what I've learned after leasing 10 cars over 10 years
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- เผยแพร่เมื่อ 29 พ.ค. 2024
- What having leased 10 cars in 10 years has taught me and why under most circumstances, I will prefer to lease vehicles over purchasing even though Dave Ramsey says not to!
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1. It NEVER will make any financial sense to lease over purchase unless you intend to trade the car within 5 years or less and you drive within normal mileage per year.
2. Damage and lease end charges are NEVER as expensive as they seem.
3. If you’re driving within 10-15k miles, the depreciation is typically always going to be the same as buying. It’s only until year 5 and onward where it really pays off to have purchased it and kept it in good condition as opposed to leasing all along.
4. There are NO hidden charges in a lease. Like none, and even when the dealer makes a mistake, the bank typically kicks it back and asks them to reprint docs for you to sign.
5. It’s always easier for you to get out of a lease early if you are staying within the same brand. For instance, going from BMW to BMW has always been cheaper for me than going from BMW to Mercedes.
6. You don’t need to put any money down EVER with perfect credit. Unless you’re folding in a ton of negative equity or your credit is bad, you can usually even roll in the first payment and leave having not paid a dollar at signing.
7. No matter how hard you try, your purchase price at the end CANNOT be negotiated unless THEY call you with an offer. This happened with the Nissan Leaf many years back.
8. The lease will usually drop your credit about 20-40 points after it hits your report
9. If you so much as make a late payment, you’ll likely be reminded of it later on, especially if you lease with the same company.
10. A lease is like a credit card on your credit report. Only what you have left outstanding is what matters not the entire cars value.
11. Transferring a lease is not the same for every brand. If you transfer for some brands, you may actually still be held accountable for another’s missed payments/damages.
12. No one waives the acquisition fee EVER, and if they do, they are either charging you for it on the back end or it’s being done as a special promotion like when Chrysler Capital does it for everyone some months.
13. You really need a 720+ credit score to qualify for the best rates. One month I went in with a 690 because of some credit card balances and i saw Tier 2 at BMW which raised my payment $30/month.
14. Most every lease except Toyota or Mazda include GAP insurance in the price.
15. You CANT turn in a lease without penalty, HOWEVER, you can reduce the penalty by trading it in to a third party dealer like Carmax and paying the difference.
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is leasing smart, should you lease or buy a car, buy vs lease car, auto lease dave ramsey, how to buy a car, leasing a car in 2020, is leasing a car financially wise, auto sales, car dealerships - ยานยนต์และพาหนะ
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10 cars in 10 years = 1 year lease, sounds exaggerating
John... I’ve had 3 business vehicles, 3 vehicles for my mother, and 4 of my own vehicles all under my belt
I’m currently purchasing my 36th car lol. I returned my leased Palisade back to Boch after one year because the lease miles are too low
not really, i have had 40 cars by the time i was 50, at least 12 were leases, in the good ol days.
@@negotiationguides booyah- go you!
@@Lendingyourlight You didn't purchase anything if you were leasing.
All I kept thinking while watching this video is why is the yelling at me!
J. Louis funny😆 because it’s true
Right!
He's from Boston.. That's what they do!
Maybe he's a bit deaf lol 🤣🤣
My first thought too. Watching it as I type and not sure I can make it to the end if he dosent stop it
If Gilbert Gottfried and Ray Romano had a kid.
And Michael Rappaport.
🤣🤣🤣
🤣
LMAO!
Now that is the power of observation!
As a car salesman. This is the most accurate video on lease tips I’ve seen. Especially the no negotiating the residual.
Car salesman lie all day screw what you think lmaoo
@T. Way lol I suck at lying. I watch these videos for tips and tricks and walk into a dealer and start talking, forgetting everything I just learned. I'm such a sucker,, I just bought a car I didn't even want! 😩 so here I am, watching more videos... I'd love to lease but it seems pretty confusing.
Leasing is great for those that don’t do insane amount of driving. New car every 3 years, better deals, free maintenance and never have to worry about repairs.
Retired, that's me. I just don't know how to negotiate that.
free maintenance... i'd argue you paid for the maintenance in the lease.
It’s free maintenance when you lease at the dealership?
@@MA-fu5tm not free. Let me assure you it's be ng paid for every month. Nothing wrong with leasing and nothing wrong with renting an apartment.... Neither of them are the cheaper way to drive or put a roof over a head... Not a thing wrong with it and if people can afford it what's wrong with that!!
Trying to find a good leasing deal has been painstaking. Based on what I’ve encountered it’s paying the same amount or more than financing to own.
You pretty much confirmed what i was thinking. Financial advice guys always advocate against leases, saying what horrible deals they actually are. But if you are somebody who wants be in a new car every 2 years, then leasing is actually a better deal. Especially if you can expense it with your employer or deduct in for your business. For the first part of my life i was extremely frugal. I hated wasting money on cars. I've bought 2 new cars in the past 20 years, and both of them i drove for 10 years. I took care of them, and they took care of me. I paid each off in 3 years, and it was like driving a free car for 7 years. But now at this point in my life, my investments have done well and my income is much higher than my monthly needs. Plus, i drive only a fraction of what i used to do. I'm starting to think that leasing is an attractive option for me.
