I Won’t Fix This Jeep: th-cam.com/video/scVyaIRevww/w-d-xo.html ⬇️Scotty’s Top DIY Tools: 1. Bluetooth Scan Tool: amzn.to/2nfvmaD 2. Mid-Grade Scan Tool: amzn.to/33dKI0k 3. My Fancy (Originally $5,000) Professional Scan Tool: amzn.to/31khBXC 4. Cheap Scan Tool: amzn.to/2D8Tvae 5. Dash Cam (Every Car Should Have One): amzn.to/2YQW36t 6. Basic Mechanic Tool Set: amzn.to/2tEr6Ce 7. Professional Socket Set: amzn.to/2Bzmccg 8. Ratcheting Wrench Set: amzn.to/2BQjj8A 9. No Charging Required Car Jump Starter: amzn.to/3i7SH5D 10. Battery Pack Car Jump Starter: amzn.to/2nrc6qR ⬇️ Things used in this video: 1. Common Sense 2. 4k Camera: amzn.to/2HkjavH 3. Camera Microphone: amzn.to/2Evn167 4. Camera Tripod: amzn.to/2Jwog8S 5. My computer for editing / uploading: amzn.to/301tYt9 Subscribe and hit the notification bell! ► goo.gl/CFismN As an Amazon Associate I earn from qualifying purchases.
Scotty you probably won't read this cuz you have so many subscribers it's probably impossible to see this but my step dad was a mechanic or the exact same jean jacket as you had the same mannerisms with his hands and was almost exactly the same as you he passed away this year from a heart attack and I miss him more than you can imagine watching your videos reminds me of him so much you are so cool Scotty never change
I'm sorry for your loss. I've recently been there myself. My dad & then 2 mos. later my pupper. I feel your pain.😞Best of luck to you in your healing. It never fully heals, it just scabs over. That's why some days it seems as if the scab has been picked off. Gross I know. Sorry. I'm an analogy kind of gal. Lol Peace🕊️😘
I used to inspect off lease cars for Honda, VW, Chrysler Capital, Ally Financial, and Chase Financial. The stories I could tell.....I remember I inspected a guys car. It was a Honda Accord. He used it for Uber and Lyft. He had 187,000 miles on the car...plus 8 grand worth of cosmetic damage. Now the company I worked for was a third party company. We just inspected the vehicle based on the guidelines of the finance company, but I would have loved to have heard the conversation between him and Honda Finance. I had another customer who's car had 39,000 miles on it. Not bad....but he never changed the oil on the car....ever. When I pulled the dipstick out, it looked like those cookies you see in the middle of an ice cream cake. The guy also had 3 grand worth of body damage. Again, would have loved to have heard that conversation between him and Honda. Now with that being said, doing what I did, I would never lease a car. I would much rather own. I have had way too many things happen in my life requiring me to increase how far I have to travel. Cant do that with a leased vehicle. However, if you must lease, here are the basic guidelines. First off, NEVER lease from Ally (Some Chrysler products, and some GM) or Chase Financial (Subaru, Land Rover, Mazda, and Jaguar). These companies have absolutely ZERO forgiveness at the end of the lease. Every ding, chip, scratch, and scuff are all considered excessive. Ally is the worst though. We were trained to find previous body work. Even if the repair was done properly, they still charged $80/panel to the customer. Ally Financial are downright thieves. While Chase financial did not charge for previous body work (it was the only thing they didn't charge for). They charged $45/a dent, and $95/scratch. Volkswagen is not bad. They allow 2 dents up to 2" and 2 scratches up to 2" per panel. They do charge $250 if your check engine light is on, so if its on, get it taken care of before you turn it in. Honda Finance and Chrysler Capital are both about the same in terms of leniency. Honda allows 3 dents up to 1.5" per panel and 2 scratches up to 3" per panel. Chrysler allows 3 dents up to 2" per panel, and 3 scratches up to 2" per panel. Now with that being said, quantity does matter with dents and scratches. If you have a Honda with 4 scratches 1" long each, that will be considered excessive. Same goes with Chrysler Capital and VW. If you have 4 scratches 1" each, that will be considered excessive. Tire tread on every off lease company was the same. It had to be 4/32" or greater. Rims were different from company to company, but basically if your rim was scratched over 12" you're going to be charged for a recondition fee. Now all that being said, if you do lease a car, and do get charged for excessive damage, take my advice and just pay the finance company to repair it. the cost to have the finance company repair it is so much lower than the cost to pay a body shop out of pocket to repair it. Currently, I work as an insurance adjuster for a major insurance company...and the difference in price is huge. For example, lets say you have a 4" scratch on your leased vehicle....the leasing company will charge about $150-200 to repair it. A body shop will charge you about $400+ depending on the shop. The last thing I will also recommend is NEVER EVER buy a car from NYC, or the 5 boroughs. New Yorkers cannot drive. Period. End of story. And when I say New Yorkers, I mean people from the 5 boroughs. New York State is a lot like PA or VA...lots of open roads, so they know how to drive in NY State. Not only is NYC very damaging to the car mechanically, but I cannot tell you how many times I have seen a car from NYC with a clean history report, but the car was clearly repainted...horribly. I have seen so many NYC cars with mismatched paint, peeling paint, heavy fish eye and orange peel. Hell, I remember I had one car I looked at where the entire front end was poorly redone. In the front of your car, you have a main structural component called a radiator support. It is designed to crumple and absorb impact in the event of an accident..well on this particular vehicle, the radiator support was completely twisted and warped. This vehicle was a rolling safety violation. Take my advice, if you see a car from NYC, run away from it fast.
Thank you for todays lesson! I bet you have many more stories that are real doozys. Your old job sounds like it was interesting, seeing how the "IDC" (I DON'T CARE) part of humanity lives when it comes to their cars. 😲😲😲
I drive a Mercedes SUV, an older one, a really cool one, right out the door off the lot, a giant $1500, everything included. I am driving this, 2.5 years later, have spent around $300 in parts plus normal fluid changes. I drive something that does in absolute's destroys the on and off road for most new vehicles, new vehicles that are on that fancy lease and worried about getting dented or scratched.... Do Not lease unless it's something to snag for a year, otherwise you are not impressing anybody and are one upped by some cheap Mercedes driver like me...
As a business owner, leasing makes sense for my company. We don't want the asset on our books and have to deal with depreciation. It is beneficial for us to have a fixed monthly price that is fully deductible. We also don't want to repair vehicles out of warranty. Ford used to lease used cars and cover them under a warranty. That was great, but they ended the program.
fully deductible = IRS is paying for your lease.... Also a business owner here, I don't write off things like that, the IRS is not my business partner, nor do I ask for hand outs from it. I see write offs for sporting events, expensive meals, really a wide range of things, purchased or in your case leased. These things should never have been in place, it's absurd.
1 thing to note is NEVER put any money down on a lease. If it gets totaled out in the first month you lose any money put down. Don’t fall for the tricks of salesman. You don’t own the car, you’re essentially renting it, pay month by month. Just because you’re a “good driver” doesn’t mean that other people are, have seen many people lose money this way
Good advice, max down payment you should ever put is 1000-1500 and put the rest as a security deposit to lower your money factor. You’ll get all of that back once the lease ends or car is totaled.
I think it really does depend. If you don't put more than 10K miles a year and you like to always have the newest car, meaning not more than 3-4 years old. Usually never having to deal with something breaking and needing to take to mechanic. You only need to do oil changes and make sure to keep it in good condition, which most would if they finance to buy as well anyway. And if you don't have a down payment on it. Then leasing can work out and you just make sure of what Scotty said, look up and see there is no hidden crap in the contract. Yes you always have a monthly payment. But reality is, that for many people that is already the case. Many car loans for financing now runs 72 to 84 months. That is 6 to 7 years. I guess you can get another 6-7 years out of the car. But you could start to run into the "Need to replace that part and this part and so on". Out of warranty. The car would be 10-14 years old. What I am getting at is that for people that would like to have a car that is basically new every 3 years, don't drive too much other than work, grocery store and occasional trip and you can get decent payments. The price for that is you don't ever have a time of a fully paid car, but you always have a "new" one.
I owned my first vehicle for 16 years. My f150 made it through college and into my 30s. When I gave it up and felt like I was giving up a pirate ship that took me around the world on adventures. It was sad.
Longest I've owned a car was 5 years. I owned both my previous cars for 5 years and miss them both sometimes, especially my 17 civic coupe 1.5T. To your point, yeah there were so many great adventures had in these cars. It stinks to watch them go
Leasing is fine. If at the end of the lease you have positive equity, but out the lease and sell it, trade it or keep on driving it. If at the end of the lease you have negative equity, toss the keys back to the dealer and it's their loss.
Over mileage at the end of the lease can be handled two ways.1) Roll the extra charges into the next lease and then ask for a credit for the extra charges. If they want to lease another car today, they will forget the extra mileage. 2) If you like the car and there is nothing whatsoever wrong with it, you may wish to buy it outright. In that case there are no mileage charges.
Scotty - During “Chip-Shortages” with prices inflated by 1/3 those already on leases have the option to buy their car at the pre-set amount. Usually leases don’t save money but now it’s different.
@Zach “NOW” is the exception until normalized prices return. Leasing is also good for rich people who get tax advantages. And companies that provide company cars. And leasing at MSRP isn’t happening now - even factory-specials are getting “adjusted”.
@@angelgjr1999 it’s just the opposite. I’ve leased cars in the past and if you go over the yearly mileage or beat the car to death it’ll cost you big time.
Yup. Sold my 2017 f150 way above KBB and leased a 2021 f150 for cheaper than it would cost to buy new. After my 3 years if the market is down I’ll buy another new truck, if the market continues to inflate I’ll purchase the truck. Win win for me. Another benefit no one thinks about is leasing shoes up on your credit for only the value you’re leasing not the entire value of the vehicle. It’s good to keep your over all loaned money lower than if you were to buy it.
It’s not stupid to lease when its a new Mercedes/BMW/VW/{Insert Non-Toyota endless money pit here} and you can’t be talked out of getting one for the vanity. And you have enough money to light on fire! 🔥. Or if it’s a rational business expense - like a specialized vehicle that is prone to breaking or only needed for a certain period of time
@@lesterparker1594 Which is why I would condition leasing if you really have money to spare (or if it’s a rational business decision). Most people that lease don’t qualify - which is exactly to your point!
