Saving Money: Which is Better - Buying or Leasing a Car? 

I feel like I should be closing my eyes.

Buy a well maintained secondhand car, treat it with care, keep driving it till it dies. Repeat.

This video was lazy. Where's the math guys???

How about neither? If you instead, invest that "small $400/mo for 5years". You can turn that 24k into 28k, and that assumes you pull the money out after 5 years and don't let it ride up. If you leave it in there another 15 years, that 24k will have turned into $116,962.95. Now think of what your 5$ cup of coffee costs you after 15 years :) 82k after 20 years... ouch And if you do buy a car, buy a used one, with 100% cash. Financing a car is a banker's wet dream....

There are a lot of comments here stating to buy "used". This video is about NEW cars. It is about leasing versus buying. If you want a used $5000 car, buy the car. A LOT of people like NEW cars. That is where leasing versus buying comes in. I can make arguments for leasing and I can make arguments for buying. It is whatever a person's preference is.

Woah so weird to finally see them talk after just listening to them for 2 months!! Love this podcast!

"people with top hats and monocle" that had me dying. Subscribed!

Leasing is smart if you want some peace of mind and a new car every 4 years, not having to worry about repairs. Buying a used car 2-3 years, is a huge gamble, at cash or a 7% finance rate, you wont know if it works properly in the long run.

What is purposely Mac vs. PC ad model, from the early 2000's? It's missing a real world example to make it really informative. We haven't learned anything.

I didn't find this video to be very informative. It seems like it just tells you what you already know, and offers no short and/or long term total monetary average cost analysis.

There are some misconceptions about leasing. Let me first start off by saying buying a 2-3 year old lightly used car holds the best value and reliability, but if you itching for a new car, leasing done smartly has some serious upsides. Yes you have the potential to get a new car under warranty every 2-4 years, but you also have the opportunity to keep your leased car and buy/finance it after the lease terms. Sometimes the residual value/buyback price is thousands less than dealer retail. A 2016 Honda CRV EX-L 36 months 12k a year has a residual of $19,065. A three year old CPO 2013 Honda CRV EX-L goes for $23,000. $4000 off dealer retail for a car you know the history of is a good deal. Also the example I used isn't a prime example since the market values were taken from the NYC area which are littered with CRV. Cars that usually have higher market value than their residuals are Lexus, Acura, Subaru, VW, or enthusiast cars. Picking the right car you can have a larger market value than it's residual value so technically it can have some equity at the end of the lease so the idea that you leave with nothing is wrong. A lease is often mis labeled as a car rental but a car rental you can rent a car for 3 years, you can't sell it to a third party or dealer, and you don't have the option at the end of terms to buy a rented car. Let it be noted one of the biggest requirements for leasing is how much you drive. If you drive close to or over 15K just finance or buy the car. Also the video throughout some iffy information about leasing and insurance. Yes your insurance might be higher since your required coverage restricter than if you bought but the whole idea that gap insurance adds to the price is not always true. Acura financial gives free Gap insurance with every lease. My insurance actually went down each month after I leased even when I added better coverage. Somethings they don't cover about leases is that they are pretty iron clad and not as easy to get out of compared to financing in some cases and secondly if you decide to return the car after lease it will need to be examined for extra wear and tear. Some normal damage will be covered but it you have scratched rims, ripped upholstery, cracked glass, that all will need to be paid for. This sometimes can be thousands of dollars so if you lease make sure you take care of you car, it's not just a rental you can bash around

Video is a really awkward format and not very helpful. I realize producing a video like this takes a lot of time and effort but the format seems very awkward with two people talking to each other and just to touch condescending, it seems like you're just bringing up the things that anyone could think of off the top of their head not hard statistics or reviews. Personally I'm more of a fan of the infographic style or the Casual animation style for presenting this kind of information, also presenting more hard data in a less condescending manner would make the video more concise and useful. I think you could easily do that without expanding the resources required to create the video to greatly and produce a much better product with the same amount of effort.

I can't wait for the future were we're all using self driven care shares. I think private ownership of cars is a huge drain on the economy and on nonrenewable resources. But that's just my opinion.

Chuck looks like Kevin Smith...Josh doesn't look like I expected. I hope my sentiments are shared by the SYSK army.