I am in financing and I work with many financial people, earning well into the six or even seven figures annually. Almost all of them lease.
The so-called "financial advice guys" who advocate against leases are actually entertainers such as Dave Ramsey or Suzy Orman. They are not actual financial guys. They are considered somewhat clownish by actual financial guys.
Leasing is not for everyone. Leasing is not a horrible deal. As with any purchase, the qualify of the deal depends on the negotiation ability of the person and the unique needs and wants of the person.
@@jerrylundegaard2592 BS.. How can you discredit Ramsay when you technically just said "leasing is not for everyone", which is what Ramsay says. If you make 6 or 7 figures you can afford to do more things financially. For most people that's not the case and for those people is that Ramsay says don't lease.
@@mr.castle Look for the book called *What Would The Rockefeller's Do* (How the wealthy Get and stay that way and how you can too) by Garrett R Gunderson who takes them to task on giving bad financial advice.
As someone that works in customer service for one of the companies you pointed out I have a bit of advise to those thinking about leasing. I only know what is of the company I work for so I'm not sure if this falls into others. I deal with hundreds of calls from lease customers on a daily basis and I've noticed that some people don't read or understand their contract.
1. You CANNOT get out of your lease with clean hands. You will either owe the full amount of your monthly remaining payments and THEN return and still get your inspection, You can sell to 3rd party, Transfer the lease, with my company the transfer is a full on transfer original owner is no longer responsible, OR you return the vehicle without making the payments and it is then deemed a voluntary surrender which impacts your credit like a reposession and you STILL will owe us the difference between how much the car was bought at auction and the full payoff plus other fees.
2. No your friend/neighbor/cousin/sister/brother/mom/husband/dog cannot buy the car.
3. You will pay property tax depending on your state (no it wont be waived this is based on local taxing jurisdiction not the company)
4. Your monthly payment WILL change if you moved states/zip codes. If you move to an area with a different sales tax rate it can either go up or down. (UNLESS YOU LEASE IN A STATE WHERE SALES TAX IS PAID UPFRONT AT THE DEALER)
5. In some cases if you get a ticket you have to pay us. You dont own the vehicle so the company automatically pays the ticket/citation and bills you for it .
6. there is no principal or interest
7. In some cases you can extend the lease for a longer period
8. You need to get permission from the company to leave the country with the vehicle. A spring break road trip to mexico can cause problems for you when trying to re-enter the US considering you do not own the car.
9. Depending on your state you may need a Power of attorney from the company for registration
10. just check your contract for what is needed for insurance in most cases you dont need everything your insurance company is trying to sell you on
I bought my vehicle back in 1996. I have saved tens of thousands of dollars by keeping my vehicle as long as possible. Next year, she gets her historic registration plates. I have enjoyed every mile with my dear RMS Stargazer.
Mothman.....
And you save The planet a lot of trash too.
There is also a hidden benefit to leasing...If you have an accident where the car isn't totaled. You don't need to worry about diminished value. Just get it fixed and turn it in at the end of the lease. No negative equity worries.
I find leasing cheaper for me. I got my 3 years sportage lease for $225.00 if you buy and keep for seven years your finance charge is much higher per month. I always get the lease price down and never put any money down on a lease. I don’t want to deal with tires, muffler, and general wear and tear. A car after 7 years is not worth much unless it is a Toyota.
Perfect example why you don't want to buy,there is no buying tires,battery, brakes, and not paying for any unpredictable repairs,and you drive a new vehicle every 3 years.
Hellcat BOYZ my latest lease is a 4 wheel drive Hyundai Tuscson, 1,000 miles per month, nothing down tax and titles included; only $275 per month for 3 years. This is better than buying.. I will not need the $400 tune up,and I also save another $400 on new tires. Plus I will get another new car at the end of 3 years with all the newest tech. I only use it 6 months a year. For $10 more per month I could have had 15,000 miles per year.
#Patrick Faiola
Any tips on bringing the lease down payment to $0? Yes I have great credit. I look online and all I see are ads for $×,××× due at signing, and $429 p/month for 36 months.
Thank you
@@faiolapat
Do you just walk into a dealership and ask for their lease deals? Do you pick your lease vehicle per the best cost option available or do you go into the dealership knowing which vehicle you want to lease?
@@user-lc7zt8sk6i I do my research and try to figure out what their cost is. I negotiate the deal a day or two before the last day of the quarter..finally I usually play off two or three dealers and let them know I'm shopping around. I try to figure in where they will get at least a $500 profit plus their hold back fee.. I get each dealer to invest an hour in me before I tell them what I will give them.. they all play their back and forth great game and I hold still.. time of the month and time of the year is very important.. I also got my Tucson in June which means newer models would be coming out a few months down the road.
