@3:55 I would suggest never putting money down. No cap-cost-reduction. It defeats the purpose of leasing which keeps your money in your control. Also, you put yourself at risk to lose it should you total the car or get out a couple months early. Same with taxes; look at rolling them into the lease as the cost to do so is very minimal.
The best way to buy a car is to buy what you can afford. Dealers push leases because they want to put you into "more car for the same payment". Ask them what the "money factor" is on the lease. That's the analog to the interest rate on a loan. You'd be surprised how high it is, IF you can get them to tell you. They're not legally required to disclose it, and most won't. Once you're into leasing, it's hard to get out because you have nothing. "If you're the type of person who likes to have a new car every three years..." you will stay broke. Check your ego, and buy a car you don't have to stretch to pay for. It's about total cost, NOT about the payment. Ask yourself one question: Why is he pushing leases SO HARD unless they're better FOR HIM?
The main reason that car dealerships push leasing is that it gets you into a 3 year upgrade cycle, so you're paying new car prices every three years. If you buy you have an incentive to hold it for far longer.
In order to assess whether lease or buy is better, would it not be better to analyze the total cash outflow and inflow (from trade in / sale ) with a longer time frame, say 10-20years? The assessment of outflow should include, but not limited the following: down payment, monthly payment, doc fee, insurance, maintenance The total cash inflow would be: salvage value from sale. Trade in, depreciation would not be included, as they're NON-cash amount Furthermore, if you want to do a more comprehensive analysis, you can also include 5% discount rate on your cash flow analysis and you will find out how much $ you'll be paying out over your life time if you are to either lease or buy Of course, this is a purely quantitative analysis. We here ignore non-economical benefits, such as prestige from driving a new car every year. But if you want to see if that's worth it, just take the difference in your cash flow calculations, and decide it yourself. Numbers don't lie. Done
you don't need a trade in to get another car and not having a trade in isn't a bad idea at all. parking equity in a depreciating asset is a bad move anyway. you want to buy and own assets that go up in value and rent or lease anything that drops in value.
Arturo Rodriguez a car is something to sell if you run into hard times, yes. With leasing your payment is much lower than if you would buy that same car. And selling your vehicle which gets you from point a to be might not be the first thing most would sell unless you plan to take the bus to work. I guess everyone does something different when it comes to hard times. What to sell or change jobs, figure out ways to make more money and spend less. Thanks for sharing on our video!!!
How can u sell it when u depreciated the car the moment it was titled and u drove it off the lot....you are already upside down 20% of the purchase price. So your still stuck with the same car for 60-84 months because the bank wants cash for the difference. Where as a lease most companies allow you to let someone else take over your lease. The banks want their money and rather have someone take over the lease if you can’t pay anymore. Leasing vs buying just depends on your lifestyle.
Adding to what Jay has already noted, when leasing vehicles, contracts are also flexible. Companies like Swap a Lease allow you to transfer your remaining contract. There are a few exceptions, Audi-VW & Infiniti come to mind first, that don't allow that (without you remaining on the deal) but lots do. Check with the lender if that is something you are concerned with.
Salesmen love leasing cars they make more commission leasing vs selling a car outright my dad was a car salesman and he made more money leasing cars than selling cars....I buy my cars with about 50 to 60,000 miles on them pay for them outright drive them into the ground or sell them myself my last Camry Solara I bought for 7,200 72,000 miles the rims were bad and had dent on one of the fenders other than that the car was in excellent condition drove it another 221,000 miles sold it for 250 bucks.
We had this conversation in the other thread / video but in the end, you're fine if that works for you, but the reality is leasing is the better way to go on aquiring a new vehicle and honestly the cost difference between buying used and driving forever isn't much to many people who can afford more. In our case the wife and I budget according to our desires for transportation costs and have zero issues with it. As Jay notes, it' all depends on your finances and lifestyle. I'm not going to buy a car with 60k on the clock, fucked up wheels and dents nor keep driving it to the point where it's only worth $250. In fact you couldn't pay me to do that. I'd much rather lease my vehicles and invest money and enjoy what I make. I'm in my car several times a day and just like clothing, I'm not going to not enjoy it. Looking good, enjoying the luxuries of life and having some style is a factor for many.