Yes...first try out luxury cars before owning it. Leasing works in this case. If you find that luxury car to be reliable then buy it at the end of lease term🤷♂️
I’m an auto mechanic, and I can’t tell you how many people (probably 95%) are way overdue on services or treat the car like crap and don’t do the maintenance. I’ll give them some recommendations but not force them and they’ll say “eh it’s just a lease”. Sir it’s been 15k since your last oil change and you are leaking coolant everywhere 😂😂
I used to see the same thing at the car dealership as a parts guy, theyre so tired of making payments that doing anything else to keep the car going is the last thing on their minds until something breaks
they all said its because they wanted to have a new car every few years and look good basically at all costs and that the cars would just stay reliable by getting new with every lease they get. I had a coworker ask me if they should buy out and finance the rest of their lease because of money and being unable to save a dime after making the car payment. They ended up getting another lease to ensure the car was reliable. @@ShakTMT
I need a car for personal use, not business use, so I definitely prefer to buy outright. My first car was an ‘02 Honda Civic LX I bought for $16K. Drove it for 18 years. It was very reliable and cheap to maintain. I paid off the loan early and drove it for 14 years with no payment. Just bought a brand new 2023 Honda Civic Touring for cash. No car payments! 🥳 I plan on driving it for 12-15 years.
Leasing is a tax for those bad at math. Poor ppl renting a car they can't afford. It's literally the most expensive way to drive a vehicle other than renting it daily. "muh monthly payment" imagine paying $18,000 to drive something 36,000 mi and then repeating that over and over again.. that would be literally paying $180,000 to drive 360,000 miles in a typical $30,000.00 vehicle.
@@angelgjr1999 explain this to me? A typical lease limits you to 10k or 12k miles per year or 30k to 36k miles for your standard 3 year lease. Any overage costs you $0.15 to $0.25 PER mile. You’re blowing that out the first year at 60k miles and have already run up $3,600 in the best case scenario in overage costs. Not to mention any other fees for “excessive wear and tear” and damage (cracked windshield, banged up bumpers, curb rash on rims, etc). I drive 25k miles per year and leasing has never worked out in my favor when I did the math.
It made sense for me in this screwed up car market. I was looking for a used car for around $8-12,000. I found a three year lease on a 2022 Hyundai Elantra for about $11,000 after three years. And the oil changes and tire rotations are free and I won’t have to worry about maintenance that comes with 100,000 plus miles. But I agree it’s definitely not for everyone.
But after 3 years you have nothing to show for it and your only option is to pay more money to keep the car longer or get a different car. Granted used car prices are inflated, which I get, but typically if you buy a reliable car (I recommend something Japanese) it will last you many, potentially payment free, years. And from my experience, a lot of the maintenance car manufacturers recommend is not needed. It's just a way to make more money through servicing. For example my Mazda CX9 manual recommends the spark plugs be replaced every 40K miles. My car has 160K miles and is on the original plugs. Keep up with the fluids and a majority of the time you are good.
My Father started buying off lease cars in 1964. He found a lease company (not a dealer) and they had a customer that bought new Imperials every 4 years. The first one was a 1959 4 Door Hardtop a beautiful machine in Dusty Rose and every 4 years after he would get a replacement . I was 10 when he bought that car (He always paid cash) and it made me a Chrysler man . It kills me to see what has become of such a great company that was based on engineering and style.
If you leased a car 2-3 years ago you may want to buy it at the end of the lease because the residual value will be less than the market value. You can then use the car to trade in at a higher trade in value or sell it to Carvana or the other online car acquisition companies for more that the lease buyout. That is the advantage you have now due to the current higher used car prices.
I leased a 2022 odyssey. Drove it for 6 months, sold it to another dealership and made a grand on it plus what i paid in that 6 months to drive it. Thats how crazy the market is right now.
@@lovellmills7959 you can sell a lease. They pay a dealer buyout. Ive sold all my leases to avoid the return fees. No point in returning a lease especially on a car that holds value. Youll almost always have equity in it.
I bought our cars in 2014 - we paid them off within the year and have enjoyed almost 10 years of not having any car payments - the only cost being oil changes and a 1x break job. Since we drive so few miles (both cars have 60,000 miles), we have very little cost associated with ownership of the vehicles.
I'm still confused how Scotty Kilmer is just a mechanic but still manages to create these professional video contents. There must be lots and lots of hard work and man power labour hours involved. This is just super creative. The comments and how it all flows with the videos is just superb. You're the man Scotty.
Leasing only makes sense in a very few situation. 1 - You get a great deal on the lease and will be under mileage upon lease end. 2 - Need transportation and are only going to be in an area for 1-3 years. 3 - The lease program coverage is excellent in terms of dings, dents, etc.
Got a real kick when businesses out in Cali started a rent to own custom wheel and tire business back in the 90s! Thought to myself WTF! By that time tho, rent to own businesses were already doing the same thing with everything from couches to refrigerators. Only in America….live for today!
Some great info here! A few people I know had leases before the pandemic and actually made out pretty well since they were able to buy the vehicle at the end of the lease only to sell it for a lot more money!
Down payments on a lease: They do not reduce the basis on which the lease cost is based on. Therefore the total cost of the lease is the same, but the downpayment helps cover the cost of the total payment, spread out over each month. You're essentially giving the lessor a free loan. In contrast, a down payment on a financed purchase does reduce the basis for the interest cost (ie: loan size) and will therefore save on total costs.
Great information as usual. Scotty, the automotive expert at all points and angles. I wished I lived near him so he could work on my cars. Both of my cars are excellent. 2004 4 Runner, original owner and 2015 Toyota Avalon. Fantastic vehicles. I bought Toyota before seeing Scotty. I always knew they were very good products. Scotty is correct--they are in general the best vehicles made as far as dependability.
Scotty is a great mechanic with the right tools to fix cars. Most of us know little about such repairs. Also, a car usually lasts at least 3 years before having trouble (Cadillacs fall apart after 300 miles or a month). Since we don't know if a repair will work or if the mechanic knows his stuff, wouldn't it be better to turn the vehicle in after 2 or 3 years?
What? My car is 10 years old and 130k and I never repaired anything. I just drive well and do proper maintenance, and I’m sure I have at least 3 more years ahead without problems. Just learn to drive
My friend leased a 2006 Nissan Altima Se-r and customized it because he planned on buying it anyways at the end of the lease. At the end of the lease he came back to the dealership ready to purchase it and they told him he violated the agreement by customizing it and he was going to have to pay thousands of dollars in penalties. But they would wave it all if he bought a brand new Maxima. That’s how the dealership got him and made him buy a brand new car and now they were going to make a killing on selling a customized Altima.
It all seems like gambling right now but in this market, leasing seems to be the better choice. At the end of the lease term -- assuming you stay in your mileage limit and don't damage the car -- the car market will hopefully be more stable and purchase power could be greater. I feel like buying now would put you underwater and keep you underwater until you paid the thing off. I hate throwing money away so I'm not sure which is the bigger risk, leasing or purchasing an overpriced car. Do we have any kind of idea when the market is going to turn around?
I want nothing to do with local mechanics. And i also have zero interest in becoming mechanically literate. So leasing is the best move for me. I'd rather jump into an active volcano than deal with an auto mechanic nonstop for the rest of my life.
as Scotty said, NO MONEY DOWN!! also make sure lease has GAP. before turn in get a quote on value to see if it makes sense to buy. Many cative finance companies don't let the dealer pay more that the contracted amount for the buyout. Tires are a big concern as most will be close to wearing out close to lease end based on milage. There is no simple answer but I had to replace tires shortly before lease end. i would have changed them early and kept old ones if i had to do again. Leasing is always better to do if you own a company and get some kind of write off
I leased my SUV back in 2018 and given the buy-out cost was set pre-pandemic, I actually made out buying the car at the end of the lease. Given the shortage of used cars, the dealer would have put it out on the lot for several thousand more than my buy-out price.
If you are a low mileage driver and come in well under the lease limit then it makes sense to buyout at the end of the lease. You pay half the finance charges of buying it with a loan. The lease buyout option is priced at the mileage limit on the lease. In my case, I had a 3 year lease for 30k miles based on a prie of $23k. The buyout was $13k. Since I only had 15k miles, I bought it for cash. The trade in value for my car is $23k. Replacing it would cost $30k. Getting an EV equivalent would be $40k. So, in these uncertain times, leasing can work to your advantage.
I leased a car once. About 8 months before the lease was to end the dealer tried to get me to buy it out, but not at the end of the lease amount! So I said no and 2 months later they called again and they agreed to the end of the lease buy out, saving me 6 months of lease payments. Yes i took the dealer and never looked back or did a lease again. The last new car I purchased, before the crazy market, they had a 72 month no interest so I used their money and left mine in the bank!
More than one car salesman/leasing agent has told me that dealerships LOVE it when individuals, companies, or government agencies lease vehicles from their employers as THAT is where the dealerships and their corporate over lords make their REAL money as opposed to sales to individuals. From what I have been told, dealerships love leases because they make money off such vehicles at least twice, and sometimes three times, because off lease vehicles can be used as loaners OR sold at auction for a profit because they are, generally speaking, relatively low milage vehicles that were serviced, under contract, by the leasing dealership and accurate records exist on those vehicles. One, now comfortably retired, leasing agent even referred to those who entered into lease agreements as the dumbest people he ever delt with because they didn't bother or could not do the math.
I'm pondering leasing vs financing a tesla at the moment. The lease payments are almost $200 cheaper and that's with $0 down on a lease and $4500 down on financing. Besides that fact, I've never owned any type of electrical vehicle before so I'm not even sure if I will even like it. If I like it I will buy the next one. I usually swap cars every 2 or 3 years anyway so I think it just makes much more sense to me.