Thank you very much for a great video and some very good information. I just do not want to ever have a car without a warranty. Buying a car is one of the worst investments you'll ever make due to the immediate depreciation on all vehicles. My last vehicle cost me a lot of money because my loan term went beyond my warranty and of course something major went wrong with the engine a year after the warranty had expired. Leasing saves you money and piece of mind. If you own a vehicle for too long, you will eventually have to replace the tires, brakes, get a transmission flush, radiator flush, brake fluid flush, 4WD maint, the list goes on. Not to mention having to pay a lot of money if something goes wrong with the engine or transmission. Thanks again!
Thanks so much Ari. You provide valuable information to public at no cost.
Ari thank you! I have leased several times and I have experienced first hand some of the things you listed. Turned it in early despite miles being under and no damage I had to pay balance. I've leased on a lower tier level because my credit score was not excellent. I like leasing despite some of the challenges I have had with different car companies.
Very accurate information here, my fico went down 30 points in one month and now I know it’s because my lease ended. I’m about to turn in my 2017 Jeep Grand Cherokee lease and I’m get either a 2020 or 2021 Jeep Grand Cherokee lease this will be my 3rd lease. Leasing is the way to go, Always driving a new car and making low pmts and I love not worrying about maintenance
Don't you have to cough up like 3 grand at the start of every lease though?
@@danr154 nope, I’ve paid $700 or so before for a hemi ram, just for reg/title etc
Mitsubishi Outlander PHEV is much better car from Jeep
@@LJ...69.
How good does your credit have to be for that? Im at 740-750 and cannot get away with that.
@@danr154 that’s a better credit score than I had at that time. The dealership here in MI is known for $0 down leases so you may just have to find the right dealership / salesman
I'll have to admit, this video is pure gold. Rather than giving speculation or forecasting you provide us with cold hard facts and actual experience to live by. I had no idea what impact a lease would have on my credit score. My 2 questions are: how quickly were you able to rebound your credit score and (2) is it possible to sign 2 leases (each from different dealers/manufacturers) within hours of each other getting a tier 1 rate because the 2nd manufacturer hadn't realized you already signed a lease?
Never buy a new car unless money is nothing to you. Buy used , buy it cash and upgrade when you can afford to. Hard times happen , job loss happens but bills never stop coming
Had the same car 21 years, this one 10 lol
Truth
Unless you can write off the cost as business expense. The only time it makes sense.
@@midlifecrisis7888 Even then it does not, you just don't have to pay taxes on the money you lose.
If it appreciates buy it
If it depreciates lease it
Great video with lots of solid tips! I'm still in the "I'd rather purchase camp" and keep my Toyotas for ten plus years! And with a consistent FICO score over 800 negotiating the best deal has never been an issue!
Great analysis of leasing. There is so much misinformation about leasing and car sales in general. (Worked at a dealership for 35 years)
wouldn't be any misinformation about leasing coming out of dealerships LOL.
Very very helpful, especially the last tip
I love you! You make me so happy I leased my 21 Challenger Scat pak I have so many options in a few years! Thanks for the advice
Very informative! I am about to lease my first bmw. I am learned a lot from you. Thanks for all the good insights
Turning in my first leased vehicle (Toyo. Corolla) Oct. 2021. Only driver, pristine condition with the exception of a sign scratch on the bumper (a business card can cover it - and I have 5k wear n tear warranty coverage). I will never buy another car again. All my maintenance and washing (gap insur. too) is covered. In my 50s I'm done dealing with pre-used cars in high mileage (75k plus) and repair shops. LOVE leasing. Glad I found this channel. New sub. Thx for the information.
We are a two car household. One car is owned and the other is leased. My lease payments are $175 per month on a sign and drive zero down lease, and the other car is owned and paid for. When we take a long road trip we use the owned car to keep the miles down on the lease. When my lease is up I research the lease market. If I can't find the deal I want I either extend my lease a few months until I find a good deal or buy an old beater for cash and do some minor clean up and repairs. When I find a lease I like then I sell the beater and either make a profit or break even. That money then makes the first few lease payments for me.
Ok smartttttt
Leasing is the way to go if you like getting new cars every 3 years. If you stay with the same dealer you can get some great deals!
That's exactly what I'm doing Scott. Turning in my first lease Oct. 2021. I chose Toyo. because I knew if I release from the same company it's a better deal for me. They offered to pay off my lease 5 months early just this past weekend if I would renew with them right now (I'm going like to like: Toyo Corolla). I said no. Why? Because they found out my car is in pristine condition and 12k miles UNDER the 36k mile limit. I got summer vacation comin' and I'm drivin.
I disagree... buying is still the better option even if you plan to only keep it for 3 years.
@@chrislancaster1982 Depends on the type of car.
So basically pay a car payment for 10 years to own absolutely nothing. Lmao
@@bigj7574 A lease is 3 years. Nobody gets leases for longer than that since it makes more sense to buy at that point
If you're thinking about leasing because you can't afford to buy a used car, you should really think about taking the bus or biking more often and ubering occasionally. Think longer term than monthly.
Thank you so much for this video… I am upside down in my vehicle right now and I think leasing will help me get out of that hole of negative equity
Not true, money factor to interest conversion is simple. Lease vs Retail finance rates based on score are just about even. Paying off negative equity is a great thing on a lease.