This is the kind of advice that causes people to make stupid decisions over the course of their life and then blame "wall street" or "the 1%ers" when they wake up and realize they're middle aged and broke. Now if you're swimming in money then it doesn't matter, you can do whatever you want. For the rest of us, NEVER ever lease a car. You are still paying the same depreciation costs that you would during purchase (what, do you think the dealer is just going "forget" the depreciation on your car?) plus you pay higher insurance and higher financing. The big kicker is that a new car loses about 50% of it's value over the first 2-3 years --- so just when your lease is over and you've just lost a #@&$ton of money it's time to reset the clock and do it over again ("gee, I wonder why my 401k has no money in it..? Those damn hedge funders!") If you really, really want to save money you'll buy a 2-3 year used old car every 5 years - that's a good balance between "nice car" and "optimal depreciation". But you could also buy a new car and keep it until the wheels fall off, that works also. But, for the love of pete, don't lease a car unless you really, really can afford and and don't care about losing money.

Omg I never knew what they looked like.

Toyota - Where everybody wins

Haha Chuck and Josh looks pretty uncomfortable in front of the camera. Big fan of these guys

the answer was secretly better public transportation

This was stupid. Get a lease car, 3 yrs, $250 per month. Buy a used and low miles car (Camry, Accord), 3 yrs, 3% interest, $350 per month, and it will be almost paid off. Leasing for 1 or 2 years (only) is good for a part time college student who needs something reliable or someone who is not financial estable.

This vid has no validity to it, it is sponsered by Toyota, don't be fooled...

Just rent your car 2 drug dealers. Your car will get paid off in 6months. Sell and repeat to upgrade..

I prefer neutral sponsors. Toyota has something to gain, so I'm looking elsewhere for a comparison of buying -vs- leasing.

I am thinking about a new 2017 Elantra for $129 mo. for 36 months with no money down. I drive one way to work just 5 miles a day. I have been known to trade in financed cars every 2 to 3 years before they are even paid off. Would this be a wise choice?

I have some useful advice in 4 words Don't buy new car.

It's strange how the top 3 car lease videos on RU-vid all mention Toyota.

You should pick up the paste a hell lot. I got bored after listening to you for not even 2 minutes...

They didn't give leases their due... they didn't cover that (1) you pay little-to-no "interest" over the course of the lease (a small fee equivalent to about 0.05% purchase price is tacked on at the beginning that is divided amongst your payments), (2) every car I've ever leased has had the gap insurance included in the lease so the only reason your insurance is more expensive is because you're driving a newer car around, (3) unless you're going to keep the car after your loan is finished (some do, some get antsy and "upgrade" into another loan), you're not any better off than if you drove a leased vehicle and swapped it out at the end of your lease for another BRAND NEW CAR for the same monthly cost as the one that's now three years old, and (4) they tell you when you sign the papers what you can purchase the car for at the end of your lease based on their expectations on what it'll depreciate to so you can actually turn a profit at the end if the car doesn't depreciate like they thought it would (I haven't had one yet that depreciated like they thought it would). I've leased three vehicles in the past 3-4 years and got rid of the first two under different circumstances (one I personally SOLD mid-way through the term for what I still owed and broke even, the other was totaled in a wreck and using that built-in gap coverage and I didn't owe a penny). In my opinion, the lease agreements are set up to benefit the consumer immediately more than the dealerships. The dealers make their money on the tail-end when they're able to sell the now-used car again when they got it back for free or when you pay them the originally negotiated price for the car and they don't have any overhead to sell that car. There are two kinds of people that I see leases not being as beneficial for: (1) really heavy commuters due to the mileage restrictions (and even in those cases you're not guaranteed to be screwed as I commute 35 miles one-way and the car's worth still catches up to the depreciation around the 1.5 to 2 year mark) and (2) anybody who actually does keep their car after their loan is up. If you've gone 10 years without owning a car outright, maybe look into leasing because you obviously like getting new things and you'll get more "new" for your buck with a lease. I've tried it both ways and if you're going to have a car payment, may as well be a lease (no interest, lower payments, built-in gap insurance).

Disappointed! Just general information that anyone could think of. No specific, detail or technical information re leasing v. buying

This video is Truly misleading. The topic is "Saving Money"... Not what is better for different people... To "Save Money" there is only one answer, BUY A USED CAR!!! and run it till the cost of repair is more than the value. Those who LEASE like the status of having a new car, do not want to repair it, do not want to take road trips, do not want to customize it and for SURE do not want to make the best decisions on how to "SAVE MONEY". This video went off topic.

