ok. You are paying for it buddy! Big TIME!

@K S Psst. I think Dave's anti leasing/financing message is meant for those that truly shouldn't be doing it and can't afford it as some of these callers show eg. "I make $25,000 and have a $45,000 car loan". If you make good money and have no debt I see nothing wrong with financing a new vehicle as a treat to yourself. I drove paid for junk for years, I deserve my new cars now, that I can afford.

@@JohnSmith-gs2rv That is how you remain POOR by being lazy and egotistical as you think it is "beneath you" to do menial work.

@@w8stral ure so arrogantly sure of urself....its pathetic..pitiful

You think they aren't fleecing you with "0%" financing? I bought a new car 3 years ago and made it clear I wanted their best price because I was paying cash. And they gave me a very good price. Before I picked the car up I saw they were offering "0%" financing. I asked my salesman if I could get it instead, thinking I would invest my own money and use theirs. He checked with the finance guy who told him I would have to pay $1,000 more if I wanted their "0%" financing. Buyer beware whether buying or leasing. There is some misinformation about leasing and buyouts here. I lease my wife's car, I put nothing down because I have excellent credit and it keeps her in a safe, new car. But you have to do your homework either way or you can/will be fleeced.

$1,000 more for their 0% financing? Doesn't surprise me. All their taxes are factored in for their "special deals". I laugh when stores advertise that "they" pay the taxes. I'm happy, Ken, that you're one of those individuals that does his homework and doesn't get swindled.

Completely false... If you can keep your money, you do it every time. Especially when the stock market can give you better than the rate of borrowing. If you can get a 0% interest. You're the biggest idiot in the world if you paid for it cash.

Ken Speicher they weren't "fleecing" you. Go to any manufacturers website and you'll see an offer for %0 apr or X amount of rebates. It's very very rare a manufacturer will give you zero percent apr and a very large rebate... The selling price never changed.. You just lost the rebate.

@@TheDuclaw if you're buying something like 10k+ yeah but if you can pay cash and don't want full coverage it's better to not finance and save money in* the long run. Recently bought a 2007 Audi A4 2.0T Quattro for 6500 and didn't finance. This helped out in the long run since full coverage is ridiculous on these cars and one year of that would cost almost as much as the car itself did.

Matt Hirn agree 100%. What many haters of leasing fail to realize is the costs up front are far less enabling that equity to be invested elsewhere. Eventually a new car leased over and over and over again will cost more than buying one and driving it forever but duh.....even then the costs aren’t that different and to many it’s worth it. Why drive a 10yr old car when for 10-15% more per month you can have a brand new car ever couple three years. There’s value to it.

You'll feel the true costs of leasing on your third lease as you continue to pay heavy depreciation costs

​@@robocop581 No matter how you pay for a vehicle or however long you keep it, the cost is simply an expense per month. The difference per month after the third lease per month is less than the cost of a single nice night out with my wife. I can easily afford that little extra monthly cost and see value in that to be in my 3rd brand new $65-75k vehicle and never have to sit in a 9yr old car. depreciation occurs either way and is a price paid either way, it simply drops a bit over time but the price for said reduction is an old car. YMMV. Pun intended.

@@robocop581 That is baked into each lease up front. You either get an aggressive offer or one where that depreciation hits you harder. No doubt, you pay for the luxury of leasing. It is not the least expensive route.

@@ms3er396 I disagree. The only way you can see the true cost of leasing is if you compare it to buying a car. If I purchased a new car and paid for the depreciation costs every 3 1/2 years, my car would be worthless by the 7th year because the depreciation costs of a lease is 50%. There is no way my car would be worthless after 7 years. You leasers always pay premium depreciation costs, over and over and over. My brother leased. After his third lease he realized how much he lost and had nothing to show for. You really think car companies go in at a disadvantage on every lease? As for your $$$$ cars. You say invest. Real investors know opportunity costs. I'd rather get decent cars and invest the rest as there are opportunity cost to everything you buy.

I agree. Now a days it’s more costly to maintain the vehicle, and I don’t know anything about fixing a car either.

yeah let me waste thousands and thousands of dollars for a car to drive for a few years then give it back, real smart. You gotta live life but leasing and car payments are for suckers.

Vex the Altima is trash? I thought nissans were good?

- JPL - I bet you’re a person living paycheck to paycheck.

But what if the cost of the vee hickle is 100% tax deductible? Then maybe it matters less?

@@natas0733 If the lease payment is 100% deductible (as a business expense) then so is the depreciation of an outright purchase and all of the maintenance over the life of the vehicle.

@jpl i just stopped to say thank you to suckers for a new car smell like you that allow me to buy it 2 years later for 60% of the original price.

@@rusfit4106 no thanks I'm keeping mine

That was also with $0 down. I agree that leasing isn't ideal most times. If you find the right deal its not all that bad.

@Richard Dixon You're looking at it wrong. The way to look at it is the cost-per-month to drive regardless of how it's paid for and time....you'll have a cost to drive per month as long as you live and are driving. Even if he paid the $30k up-front and owned that truck. $30k / 60 months is $500. Even after 10 years of owning that truck it would have cost him $250mo to drive it (plus expenses of maintenance, etc.) Follow it? In the mean time, way pay $500mo on a finance when instead he can lease it for $229mo and save $270mo in the difference every single month and invest that money in something that is making money for him? Again, do the math. All financing does is cost you more up-front to own a depreciating asset. Leasing allows you to pay less up-front and invest that money from month one. Lots more flexibility far earlier and without hardly any risks.