Example 12% interest on current car with $3k negative equity. Person trades in car on brand new car for a lease. You can qualify for a lease as low as a 535 credit score. The new car books really strong and typically has rebates. Your lease amount is not based on sales price. It's based on estimated value after the end of term. So, your credit reports a low amount of debt, your payment is probably the same or less than what you were paying and its under warranty the entire time. After your 3 year lease is up you walk away with 0 balance, your trade negative equity from before is gone, you've built your credit, and now your free to buy outright whatever you want or lease something else. Most new cars come with oil changes and it's under warranty the entire time.
You don’t earn ANY equity on a lease.
Fun fact: You can terminate a lease with military orders with no fees what so ever
@@takethepowerback83 you bring your orders to the dealership and tell them you’re PCSing and that’s literally it.
Makes sense. You cant drive your car to Afghanistan
You can also terminate if your deployment is more than 180 days so if you’re stuck in a lease you want to end early and don’t care about your kids go on and volunteer for the next deployment 😂😂
@@peppersaltman1805 PCS is just moving to another base. No need to go overseas or combat.
PCS will get you out of a apartment contract aswell
I’ve found the best approach is to use a site swapalease and take over someone’s lease. Saved tons that way.
Why is that the best approach
@@tipsy09 Because you get the advantage of not paying the fees associated with a lease ( since the original lease holder already paid them), lower lease payment if they made a down payment, and shorter term commitment. You just take over the current payment.
Got a great deal on a Mercedes. Previous lease holder put down 7500, so the payment was only 620 and only an 18 month commitment on my end when i took it over. They just didn't need the car anymore and you could tell since I think 15K miles when I took it over.
@@johniii8147 I’m assuming both of you go to the dealer together to get it all transferred? What about existing damage on the car and stuff?
@@tipsy09 Nope, no dealer involved. It's just paperwork with the leasing company. Usual credit check on the one taking over, signing a contract etc. It's all online these days. The dealer has nothing to do with it after either a sale or lease contract is executed. Then you just deal with the lease holder.
@@johniii8147 so what if there’s damage?
There are "hidden" fees on a lease. Virtually every dealer attempts to include one or more of those fake fees including document fee, dealer prep fee, electronic filing fee and on and on and on.
To a dealer a lease is a sale. A sale to the leasing company at the price the customer is able to negotiate.
The main differences between a lease and a purchase are:
On a lease you pay an acquisition fee. You do not pay this fee on a purchase.
On a lease you usually pay less of the price during the lease period than you would with a purchase. This is the reason a lease has a lower monthly payment.
Leasing is the most expensive way to operate a vehicle outside of renting it straight up from Hertz or Enterprise.
I just finance 1-3 year old cars at 1.99% from my credit union. I barely lose any money to depreciation, I let the lessee do that for me 😎😎
Before you regurgitate Dave Ramsey, that statement is only true if you end up keeping the car after your lease is up aka buying it out.
Most people who lease know they will only drive the car for a few years and then return it. Also, did you know you can lease 1-3 year old CPO cars as well?
Leasing is not for everyone but it does make sense in some situations. If it was truly as terrible as you make it seem, people wouldn’t lease lol.
Ari - love your channel. Thank you for the education, really this is
Great presentation, well done and easy to understand
Very good. , and true. the tier info was terrific, thanks.
I typically buy a car that's 3- 5 years old, keep them for 3-4 years and then either get bored or have some crazy repair I don't want to face and then start over. I'm seriously researching leases. I'm concerned about mileage. I'm a traveling social worker and I'm starting to drive more now that we're back out in the field. I'm tired of unreliable older cars and the bigger payments of a decent car, are out of reach for my salary. Leasing might be the best way to go. This video answered a lot of my questions. Thanks so much. I need all the good advice I can get!
Hey looking for advice from fellow subscribers out there for my specific vehicle situation; I recently moved to a new location that consistently has a lot of cold weather, snow, ice and rain. So it was time to get rid of my little basic sedan and get a more practical SUV with all wheel drive, the only way locals manage to get around town here! So went to the local Jeep dealership the beginning of 2020 where fortunately they were running lease special incentives on new 2020 Jeep Cherokee 4x4. As a trade-in they paid off my low mileage, high monthly car payment sedan. Between the Jeep lease incentives, my trade-in...Put my lease monthly ($300 payment ) way lower than my previous car payment.
Now I have all the options I need for my new location climate; 4x4 SUV with snow/ ice drivability, remote start with engine block heater, auto de-icing exterior and heated everything interior.
So all that being said...My dilemma is, in a year, when this current lease runs out should I just do a lease buy out on this vehicle that I only drive 5k miles per year ( approximately $12k remaining by then on a $33k MSRP vehicle, about $200 per month loan payment for 60 months)
Or would a new SUV lease on a similar vehicle in ‘22/ 23’ be a wiser investment. A new vehicle I wouldn’t own but would have a full warranty again for the full duration of the lease.
