Buy a used car and marry a mechanic.

@WhiteBoardFinance

5 жыл бұрын

Lol smart

@9Achaemenid

5 жыл бұрын

Hard to find a nice female mechanic to marry lol

@lisarobinson3521

5 жыл бұрын

@@9Achaemenid 😂😂😂👍

@Littlesassybigheart

4 жыл бұрын

Lmao

@joemccallum710

4 жыл бұрын

Shady bitches everywhere!

From the number 1 BMW salesman in the country (yes he was awarded that title more than once) he stated "Buy used, lease new"

@WhiteBoardFinance

4 жыл бұрын

I've been buying used with cash my whole life

@Femaqui07

4 жыл бұрын

Who is the n1 salesman in question?

@michaelseipp9102

4 жыл бұрын

Some CPO's you can lease...idk why you would

@whitemailprivilege2830

4 жыл бұрын

DoughnationCreative hahahahaha

@StevenPenny

4 жыл бұрын

spoonerdee Hahahaha buy a used bmw? Good luck if you’re not mechanically inclined.

Real life scenario, my friend and I got the same truck, same day, same price. He financed over 7 years with a down payment of $1,500. At a payment of $256 biweekly. For a total price of $48,000 over the 7 year term. I leased 3 years with a down payment of $2k. At a payment of $141 biweekly. After 7 years I will have paid $31,660 for leasing 3 trucks. His truck might still be worth around $10k after 7 years that he sells. So he paid $38,000 + the possible cost of repairs and maintenance. (Excluding oil changes) Where as I paid $31,660, drove 3 brand new trucks and had $0 in possible repairs and maintenance.

@EuSoumMiTo

2 жыл бұрын

If he pay $48k in 7 years the truck wouldn’t cost only $10k

@KevinGgames

Жыл бұрын

@@EuSoumMiTo i think it's because of the annual depreciation of his friend's truck

@Rez10000

Жыл бұрын

@Don K lmao I found the friend

Do you have consistent income? Do you like having a new car every 2-3 years? Do you not mind having a car payment of about $400-500 a month (minus insurance)? Do you not drive much or live close to your job? Do you like the piece of mind that if something weird happens to your car, about 95% of the time, you will not be responsible for it? If yes, then leasing might be for you! Do you have limited income, are you car savvy or know a mechanic, do not care for a new car all the time, don't mind getting a used car with a payment of about $200-400 a month, and want the peace of mind knowing you can do whatever you want with the car? Then buying is for you!

@victorsr6708

3 жыл бұрын

I agree 100% it’s hard to beat driving a car for 3 years turn it in and get the next new car. I have been leasing for over 12 years and have not been to a mechanic the whole time other than an oil change. I don’t even change the tires in three years. I get a nice dependable car and I don’t have to deal with hassle of selling my car at the end. I love it!

@fabiannino4106

3 жыл бұрын

@@victorsr6708 so you are basically renting a car. Is that any different than renting a house? In the long run its money down the drain imo

@JAHistheONE

3 жыл бұрын

@@fabiannino4106 but how is it money down the drain to lease when at the end of the lease you would have paid the full price of the car just within an expanded time frame? I don’t understand, is there something more to this?

@Anonymous-ji4sb

3 жыл бұрын

I believe you should do what works best for you. AND especially what you love because you never know when your time is up. My brother leased every 3 years since he was 18, yes I though it was a waste of money but it made him happy so in his mind it was money well spent. He died of ruptured brain aneurysm at 28 a few months ago. He was literally alive one minute and gone the next, he couldn’t be saved. Plus he had a lot more money in the bank then I do.

@pimpnorris2097

3 жыл бұрын

@@Anonymous-ji4sb I'm sorry to hear about your brother, I'm a physician and I literally am terrified for my patient's with aneurysms because we usually find them due to other reasons. Most of us are walking around right now not knowing we could have one. Hope you're staying safe out there.

No you're not rambling I appreciate the information you're giving us I wish they taught us this stuff in school along with real law

@combocangaming9906

5 жыл бұрын

You and me both bro, you and me both.

@faq1006

5 жыл бұрын

They will never teach you these in school, that's how the whole system works. School will help you get basic understanding and education but you have to be the one to utilize them to figure out these loopholes in our system.

@derrickbergman4973

4 жыл бұрын

He is just like a teacher, completely wrong.

@pranavansada8970

4 жыл бұрын

that's why there are certain courses to take like for example busniess

@SpasticLizard

4 жыл бұрын

Actually it's called basic maths. He's just using sums and multiplications...

