….I am still owning/driving 25+ y/o Camry V6 w/ nearly 400K miles on the clock since new to me…like 20 yrs ago. I am thinking of pulling-the-lever on a brand new BMW M4 Competition cabriolet. Tired of my ole Camry to be honest.
This week I counseled a 26 year old with a $804 leased car payment and no investments and a couple with 2 leased car payments $560/$750 considering selling their home, which is 30% of their take home pay.😢
I love leasing. No, it’s not financially wise, but then I had a specific agenda in mind when I walked into the lease deals. After taking a good couple of months to research what leasing is, reading about the pros and cons, all the fees involved, and the fact that financially, leasing is the *worst* way to acquire a vehicle, I concluded that leasing was a good fit for me and my goals. I was completely non-committal, so my goal was to acquire a car I would essentially “date” until the end of the 3-year term, at which point I would either commit to purchasing the car because I loved it, or trade it in for a brand new lease. I leased two cars total, and after the second lease was up I knew for certain this was the car I wanted to purchase outright and keep until death do us part. Yes, it was the more expensive way to acquire a vehicle, but I don’t regret it in the least. I leased for convenience, and had a plan going into the deal. If I had to do it over again I wouldn’t change a thing. For most people, I would *never* recommend leasing. It’s simply not reasonable in most cases. For people who want to lease just because it helps them get into a car they otherwise couldn’t afford, leasing is a terrible idea. For someone who just wants to “date” new cars until they find the one they absolutely fall in love with AND they have an end goal in mind to pay off the final lease, it works. There just has to be a reasonable end goal in mind. Priorities.
My husband and I have been married for 44 years. We have never bought our dream cars and we have been very happy with the used cars we paid cash for. We paid off the mortgage on our house in 15 years by living on one paycheck and saving the other one. Sure, there were times when it sucked bullets. But we have been debt free for the last 25 years and our kids do not have any student loans to pay off (college savings). Close friends and family members thought we were crazy...at first. Living frugally really does pay off!
I learned this the hard way. It’s gonna take me a year to save enough to buyout my lease. I have one more year left on the lease. I’m choosing the buyout option at the end of the lease because I put a lot of mileage on it. I would pay too much in fees and I’ll still need to get buy another car. After this lease is done I’m never leasing again
Walking into the finance office and continuing to ask how much it will be if you put more and more on the car until you say you'll just pay it all in straight cash is so much fun.
I did this on a V8 mustang, brand new off the show room floor. Kept raising the down payment $3-$4,000 at a time and then at the end said just kidding, here’s a cashiers check
I’ve been back and forth on whether I need a car here in Atlanta. I’ve been managing without one for 4 years with a mix of walking where I can, using public transit and Ubers.
As someone currently in a lease, I can say I will have burned 18k in January when it's up. Dumbest financial move I've ever done. I'm now going to be paying the lease and saving to buy a car at the end of it.
Just buy the lease? They provide you with a residual when you sign the lease contract. As much as I like George, this video was definitely made for engagement, not actually educating people as everything he stated should of been known by those who take advantage of leasing.
@asnmdnss There's nothing more annoying than people who think they're financial gurus because they watch a couple of Dave Ramsey videos on TH-cam. It's so obvious when they come out and parrot things like this, but most don't realize that Dave's giving advice for people who are terrible at managing their finances. It's what his content and his advice is geared towards. Next you'll be telling me that it's better to just save up cash and buy a car outright -- the usual go to response of the impoverished financial gurus.
@@MrCooper89 ok bruh...keep leasing cars then. I'll drive my paid off car. I don't agree with a lot of what Dave says but this is kinda common sense bruh lol
I recall spending HOURS at the dealership when buying a car in my 20s. When I paid cash for my vehicle a few years ago, i realized all that time is for the financing!! Goes so quickly, by comparison, when you're writing out a check and driving away!!
Havent had a car payment in years. Both cars are 13 years old now, still running good but showing their age. Whenever i think of getting something newer (usa such a car culture country), 5 minutes into looking at the cost, insurance, registration.. I change my mind 😂
my daily driver has 37 year old and running strong. I try to maintain it the best i can. Whenever i decide to resell it, unless something horrible accident, i can get purchase value out of it again, so the actual ownership cost is fuel, maintenance and insurance.
Bought a cash car 🚗 in 2021 for $7000. Drove it for 3 1/2 years and just sold it back to the same dealer for $6000. Paying $1000 to drive a car for 3 1/2 years plus maintenance and gas is a pretty sweet deal. 💰
Or you could have financed the whole thing at 5% interest over 6 years and put your money in SPY which will likely return 8-9% a year, and every payment extract money from your SPY investment. By the time you pay off the loan, you’ll still have some leftover money on your SPY investment, thus coming out on top over paying cash
I always liked those licence plates that say "don't laugh it's paid for", but seriously having a cheap car that's paid off has many more benefits like cheaper insurance, and saying "oh well" when it inevitably gets scratched or dented.
Kudos to George for explaining what cash means, you know someone is going to show up with a suitcase full of cash. Thanks for explaining all of this George.
I got in a situation where i had no car (timing belt went) and no money saved up. So i leased, cause it the payment was well within my budget. We actually liked it and leased like six cars since then, all for right around $200/ month. So for about $3500/ year (monthly plus downpayment and fees), i never had to think about car troubles. NOWADAYS, lease prices have gone up HOWEVER i have had the cash to buy out my truck and because of the crazy inflation, if i can sell it for its current KBB value, I'll make back every cent i ever paid on it. Then I'll buy a decent used truck. All this to say, it worked for us for about 10 years. No regrets.
Getting ready to pay cash for a replacement car for my husband soon. Going from a 2007, paid off, chevy, to a much newer, but not brand new, Lexus, all in cash
So many people will say, “I need to get a brand new car for the peace of mind of not needing repairs.” Meanwhile, they are up to their eyeballs in debt. Peaceful, huh? Breakdowns and repairs may not happen with a used vehicle, but depreciation WILL happen with a new one.
It’s a mindset. The vast majority of people financing vehicles only look at the monthly payments. If a new vehicle gets them the ability to finance at a longer term for a lower monthly payment, buying new makes sense to them, since it’s “cheaper” on a month to month basis. Those same people would need to finance a used vehicle as well…but if the interest rate is higher, or they can only get a shorter term resulting in a higher monthly payment, it’s seen as unaffordable, especially since they will be on the hook for any and all repairs. I’m definitely glad I got ahead of all these traps before ever getting into them. I would have easily qualified for financing on a brand new vehicle when I was 21. Instead, I bought a good used car I could afford, and drove it for 6 years. 6 years with no vehicle or debt payments makes it a lot easier to keep saving up for future goals, despite increases in cost of living along the way. I’m now in my mid 30’s, have 2 good paid for vehicles, and we finished paying off our home last year. Everything was done intentionally right from the start to make that goal a reality…but to most people, we’re just “lucky”….
