I have been practicing a 1-1.5% lease rule for years and people think I am crazy. If I go above 1%, I make sure the tire and dent protections are included
Yes and it’s outrageously expensive and you’ll lose with massive penalty clauses. Basically leasing a car is super dumb. The thought of driving around a brand-new luxury ride is hard to resist, here are a few more reasons to not lease a car: Depreciation makes you lose money. All cars go down in value (or depreciate). Let’s say a fancy new car loses $20,000 in value over a two-year period (yeah, it drops real fast). If you lease it, that loss in value has to be factored into the lease payment (or the leasing company loses money). And they’re not going to set themselves up to lose money-which means your bank account gets to take that punch in the mouth instead. It’s hard to get out of the lease early. If you get tired of a car, you can’t just return it before the lease is up-without being penalized for it, at least. You signed a lease agreement, and that baby is binding! If you want to break a car lease for any reason, you’re in for a huge, expensive headache with a lot of other fees involved. Dealers make a ton of money on interest. Dealers can easily mark up the interest rate on a lease by a small percentage that might not seem like much to you up front, but it actually equals thousands more dollars in profit for them in the long run. In the industry, this is called dealer reserve, and like the name suggests, it benefits the dealer-not you. And again, they’re not even required to tell you how much interest they’re charging you. Sketchy for sure. You pay more money in the long run. Dealers don’t like when you pay for a car with cash or check, because when you do, they don’t make as much profit. But it’s not your job to make them more money. It’s your job to make sure you keep more of your money! If you pay for a car with cash, you’ll end up saving a lot more. Plus, your payments will be $0 a month for forever! Now that’s a great deal. It’s better to be wealthy than look rich. I’m all about owning nice stuff-I just don’t want your stuff to own you. Be an owner not a loaner 💰
@@PinkAphroditeDoll You’re welcome. Happy to provide solid factual information on auto financing. Basically leasing a car is super dumb. The thought of driving around a brand-new luxury ride is hard to resist, here are a few more reasons to not lease a car: Depreciation makes you lose money. All cars go down in value (or depreciate). Let’s say a fancy new car loses $20,000 in value over a two-year period (yeah, it drops real fast). If you lease it, that loss in value has to be factored into the lease payment (or the leasing company loses money). And they’re not going to set themselves up to lose money-which means your bank account gets to take that punch in the mouth instead. It’s hard to get out of the lease early. If you get tired of a car, you can’t just return it before the lease is up-without being penalized for it, at least. You signed a lease agreement, and that baby is binding! If you want to break a car lease for any reason, you’re in for a huge, expensive headache with a lot of other fees involved. Dealers make a ton of money on interest. Dealers can easily mark up the interest rate on a lease by a small percentage that might not seem like much to you up front, but it actually equals thousands more dollars in profit for them in the long run. In the industry, this is called dealer reserve, and like the name suggests, it benefits the dealer-not you. And again, they’re not even required to tell you how much interest they’re charging you. Sketchy for sure. You pay more money in the long run. Dealers don’t like when you pay for a car with cash or check, because when you do, they don’t make as much profit. But it’s not your job to make them more money. It’s your job to make sure you keep more of your money! If you pay for a car with cash, you’ll end up saving a lot more. Plus, your payments will be $0 a month for forever! Now that’s a great deal. It’s better to be wealthy than look rich. I’m all about owning nice stuff-I just don’t want your stuff to own you. Be an owner not a loaner 💰
A lease agreement is binding and there is no changing it once it is signed. If the value of the vehicle is lower than the remaining balance you owe, you must stick to the lease agreement until the end of the term. If your vehicle is worth a lot more than the balance of your lease however (remaining payments + buyout), then the dealer would likely be more than happy to buy back the vehicle and terminate your lease early if you wish.