Thanks, Brad
Informational video , I liked it . You’ve got you a new subscriber
I signed up on a lease trade website to transfer my Tacoma with Toyota Fina and found a buyer (transferee) that wants to take it over. So far it has been a complete frustrating failure on Toyota’s end. They sent him the lease transfer agreement first and were supposed to send him the credit application first, so that through a big wrench in the process. He has been hanging on for a month and I’m about to have to make the lease payment again next week. 😤
Thank you for this video! I’m looking to lease. I’m tired of driving my old car, tired of dumping money into repairs and worrying about getting ripped off by mechanics etc. Doesn’t feel like it’s worth owning a car in the long run. So many potholes in my city, people drive all crazy & have no respect for other cars- peeing on them, scratching them with their doors, letting shopping carts roll into them in parking lots..
Hahahaha that was so funny when I read your story, is that’s at USA ?.
Exactly why I wanna lease. Try leasing something reliable like a Honda Accord
Thanks Ari! That was informative. Do lease companies go out of their way to stick it to you on wear and tear fees in your experience? Are there any other end of lease surprises I should be aware of? Thanks!
I love owning my cars. That is freedom for me. I have never leased, nor will I ever.
Me too, I always purchase outright!
You never own the car, you're just making the rich richer. I have clean credit, and never owe any debt to anyone whatsoever, and never will.
Correct. Unless you purchase, you’re just renting a company’s car. I could see going this route if you had a business and could write it off. Otherwise, an idiot move.
Right I have never leased a car either I like owning them.
You don’t want to own a German Luxury car. Leasing is the way to go.
@@user-tb7rn1il3q If I don't want to own it, I'm not getting it. Like Rob says "always purchase outright". I pay in full for my cars when I get them. I have a 2019 Kia and a 2020 Buick. Bought and paid for, should last about 10 years. Last two cars I had were a 2006 Mercury & 2010 Kia. Gave them away to people who needed a car, I got plenty of use out of them. BTW, I take excellent care of my automobiles.
Yes. Thanks for making the case against leasing
THANK YOU FOR THIS INFO
Great video ! I think this is really a question about each person’s lifestyle and preferences when it comes to vehicles. For example I drive about 20 miles everyday for work 5 days a week and do a little extra driving here and there on my days off. I have great credit score and a really good full time job, I’m not rich but I’m comfortable. I honestly don’t know much about cars lol but I love driving nice cars especially German because of all their safety features and the luxury of it. I can afford it and I know a car isn’t a good investment so I’m really not trying to make money off them like I do with a house. For me to drive a car has to be something that I really like so that I feel happy making those payments which I do on time, I understand what it means to take the responsibility. I don’t want to deal with cars breaking down over time and I like new cars so for me and my lifestyle leasing works perfect. I also take really good care of them because I remember my dad always saying that when you pay for things with your own sweat you appreciate and treat them better. I leased my A class 220 2019 in 2020 and I pay $415 , my fiancé negotiated with the dealership for a while and looked over all the fees to make sure a lot of hidden ones were waved and no sketchy tricks were implanted like how long the lease is and such. We actually left the dealership the first day and they called us back with a more ideal payment for me and I’ve been very happy with it and my car. I think that’s what really matters when considering what’s the best choice for everyone when deciding in owning or leasing a car.
Thanks for sharing your views on leasing. Just a bit of feedback, no need to yell, maybe relax a bit.
For the late lease payment rule, does that apply to Lincoln as well. Long story short - I’m leasing a MKC which is about to mature. Lincoln has me in for two late payments that I’m disputing. If I try to lease a new Lincoln, will they hold that against me?
thanks Ari. Good tips.
Nice video bro. I do lots of content on car leasing and car finance. For me the best way to get into a new car is ALWAYS by leasing If you want finance on something used go for a personal loan.
This was helpful. Thank you
Leasing is a straight up nightmare.
-No Mods Allowed
-No exterior modification
-Strict rules
-24/7 surveillance of car
Rather just buy a used one that took a huge depreciation hit 3 years ago and trade in every year for a 3 year old with low miles.
A much better deal and you don't owe anyone and your saving 50% or more
Good points!
what if its a luxury car that has high repair costs after it reaches lets say 80km+? what do u recommend? is it better to lease it. for example a range rover sport or an audi a7
@@insolaceinsolace8868 As long as you can afford it I would lean towards leasing it. As you said - high repair costs and poor reliability history makes buying those used a risk.
I am going to put vinyl stickers on my lease's windows... I don't consider that a mod. If it was on the paint maybe. As far as new sound system, exterior pieces ya you may wait until buying it out I guess.
Do mods that you can take off.
what would you say is like the minimum credit score you should walk in on to lease? i know theres different tiers but is there a score where they’re like “this is way too low”?
thank you, for scaring me away from this idea… Way too many potholes for me to learn this cool system.
In my opinion purchasing cars is only smart for the buyer who wants to keep it for the entire duration of the loan. If you’re wanting a new car every 2-3 years such as myself buying doesn’t make any sense. Cars are depreciating assets and you’ll just be rolling over negative equity every time you go to trade it in.
I drive way to many miles to lease, however my wife is leasing and our dealer has said he will buy her out/transfer to a new lease early if she hits early...but Carmax buy out sounds interesting.
