What Nobody Told You: 6 Reasons Why Leasing First Makes More Sense
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- เผยแพร่เมื่อ 16 มิ.ย. 2024
- 🚗 Discover 6 compelling reasons why leasing might be the smarter choice than financing, some of which might surprise you! Explore the benefits of leasing versus financing a new car in this insightful video. 🌟
🔍 What to Expect:
I'll delve into 6 key advantages of leasing over financing, providing real-life examples and sharing my own firsthand experiences. 🌟
👍 Why You Should Tune In:
If you're in the market for a new vehicle and want to make an informed decision, this video is a must-watch. Gain valuable insights that could make you a savvier car buyer, including two crucial points to consider if you're thinking about buying out a leased car. Don't miss out on this invaluable knowledge!
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Here is a video where I teach you how to Avoid Buying a Wrong Car:
• Common Mistake: Why Mo...
Leasing cars is throwing away money. For some people it may be a temporary solution and if you feel you need a new car every 3 years. I recommend that you add up all the money you have thrown away all these years leasing vehicles. You'd have invested that money and be returning a hefty return today. First, cars depreciate, and yes, its similar to renting a house..you have no equity or value in it to recover. You can turn around and sell a car and recover some of the money ( including the taxes). You can't do that will a lease.
Finally, mileage is one of the most important aspects in leasing. You will pay heavily for going over the contracted yearly mileage allowance. You will also pay for any scatches, dings and dents. You are also responsible for any wear and tear not considered 'normal' and you will pay for replacement tires if you need them. Things might also change in 3yrs where your credit might have gotten worse, meaning now you're unable to get approval for the loan or qualify for a much higher interest rate to buy the car, and if you then finance it for 5-6 more years you'd have been paying for that car for 8-9 years!
Leasing is in no way better, lets be real smart here! I'd also seriously consider investing that money in my children's future than to ride around in cars that are not worth it!
Thanks for your insightful response. In my video I am trying to make a point that even if you are buying a car long term, I would first lease it and then buyout this lease. And this is why I list those 6 reasons. This video is not to convince you to change a car every 3 years but rather to first lease and if you realized it was the car you wanted - buy it out.
@100miledrive 3 years is a long time to decide if you want that car. For that, you do your research, which might include multiple test drives or, if possible, rent it for a weekend. Otherwise, after 3 years you have no equity. Remember, you still have to place a down-payment which is unrefundable. But if you want a brand new vehicle and can't really afford all the upfront costs, then leasing and then buying might work. Long as you figure you'll be paying for that car longer. Remember, if you decide to break the lease, that's also an additional cost and a loss you'll never recover. While, if you own the vehicle you can simply sell it.
You talk rubbish
@markbirtles7066 hey don't blame me for being an illiterate. Get yourself an education so you can keep up..
Hi Mark, thanks for your reply. Let me break your comment down on how I see it:
-3 years is a long time to decide if you want that car.
The whole point of leasing before buying and waiting for 3 years is to: a) if a car gave you lots of trouble like my VW CC did I would rethink 10 times if I want to keep such car pass the warranty. b) if a car was involved in a major accident, but was repaired by insurance, not totaled - you still have an option to just walk away from such car after the lease ends, where if you financed, well good luck on selling it with accident on the record. c) if you decided after 3 years you need another car, well in finance you paid taxes on full MSRP amount and it was included in the loan, so you will be way under water if you want to trade or sell financed car within first 3 years.
-Remember, you still have to place a down-payment which is unrefundable.
Same with finance, in first 3 years you absorb depreciation, so you can't really sell your car and get money back. 50% depreciation in first 3 years + full tax added into the loan.
-Remember, if you decide to break the lease, that's also an additional cost and a loss you'll never recover. While, if you own the vehicle you can simply sell it.
In my video I was not advocating for breaking a lease, however if that is an intention you can use swapalease.com or leasetrader.com to exit the lease and in many cases even recover down payment. With finance I am not sure how you are planning to sell the car in the first 3 years, unless you put a huge down payment that you are willing to lose, remember that you also paid 100% tax which was added to the loan, so technically you even more under water with finance in first 3 years than lease.
The point I am trying to convey is that leasing doesn't mean losing money. It is the same loan just like in finance, just structured differently but it gives you a piece of mind to exit at 3 years in case something changed or certain events took place. Depreciation is inevitable in both cases lease or finance.