The way this guy talks is hilarious. And his puns are sometimes good lol

You 2 are what's wrong with this country. How much were you paid to advertise? That was the worst scripted fake acting I've ever seen. I believe you've just talked everyone out of buying a Toyota for the next ten years and you didn't teach anything to anyone except that we only have 2 options in life just owe money if you want a car don't shop around or be smart about it. You're children's children will be so in debt that they will be taking uber to their jobs as doctors to pay off your debt. I'm not being mean just wow I hope you didn't settle for the dollar amount like you settled in life by selling out.

This is the definition of misguiding people. Extremely uninformative video.

so if I lease a car and decide to buy it. will the extra mileage driven be charged anyway?

Everybody wins? HA! You wanna hear the REAL way to buy cars? buy USED!!!

Nobody talks about the inconvenience of breaking down, ya theirs triple A, but it's not like there's a tow truck always 15 min. away sometimes you'll be sitting there for hours, have to ride with a stinky guy & struggle to get a rental car.

I think they hit a good part of it on the head. It comes down to what kind of person you are. Some people like brand new things every so often. Some people love the idea of owning something. At the end of the day, even if you loose value of the car, there will always be some value towards it as long as it is still running. Leasers will argue the opposite but will spend all those dollars to never out right own what they paid so many months for.

Great thanks. It's all about how you feel about it. I feel that one has a lower total cost of ownership than the other. Just my feeling, thanks.

Run into financial issues under a lease and you are in trouble. Buy a car, pay it off as soon as possible, and don’t worry.

The guy on the left is better in front of the camera. The guy on the right needs to be replaced, he's hard to watch.

this is really terrible advice, to equate buying and leasing. leasing is for stupid people, and you should never buy new. the way to go for 99% of people is to buy a used car they can AFFORD.

dumb advice. these guys must work for a dealership

Who is this video for an adult hoping to educate himself or an 7th grade econ class

Leasing is a stupid idea 99% of the time, also it's a sponsored video by Toyota. Buy new if you really want a new car, but you should most of the time try to buy used.

What happened to his hands?

Just buy a used car

@clearmenser Would you elaborate on that assertion? Because to me, it makes no sense at all.

if you dont hold title, you dont own car

AHAHAHAHAHHAHAHAHA MONEY SAVING LIFE HACK, STEAL A CAR!!!!!!!!

No one apart from tourists lease cars here, it's just not a thing

Terrible video.... Unsubscribing now.

After 5years its probably more expensive to leace.

I don't want to see a commercial! I thought I could expect a little more honesty here, I guess everybody has a price "Everybody wins" live within your means is what I say.

leasing a car is THE MOST EXPENSIVE way of driving a vehicle... so yes, there is wrong and right answer to this.

The guy on the right looks like Christian Bale

Leasing is only stupid if you can't afford to.

Actually the only winner is the loan company. The car owner/leaser is now driving a hunk of metal that depreciates to nothing in only 4 years. My car is 11 years old and still running - no plans on getting rid of it. That's the equivalient of 3 loan terms (only one of which the loan company got money from).

can't afford new car for leasing and buying.i buy used,it's good I know to fix car,cylinder head gasket,fuel pump,timing belt,changing fuel injector,changing valve seal,etc.

Do vehicles not last as long as they used to? Been driving the same 2001 Yukon since I bought it in 2002. Has 200k+ miles and is still going strong. I like to buy a vehicle so I can own it and drive it tell it’s dead. Plus I enjoy not having a car payment for years in-between getting a new vehicle not to mention lower insurance payments. Almost sounds like vehicle don’t last as long anymore. If you buy a brand new vehicle and 3 years later you are having to to do heavy maintenance. Than that’s either crappy workmanship or you don’t know how to take care of a vehicle. If you don’t mind a vehicle payment for the rest of your life then leases. Plus the one thing that the gentlemen forgot to say is leasing benefits the dealership not only do they sale the car as a lease they know they will get it back in good shape 95% of the time and resale it as a used leased vehicle.

Buying tends to cost less long term.