@@InternetUser._ It’s not just paying $700 a month to avoid a $1500 repair though. It’s the whole thing. That used car might cost them $650 a month, because they HAVE to finance it. Coupled with possibly no warranty and having to fund repairs, paying $700 a month for a new vehicle instead with full warranty is seen as the better choice. I know I don’t have any term lengths or total costs in there…but that’s also the point. Those types of people don’t see totals, only monthly payments ;)
Thanks for this, George. Been thinking about this very topic a lot because I’m helping a friend who is in financial trouble, AND she’s leasing her car (something I warned her never to do!). What I realized about leasing that I hadn’t realized before is this: on the show you guys are always telling people in financial trouble to sell their cars, get something cheaper, and use the difference to put toward debt; well when you lease your car, you have NO equity! And that’s on top of all the other things you mentioned! So you’re really paying a lot of money for a rental.
Whoa 😳 I had no idea how scammie a car lease was! So glad I’ve dodged that one. Thanks for sharing all the details of this George. You’re a true minimalist -one payment, zero interest. I like your style.
I drove a 2002 Toyota Camry since I was 20 years old. Graduated from 2 universities with two different degrees. Paid off my first school loan then went to nursing school. Graduated nursing school and paid off 70k nursing school loan in just 2 years. Recently bought a brand new Tesla paid full with cash. I have 0 debt, car fully paid and money saved in the bank. I followed Ramsey’s baby steps when laying off my school loans and the strategy does work. I paid off the smallest amounts first and slowly but surely I now have FINANCIAL FREEDOM :)
I've watched several of your videos now, and I just wanted to say that I really appreciate how you deliver your advice. My wife and I have been on the baby steps path for over a year now, and we're about 2 months away from starting step 6. Looking forward to reaching the end of our debt sentence and enjoying life with a bit more breathing room.
I leased 2 Ford Fusions. Ford got hosed on both of them. Paid $200 a month for 2 years, then handed then back the keys. Depreciation was way more than I paid.
I leased a car on a 3 year. Bought it out at the end and then sold it for the same as I bought it. Walked away with $10k to put down on a purchase for next car. Depends on car and your equivalent interest rate and residual. I paid cash for my truck, but knew this was going to be a good deal. It was a Honda Civic on the lease.
Car Leaser here. And I love Ramsey solutions and their team such as George. But I do find their videos about cars speak in ideals but not reality. There are some amazing car lease deals out there. There are for sure some brutal bad ones out there also. But I’ll be honest my affordable 2 year car lease on a reliable vehicle under warranty is helping me get out of dept and achieve my financial goals. (Not debt free yet about 1 year away) For many years I did as Ramsey said and bought old cars I paid cash for and had my emergency fund to pay for repairs. But I bought one car that the repairs would have been the price of a two year lease and there was a good chance it was going to need even more repairs. So instead of spending more money on repairs I decided shop around for another used car. I noticed a few dealers had some competitive lease rates and I found one that offered me a 2 year lease with warranty. The distance limits for me a single person is not a bother. And they didn’t change admit fees beyond license which I would have to do with any car. Should everyone lease? No Are there good deals out there for some people? yes. Love Ramsey solutions and George but I politely disagree with their view on car lease. I am not saying everyone should lease but it can be a good short term option
I work for the dealer. So I get employee leases. I understand not for general public. But I love paying only $400 month for a new wrangler and never have to worry about service cost. Always under warranty. Plus wranglers have best residual. Price I’m happy to pay for peace of mind.
And when people want a new car it is not just any new car. What they want tends to be fancy, large, and/or more luxurious of a car, which really cranks up that price.
My girlfriend leased a toyota tacoma one month before covid hit in 2020. Only put on 15k miles in 3 years. The truck is worth 8k more than her pay off due to current car market. Not always a horror story.😅
The last time my lease was up, it was worth $3,300 more than my payoff. Leased another, used the cash to pay off debt. I have no expenses for maintenance during the lease period and even though this vehicle has sustained over $25,000 in damage (one accident, not my fault and other damages while it was parked, also not my fault), my insurance fixed it & I get to give them back their vehicle with no repercussions...even though the value of it is greatly diminished from the damages, even though they're fixed. Not being stuck with a beater with a bunch of miles on it, constant maintenance and no value from all the damage? Priceless.
Remember, Dave Ramsey and his channel is really just here for entertainment purposes. He's very good with getting people to shake off fundamentally bad financial habits, but his insistence on never taking on debt is a little extreme and ultimately hurts people who want to push their credit profile to the highest level.
@@MrCooper89he'd rip you a new one if he read your comment lol. Who gives a fk about their "credit profile" when they are debt free and amassing wealth via their savings and investments??
I leased a car one time...that was the last time I would do that. Math is your friend and can guide you away from dumb money decisions. Back then, I didn't care about math.
@@MrCooper89 Vast majority of people shouldn't lease cars. They aren't using loopholes for businesses, etc where leasing can make sense. This is regarding the majority of people.
@@wealthbytes I know, that's why I said: "unless you're not the sort of person who has a lifestyle that's compatible with leasing", but you didn't provide the exceptions you're now providing in your comment about "dumb money decisions". The average lifespan of a vehicle in the United States is 11 years -- if you bought it new that same vehicle over 11 years is going to cost you a lot more to buy through financing than it would to lease a vehicle of that same class for 11 years, even if the monthly payment of that lease gradually increases with each new lease you sign. My Silverado, for example, was initially $399 with Chevrolet's lease special at the time I signed. I just recently renewed a lease for another Silverado at that same price as the dealership "bought" my lease out and rolled over $7,500 in equity (just a numbers trick I'm sure) over into that new lease, covering fees and keeping the same payment for a higher trim level. That's basically 6 years of ownership at the cost of $28,728 and that second lease was at the height of shortages on that particular truck. The odds of it increasing a huge amount by the time this lease comes to an end is fairly low, but even it were to increase another $150 a month, the grand total for having a new truck over an 11 year period would be $61,728. Basically the MSRP of the exact truck I have now, minus potential interest over the life of a loan.
@@MrCooper89 I have a used truck I don't make any payments on, so there is no interest and no payments at all. It's all in how you want to use your money.
I used to think like that but now I think I get it at least in theory (only owned cars never leased) leasing is for people who can easily afford it. Who dont want the burden of ownership. And that is very much an individual/situational concept.
