Oh course there are many factors, I love the fact that you presented us with a sound and easy way to understand the 3 options. From here we can all make an objective decision based on our needs. Thank you for the great video!
We purchased new, getting a good price. We were replacing an insurance totaled 10 year old RAV4. We are retired and plan on keeping the vehicle for 10 plus years.
I just went thru the process of looking at used RAV4’s and in the Wisconsin and Illinois used 2 and 3 years old are about $3500 less then a new. New they sell at list price and you wait 3 to 10 weeks for in coming new units.
Similar situation on a Hyudnai for me. Used prices are insane. When financing a used car at avg 7.5% over 5 years Vs a new one at special manufacturer rates of 3.49 for 5 years is not much different. Obviously the difference is getting a BRAND new ZERO mile car with the FULL Manufacturer Warranty. With Used you only get partial warranty, if at all. I've considered leasing because over the short term of 3 years the cost is very similar. HOWEVER, I tend to keep cars for 200K + Miles and dont need the latest, greatest car. As a matter of fact hate all this new tech crap. In the long term I think owning a car with no payment after a few years is much more beneficial. I do all my own work btw which also makes keeping an older car on the road much less expensive.
I leased a car last cycle. This time I bought one because the car market is in turmoil. Who knows what kind of crap cars I’d be forced to get after a 3 year lease is up? I bought a good one I like and I’ll ride out the craziness.
The only time leasing gets ANYWHERE close to buying (even buying with credit) is when the manufacturers give huge incentives on the lease (subvented lease) and not buying.
You’re spot on! Financing a pre-owned car often comes with higher rates, and this makes it even more important to shop around. Whether it’s a new or used car, comparing lenders can help you find the best rate and save big over the life of your loan. Credit unions, banks, and online lenders often have competitive rates, so don’t forget to check them out. If you’re looking at certified pre-owned vehicles, dealerships sometimes offer special financing rates for those, so it’s worth asking. Also, choosing a shorter loan term can sometimes get you a lower rate-another great way to save!
That is due, largely, to captive finance companies (e.g.; Honda Finance) offering much lower interest rates for new vehicles to move inventory. Occasionally those captive finance companies offer low interest rates for used vehicles of the same brand. Recently I have received many offers from BMW for financing under 5 percent for a used BMW.
Great vid but my issue with all these type vids is the market value can vary a lot for na myriad of reasons when you finance,and usually poeple finance. A minimum 5years
that's the rub, do people actually end up investing the money saved? It's the right thing to do, but given our modern day lifestyle people may end up spending on other leisurely activities such as travel, food, etc. And if they bought a new car and decide to sell it in three years it will likely have more residual value compared to a used car they bought. So in that scenario a new car may work out better than a used car. unless you plan on keeping the car you like to buy for more than 10+ years.
You’re absolutely right that it takes discipline to actually invest the savings. It all comes down to priorities-whether it’s investing the savings, spending intentionally, or deciding on a car based on how long you’ll keep it, it’s about finding what adds the most value to your life.
You are ignoring the value of the car once it is paid off. You have a good vehicle with zero payment. That is the goal own your car with no payments, until then you are just renting.
and then use some of the profits from investing (after paying taxes on the withdrawal / surrender) to pay for a new car since the used car will not last as long. at least ypu've been investing all this time.
Thanks for sharing your thoughts. I see investments as part of a long-term strategy rather than a way to fund short-term purchases. A reliable used car, like a Toyota, can last for years and costs significantly less than a new one, allowing you to save money, invest the savings and let that money grow for the future.
@@moneywithanastasia i was just saying that by paying less you get less car. it wont' last as long all things equal (eg. 0 miles vs 50K). my idea of "surrendering" was just me being silly while not 100% wrong as saving now will not make it free in the future. not being argumentative. just saying...
Same car. Saved $10K. Invest and turn in into $17K.
neat comparison!
keep up the good work you do @Anastasia!
@ Thank you! Glad you found it valuable!
Watch out for the mileage limits. You could be in for a huge penalty on return that will skew the roi.
This is the best example of the 3 options I've seen. Thanks!
Beauty and brains-thank you my dear for the great content
Oh course there are many factors, I love the fact that you presented us with a sound and easy way to understand the 3 options. From here we can all make an objective decision based on our needs. Thank you for the great video!
@@TayeIm I’m glad it was helpful! Thank you for the kind comment!
We purchased new, getting a good price. We were replacing an insurance totaled 10 year old RAV4. We are retired and plan on keeping the vehicle for 10 plus years.