I BOUGHT my car new in 2005. I finished paying it off in 2008. I still have it and it runs great. I haven't had a monthly car payment for 14 years! I do spend about $100 average per year on maintenance and my car insurance runs $45 per month. Buying was the right choice for me. By the way, after 17 years, I just passed 40,700 miles on the odometer. If I were to have leased, I would have paid for 170,000 to 250,000 miles. That would have been a huge waste!
exactly, i can understand if someone doesnt have tons of money to buy a car but still, leasing (in my opinon) is not a good way to go, if im going to be paying a crap load of money for a car i want to beable to keep the car not give it back in 3-4 years
Bought my 2010 Hyundai touring Elantra for 5k back in like 2015 with only 45k miles on it. It now has 140k miles and still runs great. It’s only had major work this year because I now live in nyc and these potholes destroyed my struts/tire rod and tires
Great advice Scotty. I had never bought a new anything that moved until I got a S10 diesel new truck. The dealership said the payments were $250 a month. I thought it was 3 years, so I agreed. 3 years later, I drove back to the dealership to ask them why I was still paying? Yep! They were working on a 5 year financing. Like I said: The only thing I have ever bought NEW.
I’ve bought and leased. The convenience in leasing for me is that I don’t have to rely that a scumbag dealer rewound the miles on my used vehicle maybe twice or the car had major frame damage that the dealer patched up. Both have happened. I will only buy new from now on as you just can no longer trust dealers.
Or you can sell the car. Many people don’t understand this, but as long as a dealer or person is willing to pay you more than your pay off you win. Done this many times and made profit doing so. Also leasing also means you don’t get stuck with maintenance costs for most cars. In addition (prior to pandemic/supply chain issues) the amount you pay for a lease is fairly close to the depreciation you eat buying a car new and driving it off the lot.
@@ibrahimbedwan1557 no that's not true. You have to know what you're doing but it's not a scam but just like with purchasing, people get taken to the cleaners. You need to understand money factors, pre tax dollars and many aspects. Such as the car's value over time to do it correctly but it can be done. I am living proof and many many thousands of dollars selling leases. Need to also understand your warranty of power train vs bumper to bumper.
The only reason you should lease is to drive your vehicle locally and you have another vehicle or two to drive around on roadtrips. In other words, to save mileage on the cars you actually own
@@danielmeador1991 That’s what I was thinking. I’d enjoy having something like a BMW 7 to drive,but I’d never buy one. I’d also never buy a car that had been previously leased unless it was an extraordinarily unbelievable deal.
I have leased four times. It met me needs at time. Have never been taken advantage of. I had worked for a small and major auto leasing firm prior to leasing for mu own needs. Just purchased my last lease vehicle and with the high prices and a low residual value I scored. However I will be keeping this vehicle for an extended period of time.
Good video but you should also mention the scenarios that can allow you to get ahead with a lease. For example, your lease agreement may often let you buy the car at a lower price (the residual value) than the current market value. This is especially true if you drive fewer miles than assumed on the lease. If you're willing, you can buy the car at the end of the lease and sell it at a profit, but there is the hassle of being "in between cars" while doing so. Or, you can just buy it for a lower price than anyone else is able to and keep it. Imagine buying a low-mileage car that was turned in after a 3-year lease for $17k while the dealership is selling the same car for $25k. You can also trade up with no money down by leveraging that value. You are under no obligation to buy if the current market value ends up being lower than the estimated residual value on the lease agreement. In this way, the leasing company assumes the risk of what may happen to the car's value.
They’re not assuming the depreciation risk. Lol. You can buy it cheaper than MSRP after your lease it up because you’ve already payed for that depreciation with your payments.
@@InternetUser._ It's ok to ask questions when you don't know about the discussed topic. When leasing, there's this thing called Residual Value, which is the car's projected value at the lease's end. Your monthly payments are based on that projected value. So you're mistaken; they ARE assuming the depreciation risk. If you drive fewer miles than agreed when the lease is up, you can buy the car at a better deal than the initial financing offer because it's pre-set before you lease. You know the day you sign for a lease how much they'll want from you if you want to purchase the car when the lease is up. Those who have been doing this for a while always lease vehicles with high residual values, so when the lease is up, they can buy it at a low price and then immediately resell it at its current market price for some easy pocket change.
I never thought I would lease a car. In 2020 I wanted a new car, since my last new car was purchased in 1981. Always saved money buying used cars for cash. I decided on the 2020 Ford Edge AWD SEL. Ford was offering zero interest for 72 months, but you received no discounts off MSRP. The lease deal gave you $4,500 off MSRP, with $4,100 down, the balance owed at purchase was $32,524 my payment is $351 per month. I always planned on purchasing at lease end, so mileage limits were never an issue. At lease end I will purchase the Edge for $19,888. So the amount I paid off during lease $12,636 was interest free. Timing is everything the 2022 Ford Edge AWD SEL lease is now $4,300 down with a payment of $459 per month.
For you seniors out there, I read that only Mercedes allows for early termination of a lease due to death. Any other lease means that if you die your estate must pay the balance of the lease.
Carvana is buying your leases when you’re done with them for $4-6K for the residual on your leased car. It’s not always a bad idea, it’s just not for those who don’t want a new car every 2-3 years. For business owners they can write off the car as a business expense and can get tax deductions. Nothing with money is cut and dry. Even NFTs are dumb and smart at the same time, just ways to navigate it
You lease for 3 years. Your payments are basically paying the car down. It shows on the contract how much the car will be once 3 years hits to purchase it. Once lease is up or even before the lease ends you can end up buying the car for a lower price. It is not a lifetime. Financing first is a lifetime because you have a high APR and usually people finance for 8 years or more. Plus the payment is super high. The loop hole is leasing first. Then buy it. Most people always finance first though because they are afraid of leasing and think they will never own the car. Or they get cranky and feel like they are just renting it. Ive had 7 cars in a span of two years lol no joke. All leases. The beauty of leasing is you can trade it in whenever you want. As long as you pay the negative equity on the car which usually happens when you want to turn the car in way early before the lease ends. No penalties, as long as you trade it in for another car. Does not hurt credit score either. This is the kinda info that dealerships do not want you to know. So take my advice or not. Good luck
Agreed. Dead money down the drain just to get it started and a premium price if one wants to keep it after lease is over. Total waste & something I'd never consider doing unless one has a traveling type of job etc.
Leased a Toyota RAV4 in Sept. 2019. Purchase price was $28K. Final buyoff after 3 years will be $19K. Only put on 15K miles in that time. Car is worth over $33K today in this crazy environment. I'm paying off the lease early, will sell the car and buy a brand new one for the same price as I sell the used one for .... and move up a trim level as well.
If you're the type of person who needs to get the new iPhone (or car) as soon as it comes out, leasing is not a good option. Some really deep soul searching and maybe counseling are a good option.
There is a financial guru who doesn't like the idea of leasing cars. She recommends buying a car and paying it off in 3-4 years. Leasing is not for everyone. When you lease a car, you have to follow rules such as how many miles you can drive and you have to take to the dealer for maintenance.
The best financially seems to be getting a car known to be reliable like a Civic or Corolla 3-7 years old. My last Civic I bought 7 years old for $5K with 104K drove it for 8 years 75K miles and sold it for $1500 with bad tires. Only did struts and the valve cover gasket twice besides regular maintenance. Probably only cost $600 per year including depreciation.
My Ford lease has zero requirements to have the car maintenance performed at the dealer. The only thing that has to be done are 4 oil / filter changes and air filter replacement. Nothing else should be required in 36 months.
@@mcc7762 crazy people for get what common sense is. Here let me refresh! Common sense is the basic knowledge you understand as soon as you have sense of reality(usually starting at 2 yrs olds).
The only time I'd even consider leasing is for a Tacoma or Tundra. I don't drive all that many kms (yes, Canada) per year and I look after my vehicles. Say the buyout at the end was $20000. The truck would likely be worth 25K (Canadian $) at the dealer, so I could use that money as a down payment on the next vehicle. The truck market here where I am, Newfoundland Canada, is crazy. A lot of the used trucks are being purchased by a couple of different guys who, in the end, ship them to the U.S. for profit. I know a guy that got 40K for a vehicle they only owed 25K on. Another got 26K for a 7 year old truck that was paid off. It would be hard to get any new truck here for less than 55K.
My 34 year old son has a 2009 BMW M3. He says I cannot afford to own a BMW. After seeing some of his parts costs for upgrades, I agree. He just installed a carbon fiber driveshaft $1,000. Enjoy the Supra.
I've always bought cars that were someone else's lease returns. Check the carfax, previous history, depreciation already kicked in, bugs and recalls worked out and I have the leftover factory warranty. Best part is, for example. I bought a grand cherokee in 2019 with 32K miles that was a lease return, now in 2022 with the demand of cars being up, my grand cherokee is going for the same amount today that I paid in 2019, but with 80k miles while mine wasn't driven much due to the pandemic and only has 48k miles..so in essence it should go for MORE than what I paid in 2019 in today's market.
Oversl is a good video but it’s focused on “why you shouldn’t do a lease”. Important details where left out like: 1.) You’ll know the residual value of the car you are leasing from day one, meaning at the end of the lease you already know how much the car will worth in case you want to do a lease buyout, it and this number WILL NOT change. 2.) Most brand pays for the GAP insurance(Value of your loan - value of the car) when you lease, so if you end up totaling your car the next day you lease it, you won’t be left out with a debt of a car you don’t drive anymore. 3.) Life happens, and when it does, I’ll prefer to find myself attached to a car for 2-3 years than for 5-7. Lease is not for everyone, but for some of us is definitely the go to option. 4.) The different in monthly payments between miles allowance is literally $5 increase when going from 10k, 12k or 15k, depending on your driving. And there is way more to know on how a lease will definitely make sense for you. Do your research BEFORE going to the dealership, please! They’ll eat you alive if they smell that you have no idea about buying/leasing. Cheers!
My first lease car was a 1985 Honda CRX Si. I didn't even know what leasing was all about but in this case It was a no money down 15,000 mile per year 3 year lease for $195. per month. The residual payment at the end if you wanted to keep it was $3600. If I was going to purchase it instead of leasing it with a $3600. down payment the monthly payment would be $235. per month for 3 years. It was a no brainer. I keep my cars pristine so at the end I paid the $3600. and kept it for another year. In 1990 I traded it in for a new Acura Integra GS. They gave me $5700. for it. Companies have since figured out the lease game so you can't get that kind of deal today.
Leasing is generally stupid for the average person. We got burned on a lease from Gwinette Audi in Atlanta... jacked the price of the car up, bastards. I love when Scotty does these types of videos.
Always say you’re financing until time to sign. If price incr for lease (penalty) then walk. ALWAYS be willing to walk away from a deal. More cars, houses, condos etc avail. Your money, your choice.