Even for solvent folks its not such a great deal. I know a couple who have been leasing all their life, (30+years). Now that they are retired they don't have the same income and are worried about their car situation.
@zxb995511 If they are worried about not having enough, they either have money scarcity issues, or they are broke and shouldn't have retired in the first place. Apparently they can't easily afford it.
I have leased cars and have never lost on a lease I have made out every time. Never ever paid any down payment only paid sales tax 1st months payment and registration fees. Used my trade in for the down payment as all my cars were always worth more than what I owed.
I think I already know this. I paid $3K for my last car (used) and I've had it for 6 years and repair costs are $300 total so far. I'm going to spend $22 this week on psp cap though. Oh the agony of spending almost nothing on transportation. I pay cash for every car I buy. Paying cash prevents stupid decisions.
I know this is not the norm. In late 2020 I leased a Nissan Leaf for $49 a month $0 down, 24 month lease. I paid taxes and title fees. 12,000 miles a year. At the end of the lease they actually "bought" it back from me and cut me a check for about $2000. There was no maintenance or cost of gas. I thought it was a pretty sweet deal. That being said the car I got after this I paid cash for and it feels great!
Definitely the timing because of the car crisis and on top the massive gas price increase that happened made your Nissan leaf more sought after. Obviously would never attempt to recreate that exact scenario, but it’s good that you made out on top.
Between my wife and I......we have 3 vehicles.....all paid for.....newest is a 2005 GMC ENVOY.......the trucks are from the 80s and 90s.....all run and drive.......
Always cash. And my in laws blessed us with an old van without paying which was a huge blessing while we were paying off debt. I look forward to paying it forward someday ❤Thanks for the warning, George!
Used to work in the service department of a dealer. When a lease was turned in we would have to go over it with a fine tooth comb and find everything wrong with it. It was pretty common that the amount due at the end of a lease was over $1,000 + ….and that was 20 years ago!
I fell for the lease option one time. Then after doing the math, comparing what my total cost would be after three years between buying and leasing, leasing came up at $2000 more. I stopped the bleeding by doing a lease buyout. I still paid about $200 more than if I had financed it from the get-go. But I still saved a considerable amount of money thru my quick action of buying it out. And I saved even more than I originally calculated because I made several principle payments along the way.
I'm a car guy a couple years into my electrical engineering career and was super tempted to finance 20k for a 2023 GR86. Decided to stick with the old 2001 S2000 until I save that 20k. So glad I had the self control not to do it. Never had a car payment and never will.
So when I get an Uber I burn money because I’m not going to end up owning the vehicle? Or did I get my money’s worth by being transported from one place to another?
Even before I had the cash philosophy, leasing a car didn’t make sense. The dealership tried to even talk us into buying a bigger, better car, because the lease payments would be lower. I proceeded to show him the math don’t math!!!
Yes, you're renting the car for a specific time period. Lower payment than financing, and it's usually fully covered under the bumper to bumper warranty. You can buy the lease out too in most cases.
So there is absolutely no cost of owning a car? Either real or opportunity. Take the next car being bought and see the lease deal, then put the extra into an index fund. Come back in 3 to 4 years. Do the same if you paid all cash versus putting the money in an index fund and leasing.
Processing fees used to make sense but now you can get a Notary online for like 4 bucks a page and print papers at an office supply store for like 20 cents. What a scam
If you do that it will ALWAYS be more expensive than simply financing the car to begin with, due to all the BS fees you have to pay for the leasing terms.
@@BadPhD777 We need to educate our selves and our youth and learn to be independent (not a sheep). They big corps have too powerful of a marketing campaign and keep nudging impressionable minds in the wrong direction. We need to know we have other options. It can be hard to remember opportunity cost when making these types of choices
Interesting that you did this video now when there are in fact very few good used cars at a reasonable price. You can still get a reliable used car, but you're going to basically pay new car prices for it. Alternatively, if you want to save money, you're going to get a car at a given mileage it's in worse shape than cars of the same mileage in the past and at a higher price.
My retirement job is in a Parts Dept of a major auto brand. People don’t realize the repair costs of a 5 yo car. For example, thermostats used to be a metal pill in a hose. Now, for MPG & emissions maximization, it’s an electronic unit with a few hoses routing coolant around. $180 + labor. That fancy radar control unit that helps you drive without paying attention? You don’t want to know the $. I’m perfectly happy to say bye-bye to a ticking time tomb every 3 years.
Hey George, this video really motivated me to take the next step in my vehicle situation. I'm currently leasing and saw that my finance provider allows a lease transfer. I already located someone who will assume the lease, but the used car prices just seem to be crazy. What's your opinion? Do you think I should wait for the car market to soften more? I can pay the used car in full, which is what I am planning on doing, so I don't have to deal with payments anymore. Thanks for the great content!
It’s just renting a car. If you can afford it and want to always have a new car it’s not the worst thing. You just have to realize what you’re doing and ensure it’s not hurting your long term plans.
@@BombstarkI think it’s called superstacking points… I’ve done it too! You open up a bunch of new cc accounts taking advantage of the introductory point offers and interest rates, and use the points for purchases like exotic cars and private jets! Then you close all accounts and file for bankruptcy or simply flee the country! Easy peasy!
If your mindset is that you will live life with a perpetual car payment, then sure leasing keeps those payments lower. But definitely leasing is more expensive than buying a car cash and just keeping it.
in the netherlands a lease for a car get registered as a debt, and can impact how much mortgage you can get. usually it means not getting enough mortgage to buy that nice house you want.
Leased a 2020 Subaru Impreza Sport. zero down $314/mo for 36 mos. vehicle was totally covered under factory warranty. all oil changes included too. at end of lease i bought out car for 14k$ then drove over to car max sold it for $29k. got about 19 mos free, only paid for 17 mos on a 36 mo lease. leasing highly depends on economic times and the resale value of a car as well as manufacturer specials. its not for everyone, cuz most dont even understand financial benefits
I did do a car on a lease, I had to make my own spreadsheet to reverse-calculate the costs and work out interest rates, fees, etc. It was in no way transparent. It took multiple rounds of negotiations to get rid of all the unnecessary fees and "extras" that they throw in. The leased value was about $10k higher than the retail price of the car because of all the "extras" they threw in until I got them removed. At the end of the lease, I ended up purchasing the car with cash to avoid a lot of the exit fees. Leasing was certainly very convenient for me at the time, but I do feel a lot better now owning the car outright than I did throughout the lease. Main moral of the story, make sure you understand EVERYTHING you're being charged for in a contract, as a lot of it is invisible, and they don't have to disclose it to you, and that might mean having to do some mathematics yourself to ensure you know what you're paying for.