@@PinkAphroditeDoll Basically leasing a car is not ideal. The thought of driving around a brand-new luxury ride is hard to resist, here are a few more reasons to not lease a car: Depreciation makes you lose money. All cars go down in value (or depreciate). Let’s say a fancy new car loses $20,000 in value over a two-year period (yeah, it drops real fast). If you lease it, that loss in value has to be factored into the lease payment (or the leasing company loses money). And they’re not going to set themselves up to lose money-which means your bank account gets to take that punch in the mouth instead. It’s hard to get out of the lease early. If you get tired of a car, you can’t just return it before the lease is up-without being penalized for it, at least. You signed a lease agreement, and that baby is binding! If you want to break a car lease for any reason, you’re in for a huge, expensive headache with a lot of other fees involved. Dealers make a ton of money on interest. Dealers can easily mark up the interest rate on a lease by a small percentage that might not seem like much to you up front, but it actually equals thousands more dollars in profit for them in the long run. In the industry, this is called dealer reserve, and like the name suggests, it benefits the dealer-not you. And again, they’re not even required to tell you how much interest they’re charging you. Sketchy for sure. You pay more money in the long run. Dealers don’t like when you pay for a car with cash or check, because when you do, they don’t make as much profit. But it’s not your job to make them more money. It’s your job to make sure you keep more of your money! If you pay for a car with cash, you’ll end up saving a lot more. Plus, your payments will be $0 a month for forever! Now that’s a great deal. It’s better to be wealthy than look rich. I’m all about owning nice stuff-I just don’t want your stuff to own you. Be an owner not a loaner 💰
You never mentioned when in the process you tell the salesperson that you want to lease the car. At what point do you say lease? After negotiating the price? After negotiating trade in?
Negotiating the total price comes first. When you are happy with the price, then you can ask for lease payments. If there are any manufacturer lease incentives, these will be applied to the price at this point. If the salesperson asks at the start, you can say you are considering all options.
Thank you 🙂 *idea: try to include the points you are talking about on the screen, For example: on the right of your head ( empty almost quarter of the screen) so that your viewer will follow the point you are talking about and would be easy to follow, Good luck
Can someone give me an example, car is 40k mrsp, sales tax 15%, interest rate 4.99% , 0 down. Is it 500$ per month with 0 down at 4.99% and including sales tax?
Looking at this deal, 2024 Tiguan S: $0 Down payment/$0 Security deposit/$0 First month's lease payment/$0 Due at signing. What’s bad about a 0/0/0/0 deal?
@@velmafullerton6991 Depends on the price of the Tiguan and the payment. Are you paying full price or getting a discount? Are there lease rebates? What's the interest rate? Are there any dealer add-ons or unnecessary fees? The dealer offer needs to be carefully looked over.
@ I didn’t start the process, but scanning all the year end deals. However, these are some questions I definitely need to ask. Also, I saw a post of someone saying this is 7,500 miles at this deal price point, which is definitely too low for me to consider.
Yes. Divide this amount including any down payment by the lease term and add this to the monthly payment including tax. This monthly total should be below 1.25% of the MSRP to be considered a great lease deal. Great question.
How to back off from a deal that is already a poor choice. I am on a finance rate of 6.99% locked for 84 months. I realise that this is a mistake based on my lifestyle and I want to get rid of my vehicle and just get a used car and move on. Everything in this country is too expensive. Do you have any advise or solution for me?
@@billyrock8305 loan interest rates depend on a country economy and central bank policies. Better rates in US while Canada is a disaster... If inflation is high or the economy struggles, rates go up. That’s why it’s not the same everywhere and now the cost of living is too high so I regret my decision and wondering how to get out of it. I like my car but I dont want it anymore. I want a used Honda or Toyota which I dont have to own the bank or any corp. Outlander 2023 PHEV - Good one but I put my sanity over the paying loans lol.
Sell that car , pay off remaining loan and get used car. You may lose some money as loan maybe higher than vehicle value but it's still worth it I guess. Another option is, pay off loan asap and sell the car.
Would you buy a 14 year old Lexus SUV with 120k miles (regularly serviced, 2 owners, clean title from a used car dealer) versus leasing a new SUV (VW Taos or Honda)?
Tough choice. A strong argument could be made for either option. I would lean towards leasing a good new car that you can get an excellent deal on. Lexus makes extremely reliable cars, but at that age and mileage, high cost ongoing repairs are definitely a possibility.
You seem like a nice guy and I have nothing against you. However, the 'wonderful world of leasing' that you outline may be valid in Canada - but it sure isn't here in the US. In the good ol' USA, leasing is always far more expensive than buying. This is especially true today, when lease prices have gone bonkers. Buy the way, I speak as someone who has successfully leased a Honda Accord. When I got my Honda, it was 2011 - a time of financial crisis in the US. If this case, the TV ads were true - the dealer was knocking' them out at super deals! I got lucky - I leased for 4 years, then bought it out. I'm still driving the car today. Since then, lease prices have gone up - and luxury car leases are wildly expensive (versus buying). There are some consumers for whom leasing might work: 1) a business owner who can write off his or her total car expenditure at tax time. 2) a successful stock player who can apply the saved capital in the equity markets - and come out ahead (I fit this profile, by the way). 3) an elderly person who has more money than time - and figures that 'you can't take it with you.'