Scotty you can't make a blanket statement of which is better. Depends on wants & needs. I have a 2006 Ford Taurus 160,000 miles. I'm retired, now drive just a few thousand miles a year and don't need to have a new car. My wife was driving a "fun" VW bug convertible but was tired of having to take it to the shop and I was tired of hearing about it. New car, lease v ownership. People make the mistake of , "Oh, if I lease I can get a more expensive car for "the same price" (monthly payment). The key is IF you want to keep a new car - with no maintenance costs or headaches - lease the same car for less than you would buy it for. Dealership doesn't care, they are selling the car to the lease company instead of selling it to the finance company. Ownership people - who don't understand - will say, "You don't build "equity" with a lease. The only way you build equity in a depreciating asset is to pay more each month than the car depreciates. And actually, same as a purchase, you CAN build equity in a lease. Just as if you bought/financed a car with minimal down payment, what's it worth compared to the payoff? I called a dealer in 2021, 6 months left on the lease but of course the used car market was hot. My original dealer told me I'd have to come up with additional "Cap Reduction" or my lease would go up. Called another dealer about 100 miles away. Over the phone, told him my mileage. The value of the car was high enough, the dealer "paid off" the leasing company and reduced the Cap Cost - think purchase price - by $1500. We drove to the dealer, swapped keys and got a new vehicle with a smaller monthly payment than before. BTW - now my wife's lease has about 8 month's to go. We just talked about it. With used car prices going up, it may make sense to buy the "old" one for me to drive - the purchase price was set 2 years ago - and we'll just lease her a new model.
Good information. I know some neighbors who leased cars and regretted it. I bought my wife a leased RAV4, it was only 2 rs. old had been leased and well maintained.
so if you arent going to use it for edge cases (like using it for uber) and dealing with scammy providers (seems like this is much more of the in USA than say UK), it removes quite a lot of the negatives.
I get tired of cars after a few years. Continuously rolled over more and more negative equity (high mileage driver) until one day I had to pay the piper and give up $8k in rolled over neg equity. Lease gives me flexibility to choose to give it up or buy it out. Plus, netted $4k off my last 4Runner lease (due to equity GAINED over the last three years). Might never go back to a non-lease purchase ever again.
@@lazstan lol. You have zero clue about my financial situation. If you need/want to have no car payment, that’s cool. You do you. I don’t mind having one, it’s already built into my budget.
Well Scotty I did lease a car and it was a Subaru Impreza manual and I’m glad I got rid of that car after the lease was over because I had to deal with my new truck I don’t have 2000 miles on it and it was a Toyota Tacoma but it’s fine now
I went to the Porsche dealer and try to see the leading option for a Taycan, crazy enough that the three years leading is at 2156 per month, but the monthly payment for buying that car is also 2156 around, maybe a couple hundred more. Not a lot less than buying a car.
I leased a Crosstrek and when my lease ended i went back yo the dealer to purchase the car and they tried to sell it to me 2000 dollars over residual value and with very high interest. I told them I would think about it and return another day. Next day I went to a bank and got a loan to purchase the car at the residual value. You dont have to go through the dealership to purchase your leased car!
Most brands especially domestic have crappy lease deals. Honda usually has some of the best lease deals out there and I’ve found them very easy to deal with on turn in. Toyota can have good leases but I’ve heard stories about them not being the best to deal with, I’ve also seen Hyundai and Mazda have decent lease deals at times. Honda has $750 in forgiveness for dings and whatever and they don’t charge for minor scuffs and dirt. Scotty is somewhat incorrect about the equity, you do gain equity towards the purchase price if you decided to do that or even as a trade in if you decided to do that. You basically gain equity in the same way as if you’re financing the car, however it most likely won’t matter if you decide to lease the same brand again.
One argument would be that the lease companies can buy a multitude of new lease cars at a fair discount,.whereas I as a single customer can't price negotiate that well. By the way, I for one do not own a private lease. My Toyota Avensis Verso with 1AZ-FE from 2004 with over 150,000 miles is still running well without check engine lights
I was speaking to a man that had a brand new Telsa top of the range model in London UK he as a finance /computer person that travels a lot in europe told me its cheaper to lease for three years than buy all things considered. The lease includes insurance and all charging fees servicing. Telsa charging stations free to use so free fuel! Also pointed out that car too complecated too many sensors to go wrong which they do! Said something very interesting, price will be coming down soon as some company in Germany europe is bringing out a car simalar which is less complecated more reliable and just as good if not better without all the servicing and parts restrictions and costs after warrenty runs out you get with Telsa!
One advantage seldom mentioned is liability. Purchase and you own all liability. Leased, the lease company owns the car and the liability.get in an accident where someone is hurt and Whiplash Charley has to sue GMAC or FMCC, etc.
How is the automaker responsible for someone that is injured due to someone else's driving? You are liable for your driving whether you lease or own the vehicle.
My first car i was suckered into a 60 month lease...with all the payments i made i shoildve just financed it to own...never again. My next car owned 12 years now and no payments for 7 years now
Question: If I was to buy a used car from a dealership, how will I know if it was a formerly leased vehicle? Would the dealership disclose that information?
Hello Scotty! What do you think about the new FORD Bronco breaking tie rods and drive shafts already. Is this just first production problems or simply how these companies put cost over Quality? 🤔
They were never really designed to go off road in the first place. 99% of people who buy these cars don’t off road them. I would suppose the issues you’re describing would be considered driving on some other surface besides asphalt
Leasing makes much more sense because many times if you keep your car 10 years it's usually worth 10 times less than the base sticker price. A 50k car will end up being sold for 5k after 10 years. And buying the car now requires an 84 to 96-month payment. The payments are double that of leasing. Can we get away from the idea that we have equity in a car? After 10 years it's worth 10 times less than the sticker. Plus the maintenance costs over time will kill you. I drive a 2001 lincoln navigator and the maintenance is expensive. I should have just leased a car. I paid $1800 for it but the maintenance cost equals a lease payment.
Scotty, I have a 2000 Monte Carlo LS 3.4L. When I turn the car on the lights for the gear selector, radio, and range indicator turn on bright for a few seconds and then go VERY dim. Also, my high beams stay on all the time and my low beams and taillights instead don’t work. I swapped the dimmer switch and checked every fuse and relay in the vehicle. The battery is new and terminals are tight. I’m at a loss as to what happened.
I always swap expensive parts before the lease end like the cats,alternator, ac compressor etc.iswap with older OEM original parts and this makes me about $5000 . They never detect the parts because the all work properly for the short term.
Yeah, I'm leasing a company vehicle, but it makes sense for me as I write off nearly 100% of the lease payment without a large capital outlay. It works in my situation...
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Valuable Video Scotty,,,,,,,,,,,,🏆
Scotty you probably won't read this cuz you have so many subscribers it's probably impossible to see this but my step dad was a mechanic or the exact same jean jacket as you had the same mannerisms with his hands and was almost exactly the same as you he passed away this year from a heart attack and I miss him more than you can imagine watching your videos reminds me of him so much you are so cool Scotty never change
I'm sorry for your loss. I've recently been there myself. My dad & then 2 mos. later my pupper. I feel your pain.😞Best of luck to you in your healing. It never fully heals, it just scabs over. That's why some days it seems as if the scab has been picked off. Gross I know. Sorry. I'm an analogy kind of gal. Lol
Peace🕊️😘
@@grnpeepers2683 thank u for your kind words . Sorry to hear about your dad and pup. God bless
@@buffalokrisgoldprospecting You're welcome & thank you too!
God bless you my friend.😘
Sorry for your loss
Buffalo ny is crazy dirty
I used to inspect off lease cars for Honda, VW, Chrysler Capital, Ally Financial, and Chase Financial. The stories I could tell.....I remember I inspected a guys car. It was a Honda Accord. He used it for Uber and Lyft. He had 187,000 miles on the car...plus 8 grand worth of cosmetic damage. Now the company I worked for was a third party company. We just inspected the vehicle based on the guidelines of the finance company, but I would have loved to have heard the conversation between him and Honda Finance. I had another customer who's car had 39,000 miles on it. Not bad....but he never changed the oil on the car....ever. When I pulled the dipstick out, it looked like those cookies you see in the middle of an ice cream cake. The guy also had 3 grand worth of body damage. Again, would have loved to have heard that conversation between him and Honda. Now with that being said, doing what I did, I would never lease a car. I would much rather own. I have had way too many things happen in my life requiring me to increase how far I have to travel. Cant do that with a leased vehicle.
However, if you must lease, here are the basic guidelines.
First off, NEVER lease from Ally (Some Chrysler products, and some GM) or Chase Financial (Subaru, Land Rover, Mazda, and Jaguar). These companies have absolutely ZERO forgiveness at the end of the lease. Every ding, chip, scratch, and scuff are all considered excessive. Ally is the worst though. We were trained to find previous body work. Even if the repair was done properly, they still charged $80/panel to the customer. Ally Financial are downright thieves. While Chase financial did not charge for previous body work (it was the only thing they didn't charge for). They charged $45/a dent, and $95/scratch.
Volkswagen is not bad. They allow 2 dents up to 2" and 2 scratches up to 2" per panel. They do charge $250 if your check engine light is on, so if its on, get it taken care of before you turn it in.
Honda Finance and Chrysler Capital are both about the same in terms of leniency. Honda allows 3 dents up to 1.5" per panel and 2 scratches up to 3" per panel. Chrysler allows 3 dents up to 2" per panel, and 3 scratches up to 2" per panel. Now with that being said, quantity does matter with dents and scratches. If you have a Honda with 4 scratches 1" long each, that will be considered excessive. Same goes with Chrysler Capital and VW. If you have 4 scratches 1" each, that will be considered excessive. Tire tread on every off lease company was the same. It had to be 4/32" or greater. Rims were different from company to company, but basically if your rim was scratched over 12" you're going to be charged for a recondition fee.
Now all that being said, if you do lease a car, and do get charged for excessive damage, take my advice and just pay the finance company to repair it. the cost to have the finance company repair it is so much lower than the cost to pay a body shop out of pocket to repair it. Currently, I work as an insurance adjuster for a major insurance company...and the difference in price is huge. For example, lets say you have a 4" scratch on your leased vehicle....the leasing company will charge about $150-200 to repair it. A body shop will charge you about $400+ depending on the shop.