For the first year of managing my business I've been renting cars (small vans) from a rent company for whenever I've needed them - I frequently go for 1-2week trips around my country to do my stuff. And I need a lot of materials and tools, so a small van is necessary. When the trips became more and more frequent, I decided to buy my own van. And since all used vans are pretty much beat up in my country and would need costly repairs to even start being reliable again, and I need some reliability, I decided to get a new one. Since I couldn't afford to buy it for cash, I'm leasing it. Now, pros and cons of both situations. Rent car: - I don't have to worry for it - I pay upfront, I get the van, pack it up and go, everything's covered by their insurance (I pay for it partially in the rent). But I have to pack it up, unpack it after the return, I can't customize it to my needs (some basic stuff management in the cargo hold), I have no control over tires (and I frequently go through mud, so...) and after paying time after time after time I end up without a car, which is a tool in my business. And every time it's a different van, sometimes I had to ask different rental company. Leased car: - I have to care for it since I'm planning of buying it in the end. But other than that I can do pretty much anything with it, and after paying time and time again I'll end up with a 3yo car. It will still be good (hopefully!) since I know how to care for cars, and even if it will go down in value I'm not planning on selling it until I can afford it. Yes, afford to sell my current "tool" car. And since it's "my" car, it's always on my command. Finance side: - rental - 1,2k per week, that's it. It's net value, add tax and you have it. After 3 years I'd pay something around - leasing - 3k per month, plus 17k initial and 33k to buy it in the end. It makes 157k in total and it's not bad, since for cash it'd cost around 140k net. Yes, I know the leasing costs me around 12% by this math and it's not a small amount, but I guess that's the cost of not having to deal with rentals for now. And after that I'll still have a car. So, what's your opinion? I know it's a bit chaotic, and I know I could just buy a used one for like 40k and put another 20k for repairs and have a decent car. The problem with that approach was not having enough time nor patience for it, and not wishing to pay like almost half of the price of a new one while still renting for like another 3-6 months or so and worrying about the quality of repairs. It's not easy to find a decent workshop. But in the hindsight it might be better overall to do it instead of leasing a new car.
A relative of mine leased his car. I reminded him he was insane. He recently sold his car. I forgot to ask him how he sold it if he was leasing it? You cannot sell what you do not own.
While I agree with much of this it is important to note a few things. For example, many of these fees you indicated are totally negotiable. Also, you can lease a used car. Not every dealership will do it but for a good quality car it can be a good way obtain a newer vehicle at a lower price.
Just save, good things come to those whose wait, stash it in an investment account and use compound interest to its max in 5 years you can buy a brand new close to dream car. plus if you always keep your cars for over 10 years paying for one in full amortizes pretty well. plus again its a car you actually want. you can lease a car you WANT but you made a knucklehead move because of interest. We got a budget and a fund for the car we want to bu and we're basically payin ourselves instead of a bank
Proper apostrophe usage is probably the most important lesson here. If you can't understand basic grammar, how will you ever be able to understand the fine print of your BMW lease?
The way Dave said to decide if you can afford a new car is, if you didn’t have insurance and the car exploded in your driveway, would it impact your life at all? If no, then go ahead and buy the car.
![[MV] A leap of faith...ความเชื่อใจครั้งสุดท้าย (From "Petrichor the series")](http://i.ytimg.com/vi/U1piZH2CNXA/mqdefault.jpg)
Paid 2500 for a 2000 Toyota Camry a month ago and loving it so far 👍 all thanks to the Ramsey Team and Scotty Kilmer
Oh what a feeling to drive……….. 😂 old commercial jingle
Scotty Kilmer is a national treasure. Love that guy
….I am still owning/driving 25+ y/o Camry V6 w/ nearly 400K miles on the clock since new to me…like 20 yrs ago. I am thinking of pulling-the-lever on a brand new BMW M4 Competition cabriolet. Tired of my ole Camry to be honest.
@@bluestonemetallic7it’ll still last longer than that new BMW. You should keep both.
First car was a 2000 Camry - wish I still had it
This week I counseled a 26 year old with a $804 leased car payment and no investments and a couple with 2 leased car payments $560/$750 considering selling their home, which is 30% of their take home pay.😢
Yikes. So sad
crazy
I love leasing. No, it’s not financially wise, but then I had a specific agenda in mind when I walked into the lease deals. After taking a good couple of months to research what leasing is, reading about the pros and cons, all the fees involved, and the fact that financially, leasing is the *worst* way to acquire a vehicle, I concluded that leasing was a good fit for me and my goals.
I was completely non-committal, so my goal was to acquire a car I would essentially “date” until the end of the 3-year term, at which point I would either commit to purchasing the car because I loved it, or trade it in for a brand new lease. I leased two cars total, and after the second lease was up I knew for certain this was the car I wanted to purchase outright and keep until death do us part. Yes, it was the more expensive way to acquire a vehicle, but I don’t regret it in the least. I leased for convenience, and had a plan going into the deal. If I had to do it over again I wouldn’t change a thing. For most people, I would *never* recommend leasing. It’s simply not reasonable in most cases. For people who want to lease just because it helps them get into a car they otherwise couldn’t afford, leasing is a terrible idea. For someone who just wants to “date” new cars until they find the one they absolutely fall in love with AND they have an end goal in mind to pay off the final lease, it works. There just has to be a reasonable end goal in mind. Priorities.
My husband and I have been married for 44 years. We have never bought our dream cars and we have been very happy with the used cars we paid cash for. We paid off the mortgage on our house in 15 years by living on one paycheck and saving the other one. Sure, there were times when it sucked bullets. But we have been debt free for the last 25 years and our kids do not have any student loans to pay off (college savings). Close friends and family members thought we were crazy...at first. Living frugally really does pay off!
I learned this the hard way. It’s gonna take me a year to save enough to buyout my lease. I have one more year left on the lease. I’m choosing the buyout option at the end of the lease because I put a lot of mileage on it. I would pay too much in fees and I’ll still need to get buy another car.
After this lease is done I’m never leasing again
Walking into the finance office and continuing to ask how much it will be if you put more and more on the car until you say you'll just pay it all in straight cash is so much fun.
I always buy private-party but I want to buy at a dealership just to do this 😂
Man, I wish I could have been listening in on that conversation.
I did this on a V8 mustang, brand new off the show room floor. Kept raising the down payment $3-$4,000 at a time and then at the end said just kidding, here’s a cashiers check
@@reaper-sz5tm man, I wish I did it with a ride like that... Mine was just my niece's used Prius but one day soon 😂
@@SpoonHurler you will get there!!! I told my wife my next goal is a viper but she said that’s the 5-10 year goal, gotta wait on that one
I’ve been back and forth on whether I need a car here in Atlanta. I’ve been managing without one for 4 years with a mix of walking where I can, using public transit and Ubers.