Yeah and I rather forever pay to do a lease than a car to be honest I get bored after while with the car 3 years is good enough to have a car and get a new one
Great video. I always lease new and buy used. Leasing new lets me drive a new car and get rid of it when it hits peak depreciation in the first few years versus owning it. Buying used lets me get a car that I think I am going to keep after someone else takes the hit on depreciation.
You paid for the high depreciation. Your argument is wrong.
@@laszlokovacs6154- Depends on the car. High residuals help in the car I pick. If the residual is low, then I'll buy used.
@@laszlokovacs6154 My Toyota’s buyout price is lower than the market selling price, BY A LOT. So when the lease is up, I can trade it in and get $3000 for a new car (lease or purchase) or I can buy it out and sell it myself, netting about $3500-4000 extra toward whatever. It actually ends up CHEAPER to lease it up front. Same with my sister-in-law’s Subaru. Plus you have 3 years with it and if it ends up being unreliable or you don’t like it, turn it in without a hassle.
Lease is great for many. Like my self as well. The only exception is if you want or need a vehicle for work or have a need to a suv. You buy a land cruiser second hand low milage. That thing will last for 25 years. It pays out.
Leasing is good for higher income and business owners who want to waste money, and offset that cost in tax deductions. Generally speaking, it is always better to get a good deal from private sellers on used cars. Truth.
Doesn't help if you want new.
Ari, I took your advise. I’m having a 540i built. It should arrive here in Los Angeles first week in July. This is my 4th BMW and I’m thinking about Wear Tear coverage for this lease. Thoughts?
...great info, very helpful 👌🏾!
What happens when the dealership no longer sells the the manufacturer you lease? I lease a Mitsubishi Outlander phev in 2018 and I was told i cannot bring it back to this dealership at the end your lease. How will that affect me and will they add more fees if I do not buy another Mitsubishi vehicle? There are not many Mitsubishi dealerships in my state anymore and I do not want to get another one.
Great info. If you live in a city area, with tons of road salt, and potholes, and you insist on a perfect car, it can be cheaper to lease. If you took out a 5 year loan to buy, then traded it in after 3, it would have been cheaper to lease for 3 years. Imagine living in Vermont or Wisconsin and never having to worry about the car rotting away and staying safer.
I love having a car paid off... zero payment beats any lease payment.
Exactly ppl are dumb
I totally agree
A car is never zero payment. Wait until something breaks or wears out.
When you're gonna fix it it will cost
Dinngg0 I agree with you I also love having a car that's paid off, zero payment beats any lease payment.
Thanks for the CarMax tip. I have a friend who just got into a lease I’m sure this tip will be helpful for them at some point
word! II heard that and was like REALLY?!?!! lol. I may get rid of mine soon if thats the case!
One good thing about leasing you can get rid of your lease every year or two (swapalease, leasetrader, etc.) and drive a new car every year or two. As long as you lease deal is good there always will be someone willing to take it over.
how much is a disposition fee on average? Im in a lease thats coming due next june 2021. I have my eyes on a vw golf r and i don't want to miss out on a beautiful badass car. Should i turn in early? How much would it be? And i have a 2018 Mazda CX5 lease btw.
Many wealthy individuals observe the "Buy that which goes up in value and rent/lease that which depreciates in value" principle. Leasing a car can really benefit someone who drives 10-12k miles/yr., has good credit, and who takes the time to shop for a lease deal whereby the manufacturer guarantees a high lease-end value, therefore offering a low monthly payment, in order to clear excess inventory. i.e. a $199 monthly payment on a $30k car. I was an auto lease manager for a number of years.
How do you find these low monthly payments?
@@Glad2BGolden You must research the lease offerings on the manufacturer's websites. The best lease deals are offered on models that are not moving fast enough, or are overstocked near the end of a model year. The manufacturer will subsidize the lease-end value, resulting in a lower monthly payment. PLUS: If the up-front cash asked for seems high, remember ...everything is negotiable! (except for taxes and DMV fees)
Hi, i leased a car ( Honda Odyssey 2020) in 9 th of July 2020, by now still dont have my licence plate, my "temporary tag" expired in 9 th of September 2020, so dont drive my car, but still paying lease and full coverage insurance. I called to Honda Financial Services and found out, that dealer didnt send copy of title and registration to DMV. Which means they missed it. So, what can i do now? Can I stop payment ? Or there are other ways to solve this problem? Thank you so much!
On a three yr. lease from gm can you return your lease in two yrs and lease and car from a different corporation like toyota will they take your GM lease or you have to go with the same Corp with gm.
So you said your cs dropped 20 - 40 points after the lease. How long did it take before it went back to normal?
2 months
@@negotiationguides what's the correlation between leasing and credit going down? 🤔 Thanks.
@@eltiarribero when you go for a lease (in other words loan) the company requires credit checks where they pull your credit score from the credit bureaus. Every time your credit is pulled points come off until you either make the first payment or so.
@@eltiarribero You take a hit for the hard inquiry and new account bring down your average age of accounts. Car leases are reported to credit bureaus like an auto loan, as it’s essentially an installment loan.