The last thing I will also recommend is NEVER EVER buy a car from NYC, or the 5 boroughs. New Yorkers cannot drive. Period. End of story. And when I say New Yorkers, I mean people from the 5 boroughs. New York State is a lot like PA or VA...lots of open roads, so they know how to drive in NY State. Not only is NYC very damaging to the car mechanically, but I cannot tell you how many times I have seen a car from NYC with a clean history report, but the car was clearly repainted...horribly. I have seen so many NYC cars with mismatched paint, peeling paint, heavy fish eye and orange peel. Hell, I remember I had one car I looked at where the entire front end was poorly redone. In the front of your car, you have a main structural component called a radiator support. It is designed to crumple and absorb impact in the event of an accident..well on this particular vehicle, the radiator support was completely twisted and warped. This vehicle was a rolling safety violation. Take my advice, if you see a car from NYC, run away from it fast.
Thank you James Valenti, very cool!
Very good info Thank you for the time it took to write ✍
Thank you for todays lesson! I bet you have many more stories that are real doozys. Your old job sounds like it was interesting, seeing how the "IDC" (I DON'T CARE) part of humanity lives when it comes to their cars. 😲😲😲
This is some real good TH-cam knowledge right here. Bravo.
I drive a Mercedes SUV, an older one, a really cool one, right out the door off the lot, a giant $1500, everything included. I am driving this, 2.5 years later, have spent around $300 in parts plus normal fluid changes. I drive something that does in absolute's destroys the on and off road for most new vehicles, new vehicles that are on that fancy lease and worried about getting dented or scratched.... Do Not lease unless it's something to snag for a year, otherwise you are not impressing anybody and are one upped by some cheap Mercedes driver like me...
As a business owner, leasing makes sense for my company. We don't want the asset on our books and have to deal with depreciation. It is beneficial for us to have a fixed monthly price that is fully deductible. We also don't want to repair vehicles out of warranty. Ford used to lease used cars and cover them under a warranty. That was great, but they ended the program.
fully deductible = IRS is paying for your lease.... Also a business owner here, I don't write off things like that, the IRS is not my business partner, nor do I ask for hand outs from it. I see write offs for sporting events, expensive meals, really a wide range of things, purchased or in your case leased. These things should never have been in place, it's absurd.
Is it true there is a certain weight limit for it to be tax deductible? Or would like per say a sports car qualify lol
@@zalien6 depends on your business.
@@saucerguy3 The IRS doesn't pay for anything - They take! Leasing is a business expense!
@@saucerguy3 tell jeff bozo and the other billionaires this
1 thing to note is NEVER put any money down on a lease. If it gets totaled out in the first month you lose any money put down. Don’t fall for the tricks of salesman. You don’t own the car, you’re essentially renting it, pay month by month. Just because you’re a “good driver” doesn’t mean that other people are, have seen many people lose money this way
Gap insurance covers that
That's a good call.
@@EM-cz4rd no it doesn't. GAP also needs to be paid for, so GAP cost plus big down payment vs "do not put any money down", obvious choice.
Good advice, max down payment you should ever put is 1000-1500 and put the rest as a security deposit to lower your money factor. You’ll get all of that back once the lease ends or car is totaled.
So trading in to lease (to eventually finance/buy) is not a good idea?
I think it really does depend.
If you don't put more than 10K miles a year and you like to always have the newest car, meaning not more than 3-4 years old. Usually never having to deal with something breaking and needing to take to mechanic. You only need to do oil changes and make sure to keep it in good condition, which most would if they finance to buy as well anyway. And if you don't have a down payment on it.
Then leasing can work out and you just make sure of what Scotty said, look up and see there is no hidden crap in the contract.
Yes you always have a monthly payment. But reality is, that for many people that is already the case. Many car loans for financing now runs 72 to 84 months. That is 6 to 7 years. I guess you can get another 6-7 years out of the car. But you could start to run into the "Need to replace that part and this part and so on". Out of warranty. The car would be 10-14 years old.
What I am getting at is that for people that would like to have a car that is basically new every 3 years, don't drive too much other than work, grocery store and occasional trip and you can get decent payments. The price for that is you don't ever have a time of a fully paid car, but you always have a "new" one.
Or you can save up the money, buy outright avoiding fees and interest and repeat that process on your own. Be your own bank
I owned my first vehicle for 16 years. My f150 made it through college and into my 30s. When I gave it up and felt like I was giving up a pirate ship that took me around the world on adventures. It was sad.
My first car was an ‘02 Honda Civic LX. Drove it for 18 years before finally buying my second Civic. Awesome little car! It was a fantastic buy.
Why did you give it up though? 🤔
Longest I've owned a car was 5 years. I owned both my previous cars for 5 years and miss them both sometimes, especially my 17 civic coupe 1.5T. To your point, yeah there were so many great adventures had in these cars. It stinks to watch them go
I love these educational videos! So much knowledge being passed every day. Thank you Scotty!
Leasing is fine. If at the end of the lease you have positive equity, but out the lease and sell it, trade it or keep on driving it. If at the end of the lease you have negative equity, toss the keys back to the dealer and it's their loss.
Finally someone gets it.
Over mileage at the end of the lease can be handled two ways.1) Roll the extra charges into the next lease and then ask for a credit for the extra charges. If they want to lease another car today, they will forget the extra mileage. 2) If you like the car and there is nothing whatsoever wrong with it, you may wish to buy it outright. In that case there are no mileage charges.
Scotty - During “Chip-Shortages” with prices inflated by 1/3 those already on leases have the option to buy their car at the pre-set amount. Usually leases don’t save money but now it’s different.
@Zach “NOW” is the exception until normalized prices return. Leasing is also good for rich people who get tax advantages. And companies that provide company cars. And leasing at MSRP isn’t happening now - even factory-specials are getting “adjusted”.
Leasing makes sense if you’re going to drive 50k miles a year and beat the crap out of it. Many leaders are for business for vans and trucks.
@@angelgjr1999 it’s just the opposite. I’ve leased cars in the past and if you go over the yearly mileage or beat the car to death it’ll cost you big time.
Yup. Sold my 2017 f150 way above KBB and leased a 2021 f150 for cheaper than it would cost to buy new. After my 3 years if the market is down I’ll buy another new truck, if the market continues to inflate I’ll purchase the truck. Win win for me. Another benefit no one thinks about is leasing shoes up on your credit for only the value you’re leasing not the entire value of the vehicle. It’s good to keep your over all loaned money lower than if you were to buy it.
@@1badhaircut I just Leased at MSRP on a Ram.
It’s not stupid to lease when its a new Mercedes/BMW/VW/{Insert Non-Toyota endless money pit here} and you can’t be talked out of getting one for the vanity. And you have enough money to light on fire! 🔥.
Or if it’s a rational business expense - like a specialized vehicle that is prone to breaking or only needed for a certain period of time
It’s still stupid. People can drive what they want, but there’s a reason so many people are in debt up to their eyeballs.
How is vanity even a thing in 2022?
@@lesterparker1594 Which is why I would condition leasing if you really have money to spare (or if it’s a rational business decision). Most people that lease don’t qualify - which is exactly to your point!
And also why automakers/dealers love to lease! You know it’s a raw deal if they are pushing you hard the moment you walk through the stealership doors
Yes...first try out luxury cars before owning it. Leasing works in this case. If you find that luxury car to be reliable then buy it at the end of lease term🤷♂️
I’m an auto mechanic, and I can’t tell you how many people (probably 95%) are way overdue on services or treat the car like crap and don’t do the maintenance. I’ll give them some recommendations but not force them and they’ll say “eh it’s just a lease”. Sir it’s been 15k since your last oil change and you are leaking coolant everywhere 😂😂
I used to see the same thing at the car dealership as a parts guy, theyre so tired of making payments that doing anything else to keep the car going is the last thing on their minds until something breaks
Heck no, I could never! I am the type of person that has to get things done right away at the time I am supposed to!
@@FCT8306onTwoWheelswhy would you get tired of making payments unless you cant afford the car in the first place.
they all said its because they wanted to have a new car every few years and look good basically at all costs and that the cars would just stay reliable by getting new with every lease they get. I had a coworker ask me if they should buy out and finance the rest of their lease because of money and being unable to save a dime after making the car payment. They ended up getting another lease to ensure the car was reliable. @@ShakTMT
so follow the maintenance schedule?
I need a car for personal use, not business use, so I definitely prefer to buy outright. My first car was an ‘02 Honda Civic LX I bought for $16K. Drove it for 18 years. It was very reliable and cheap to maintain. I paid off the loan early and drove it for 14 years with no payment. Just bought a brand new 2023 Honda Civic Touring for cash. No car payments! 🥳 I plan on driving it for 12-15 years.
Leasing is a tax for those bad at math. Poor ppl renting a car they can't afford. It's literally the most expensive way to drive a vehicle other than renting it daily. "muh monthly payment" imagine paying $18,000 to drive something 36,000 mi and then repeating that over and over again.. that would be literally paying $180,000 to drive 360,000 miles in a typical $30,000.00 vehicle.
@@captinbeyond haha good point
@@captinbeyond lol "I can earn more money than my interest rate with my extra money"
The only time leasing makes sense is if you drive 60k miles a year so the depreciation would kill you.
@@angelgjr1999 explain this to me? A typical lease limits you to 10k or 12k miles per year or 30k to 36k miles for your standard 3 year lease. Any overage costs you $0.15 to $0.25 PER mile. You’re blowing that out the first year at 60k miles and have already run up $3,600 in the best case scenario in overage costs. Not to mention any other fees for “excessive wear and tear” and damage (cracked windshield, banged up bumpers, curb rash on rims, etc). I drive 25k miles per year and leasing has never worked out in my favor when I did the math.
@@rogde5985 I see your point. I didn’t know there was a mileage cap on leases. Kind of defeats the whole purpose if you ask me.
It made sense for me in this screwed up car market. I was looking for a used car for around $8-12,000. I found a three year lease on a 2022 Hyundai Elantra for about $11,000 after three years. And the oil changes and tire rotations are free and I won’t have to worry about maintenance that comes with 100,000 plus miles. But I agree it’s definitely not for everyone.