As someone currently in a lease, I can say I will have burned 18k in January when it's up. Dumbest financial move I've ever done. I'm now going to be paying the lease and saving to buy a car at the end of it.
Live and learn. Glad the stupid tax is almost over. Never again my friend!
Just buy the lease? They provide you with a residual when you sign the lease contract. As much as I like George, this video was definitely made for engagement, not actually educating people as everything he stated should of been known by those who take advantage of leasing.
@@MrCooper89Just drive a used car. You're not taking advantage of anything by leasing, they are taking advantage of you lol
@asnmdnss There's nothing more annoying than people who think they're financial gurus because they watch a couple of Dave Ramsey videos on TH-cam. It's so obvious when they come out and parrot things like this, but most don't realize that Dave's giving advice for people who are terrible at managing their finances. It's what his content and his advice is geared towards.
Next you'll be telling me that it's better to just save up cash and buy a car outright -- the usual go to response of the impoverished financial gurus.
@@MrCooper89 ok bruh...keep leasing cars then. I'll drive my paid off car. I don't agree with a lot of what Dave says but this is kinda common sense bruh lol
I recall spending HOURS at the dealership when buying a car in my 20s. When I paid cash for my vehicle a few years ago, i realized all that time is for the financing!! Goes so quickly, by comparison, when you're writing out a check and driving away!!
FINALLY! Someone else shares my anger towards improper apostrophes during xmas cards!
X’mas cards. 😂
Havent had a car payment in years. Both cars are 13 years old now, still running good but showing their age. Whenever i think of getting something newer (usa such a car culture country), 5 minutes into looking at the cost, insurance, registration.. I change my mind 😂
my daily driver has 37 year old and running strong. I try to maintain it the best i can. Whenever i decide to resell it, unless something horrible accident, i can get purchase value out of it again, so the actual ownership cost is fuel, maintenance and insurance.
Bought a cash car 🚗 in 2021 for $7000. Drove it for 3 1/2 years and just sold it back to the same dealer for $6000. Paying $1000 to drive a car for 3 1/2 years plus maintenance and gas is a pretty sweet deal. 💰
I paid cash for my car back in February! Thanks to you and the Ramsey team!
My wife and I just paid cash for our first car together on Friday! Such a satisfying feeling. Congrats!!!!
I did as well and will follow the 10 to 15k plan till I die lol. Thanks team, love this show. 💜
Why would you buy something that loses at least 10% of its value when you drive it off the lot? THAT is stupid.
Or you could have financed the whole thing at 5% interest over 6 years and put your money in SPY which will likely return 8-9% a year, and every payment extract money from your SPY investment. By the time you pay off the loan, you’ll still have some leftover money on your SPY investment, thus coming out on top over paying cash
@@zodeadlifts9295how explain
I always liked those licence plates that say "don't laugh it's paid for", but seriously having a cheap car that's paid off has many more benefits like cheaper insurance, and saying "oh well" when it inevitably gets scratched or dented.
Kudos to George for explaining what cash means, you know someone is going to show up with a suitcase full of cash. Thanks for explaining all of this George.
I got in a situation where i had no car (timing belt went) and no money saved up. So i leased, cause it the payment was well within my budget. We actually liked it and leased like six cars since then, all for right around $200/ month. So for about $3500/ year (monthly plus downpayment and fees), i never had to think about car troubles.
NOWADAYS, lease prices have gone up HOWEVER i have had the cash to buy out my truck and because of the crazy inflation, if i can sell it for its current KBB value, I'll make back every cent i ever paid on it. Then I'll buy a decent used truck.
All this to say, it worked for us for about 10 years. No regrets.
Getting ready to pay cash for a replacement car for my husband soon. Going from a 2007, paid off, chevy, to a much newer, but not brand new, Lexus, all in cash
My new hobby is looking up how much the vehicle in the TH-cam ad costs, prior to watching George. It adds so much to the video!
George, well done, you are educating yourself on cars. Like the addition of getting the used car professionally inspected.
So many people will say, “I need to get a brand new car for the peace of mind of not needing repairs.”
Meanwhile, they are up to their eyeballs in debt. Peaceful, huh?
Breakdowns and repairs may not happen with a used vehicle, but depreciation WILL happen with a new one.
It’s a mindset. The vast majority of people financing vehicles only look at the monthly payments. If a new vehicle gets them the ability to finance at a longer term for a lower monthly payment, buying new makes sense to them, since it’s “cheaper” on a month to month basis.
Those same people would need to finance a used vehicle as well…but if the interest rate is higher, or they can only get a shorter term resulting in a higher monthly payment, it’s seen as unaffordable, especially since they will be on the hook for any and all repairs.
I’m definitely glad I got ahead of all these traps before ever getting into them. I would have easily qualified for financing on a brand new vehicle when I was 21. Instead, I bought a good used car I could afford, and drove it for 6 years. 6 years with no vehicle or debt payments makes it a lot easier to keep saving up for future goals, despite increases in cost of living along the way. I’m now in my mid 30’s, have 2 good paid for vehicles, and we finished paying off our home last year. Everything was done intentionally right from the start to make that goal a reality…but to most people, we’re just “lucky”….
Paying $700 a month to avoid a $1500 repair every 3 years 🤡
@@InternetUser._ It’s not just paying $700 a month to avoid a $1500 repair though. It’s the whole thing. That used car might cost them $650 a month, because they HAVE to finance it. Coupled with possibly no warranty and having to fund repairs, paying $700 a month for a new vehicle instead with full warranty is seen as the better choice.
I know I don’t have any term lengths or total costs in there…but that’s also the point. Those types of people don’t see totals, only monthly payments ;)
@@DB-bw5fz thats spot on
Having $50,000 in my savings account is more peace of mind than any brand new car will ever give me
Thanks for this, George. Been thinking about this very topic a lot because I’m helping a friend who is in financial trouble, AND she’s leasing her car (something I warned her never to do!). What I realized about leasing that I hadn’t realized before is this: on the show you guys are always telling people in financial trouble to sell their cars, get something cheaper, and use the difference to put toward debt; well when you lease your car, you have NO equity! And that’s on top of all the other things you mentioned! So you’re really paying a lot of money for a rental.
Whoa 😳 I had no idea how scammie a car lease was! So glad I’ve dodged that one. Thanks for sharing all the details of this George. You’re a true minimalist -one payment, zero interest. I like your style.
To me, a car lease is a long-term rental with stricter rules.