The deals for lease are only good if they are with zero down payment but right now companies are asking almost 10% of the window sticker price as down plus the tax and title cost also so in that case that is a really bad deal Lease is only good if are paying down payment of max 500 to 1000 out of the show room price and then see the monthly payment if the down payment plus monthly payment for 36 months total plus the residual value all add up to window sticker price plus the tax and title cost only then that is a good deal 😮
If you value your money, don't lease a car! If you want to purchase the car at the end of your lease, you will pay more than what it is really worth. If you go over the miles ( which may happen), you will pay up to your nose and some dealers will even charge you extra for little wear and tear such as tiny dents and scratches.
EXACTLY!!! Leasing is designed for the poor and ill informed to rent cars from the bank they can’t afford. Aka “suckers” in the finance/lease world. Be an owner not a loaner. 💰 🤤 🤓
@billyrock8305 Not necessarily true. #1 You can own a Vette or a luxury car every four years without bothering about repairs #2 You can get the latest models #3 You don't have to worry about depreciation.
and in Canada, we get hosed. Hell even between provinces (BC with its ICBC taxing) get screwed royally.
Just leased a 2024 Acura ZDX Awd with 490hp. Sticker was 73k, lease price was 417/month for 24 months. .57%, I guess I stole it according to this guy
@carhelpcorner I think you missed out on mentioning the residual value of the lease. It's an important factor for leasing any vehicle
I have been practicing a 1-1.5% lease rule for years and people think I am crazy. If I go above 1%, I make sure the tire and dent protections are included
Thanks for making this, not enough information on this in the Canadian market
Can you refinance or renegotiate your leasing agreement after a certain amount of time before the lease ends?
Yes and it’s outrageously expensive and you’ll lose with massive penalty clauses.
Basically leasing a car is super dumb. The thought of driving around a brand-new luxury ride is hard to resist, here are a few more reasons to not lease a car:
Depreciation makes you lose money. All cars go down in value (or depreciate). Let’s say a fancy new car loses $20,000 in value over a two-year period (yeah, it drops real fast). If you lease it, that loss in value has to be factored into the lease payment (or the leasing company loses money). And they’re not going to set themselves up to lose money-which means your bank account gets to take that punch in the mouth instead.
It’s hard to get out of the lease early. If you get tired of a car, you can’t just return it before the lease is up-without being penalized for it, at least. You signed a lease agreement, and that baby is binding! If you want to break a car lease for any reason, you’re in for a huge, expensive headache with a lot of other fees involved.
Dealers make a ton of money on interest. Dealers can easily mark up the interest rate on a lease by a small percentage that might not seem like much to you up front, but it actually equals thousands more dollars in profit for them in the long run. In the industry, this is called dealer reserve, and like the name suggests, it benefits the dealer-not you. And again, they’re not even required to tell you how much interest they’re charging you. Sketchy for sure.
You pay more money in the long run. Dealers don’t like when you pay for a car with cash or check, because when you do, they don’t make as much profit. But it’s not your job to make them more money. It’s your job to make sure you keep more of your money! If you pay for a car with cash, you’ll end up saving a lot more. Plus, your payments will be $0 a month for forever! Now that’s a great deal.
It’s better to be wealthy than look rich. I’m all about owning nice stuff-I just don’t want your stuff to own you.
Be an owner not a loaner 💰
@ oh wow. I had no idea. Thanks for the info. I’ll have to look deeper into this
@@PinkAphroditeDoll
You’re welcome. Happy to provide solid factual information on auto financing.
Basically leasing a car is super dumb. The thought of driving around a brand-new luxury ride is hard to resist, here are a few more reasons to not lease a car:
Depreciation makes you lose money. All cars go down in value (or depreciate). Let’s say a fancy new car loses $20,000 in value over a two-year period (yeah, it drops real fast). If you lease it, that loss in value has to be factored into the lease payment (or the leasing company loses money). And they’re not going to set themselves up to lose money-which means your bank account gets to take that punch in the mouth instead.
It’s hard to get out of the lease early. If you get tired of a car, you can’t just return it before the lease is up-without being penalized for it, at least. You signed a lease agreement, and that baby is binding! If you want to break a car lease for any reason, you’re in for a huge, expensive headache with a lot of other fees involved.