But after 3 years you have nothing to show for it and your only option is to pay more money to keep the car longer or get a different car. Granted used car prices are inflated, which I get, but typically if you buy a reliable car (I recommend something Japanese) it will last you many, potentially payment free, years. And from my experience, a lot of the maintenance car manufacturers recommend is not needed. It's just a way to make more money through servicing. For example my Mazda CX9 manual recommends the spark plugs be replaced every 40K miles. My car has 160K miles and is on the original plugs. Keep up with the fluids and a majority of the time you are good.
@@DwithBoost you typically lose the same value either way.
@@mikebracco890 In this market, if you lease to buy, the Right vehicle with high RV, you potentially are getting a better bargain.
@@DwithBoost you have "equity" in the form of a higher than expected value in some cases. You can roll that into the next lease or whatever you want.
You could've bought it outright for twice what you paid for the 3 year lease. What sense does that make?
My Father started buying off lease cars in 1964. He found a lease company (not a dealer) and they had a customer that bought new Imperials every 4 years. The first one was a 1959 4 Door Hardtop a beautiful machine in Dusty Rose and every 4 years after he would get a replacement . I was 10 when he bought that car (He always paid cash) and it made me a Chrysler man . It kills me to see what has become of such a great company that was based on engineering and style.
If you leased a car 2-3 years ago you may want to buy it at the end of the lease because the residual value will be less than the market value. You can then use the car to trade in at a higher trade in value or sell it to Carvana or the other online car acquisition companies for more that the lease buyout. That is the advantage you have now due to the current higher used car prices.
Great advice!
If you have an extra vehicle you dont need. But right now you sell high buy high too.
I will be purchasing my leased 2020 ford edge in 2023 at 36 months for $19,888, $8,000 below market.
I leased a 2022 odyssey. Drove it for 6 months, sold it to another dealership and made a grand on it plus what i paid in that 6 months to drive it. Thats how crazy the market is right now.
How could you have sold it too another dealership if it wasn't yours?
@@lovellmills7959 you can sell a lease. They pay a dealer buyout. Ive sold all my leases to avoid the return fees. No point in returning a lease especially on a car that holds value. Youll almost always have equity in it.
I bought our cars in 2014 - we paid them off within the year and have enjoyed almost 10 years of not having any car payments - the only cost being oil changes and a 1x break job. Since we drive so few miles (both cars have 60,000 miles), we have very little cost associated with ownership of the vehicles.
I'm still confused how Scotty Kilmer is just a mechanic but still manages to create these professional video contents. There must be lots and lots of hard work and man power labour hours involved. This is just super creative. The comments and how it all flows with the videos is just superb.
You're the man Scotty.
he has 5,700,000 subscribers. utube pays him. I assume he can pay assistants to help him. he's great!
Just a machanic? Does that mean he’s not human and have other interest.
You can hire overseas editors from Vietnam, India for like 200$ per video edit
He pays people to do it like every other top youtuber...DUH!
@@TreFree-n7o probably outsourced to some Indian or Vietnamese company for 1/4 of the editing cost of the states
Leasing only makes sense in a very few situation. 1 - You get a great deal on the lease and will be under mileage upon lease end. 2 - Need transportation and are only going to be in an area for 1-3 years. 3 - The lease program coverage is excellent in terms of dings, dents, etc.
You’re basing this on the idea that everyone’s motivation is cost. And that’s simply not the case.
If you don’t drive a lot, like swapping for new/nicer vehicles, and are comfortable with a payment, I think it’s great.
Got a real kick when businesses out in Cali started a rent to own custom wheel and tire business back in the 90s! Thought to myself WTF! By that time tho, rent to own businesses were already doing the same thing with everything from couches to refrigerators. Only in America….live for today!
"YEA I GOT IT ON MY CAR"
Scotty, please do more everyday finance videos! I teach in a biz school, and it is amazing how many students are blank on practical finance.
I'm a mechanic and I really like your channel
Some great info here! A few people I know had leases before the pandemic and actually made out pretty well since they were able to buy the vehicle at the end of the lease only to sell it for a lot more money!
Yes but most of those people end up having to buy or lease another car that is overpriced so they never really get ahead
Down payments on a lease: They do not reduce the basis on which the lease cost is based on. Therefore the total cost of the lease is the same, but the downpayment helps cover the cost of the total payment, spread out over each month. You're essentially giving the lessor a free loan. In contrast, a down payment on a financed purchase does reduce the basis for the interest cost (ie: loan size) and will therefore save on total costs.
Great information as usual. Scotty, the automotive expert at all points and angles. I wished I lived near him so he could work on my cars. Both of my cars are excellent. 2004 4 Runner, original owner and 2015 Toyota Avalon. Fantastic vehicles. I bought Toyota before seeing Scotty. I always knew they were very good products. Scotty is correct--they are in general the best vehicles made as far as dependability.
People who lease cars already knows and don't care. They want a new car every 2 or 3 years.
Scotty is a great mechanic with the right tools to fix cars.
Most of us know little about such repairs. Also, a car usually lasts at least 3 years before having trouble (Cadillacs fall apart after 300 miles or a month). Since we don't know if a repair will work or if the mechanic knows his stuff, wouldn't it be better to turn the vehicle in after 2 or 3 years?
What? My car is 10 years old and 130k and I never repaired anything. I just drive well and do proper maintenance, and I’m sure I have at least 3 more years ahead without problems. Just learn to drive
@franco1240 Have ypu ever driven on Michigan streets. A giant pothole can snap an axle very quickly.
@@johncipolletti5611brother thats not a problem exclusive to Michigan. That can happen anywhere. Stop acting like your opinions are facts 😂
My friend leased a 2006 Nissan Altima Se-r and customized it because he planned on buying it anyways at the end of the lease. At the end of the lease he came back to the dealership ready to purchase it and they told him he violated the agreement by customizing it and he was going to have to pay thousands of dollars in penalties. But they would wave it all if he bought a brand new Maxima. That’s how the dealership got him and made him buy a brand new car and now they were going to make a killing on selling a customized Altima.
It all seems like gambling right now but in this market, leasing seems to be the better choice. At the end of the lease term -- assuming you stay in your mileage limit and don't damage the car -- the car market will hopefully be more stable and purchase power could be greater. I feel like buying now would put you underwater and keep you underwater until you paid the thing off. I hate throwing money away so I'm not sure which is the bigger risk, leasing or purchasing an overpriced car. Do we have any kind of idea when the market is going to turn around?
I want nothing to do with local mechanics. And i also have zero interest in becoming mechanically literate. So leasing is the best move for me. I'd rather jump into an active volcano than deal with an auto mechanic nonstop for the rest of my life.
as Scotty said, NO MONEY DOWN!! also make sure lease has GAP. before turn in get a quote on value to see if it makes sense to buy. Many cative finance companies don't let the dealer pay more that the contracted amount for the buyout. Tires are a big concern as most will be close to wearing out close to lease end based on milage. There is no simple answer but I had to replace tires shortly before lease end. i would have changed them early and kept old ones if i had to do again. Leasing is always better to do if you own a company and get some kind of write off
You might want to makesure because I'm all most positive that GAP is already in a your monthly lease payment.
I leased my SUV back in 2018 and given the buy-out cost was set pre-pandemic, I actually made out buying the car at the end of the lease. Given the shortage of used cars, the dealer would have put it out on the lot for several thousand more than my buy-out price.
Did u buy it out on the spot or continued monthly payments but towards owning?
Same...can buy for $16k while they will put it on the lot for $26-28k.
If you are a low mileage driver and come in well under the lease limit then it makes sense to buyout at the end of the lease. You pay half the finance charges of buying it with a loan. The lease buyout option is priced at the mileage limit on the lease. In my case, I had a 3 year lease for 30k miles based on a prie of $23k. The buyout was $13k. Since I only had 15k miles, I bought it for cash. The trade in value for my car is $23k. Replacing it would cost $30k. Getting an EV equivalent would be $40k. So, in these uncertain times, leasing can work to your advantage.
One of the only times in history that that was the case.
Lucky
Today I learnt something new, like every other video Scotty makes . These are soo informative
I leased a car once. About 8 months before the lease was to end the dealer tried to get me to buy it out, but not at the end of the lease amount! So I said no and 2 months later they called again and they agreed to the end of the lease buy out, saving me 6 months of lease payments. Yes i took the dealer and never looked back or did a lease again. The last new car I purchased, before the crazy market, they had a 72 month no interest so I used their money and left mine in the bank!
More than one car salesman/leasing agent has told me that dealerships LOVE it when individuals, companies, or government agencies lease vehicles from their employers as THAT is where the dealerships and their corporate over lords make their REAL money as opposed to sales to individuals. From what I have been told, dealerships love leases because they make money off such vehicles at least twice, and sometimes three times, because off lease vehicles can be used as loaners OR sold at auction for a profit because they are, generally speaking, relatively low milage vehicles that were serviced, under contract, by the leasing dealership and accurate records exist on those vehicles. One, now comfortably retired, leasing agent even referred to those who entered into lease agreements as the dumbest people he ever delt with because they didn't bother or could not do the math.
I'm pondering leasing vs financing a tesla at the moment. The lease payments are almost $200 cheaper and that's with $0 down on a lease and $4500 down on financing. Besides that fact, I've never owned any type of electrical vehicle before so I'm not even sure if I will even like it. If I like it I will buy the next one. I usually swap cars every 2 or 3 years anyway so I think it just makes much more sense to me.
I BOUGHT my car new in 2005. I finished paying it off in 2008. I still have it and it runs great. I haven't had a monthly car payment for 14 years! I do spend about $100 average per year on maintenance and my car insurance runs $45 per month. Buying was the right choice for me. By the way, after 17 years, I just passed 40,700 miles on the odometer. If I were to have leased, I would have paid for 170,000 to 250,000 miles. That would have been a huge waste!
And the market value of the car at end of lease would have been higher, so you would have gotten cash back.
I've always been against leasing and have advised against it to friends and family. Just not the best way to be efficient with money.
exactly, i can understand if someone doesnt have tons of money to buy a car but still, leasing (in my opinon) is not a good way to go, if im going to be paying a crap load of money for a car i want to beable to keep the car not give it back in 3-4 years
I guess with me putting 250,000 miles on a car in less than 5 years, leasing a car wouldn't be a good idea for me 😅😅
Same lol
Damn 250k ,what car do u usually buy?