@@mshai2818 Makes no sense that just a "check" lowers your credit. You are just shopping rates as your score drops in the interim. The system sucks!
Ari, I love your videos and I have learned a lot! I need your help... I know this is not a good time to buy or lease a car. I need to buy a larger car for the family. We currently have a Honda civic and a Nissan sentra. I'm looking into something like the 2021 toyota rav4 xle premium. I can get around $13,000 for the Honda civic. Does it make sense to buy or lease and put down the $13,000? If we leased for 3 years we would eventually buy the car out after the lease is over. Appreciate your help!
What are best term for lease? 3,4,5 year lease? Any thoughts on that?
Hey I have a question I want to negotiate price but this sales man seems very adamant about moving from the any type of price should I go to a different dealer? Especially since I have to have them order the car I want I don’t know if they’d have leverage on me cause of it please help
ive had the same car for 20yrs and still counting...
We have you beat, we (my girlfriend and I) have been leasing from the same salesman for over 20 years. My best guess is 12 cars maybe. It's difficult to count every past car over the years. Mostly Saturn while they existed, then a couple Chevys, a couple Hondas thrown in there, and that most recent two have been Nissans. This includes three people leasing. My girlfriend, me, and a couple my son leased with me.
Just watched your video a second time. Made me feel good about leasing my new Venza. After watching Ramsey video, thought, WHAT HAVE I DONE?
Lol Dave tends to do that! You just have to do what’s best for you financially. However, leasing to me only makes sense when you’re not on a path to financial independence.
@@justinejones2581 is "financial independence" a Dave Ramsey term? Sorry if this is a lame question, but I don't follow him.
@@thomass789 oh no it’s far from a lame question and more than glad you asked. It’s not a Dave Ramsey term it’s a state of being mainly have enough passive income such as investments in either real estate, individual stocks, ETFs, mutual funds and so on you’re able choose to work instead of having the obligation. Hope that helped! I think there’s so many resources out there that can help you if your interested.
Ari, question for you. I’ve had 4 late payments (30 days) on my Mercedes E Class lease and it’s up in March. I’d like to get a GLE. The lease payments were due to some personal reasons but have had perfect payment history on the lease. Do you think they will give me a hard time when I go back to lease another MB?
question is why did you have 4 late payments? Is the lease payment too high?
tewksbury driver no the payment is 599, I was unemployed unexpectedly for a few months and that’s why I was late.
Don't by brand new get a lease return from the cars are ready to appreciate it and just buy it you're going to have to get full coverage insurance and everything on it anyway so you might as well just buy it
If you have a lot of money to throw away, lease 10 cars in 10 years. If you view cars as transport and want to minimize cost, buy the Toyota or Lexus that appeals to you, either new or three years old, change the oil every 5,000 miles and keep it for 250,000 miles.
Very helpful!
Thank you
so what if you lease a car fall in love with it and want to buy it at the end of the lease term say 3 year term is this more costly then paying a higher monthly to just finance it outright?
So I leased my truck for $48k, they said when the lease is over I’d owe $27k if I wanted to buy it. My lease is less than a year from being done and I’m looking at the value and I’m at $42k. Would the dealership change that $27k that I would owe to something much higher? I know you said they would not go lower, but would raising be a concern?
Do the leasing companies publish the cost of capital on the lease agreement?
Are credit scores the same in Canada as in the States?
Thank you as always .....wish I had access to my Fico in Canada
Agreed. Might find this interesting.
www.google.ca/amp/s/www.cbc.ca/amp/1.5314868
Hi Ari! Enjoying your great videos. Question: I’m leasing a 2019 Infiniti QX50 at the moment. Car only has 12,000 mikes on it. My lease is up next July 2022. Residual is $26,000 & some.
Was thinking I would jst buy the car when I turn it in bcz electric cars will be coming around sooner than we think. I might as well wait. However just the other day I received a letter from Infiniti saying they’ll give me $2000 “bonus” money to go towards a new lease or buy option on a newer car of theirs. My credit is excellent.
Your opinion please?… thanks!
Btw -I leased the car w no money down for 36 mos/ monthly pymts are $497 😏.
Cars depreciate as soon as you buy them. Best to buy a Honda or Toyota. They depreciate slower and still after 10 years you can sell them and still worth something due to reliability. Do Not Lease. That’s perpetual Debt. Invest and save that money. Who in their right mind wants a constant car payment ?.? Pay off your car early and drive it for 10 years or more. Still driving my 2009 Honda CRV . Bought new and still worth about 8-9000 if I sold it now
U said there are no hidden fees what about capitalization costs?
I have a 2018 Honda Civic Ex Hatch with roughly 16k miles. I'm in a lease agreement of 3 years and 36k miles. I have about 10 months left on my lease and I will be way under mile (still under half). I am looking to either get out ASAP or buyout and sell, or basically cut my losses LOL. Honda Financial and the dealership are not easy to work with. Any suggestions?