George is educating financially illiterate adults, in a manner how you would speak to a 3rd grader. He’s brilliant
The truth is. If you cant explain something complicated to a 3rd grade by simplifying it so even they understand is what makes a true teacher.
I drove a 2002 Toyota Camry since I was 20 years old. Graduated from 2 universities with two different degrees. Paid off my first school loan then went to nursing school. Graduated nursing school and paid off 70k nursing school loan in just 2 years. Recently bought a brand new Tesla paid full with cash. I have 0 debt, car fully paid and money saved in the bank. I followed Ramsey’s baby steps when laying off my school loans and the strategy does work. I paid off the smallest amounts first and slowly but surely I now have FINANCIAL FREEDOM :)
I've watched several of your videos now, and I just wanted to say that I really appreciate how you deliver your advice. My wife and I have been on the baby steps path for over a year now, and we're about 2 months away from starting step 6. Looking forward to reaching the end of our debt sentence and enjoying life with a bit more breathing room.
I found this out the hard way TWICE. Never again, pay CASH on a certified used car ALWAYS
I leased 2 Ford Fusions. Ford got hosed on both of them. Paid $200 a month for 2 years, then handed then back the keys. Depreciation was way more than I paid.
George makes my day every time one of these videos drops
At this point I solely watch for the memes. The editors never disappoint me. I love it
I leased a car on a 3 year. Bought it out at the end and then sold it for the same as I bought it. Walked away with $10k to put down on a purchase for next car. Depends on car and your equivalent interest rate and residual. I paid cash for my truck, but knew this was going to be a good deal. It was a Honda Civic on the lease.
Car Leaser here. And I love Ramsey solutions and their team such as George. But I do find their videos about cars speak in ideals but not reality. There are some amazing car lease deals out there. There are for sure some brutal bad ones out there also. But I’ll be honest my affordable 2 year car lease on a reliable vehicle under warranty is helping me get out of dept and achieve my financial goals. (Not debt free yet about 1 year away)
For many years I did as Ramsey said and bought old cars I paid cash for and had my emergency fund to pay for repairs. But I bought one car that the repairs would have been the price of a two year lease and there was a good chance it was going to need even more repairs. So instead of spending more money on repairs I decided shop around for another used car. I noticed a few dealers had some competitive lease rates and I found one that offered me a 2 year lease with warranty. The distance limits for me a single person is not a bother. And they didn’t change admit fees beyond license which I would have to do with any car.
Should everyone lease? No
Are there good deals out there for some people? yes.
Love Ramsey solutions and George but I politely disagree with their view on car lease.
I am not saying everyone should lease but it can be a good short term option
I work for the dealer. So I get employee leases. I understand not for general public. But I love paying only $400 month for a new wrangler and never have to worry about service cost. Always under warranty. Plus wranglers have best residual.
Price I’m happy to pay for peace of mind.
Yep. Sometimes leasing makes sense but for most it really does not. I've been driving my current SUV for 14 years.
George didn't mention it, but Dave has said employee leases can be a good value. He's mentioned Nissan employee leases many times.
$400 for something you will never own doesn't sound like a good deal to me...........
@@MrJimmy3459Correct; always drive new and never worry about servicing a vehicle.
I bought my Jeep Wrangler in 2011 and paid $415 monthly to own. 🤔
And when people want a new car it is not just any new car. What they want tends to be fancy, large, and/or more luxurious of a car, which really cranks up that price.
My girlfriend leased a toyota tacoma one month before covid hit in 2020. Only put on 15k miles in 3 years. The truck is worth 8k more than her pay off due to current car market. Not always a horror story.😅
The last time my lease was up, it was worth $3,300 more than my payoff. Leased another, used the cash to pay off debt. I have no expenses for maintenance during the lease period and even though this vehicle has sustained over $25,000 in damage (one accident, not my fault and other damages while it was parked, also not my fault), my insurance fixed it & I get to give them back their vehicle with no repercussions...even though the value of it is greatly diminished from the damages, even though they're fixed. Not being stuck with a beater with a bunch of miles on it, constant maintenance and no value from all the damage? Priceless.
Remember, Dave Ramsey and his channel is really just here for entertainment purposes. He's very good with getting people to shake off fundamentally bad financial habits, but his insistence on never taking on debt is a little extreme and ultimately hurts people who want to push their credit profile to the highest level.
@@MrCooper89he'd rip you a new one if he read your comment lol.
Who gives a fk about their "credit profile" when they are debt free and amassing wealth via their savings and investments??
@@trumax33I guess leasing is good for people rough with their cars then.
I leased a car one time...that was the last time I would do that. Math is your friend and can guide you away from dumb money decisions. Back then, I didn't care about math.
Leasing is not a "dumb money decision" unless you're not the sort of person who has a lifestyle that's incompatible with leasing.
@@MrCooper89 Vast majority of people shouldn't lease cars. They aren't using loopholes for businesses, etc where leasing can make sense. This is regarding the majority of people.
@@wealthbytes I know, that's why I said: "unless you're not the sort of person who has a lifestyle that's compatible with leasing", but you didn't provide the exceptions you're now providing in your comment about "dumb money decisions". The average lifespan of a vehicle in the United States is 11 years -- if you bought it new that same vehicle over 11 years is going to cost you a lot more to buy through financing than it would to lease a vehicle of that same class for 11 years, even if the monthly payment of that lease gradually increases with each new lease you sign.
My Silverado, for example, was initially $399 with Chevrolet's lease special at the time I signed. I just recently renewed a lease for another Silverado at that same price as the dealership "bought" my lease out and rolled over $7,500 in equity (just a numbers trick I'm sure) over into that new lease, covering fees and keeping the same payment for a higher trim level. That's basically 6 years of ownership at the cost of $28,728 and that second lease was at the height of shortages on that particular truck. The odds of it increasing a huge amount by the time this lease comes to an end is fairly low, but even it were to increase another $150 a month, the grand total for having a new truck over an 11 year period would be $61,728. Basically the MSRP of the exact truck I have now, minus potential interest over the life of a loan.
@@MrCooper89 I have a used truck I don't make any payments on, so there is no interest and no payments at all. It's all in how you want to use your money.
@@MrCooper89but you don’t actually own it and had you bought, that would have been financed over 5 years and you’d have had 6 years without a payment.
I used to think like that but now I think I get it at least in theory (only owned cars never leased) leasing is for people who can easily afford it. Who dont want the burden of ownership. And that is very much an individual/situational concept.
Exactly!
Even for solvent folks its not such a great deal. I know a couple who have been leasing all their life, (30+years). Now that they are retired they don't have the same income and are worried about their car situation.
@zxb995511 If they are worried about not having enough, they either have money scarcity issues, or they are broke and shouldn't have retired in the first place. Apparently they can't easily afford it.