@@ms3er396 Unless you're a business or retired with too much money in your account leasing is the worst thing a person can do,..and as for your,...""I'm not going to buy a car with 60k on the clock, fucked up wheels and dents nor keep driving it to the point where it's only worth $250. In fact you couldn't pay me to do that."" I have never driven a car with "fucked up dents" there's many stupid people in the world that will pay full price "YOU" and take care of the car and turn it in for a newer car because they are super rich and or don't know cars are the worst asset one can buy,..let other rich or stupid people pay for that 1st year depreciation for you,...you buy a car for 24k the point where you drive it off the lot you just lost 6k on that car, and it's now worth 18k....it doesn't take long for a new car to get scratched up and dented in parking lots or driving in a city like Chicago, I worked at a dealership no car after the first year of putting 15,000/20,000 miles on it is in perfect/mint condition... after a person drives a car and puts 60k miles on it I buy it for 12/13k outright and drive it for the next 8 years with no car payment putting over 200,000 miles on it and I thank the sucker before me....never had a problem with fucked up wheels..lol...When I buy a good used car one owner they had a garage and took care of it...My car looks better than my cousin's car and she bought her car brand new....LOL my paint job looks great and no dents her car newer than my car has dings & dents,..I had a friend that bought a new car paid 28,000 bucks for it parked it came back and it had a nasty door ding less than 1,000 miles on it...he waited for an hour for the person to come back and made them pay for it,...lol...I use to work at a casino and I have to laugh because I see all of these rich people come in with their nice new cars and big bank accounts worked 30/45 years just to lose it all to a casino I've seen the casino I worked for take tens of thousands of dollars from these rich fools...I look at it this way they might as well buy a new car every year and have a huge car payment otherwise the casino with get that money...lol..those people help me get a nice car and paid the depreciation for me...buying a new car is like playing with a sucker in a poker game,..if one cannot spot the sucker in 30 mins playing poker, you're the sucker...people look at my Camry and cannot believe I have 222,000 miles on it the body and the paint job is in great shape I have taken care of it...Camry's are known to get 300,000 miles on them...keep leasing cars for smart buyers ms3er....because you're the sucker at the poker table.
@@JohnnyBGood11 There are many stupid people in this world. I don’t pay full price nor do many, even the dumb ones. It’s not difficult to negotiate cars in todays world. Again, if what you’re doing works for you great. I’m not buying a vehicle with 60k on the clock nor do I care to drive it to 200k miles. No thanks. That to me is like marrying a 45yr old with 2 kids. I’ll stick to banging 27yr olds with no kids and rotating them. Driving nice new cars for the best miles available is well worth the cost to me. Call me a sucker if you’d like, I can do math, and I can afford the cars and I’m 48 yrs old and really don’t have to work as the investments work for me thus why I can play so much.
@@ms3er396 It's great if you can afford to pay the depreciation for someone else I'm not marring any car, I just maximize the utility of a car I buy...just because you get a brand new car all the time does not mean you avert problems the recalls on these new cars are crazy and good for you banging 27 year olds and trading them in, there I would agree with you, (after 30 women hit the wall) getting married today serves no purpose for men and men are screwed by the government; governments favor women, just be careful you don't find a bunny boiler (Fatal Attraction) and or you piss one off and then she says you raped her because she is pissed you dumped her...remember a woman can say with no evidence you tried to rape her 30 years ago and fuck up your life...I'm with you on the Pump and Dump.