Dealers make a ton of money on interest. Dealers can easily mark up the interest rate on a lease by a small percentage that might not seem like much to you up front, but it actually equals thousands more dollars in profit for them in the long run. In the industry, this is called dealer reserve, and like the name suggests, it benefits the dealer-not you. And again, they’re not even required to tell you how much interest they’re charging you. Sketchy for sure.
You pay more money in the long run. Dealers don’t like when you pay for a car with cash or check, because when you do, they don’t make as much profit. But it’s not your job to make them more money. It’s your job to make sure you keep more of your money! If you pay for a car with cash, you’ll end up saving a lot more. Plus, your payments will be $0 a month for forever! Now that’s a great deal.
It’s better to be wealthy than look rich. I’m all about owning nice stuff-I just don’t want your stuff to own you.
Be an owner not a loaner 💰
A lease agreement is binding and there is no changing it once it is signed. If the value of the vehicle is lower than the remaining balance you owe, you must stick to the lease agreement until the end of the term. If your vehicle is worth a lot more than the balance of your lease however (remaining payments + buyout), then the dealer would likely be more than happy to buy back the vehicle and terminate your lease early if you wish.
@@PinkAphroditeDoll
Basically leasing a car is not ideal. The thought of driving around a brand-new luxury ride is hard to resist, here are a few more reasons to not lease a car:
Depreciation makes you lose money. All cars go down in value (or depreciate). Let’s say a fancy new car loses $20,000 in value over a two-year period (yeah, it drops real fast). If you lease it, that loss in value has to be factored into the lease payment (or the leasing company loses money). And they’re not going to set themselves up to lose money-which means your bank account gets to take that punch in the mouth instead.
It’s hard to get out of the lease early. If you get tired of a car, you can’t just return it before the lease is up-without being penalized for it, at least. You signed a lease agreement, and that baby is binding! If you want to break a car lease for any reason, you’re in for a huge, expensive headache with a lot of other fees involved.
Dealers make a ton of money on interest. Dealers can easily mark up the interest rate on a lease by a small percentage that might not seem like much to you up front, but it actually equals thousands more dollars in profit for them in the long run. In the industry, this is called dealer reserve, and like the name suggests, it benefits the dealer-not you. And again, they’re not even required to tell you how much interest they’re charging you. Sketchy for sure.
You pay more money in the long run. Dealers don’t like when you pay for a car with cash or check, because when you do, they don’t make as much profit. But it’s not your job to make them more money. It’s your job to make sure you keep more of your money! If you pay for a car with cash, you’ll end up saving a lot more. Plus, your payments will be $0 a month for forever! Now that’s a great deal.
It’s better to be wealthy than look rich. I’m all about owning nice stuff-I just don’t want your stuff to own you.
Be an owner not a loaner 💰
Interest rates non negotiable? I have always negotiated it. I get 2 to 3 percent lower than their initial quote EVERY time.
You never mentioned when in the process you tell the salesperson that you want to lease the car. At what point do you say lease? After negotiating the price? After negotiating trade in?
Negotiating the total price comes first. When you are happy with the price, then you can ask for lease payments. If there are any manufacturer lease incentives, these will be applied to the price at this point. If the salesperson asks at the start, you can say you are considering all options.
You want a BMW? You want a Porsche? Lease it and get it out of your system.
Thank you 🙂 *idea: try to include the points you are talking about on the screen, For example: on the right of your head ( empty almost quarter of the screen) so that your viewer will follow the point you are talking about and would be easy to follow, Good luck
@@alik3921 Thanks for the suggestion!
ive never leased, many people say NOT to put any money down.
Can someone give me an example, car is 40k mrsp, sales tax 15%, interest rate 4.99% , 0 down. Is it 500$ per month with 0 down at 4.99% and including sales tax?
Looking at this deal, 2024 Tiguan S: $0 Down payment/$0 Security deposit/$0 First month's lease payment/$0 Due at signing. What’s bad about a 0/0/0/0 deal?
@@velmafullerton6991 Depends on the price of the Tiguan and the payment. Are you paying full price or getting a discount? Are there lease rebates? What's the interest rate? Are there any dealer add-ons or unnecessary fees? The dealer offer needs to be carefully looked over.
@ I didn’t start the process, but scanning all the year end deals. However, these are some questions I definitely need to ask. Also, I saw a post of someone saying this is 7,500 miles at this deal price point, which is definitely too low for me to consider.
Tnx !!!
When using the 1.25% rule, should one factor in the amount "due at signing" amount?