I have leased cars and have never lost on a lease I have made out every time. Never ever paid any down payment only paid sales tax 1st months payment and registration fees. Used my trade in for the down payment as all my cars were always worth more than what I owed.
Agree this video is bad advice
I think I already know this. I paid $3K for my last car (used) and I've had it for 6 years and repair costs are $300 total so far. I'm going to spend $22 this week on psp cap though. Oh the agony of spending almost nothing on transportation. I pay cash for every car I buy. Paying cash prevents stupid decisions.
Yup, leasing a car is a terrible idea. Great info, thank you!
Interesting video. The only thing I would add to counter though is if your a business owner, a lease can be good for tax deductions.
I get so many questions about leases on my channel...people don't get how bad of an idea it is
You’re a real one 👊🏼👊🏼
@@GeorgeKamel love what you're doing... I'm in entreleadership too!
I know this is not the norm. In late 2020 I leased a Nissan Leaf for $49 a month $0 down, 24 month lease. I paid taxes and title fees. 12,000 miles a year. At the end of the lease they actually "bought" it back from me and cut me a check for about $2000. There was no maintenance or cost of gas. I thought it was a pretty sweet deal.
That being said the car I got after this I paid cash for and it feels great!
Definitely the timing because of the car crisis and on top the massive gas price increase that happened made your Nissan leaf more sought after. Obviously would never attempt to recreate that exact scenario, but it’s good that you made out on top.
At that price, there’s really no downside risk.
Between my wife and I......we have 3 vehicles.....all paid for.....newest is a 2005 GMC ENVOY.......the trucks are from the 80s and 90s.....all run and drive.......
Always cash. And my in laws blessed us with an old van without paying which was a huge blessing while we were paying off debt. I look forward to paying it forward someday ❤Thanks for the warning, George!
Used to work in the service department of a dealer. When a lease was turned in we would have to go over it with a fine tooth comb and find everything wrong with it. It was pretty common that the amount due at the end of a lease was over $1,000 + ….and that was 20 years ago!
I fell for the lease option one time. Then after doing the math, comparing what my total cost would be after three years between buying and leasing, leasing came up at $2000 more. I stopped the bleeding by doing a lease buyout. I still paid about $200 more than if I had financed it from the get-go. But I still saved a considerable amount of money thru my quick action of buying it out. And I saved even more than I originally calculated because I made several principle payments along the way.
Didn't know there was a Ramsey car guide! Nice!
Gots to buy with cash!!! I have a paid for 2014 Camry worth about 12k when I make 90k annually.. could I afford more? Probably. But I love my car!
I've never seen anyone else comment on people screwing up their family plurals and possessives. So happy!
this was such a good walkthrough entertaining explanation, dave ramsey on the show was just to improv.
George Jones! 🎉You are the best George Kamel!
I'm a car guy a couple years into my electrical engineering career and was super tempted to finance 20k for a 2023 GR86. Decided to stick with the old 2001 S2000 until I save that 20k. So glad I had the self control not to do it. Never had a car payment and never will.
Not to mention s2000 you prob broke even if you ever sell it
S2k is better than GR lol
Hang on to the s2000 as long as you possibly can. You’ll regret getting rid of it
yes!! great content!!! i don’t know how many more times i can keep on saying that indefinitely🎉
Keep saying it! The team and I appreciate it. They work their tails off every week to deliver the goods.
So when I get an Uber I burn money because I’m not going to end up owning the vehicle? Or did I get my money’s worth by being transported from one place to another?
Are you arguing that Ubering everywhere is smart as long as you get from point A to point B, math be damned? 😅
This is definitely some great advice George! I am definitely going to show this to my Mom so that she can stop leasing cars!
I thought George was about to smack me across the face. 6:14
Thanks George for not rearranging my face.
Even before I had the cash philosophy, leasing a car didn’t make sense. The dealership tried to even talk us into buying a bigger, better car, because the lease payments would be lower. I proceeded to show him the math don’t math!!!
I never understood why people lease. It’s like a long term rental car.
Yes, you're renting the car for a specific time period. Lower payment than financing, and it's usually fully covered under the bumper to bumper warranty. You can buy the lease out too in most cases.
So they can drive whatever the latest and greatest car is each year
@justinbrown6922 some people like the new tech so they lease.
So there is absolutely no cost of owning a car? Either real or opportunity.
Take the next car being bought and see the lease deal, then put the extra into an index fund. Come back in 3 to 4 years.
Do the same if you paid all cash versus putting the money in an index fund and leasing.
Processing fees used to make sense but now you can get a Notary online for like 4 bucks a page and print papers at an office supply store for like 20 cents. What a scam
7:05 perfect song 🎶 selection…
George you can buy the car at the end of the lease. Don’t always have to give it back.
If you do that it will ALWAYS be more expensive than simply financing the car to begin with, due to all the BS fees you have to pay for the leasing terms.
Not all leases are bad deals as you need to negotiate. Reliable used cars are very expensive and car repairs are off the charts!!
Can you make a video on what kind of car to save up for?
I've seen Gigli and can confirm that watching Gigli is a lot less painful than having to pay for a car lease!
I love this video and the advice.
Spot on. The main issue is too many people buy a vehicle based on monthly payment…
Exactly. Can't afford the payment? Make it a longer loan! Stellar idea!
@@BadPhD777 We need to educate our selves and our youth and learn to be independent (not a sheep). They big corps have too powerful of a marketing campaign and keep nudging impressionable minds in the wrong direction. We need to know we have other options. It can be hard to remember opportunity cost when making these types of choices
I was told by my former coworker that suggested to leasing a vehicle to save money. I didn't believe him and paid my car, now i own it.
Interesting that you did this video now when there are in fact very few good used cars at a reasonable price. You can still get a reliable used car, but you're going to basically pay new car prices for it. Alternatively, if you want to save money, you're going to get a car at a given mileage it's in worse shape than cars of the same mileage in the past and at a higher price.
Liked your video alot !
2:53 dealerships be like “you’re taking up space in my office, that’s a fee. You’re breathing in my air, that’s a fee.”
Thanks! I wish my smart broke time share owning friends would take your advice!
My retirement job is in a Parts Dept of a major auto brand. People don’t realize the repair costs of a 5 yo car. For example, thermostats used to be a metal pill in a hose. Now, for MPG & emissions maximization, it’s an electronic unit with a few hoses routing coolant around. $180 + labor. That fancy radar control unit that helps you drive without paying attention? You don’t want to know the $. I’m perfectly happy to say bye-bye to a ticking time tomb every 3 years.