@@rodneyhagan3669 Enjoy your new RAV4! It’s a great car and will last you a long time! Great choice and great investment 👏🏼
I just went thru the process of looking at used RAV4’s and in the Wisconsin and Illinois used 2 and 3 years old are about $3500 less then a new. New they sell at list price and you wait 3 to 10 weeks for in coming new units.
What did you end up deciding to get?
Similar situation on a Hyudnai for me. Used prices are insane. When financing a used car at avg 7.5% over 5 years Vs a new one at special manufacturer rates of 3.49 for 5 years is not much different. Obviously the difference is getting a BRAND new ZERO mile car with the FULL Manufacturer Warranty. With Used you only get partial warranty, if at all. I've considered leasing because over the short term of 3 years the cost is very similar. HOWEVER, I tend to keep cars for 200K + Miles and dont need the latest, greatest car. As a matter of fact hate all this new tech crap. In the long term I think owning a car with no payment after a few years is much more beneficial. I do all my own work btw which also makes keeping an older car on the road much less expensive.
@ sounds like a solid move! A working car with no payment for as long as possible is the goal👏🏼👏🏼👏🏼
I leased a car last cycle. This time I bought one because the car market is in turmoil. Who knows what kind of crap cars I’d be forced to get after a 3 year lease is up? I bought a good one I like and I’ll ride out the craziness.
The only time leasing gets ANYWHERE close to buying (even buying with credit) is when the manufacturers give huge incentives on the lease (subvented lease) and not buying.
Interest on financing a pre-owned car is double if not more..4.99% for new to 8.99% for pre-owned.
You’re spot on! Financing a pre-owned car often comes with higher rates, and this makes it even more important to shop around. Whether it’s a new or used car, comparing lenders can help you find the best rate and save big over the life of your loan. Credit unions, banks, and online lenders often have competitive rates, so don’t forget to check them out. If you’re looking at certified pre-owned vehicles, dealerships sometimes offer special financing rates for those, so it’s worth asking. Also, choosing a shorter loan term can sometimes get you a lower rate-another great way to save!
That is due, largely, to captive finance companies (e.g.; Honda Finance) offering much lower interest rates for new vehicles to move inventory. Occasionally those captive finance companies offer low interest rates for used vehicles of the same brand. Recently I have received many offers from BMW for financing under 5 percent for a used BMW.
Great vid but my issue with all these type vids is the market value can vary a lot for na myriad of reasons when you finance,and usually poeple finance. A minimum 5years
that's the rub, do people actually end up investing the money saved? It's the right thing to do, but given our modern day lifestyle people may end up spending on other leisurely activities such as travel, food, etc. And if they bought a new car and decide to sell it in three years it will likely have more residual value compared to a used car they bought. So in that scenario a new car may work out better than a used car. unless you plan on keeping the car you like to buy for more than 10+ years.
You’re absolutely right that it takes discipline to actually invest the savings. It all comes down to priorities-whether it’s investing the savings, spending intentionally, or deciding on a car based on how long you’ll keep it, it’s about finding what adds the most value to your life.
dealer fees and DMV + MAINT FEES + INSURANCE
You are ignoring the value of the car once it is paid off. You have a good vehicle with zero payment. That is the goal own your car with no payments, until then you are just renting.
Depends if the car is a good car after you have paid it off. Lots of cars these days are junk.
@@DK-bm5rg True, and that requires homework. But there is nothing like the free miles from driving a payed off vehicle.
Financing a vehicle is not renting a vehicle. It is buying a vehicle over time.
and then use some of the profits from investing (after paying taxes on the withdrawal / surrender) to pay for a new car since the used car will not last as long. at least ypu've been investing all this time.
Thanks for sharing your thoughts. I see investments as part of a long-term strategy rather than a way to fund short-term purchases. A reliable used car, like a Toyota, can last for years and costs significantly less than a new one, allowing you to save money, invest the savings and let that money grow for the future.
@@moneywithanastasia i was just saying that by paying less you get less car. it wont' last as long all things equal (eg. 0 miles vs 50K). my idea of "surrendering" was just me being silly while not 100% wrong as saving now will not make it free in the future.
not being argumentative. just saying...
🚘👈💏💏
One scratch, one chip in the windshield $1500 will ruin any advantage of a lease.
Actually small scratches are considered normal wear and tear. Large scratches and chipped/broken windshields are covered by insurance.