@@CRAPO2011 He probably buys Toyota or Honda.
@@tbelding His gas is more expensive than his car
@redwhite_040 actually I don't have to run higher octane since I drive a LX civic 😁😂
Bought my 2010 Hyundai touring Elantra for 5k back in like 2015 with only 45k miles on it. It now has 140k miles and still runs great. It’s only had major work this year because I now live in nyc and these potholes destroyed my struts/tire rod and tires
Great advice Scotty. I had never bought a new anything that moved until I got a S10 diesel new truck. The dealership said the payments were $250 a month. I thought it was 3 years, so I agreed. 3 years later, I drove back to the dealership to ask them why I was still paying? Yep! They were working on a 5 year financing. Like I said: The only thing I have ever bought NEW.
You thought you were only going to pay $9000 for a new truck?
$250 x 36 months = 9000
@@HamzaKhan-xj1mi what about the interest?
S10 diesel what was that like a 1984 model year?
@@HamzaKhan-xj1mi Had a $3500 trade-in with that. Interest at 9%. I got hosed pretty good.
@@CRAPO2011 85 had 2 liter diesel 5 speed stick. 30 mpg. Slow and slower. 100K miles had to replace clutch master cylinder twice.
I’ve bought and leased. The convenience in leasing for me is that I don’t have to rely that a scumbag dealer rewound the miles on my used vehicle maybe twice or the car had major frame damage that the dealer patched up. Both have happened. I will only buy new from now on as you just can no longer trust dealers.
Or you can sell the car. Many people don’t understand this, but as long as a dealer or person is willing to pay you more than your pay off you win. Done this many times and made profit doing so. Also leasing also means you don’t get stuck with maintenance costs for most cars. In addition (prior to pandemic/supply chain issues) the amount you pay for a lease is fairly close to the depreciation you eat buying a car new and driving it off the lot.
You get free maintenance and warranty for 3-5 years anyway when you buy a new vehicle. Leasing a car is a big scam.
@@ibrahimbedwan1557 no that's not true. You have to know what you're doing but it's not a scam but just like with purchasing, people get taken to the cleaners. You need to understand money factors, pre tax dollars and many aspects. Such as the car's value over time to do it correctly but it can be done. I am living proof and many many thousands of dollars selling leases. Need to also understand your warranty of power train vs bumper to bumper.
The only reason you should lease is to drive your vehicle locally and you have another vehicle or two to drive around on roadtrips. In other words, to save mileage on the cars you actually own
@@danielmeador1991 That’s what I was thinking. I’d enjoy having something like a BMW 7 to drive,but I’d never buy one. I’d also never buy a car that had been previously leased unless it was an extraordinarily unbelievable deal.
I have leased four times. It met me needs at time. Have never been taken advantage of. I had worked for a small and major auto leasing firm prior to leasing for mu own needs. Just purchased my last lease vehicle and with the high prices and a low residual value I scored. However I will be keeping this vehicle for an extended period of time.
Moreover, insurance premiums are much higher in a lease. Pay it cash is the smart way to go even though it's an old car.
Good video but you should also mention the scenarios that can allow you to get ahead with a lease. For example, your lease agreement may often let you buy the car at a lower price (the residual value) than the current market value. This is especially true if you drive fewer miles than assumed on the lease. If you're willing, you can buy the car at the end of the lease and sell it at a profit, but there is the hassle of being "in between cars" while doing so. Or, you can just buy it for a lower price than anyone else is able to and keep it. Imagine buying a low-mileage car that was turned in after a 3-year lease for $17k while the dealership is selling the same car for $25k. You can also trade up with no money down by leveraging that value. You are under no obligation to buy if the current market value ends up being lower than the estimated residual value on the lease agreement. In this way, the leasing company assumes the risk of what may happen to the car's value.
They’re not assuming the depreciation risk. Lol. You can buy it cheaper than MSRP after your lease it up because you’ve already payed for that depreciation with your payments.
@@InternetUser._ you paid the *estimated* depreciation
@@InternetUser._ It's ok to ask questions when you don't know about the discussed topic. When leasing, there's this thing called Residual Value, which is the car's projected value at the lease's end. Your monthly payments are based on that projected value. So you're mistaken; they ARE assuming the depreciation risk. If you drive fewer miles than agreed when the lease is up, you can buy the car at a better deal than the initial financing offer because it's pre-set before you lease. You know the day you sign for a lease how much they'll want from you if you want to purchase the car when the lease is up. Those who have been doing this for a while always lease vehicles with high residual values, so when the lease is up, they can buy it at a low price and then immediately resell it at its current market price for some easy pocket change.
@@johnjr.5241 🥱
Why @3:25 and @3:40 the car is driving on the wrong side of the road?
Many of the vehicles in the video had right hand side drive (steering wheel) and were driving on the left side of the road.
I noticed that too.
Scotty likes JDM
I like getting my stuff at Rent-A-Center. Sometimes the repo man comes, sometimes I rent for 10 years until I own it.
I never thought I would lease a car. In 2020 I wanted a new car, since my last new car was purchased in 1981. Always saved money buying used cars for cash. I decided on the 2020 Ford Edge AWD SEL. Ford was offering zero interest for 72 months, but you received no discounts off MSRP. The lease deal gave you $4,500 off MSRP, with $4,100 down, the balance owed at purchase was $32,524 my payment is $351 per month. I always planned on purchasing at lease end, so mileage limits were never an issue. At lease end I will purchase the Edge for $19,888. So the amount I paid off during lease $12,636 was interest free. Timing is everything the 2022 Ford Edge AWD SEL lease is now $4,300 down with a payment of $459 per month.
For you seniors out there, I read that only Mercedes allows for early termination of a lease due to death. Any other lease means that if you die your estate must pay the balance of the lease.
Carvana is buying your leases when you’re done with them for $4-6K for the residual on your leased car. It’s not always a bad idea, it’s just not for those who don’t want a new car every 2-3 years. For business owners they can write off the car as a business expense and can get tax deductions. Nothing with money is cut and dry. Even NFTs are dumb and smart at the same time, just ways to navigate it
The Pro Day Trader: When businesses can't write off car expenses for purchased cars, be sure and get back to us.
@@rogergeyer9851 Over 6K pounds and buy it under your LLC and you’re gucci
Good call on Carvana. They're offering me $3k more than the dealership. Looks like I'll profit off of this lease even more than I thought.
You lease for 3 years. Your payments are basically paying the car down. It shows on the contract how much the car will be once 3 years hits to purchase it. Once lease is up or even before the lease ends you can end up buying the car for a lower price. It is not a lifetime. Financing first is a lifetime because you have a high APR and usually people finance for 8 years or more. Plus the payment is super high. The loop hole is leasing first. Then buy it. Most people always finance first though because they are afraid of leasing and think they will never own the car. Or they get cranky and feel like they are just renting it. Ive had 7 cars in a span of two years lol no joke. All leases. The beauty of leasing is you can trade it in whenever you want. As long as you pay the negative equity on the car which usually happens when you want to turn the car in way early before the lease ends. No penalties, as long as you trade it in for another car. Does not hurt credit score either. This is the kinda info that dealerships do not want you to know. So take my advice or not. Good luck
Agreed. Dead money down the drain just to get it started and a premium price if one wants to keep it after lease is over. Total waste & something I'd never consider doing unless one has a traveling type of job etc.
Leased a Toyota RAV4 in Sept. 2019. Purchase price was $28K. Final buyoff after 3 years will be $19K. Only put on 15K miles in that time. Car is worth over $33K today in this crazy environment. I'm paying off the lease early, will sell the car and buy a brand new one for the same price as I sell the used one for .... and move up a trim level as well.
Miles on a lease don’t matter. People don’t know you can trade in your lease. Depends on the manufacturers though
If you're the type of person who needs to get the new iPhone (or car) as soon as it comes out, leasing is not a good option. Some really deep soul searching and maybe counseling are a good option.
LISTEN TO SCOTTY, PEOPLE! He's driven down these dangerous unmapped roads so the rest of us don't have to. 😎 Thank you, Scotty Kilmer!
This is a very thorough video. I think. It is a very good format. Keep up the good work Scotty.
There is a financial guru who doesn't like the idea of leasing cars. She recommends buying a car and paying it off in 3-4 years. Leasing is not for everyone. When you lease a car, you have to follow rules such as how many miles you can drive and you have to take to the dealer for maintenance.
The best financially seems to be getting a car known to be reliable like a Civic or Corolla 3-7 years old. My last Civic I bought 7 years old for $5K with 104K drove it for 8 years 75K miles and sold it for $1500 with bad tires. Only did struts and the valve cover gasket twice besides regular maintenance. Probably only cost $600 per year including depreciation.
My Ford lease has zero requirements to have the car maintenance performed at the dealer. The only thing that has to be done are 4 oil / filter changes and air filter replacement. Nothing else should be required in 36 months.
Hey Scotty. This is Jim in St. Louis. Thinking about moving to Clarksville TN when I retire. Have friends that love it.
Holy crap I learn a lot here in the first 20 second than I do anywhere else
That's sad.
@@mcc7762 crazy people for get what common sense is. Here let me refresh! Common sense is the basic knowledge you understand as soon as you have sense of reality(usually starting at 2 yrs olds).
@@mcc7762 you basically just repeated what I said in a fancy way. Congrats smartie 🙏🏾🙏🏾
The only time I'd even consider leasing is for a Tacoma or Tundra. I don't drive all that many kms (yes, Canada) per year and I look after my vehicles. Say the buyout at the end was $20000. The truck would likely be worth 25K (Canadian $) at the dealer, so I could use that money as a down payment on the next vehicle. The truck market here where I am, Newfoundland Canada, is crazy. A lot of the used trucks are being purchased by a couple of different guys who, in the end, ship them to the U.S. for profit. I know a guy that got 40K for a vehicle they only owed 25K on. Another got 26K for a 7 year old truck that was paid off. It would be hard to get any new truck here for less than 55K.
Going with the Supra , leasing a car with a BMW engine is a far better idea than owning one.
Yes🤣
My 34 year old son has a 2009 BMW M3. He says I cannot afford to own a BMW. After seeing some of his parts costs for upgrades, I agree. He just installed a carbon fiber driveshaft $1,000. Enjoy the Supra.
This is like a dad giving his son some car advise. Awesome!!