Lol people who try to argue that renting is a waste of money are same people who justify leasing a car
This video format is 🔥🔥🔥
Get a mechanical inspection and a smog if that’s applicable in your state
Hey George, this video really motivated me to take the next step in my vehicle situation.
I'm currently leasing and saw that my finance provider allows a lease transfer. I already located someone who will assume the lease, but the used car prices just seem to be crazy. What's your opinion? Do you think I should wait for the car market to soften more?
I can pay the used car in full, which is what I am planning on doing, so I don't have to deal with payments anymore.
Thanks for the great content!
George this has to be your funniest video yet 😂
It’s just renting a car. If you can afford it and want to always have a new car it’s not the worst thing. You just have to realize what you’re doing and ensure it’s not hurting your long term plans.
Instructions unclear, opened 27 credit cards and bought a brand new car with the credit card points
How much did you spend in those 27 credit cards to get those points that is the most concerning 😂😂
Please explain… because I don’t think you paid for it with points alone.
@@Bombstark this joke went right over your head brother
@@BombstarkI think it’s called superstacking points… I’ve done it too! You open up a bunch of new cc accounts taking advantage of the introductory point offers and interest rates, and use the points for purchases like exotic cars and private jets! Then you close all accounts and file for bankruptcy or simply flee the country! Easy peasy!
i hope you paid it off fast cause interest rates on a credit card are higher then interest rates on a car
Great topic! Thanks George
If your mindset is that you will live life with a perpetual car payment, then sure leasing keeps those payments lower. But definitely leasing is more expensive than buying a car cash and just keeping it.
Great, great advice delivered in a super hilarious manner! Well done!
George is on the come up! George Solutions Inc.
in the netherlands a lease for a car get registered as a debt, and can impact how much mortgage you can get. usually it means not getting enough mortgage to buy that nice house you want.
Quick clarification: Acquisition, rent charge (money factor or rate), & disposition fees are from the lender, not the dealer.
Leased a 2020 Subaru Impreza Sport. zero down $314/mo for 36 mos. vehicle was totally covered under factory warranty. all oil changes included too. at end of lease i bought out car for 14k$ then drove over to car max sold it for $29k. got about 19 mos free, only paid for 17 mos on a 36 mo lease. leasing highly depends on economic times and the resale value of a car as well as manufacturer specials. its not for everyone, cuz most dont even understand financial benefits
George make a short video of the "but George I can't afford the car I want" and include your revelation after that.
So I can spam share that video
On it
Paid off my car! One less thing to worry about, hoping it will lest me 5-10 more years
I did do a car on a lease, I had to make my own spreadsheet to reverse-calculate the costs and work out interest rates, fees, etc. It was in no way transparent. It took multiple rounds of negotiations to get rid of all the unnecessary fees and "extras" that they throw in. The leased value was about $10k higher than the retail price of the car because of all the "extras" they threw in until I got them removed. At the end of the lease, I ended up purchasing the car with cash to avoid a lot of the exit fees. Leasing was certainly very convenient for me at the time, but I do feel a lot better now owning the car outright than I did throughout the lease. Main moral of the story, make sure you understand EVERYTHING you're being charged for in a contract, as a lot of it is invisible, and they don't have to disclose it to you, and that might mean having to do some mathematics yourself to ensure you know what you're paying for.
For the first year of managing my business I've been renting cars (small vans) from a rent company for whenever I've needed them - I frequently go for 1-2week trips around my country to do my stuff. And I need a lot of materials and tools, so a small van is necessary.
When the trips became more and more frequent, I decided to buy my own van. And since all used vans are pretty much beat up in my country and would need costly repairs to even start being reliable again, and I need some reliability, I decided to get a new one. Since I couldn't afford to buy it for cash, I'm leasing it.
Now, pros and cons of both situations.
Rent car:
- I don't have to worry for it - I pay upfront, I get the van, pack it up and go, everything's covered by their insurance (I pay for it partially in the rent). But I have to pack it up, unpack it after the return, I can't customize it to my needs (some basic stuff management in the cargo hold), I have no control over tires (and I frequently go through mud, so...) and after paying time after time after time I end up without a car, which is a tool in my business. And every time it's a different van, sometimes I had to ask different rental company.
Leased car:
- I have to care for it since I'm planning of buying it in the end. But other than that I can do pretty much anything with it, and after paying time and time again I'll end up with a 3yo car. It will still be good (hopefully!) since I know how to care for cars, and even if it will go down in value I'm not planning on selling it until I can afford it. Yes, afford to sell my current "tool" car. And since it's "my" car, it's always on my command.
Finance side:
- rental - 1,2k per week, that's it. It's net value, add tax and you have it. After 3 years I'd pay something around
- leasing - 3k per month, plus 17k initial and 33k to buy it in the end. It makes 157k in total and it's not bad, since for cash it'd cost around 140k net. Yes, I know the leasing costs me around 12% by this math and it's not a small amount, but I guess that's the cost of not having to deal with rentals for now. And after that I'll still have a car.
So, what's your opinion? I know it's a bit chaotic, and I know I could just buy a used one for like 40k and put another 20k for repairs and have a decent car. The problem with that approach was not having enough time nor patience for it, and not wishing to pay like almost half of the price of a new one while still renting for like another 3-6 months or so and worrying about the quality of repairs. It's not easy to find a decent workshop. But in the hindsight it might be better overall to do it instead of leasing a new car.
A relative of mine leased his car. I reminded him he was insane. He recently sold his car. I forgot to ask him how he sold it if he was leasing it? You cannot sell what you do not own.
I needed to hear this, thanks!
While I agree with much of this it is important to note a few things. For example, many of these fees you indicated are totally negotiable. Also, you can lease a used car. Not every dealership will do it but for a good quality car it can be a good way obtain a newer vehicle at a lower price.
Just save, good things come to those whose wait, stash it in an investment account and use compound interest to its max in 5 years you can buy a brand new close to dream car. plus if you always keep your cars for over 10 years paying for one in full amortizes pretty well. plus again its a car you actually want. you can lease a car you WANT but you made a knucklehead move because of interest. We got a budget and a fund for the car we want to bu and we're basically payin ourselves instead of a bank
If you have a bad credit score. They will try and move you to buy a new car lease. 🙄
Now i may not be great with money, but even I have never understood why people get leases.
Proper apostrophe usage is probably the most important lesson here. If you can't understand basic grammar, how will you ever be able to understand the fine print of your BMW lease?
The way Dave said to decide if you can afford a new car is, if you didn’t have insurance and the car exploded in your driveway, would it impact your life at all? If no, then go ahead and buy the car.
Whats the range on your tesla? Evs are like disposable cars, once the battery dies it cost like twice as the car
My fav place to look at used cars is rental sales places.