I barely drive my 2012 Camry SE. It's 2015 and I still don't have 30k miles on it (just 28k approaching 29). After watching this maybe I should have financed it, especially since I'll be buying a new luxury car in 2017.

I thought this was going to be an actual comparison of total costs between buying and leasing, resulting in the obvious conclusion that leasing is more expensive in the long run. But no, it was a useless video, most likely funded by the leasing industry to push FUD onto people.

The most valuable part of this video was stated at 1:18. Buy used and with cash! Buying a new car is a huge drain on your wealth building powers, leasing is basically for people who are getting a car that they can in no way afford otherwise.

This video was horrible

But Toyota sells and leases cars, so i have no idea what your qualm would be, not to mention i'm sure Josh and Chuck didn't change anything they were going to say because of the sponsor.

A financed car isn't yours until it's fully paid off. Once it's paid off you end up with a super depreciated vehicle you can't trade in without losing a lot of money. Not to mention the more you drive it the more your cost in maintenance will be significant. I'd definitely lease my car. A monthly payment on a leasing is less than one on financing, and either way you don't own the car. At least with a lease my repair cost is fully covered and I don't have to deal with a car that is so depreciated I wouldn't want to sell it.

cringey

if i didn't understand what are the diferences of buying and leasing, by watching this video i was even more confuse than on the start xD , you guys are so bad at explaining

Yeaaahhh... This vid pretty much told us everything we already know about leasing. It's the nitty gritties that is the question: what happens when the lease ends? How do you pay? What extra costs to be on the lookout for?

Leasing a car is way better. For example, say you're looking at an 80k car. 2k a month/36 months assuming a 20k down payment... OK with that in kind, you're paying mid 80k for a car. 3 years later, you decide you want the sell a car.. you realistically will get 68k but lets just say you only get 60k back. You lease a 80k car, put 3k down, and make it 1k a month/36 months.. in 3 years you return the car after spending 40k!! on a car you dont even own. So you tell me, whats worse loosing 20k, or 40k. Keep in mind the depreciation wont be 20k, it will be more around 9-13k.. Thats just me though, leasing is a financial mistake.

Isn’t Gap insurance included when leasing?

Well that was a waste of time

By the USED car out of pocket save up the full amount and you will save tons of money Think long term, very long term

both are bad..until you have that title in your hand with your name on it..you own nothing.. buy cash.

This video was pretty bad guys.

Who pays cash for cars? 💰🚗❓ People who wear top hats & monocles!!! 🎩🧐 Hahahaa 😆🤙🏼

Or learn to wrench on cars, buy mid 90's icons that drive incredibly, and spend less than 5k outright for a clean car that will last you 10 years with minimal maintenance cost. The key is doing the work yourself though. If you can't read and remember right tighty, leftie loosey. You shouldn't own a used car. And never go to a dealer, remember they have overhead, they have a building and property payment, and pay employees wages and benefits. They pay for all of that with markups on vehicles! You will always get a better deal private party and that's a guarantee.

Nothing I didn't knew of... Can I get 5:48 min of my life back?

Funny I just got a Toyota 2015 and I saw this so yea everybody win

I prefer trading firearms and cars for eachother. You never lose. Move to vermont!

There's no right or wrong answer it comes down to convenience vs time spent researching

Buy

Can't believe that is what Chuck looks like. I know they hate each other.

Is better to buy a Mercedes c class through HP or go through the leasing or PCP route?

Jesus man, this is video is ridiculous. Get to the damn point!

I love the podcast, but this was a waist of time.

Financing a vehicle is a terrible idea :( 30 months left

Skip this They don't answer the question

I actually lost brain cells watching this video

How about leasing a car and then financing the car after the lease?

I don't get it, after 4 cycles of leasing new cars; you'll have spent as much as buying a new car. So keep making car payments for the rest of your life? 👌

I believe you can declare the lease on your car in your taxes and receive the money back... Thanks for the info guys!

You should have GAP regardless of buying or leasing. Unless you put down

Just ask Susie orman!

Although i do agree with you that, that would be awesome and good for the world all together, i don't think that will happen any time soon. People just simply want to own a car, even tho their is no need. But in places like new york or major citys like that, it would be a tremendous help.

Why does that guy look so familiar?

would never get a lease just because i would want to mod my car

the whole thing was a damn toyota ad? looool

Everybody wins! Mostly the dealership.

Thanks for the info guys