You're also leaving out one of the main benefits of leasing and that is again, the whole idea of keeping your money/equity in your pocket not in a vehicle / depreciating asset. I think most people would agree that the average consumer shops with a monthly budget in mind. That's a good thing. What they should do is ask themselves what that budget honestly is and then find the range and type of vehicle they are shopping for. In our case I settled on my wife getting a new small to mid-size SUV and within a budget of no more than $650mo. That's really not much vehicle but in the case of shopping smart, I was looking initially a buy-figure of $35k. In that range a target vehicle was a 1yr old fairly loaded Nissan Murano. Not a perfect vehicle but certainly one that checked most all the boxes. Next looking at leasing the key there would be to match the equity position of a buy after the 5yr payoff point. What I mean is ffwd to 60mos later and what would that Nissan be worth? Roughly $10-11k on average. So now the key would be to find a lease that would provide us all the same boxes checked and equity at the end. Remember, after paying off the Nissan, it does have value. The downside, it's value is constantly depreciating, I don't get into a positive equity spot until roughly month 42-48 thus I really have no access to the equity. On a lease the equity isn't in the vehicle as at the end of the term the lessee doesn't own it and in my case at 60 months, I'll nearly be through our second NEW vehicle. That's cool! So how does one end up with $11k in equity when leasing? Do the math backwards. What's $11k / 60 months.......about $180mo. Thus the key is to take my initial budget of $650 and subtract that $180mo that I'll be saving and banking in an investment that I will have access to and now I have a budget payment on a lease of about $465mo. Now I know on a buy I can go 60 months at $650mo and have equity or I can lease for say 36mos at $465 and also have that same amount of equity in-hand. What we found was a fully loaded $51k Lincoln MKC 2.3l decked out to the max. for 36 months with a 33mo pull-ahead option for $480mo. Compromises were made and we bumped a bit in payment but now we are in a super nice vehicle with far more options and better service all around and can meet that same goal. Mind you, this is a lucrative deal but a buy would still be pretty advantagous as once month 61 rolls around the person who financed things would have title in hand and would then be saving $650mo in equity. Sounds great right? That's $470mo more than use each month being banked. However, that equity in the car....still depreciates. Not at a rate that's $470 mo but it's likely $150-170mo plus maint costs, etc. I hope my long winded post helps you and you follow what I'm sharing. Leasing is nearly the same in the long-term cost wise with a slightly higher overall cost of doing it but that slightly higher cost comes with some huge benefits. If the Nissan I noted above was kept for another 3 years after the payoff it would certainly be a nice to not have a car payment for those 3 additional years but at a cost of higher maintenance and loss of joy in driving 3-4 NEW vehicles in that same time period. Those having better safety, luxury and status, etc. To me, that's worth it. To buyers out there, just remember that a vehicle is an expensive necessity and not the best place by any means to park equity in. It's equity that you can't use or do anything with either. Not unless you plan on selling it and walking. Consider the alternative of a lease whereby you save the difference price (remember to lease at a lower budget point) and save the difference. After your first two leases, invest that money in a rental property and you'll not only have 100% of your equity, you'll be able to borrow against it down the road (can't do that with a car) and rentals will make you money thus your money/equity will be working for you not against you. Good luck and happy leasing!
@@jayauto1957 I grew up in the car business and have worked in nearly all aspects of it from Finance to sales. I've been out of it for nearly 25 years+ but the basics of investments and money are still the same :) I'll drop you an email with my contact info as I'm always open to helping where I can and frequent the Cleveland area in my current role. I grew up in the area not far from you too. Regards,
@@JohnnyBGood11 with only 20k in mileage you're still far better off leasing and simply paying for additional miles in the lease at it's onset. The vehicle depreciates the same regardless thus you're better off leasing and mitigating risks and keeping the equity / cash in your pocket.
@@ms3er396 I put 20k miles on my car each year 20x 5 year lease would be 100k miles at end of year lease I would pay one hell of a fee for miles,..besides I buy my cars outright and drive them till they die.
Lease it's the way to go now days why? Cause car getting hard it to work on car company are pushing people to take the car to the dealer everything is computers and sensors everywhere special tools ECT
If car dealers were honest they would tell you how much money they make, but no they try to squeeze you for every nickel the consumer would know weather to make the deal or not but system not fair notice this guys not giving you important information such as money factor and discounts on cars
Leasing again? no way!. They charged me $1000 for the floor mats end of the lease. What i suppose to do not use the mats. They also charged penalty when i missed 20 miles for the second oil change. If I own it; I would not be changing the oil every 5000 miles. Maintenance and oil change thing is rip off and everyone knows about it. When you lease it, you cannot get away with it. I am sorry, I lease for me anymore
Son Osmanli when you say ‘they’ who are you talking of? There are many people that lease and many that don’t. I can understand why with what you went through. From how you’re explaining seems ridiculous when floor mats don’t even cost that much!!!
Absolutely. They don't even cost that much but they pointed that it was in the lease contract. Therefore, I would recommend everyone to take a step back and read through, get a legal advise if they don't understand the language in there. I would not recommend to buy in sales guy saying "it is a standard lease form don't worry about it".
Really, $1,000 for floor mats? On what planet do floor mats cost $1,000. When you lease you are required to have the oil change at the intervals set by the folks who designed the vehicle. Not a bit deal. There would be no penalty for missing an oil change by 20 miles. Clearly you have no knowledge of leasing. Based on your comments you likely have little knowledge about much. What does "I am sorry, I lease for me anymore" mean?