Just a comment on your number 2 advice, I've always found if the car has scratches on it, it's much cheaper to get the bumper corners and ŵheels redone your self ( shop around at your local areas) because when it's gone back your at there mercy when the damage bill comes landing on your doorstep ( I'm in the uk so charges may be less in the us)
Excellent education. I’m not a fan of leasing after doing it once and being heighten not to get it dirty, etc…
This is a 100% subjective decision based on the kind of car you are wanting to drive.
German/Italian car: IF YOU HAVE AN INCOME source and you prefer not pay cash, leasing is the SMARTEST thing to do. These cars lose warranty after 3 years and the engine starts having all sorts of problem. It’s like a new problem every month. Leasing will save yourself a headache.
Japanese car: own it. Period
Great video... One stop leasing video
Thank you. I just leased the new Venza Limited. My first lease. This answered my questions.
One question. With current high trade in values, I traded in a Ford sedan. I used the trade in equity of $ 8500 as a down payment. Is it a mistake to put that much down. No gap insurance was required. Are you better off putting the minimum down and taking gap insurance. We are elderly and decided at our age, leasing made sense.
Yes, it’s a mistake to put down money. How?
If you total it now or if it’s stolen, your insurance will pay the lessor for a new car for you. You literally get a new car. However, you don’t get your down payment back. You’ve lost it. If you had a 0 down payment, you would still get a new car. Nothing lost. GAP insurance is under $200 for 3 years. I believe mine was $160 on a Rav4 Hybrid.
I haven’t had a car payment for 5 years. I like it that way. I tried leasing once it cost me 18k and in the end I had nothing. Keep your car till the wheels fall off and do the simple maintenance yourself if you can
leasing is very stupid
Exactly
sure, but leasing is not for everyone, sure its nice to have car that you can own and have the wheels fall off, but when you can't do your own maintenance because idk you live in the city then it's not doable, also depends on the car brand, not everyone wants to keep the same car for while as it depreciate and it becomes more fuel dependent. The bottom line is, leasing is like renting an apartment, there's a contract and payments you need to make but you don't need to worry about maintenance and you get a fuel efficient car every 3 years or keep the one you leased at the end of it.
Lease is a great option for people with a lot of money
For most mid class people i recommend to buy 2.5 -3 year old car and sell it 3 years later pay cash of course and keep doing that
And broke people just get a cheap used car and pay cash
Tired of seeing people buying shit they cant afford
If someone has to finance a car they shouldn't be buying it
There’s nothing better than not having a car payment.
Maybe to you. To others there's nothing like driving an Audi A7 everyday.
The dealer I went to did not waive the acquisition fee, but because they really wanted the car I was trading, they did take it out of the cost of the new car.
I’ve been leasing for yrs. definitely the best for me. If I stay below the negotiated mileage can the car be worth more at the end of the lease than what purchase price will be? If so , what should I do, just buy it at lease end and then trade it in somewhere else for that extra value?
Yes. My Rav4 is worth more than the buyout price even if I do the 36k miles. You can trade in your lease car and actually get trade-in value. Go in like 6 months before lease end and try at your dealership first.
I agree with what you said at 01:15. Yeah I've never liked leasing. It's like renting. For many people, it's better to own the product than to pay to use it and come away with nothing at the end of the term. And if you plan to do any significant mileage, significant modifications, or significant wear-n-tear, leasing will hose you.
Some people don't like owning depreciating assets and would rather give it right back after a few years plus they wouldn't have the entire MSRP on their credit report.
@@chriswhitaker9720 A vehicle is never considered and asset, it is a tool to get you to places you need to go to make money. The investment aspect of the vehicle is trying to accomplish that with the least negative impact to your long-term financial goals. Buying is almost always the better way to go. There are exceptions, but leasing ties you into a strict contract and perpetual payments. Even 3 years with no car payment can significantly change your personal finances. I've leased a few cars and bought a few. I only buy now.
@@tewksburydriver8624 a vehicle is an asset hence its something of value which can either be up or down as it relates to cash ( it's right in the definition of an asset). I never finance cars because I never want to own something that loses value so quickly. The only thing I care to own is my real estate investments.
Chris Whitaker ... it’s not about depreciation asset, not an asset, it’s about lowering your monthly obligations. Owning a vehicle without a payment is a great thing. Try it sometime, if you hate it go lease a vehicle.
tewksbury driver I do I have a leased C63 S and Raptor. But I don’t put on tons of miles so it works for me. But at the end it’s all about what works best like you said .
Very interesting thank you
Buy a new Mercedes for $60,000 and in two years its worth $30,000. Lease it for two years and you are much better off financially.
Unless you are thinking about keeping the car for 10+ years then buying a new car is stupid. And who keeps cars for that long these days?
My opinion is to lease cars that are 2years old and low milage for maximum of 4 years if you have a milage of no more than 10,000.
These things aren't black and white. I last leased a mercedes that was 2 years old 9,000miles in perfect condition and I got the car for $28,000 and the original price for the car was $60,000. I still even had 1 years mercedes warranty on it.
Dealers don't let you lease older cars do they? They only lease current model year stuff I thought.
@@danr154 Not in the UK. I just changed the figures to $.