@@johncorman8715 yes, divide by the number of payments and add the result to the payment
Yes. Divide this amount including any down payment by the lease term and add this to the monthly payment including tax. This monthly total should be below 1.25% of the MSRP to be considered a great lease deal. Great question.
Is the amount including taxes? Example: 40000$ plus taxes in Canada 15% =46 000$
Is it 1.25% of that amount = 575$
Or is it 500$ tax in ?
Is that 1.25% rule including taxes?
He said out the door price, so yes, I think it includes tax.
Yes. The monthly payment should include tax based on $0 down before you divide by the MSRP.
How to back off from a deal that is already a poor choice. I am on a finance rate of 6.99% locked for 84 months. I realise that this is a mistake based on my lifestyle and I want to get rid of my vehicle and just get a used car and move on. Everything in this country is too expensive. Do you have any advise or solution for me?
😣
Man, that’s brutal. 😢
Good plan to buy a 10 year old Honda or Toyota. 👍
@@billyrock8305 Welcome to Canada.
@@fuzooli
Leasing is not country dependent. It’s applies to every country where it’s offered. It really does suck.
What type of vehicle is it?
@@billyrock8305 loan interest rates depend on a country economy and central bank policies. Better rates in US while Canada is a disaster... If inflation is high or the economy struggles, rates go up. That’s why it’s not the same everywhere and now the cost of living is too high so I regret my decision and wondering how to get out of it. I like my car but I dont want it anymore. I want a used Honda or Toyota which I dont have to own the bank or any corp. Outlander 2023 PHEV - Good one but I put my sanity over the paying loans lol.
Sell that car , pay off remaining loan and get used car. You may lose some money as loan maybe higher than vehicle value but it's still worth it I guess. Another option is, pay off loan asap and sell the car.
This is great to see, consumer who as it is knows nothing, listened to this idiocity, and now is confused x1000
Would you buy a 14 year old Lexus SUV with 120k miles (regularly serviced, 2 owners, clean title from a used car dealer) versus leasing a new SUV (VW Taos or Honda)?
Tough choice. A strong argument could be made for either option. I would lean towards leasing a good new car that you can get an excellent deal on. Lexus makes extremely reliable cars, but at that age and mileage, high cost ongoing repairs are definitely a possibility.
You seem like a nice guy and I have nothing against you. However, the 'wonderful world of leasing' that you outline may be valid in Canada - but it sure isn't here in the US. In the good ol' USA, leasing is always far more expensive than buying. This is especially true today, when lease prices have gone bonkers. Buy the way, I speak as someone who has successfully leased a Honda Accord. When I got my Honda, it was 2011 - a time of financial crisis in the US. If this case, the TV ads were true - the dealer was knocking' them out at super deals! I got lucky - I leased for 4 years, then bought it out. I'm still driving the car today. Since then, lease prices have gone up - and luxury car leases are wildly expensive (versus buying). There are some consumers for whom leasing might work: 1) a business owner who can write off his or her total car expenditure at tax time. 2) a successful stock player who can apply the saved capital in the equity markets - and come out ahead (I fit this profile, by the way). 3) an elderly person who has more money than time - and figures that 'you can't take it with you.'
So the down payment is lost if you lease a car and got an accident, what about finance?
GAP coverage for financing ?
Not the same when financing because you own the vehicle and the insurance company simply pays you the market value of the vehicle.
The deals for lease are only good if they are with zero down payment but right now companies are asking almost 10% of the window sticker price as down plus the tax and title cost also so in that case that is a really bad deal Lease is only good if are paying down payment of max 500 to 1000 out of the show room price and then see the monthly payment if the down payment plus monthly payment for 36 months total plus the residual value all add up to window sticker price plus the tax and title cost only then that is a good deal 😮
If you value your money, don't lease a car! If you want to purchase the car at the end of your lease, you will pay more than what it is really worth. If you go over the miles ( which may happen), you will pay up to your nose and some dealers will even charge you extra for little wear and tear such as tiny dents and scratches.
And yet, that isn't true.
@@TJDST4 LONG TERM it is CORRECT!
Leasing is a good decision if you are going to get an EV.
EXACTLY!!!
Leasing is designed for the poor and ill informed to rent cars from the bank they can’t afford. Aka “suckers” in the finance/lease world.
Be an owner not a loaner.
💰 🤤 🤓
@billyrock8305 Not necessarily true. #1 You can own a Vette or a luxury car every four years without bothering about repairs #2 You can get the latest models #3 You don't have to worry about depreciation.
Legends watching in 2025 ❤