I've always bought cars that were someone else's lease returns. Check the carfax, previous history, depreciation already kicked in, bugs and recalls worked out and I have the leftover factory warranty. Best part is, for example. I bought a grand cherokee in 2019 with 32K miles that was a lease return, now in 2022 with the demand of cars being up, my grand cherokee is going for the same amount today that I paid in 2019, but with 80k miles while mine wasn't driven much due to the pandemic and only has 48k miles..so in essence it should go for MORE than what I paid in 2019 in today's market.
Oversl is a good video but it’s focused on “why you shouldn’t do a lease”. Important details where left out like: 1.) You’ll know the residual value of the car you are leasing from day one, meaning at the end of the lease you already know how much the car will worth in case you want to do a lease buyout, it and this number WILL NOT change. 2.) Most brand pays for the GAP insurance(Value of your loan - value of the car) when you lease, so if you end up totaling your car the next day you lease it, you won’t be left out with a debt of a car you don’t drive anymore. 3.) Life happens, and when it does, I’ll prefer to find myself attached to a car for 2-3 years than for 5-7. Lease is not for everyone, but for some of us is definitely the go to option. 4.) The different in monthly payments between miles allowance is literally $5 increase when going from 10k, 12k or 15k, depending on your driving. And there is way more to know on how a lease will definitely make sense for you. Do your research BEFORE going to the dealership, please! They’ll eat you alive if they smell that you have no idea about buying/leasing. Cheers!
My first lease car was a 1985 Honda CRX Si. I didn't even know what leasing was all about but in this case It was a no money down 15,000 mile per year 3 year lease for $195. per month. The residual payment at the end if you wanted to keep it was $3600. If I was going to purchase it instead of leasing it with a $3600. down payment the monthly payment would be $235. per month for 3 years. It was a no brainer. I keep my cars pristine so at the end I paid the $3600. and kept it for another year. In 1990 I traded it in for a new Acura Integra GS. They gave me $5700. for it. Companies have since figured out the lease game so you can't get that kind of deal today.
bruh, $200/mo car payment in 85 was expensive, its the equivalent of a $500 /mo car note now lol
@@portugeeguy25more like 700.
Leasing is generally stupid for the average person. We got burned on a lease from Gwinette Audi in Atlanta... jacked the price of the car up, bastards. I love when Scotty does these types of videos.
Always say you’re financing until time to sign. If price incr for lease (penalty) then walk. ALWAYS be willing to walk away from a deal. More cars, houses, condos etc avail. Your money, your choice.
Scotty you can't make a blanket statement of which is better.
Depends on wants & needs.
I have a 2006 Ford Taurus 160,000 miles. I'm retired, now drive just a few thousand miles a year and don't need to have a new car.
My wife was driving a "fun" VW bug convertible but was tired of having to take it to the shop and I was tired of hearing about it.
New car, lease v ownership.
People make the mistake of , "Oh, if I lease I can get a more expensive car for "the same price" (monthly payment).
The key is IF you want to keep a new car - with no maintenance costs or headaches - lease the same car for less than you would buy it for.
Dealership doesn't care, they are selling the car to the lease company instead of selling it to the finance company.
Ownership people - who don't understand - will say, "You don't build "equity" with a lease.
The only way you build equity in a depreciating asset is to pay more each month than the car depreciates.
And actually, same as a purchase, you CAN build equity in a lease. Just as if you bought/financed a car with minimal down payment, what's it worth compared to the payoff?
I called a dealer in 2021, 6 months left on the lease but of course the used car market was hot.
My original dealer told me I'd have to come up with additional "Cap Reduction" or my lease would go up.
Called another dealer about 100 miles away. Over the phone, told him my mileage. The value of the car was high enough, the dealer "paid off" the leasing company and reduced the Cap Cost - think purchase price - by $1500. We drove to the dealer, swapped keys and got a new vehicle with a smaller monthly payment than before.
BTW - now my wife's lease has about 8 month's to go. We just talked about it. With used car prices going up, it may make sense to buy the "old" one for me to drive - the purchase price was set 2 years ago - and we'll just lease her a new model.
Good information. I know some neighbors who leased cars and regretted it. I bought my wife a leased RAV4, it was only 2 rs. old had been leased and well maintained.
so if you arent going to use it for edge cases (like using it for uber) and dealing with scammy providers (seems like this is much more of the in USA than say UK), it removes quite a lot of the negatives.
I get tired of cars after a few years. Continuously rolled over more and more negative equity (high mileage driver) until one day I had to pay the piper and give up $8k in rolled over neg equity.
Lease gives me flexibility to choose to give it up or buy it out.
Plus, netted $4k off my last 4Runner lease (due to equity GAINED over the last three years).
Might never go back to a non-lease purchase ever again.
You can't possibly be more broke thinking that way. You'll never be able to not work to make payments
@@lazstan lol. You have zero clue about my financial situation.
If you need/want to have no car payment, that’s cool. You do you. I don’t mind having one, it’s already built into my budget.
Well Scotty I did lease a car and it was a Subaru Impreza manual and I’m glad I got rid of that car after the lease was over because I had to deal with my new truck I don’t have 2000 miles on it and it was a Toyota Tacoma but it’s fine now
I went to the Porsche dealer and try to see the leading option for a Taycan, crazy enough that the three years leading is at 2156 per month, but the monthly payment for buying that car is also 2156 around, maybe a couple hundred more. Not a lot less than buying a car.
I leased a Crosstrek and when my lease ended i went back yo the dealer to purchase the car and they tried to sell it to me 2000 dollars over residual value and with very high interest. I told them I would think about it and return another day. Next day I went to a bank and got a loan to purchase the car at the residual value. You dont have to go through the dealership to purchase your leased car!
I didn't know that. Good to know & thank you for the info.😘
Not all makes
Most brands especially domestic have crappy lease deals. Honda usually has some of the best lease deals out there and I’ve found them very easy to deal with on turn in. Toyota can have good leases but I’ve heard stories about them not being the best to deal with, I’ve also seen Hyundai and Mazda have decent lease deals at times. Honda has $750 in forgiveness for dings and whatever and they don’t charge for minor scuffs and dirt.
Scotty is somewhat incorrect about the equity, you do gain equity towards the purchase price if you decided to do that or even as a trade in if you decided to do that. You basically gain equity in the same way as if you’re financing the car, however it most likely won’t matter if you decide to lease the same brand again.
do a present value calculation on lease vs buy
One argument would be that the lease companies can buy a multitude of new lease cars at a fair discount,.whereas I as a single customer can't price negotiate that well. By the way, I for one do not own a private lease. My Toyota Avensis Verso with 1AZ-FE from 2004 with over 150,000 miles is still running well without check engine lights
I was speaking to a man that had a brand new Telsa top of the range model in London UK he as a finance /computer person that travels a lot in europe told me its cheaper to lease for three years than buy all things considered. The lease includes insurance and all charging fees servicing. Telsa charging stations free to use so free fuel!
Also pointed out that car too complecated too many sensors to go wrong which they do!
Said something very interesting, price will be coming down soon as some company in Germany europe is bringing out a car simalar which is less complecated more reliable and just as good if not better without all the servicing and parts restrictions and costs after warrenty runs out you get with Telsa!
Buy!!!! And prefer to buy pre owned! Keep til wheels fall off
Leasing may not make sense for a lot of people, but it makes PERFECT sense for me and my situation.
One advantage seldom mentioned is liability. Purchase and you own all liability. Leased, the lease company owns the car and the liability.get in an accident where someone is hurt and Whiplash Charley has to sue GMAC or FMCC, etc.
Good to know! 😘
How is the automaker responsible for someone that is injured due to someone else's driving? You are liable for your driving whether you lease or own the vehicle.
My first car i was suckered into a 60 month lease...with all the payments i made i shoildve just financed it to own...never again. My next car owned 12 years now and no payments for 7 years now
Question:
If I was to buy a used car from a dealership, how will I know if it was a formerly leased vehicle?
Would the dealership disclose that information?
Don't know about your country but here in England I figured it out from paperwork that came with my vehicle - MOT stamps etc.
Good video about leasing.
Always love your stories!
Hello Scotty! What do you think about the new FORD Bronco breaking tie rods and drive shafts already. Is this just first production problems or simply how these companies put cost over Quality? 🤔
Hello, it's "built" in Mexico!
They were never really designed to go off road in the first place. 99% of people who buy these cars don’t off road them.
I would suppose the issues you’re describing would be considered driving on some other surface besides asphalt
I was just think8ng about doing this, so glad this popped up!
Leasing makes much more sense because many times if you keep your car 10 years it's usually worth 10 times less than the base sticker price. A 50k car will end up being sold for 5k after 10 years. And buying the car now requires an 84 to 96-month payment. The payments are double that of leasing. Can we get away from the idea that we have equity in a car? After 10 years it's worth 10 times less than the sticker. Plus the maintenance costs over time will kill you.
I drive a 2001 lincoln navigator and the maintenance is expensive. I should have just leased a car. I paid $1800 for it but the maintenance cost equals a lease payment.
Scotty, I have a 2000 Monte Carlo LS 3.4L. When I turn the car on the lights for the gear selector, radio, and range indicator turn on bright for a few seconds and then go VERY dim. Also, my high beams stay on all the time and my low beams and taillights instead don’t work. I swapped the dimmer switch and checked every fuse and relay in the vehicle. The battery is new and terminals are tight. I’m at a loss as to what happened.
Sounds electrical
Sounds like an odd electrical issue, id say check the body ground first. For more info id say look for a monte/impala /W body forum
I always swap expensive parts before the lease end like the cats,alternator, ac compressor etc.iswap with older OEM original parts and this makes me about $5000 . They never detect the parts because the all work properly for the short term.
Illegal and also screwing over the next person? Lol hope karma doesn't catch up with you
Don’t forget most lease require high limits of insurance to also protect the owner of the veh.
So many drivers like to pretend they're rich driving new expensive cars but are one pay cheque from being broke
Well although I'm not 100% for leasing I understand why some like always being in the newest car.
Leasing makes sense for businesses. And rich people who get a new car every year anyway. But other than that, it's just a bad deal compared to buying.
Yeah, I'm leasing a company vehicle, but it makes sense for me as I write off nearly 100% of the lease payment without a large capital outlay. It works in my situation...