While I completely agree with you in the case of this type of car - a sub-compact at $17,700 - leasing can end up being the better choice for certain situations. Particularly with some luxury cars or high end trucks, where you're going to be hit with much greater depreciation rate and more expensive repairs when it's out of warranty. You also face certain risks in ownership that you don't in leasing, such as the diminished value you'll get from your car if you get in an accident at some point (even if the damage is repaired) or if the car turns out to be a lemon. And depending on your personal cash flow and/or how actively you invest, the value of the lower monthly payments in lease and having more liquid cash on-hand also shouldn't be ignored when considering options.

@Mr.PM1993

2 жыл бұрын

well, if you lease the car, and have an accident you will be crushed by the company, because you have to send it to a repair shop that the company agreed upon, and that's very expensive, and also while you want to return it you have to pay some money because you damaged the car, my opinion buying that piece of **** , and then you have a total feeling of owning it, and not everyday thinking if something happened to it, how much I have to pay the company.

@nomanuk

2 жыл бұрын

@@Mr.PM1993 I have to disagree here. I leased 2018 Accord and was involved in an accident in 2020, the accident repair cost around 40% of car value. Later couple of months, the dealership contacted me randomly if I wanted to have a new lease car, I happily returned it and got even a better deal on 2020 model.

@hindiakosipels

2 жыл бұрын

If you could afford a high end car, you wouldn't need his advice. Like a person who owns a Cadillac is a person who doesn't care about gas prices/consume.

@mr.tuckers2848

Жыл бұрын

Now that used cars are going through the roof, does that mean your new car now has a lower residual value and you won’t lose much when you drive off the lot?

Things were missed which are pros to leasing and extra cost to owners: - paying insurance - paying we call casco(insurance in case you caused trouble) - changing tires - providing spare cars in case there is problem with the car. - in case of accident, they will take care of the lawful actions - paying mandatory service session are included

@Dabal_R

Жыл бұрын

You don't have to pay insurance for car?

@dnielrable

Жыл бұрын

@@Dabal_R You have to but it is included in leasing.

@Dabal_R

Жыл бұрын

@@dnielrable included in the total price of a car?

@dnielrable

Жыл бұрын

@@Dabal_R my comment is not related to buying a care, but unlisted pros of leasing...

@tuiroakwood

Жыл бұрын

If you lease an electric car all you need to maintain for the duration is wiper blades, washer fluid, tire rotation, and cabin air filter. That's it. You won't need new tires or brakes in 36 months. Easier to budget with a lease, no surprises.

Managing money is different from accumulating wealth, and the lack of investment education in schools may explain why people struggle to maintain their financial gains. The examples you provided are relevant, and I personally benefited from the market crisis, as I embrace challenging times while others tend to avoid them. Well, at least my advisor does too, jokingly

@Brigh578

9 ай бұрын

Through closely monitoring the performance of my portfolio, I have witnessed a remarkable growth of $508k in just the past two quarters. This experience has shed light on why experienced traders are able to generate substantial returns even in lesser-known markets. It is safe to say that this bold decision has been one of the most impactful choi

@Brigh578

9 ай бұрын

The adviser I'm in touch with is *CAROLINA MELINA PHERSON* she works with Merrill, Pierce, Smith incorporated and interviewed on CNBC Television. You can use something else, for me she strategy works hence my result. She provides entry and exit point for the securities I focus on.

@ryanhamstra49

7 ай бұрын

They have more important things to teach kids, like systemic racism, and how to be gender fluid

Excellent video. One other thing to consider is the opportunity cost of the difference in money spent on purchasing vs leasing ($465 - $159 = $306/mo). Provided you return the car after the lease term ends, that’s a difference of $11,016 over 36 mos. True, you are forfeiting any equity in that car and were essentially just “renting” it for 3 years. However, you did likely get a lot of utility out of it, so that saying of flushing money down the drain that a lot of people parrot mindlessly isn’t entirely accurate. Putting that $11k to use on an investment or side hustle will likely generate far better returns (both monetarily and in terms of educating you), than the relatively nominal difference that would have been saved by purchasing over leasing then buying the car out ($1,184). Either lease a car to keep your monthly overhead low, return it when the term is over, and reinvest the difference into an asset that kicks off cashflow. OR buy a pre-owned car that’s 2-3 yrs old and has already depreciated substantially at someone else’s expense. Purchasing a brand new car is one of the worst investments a person can make. You’re buying a depreciating product which consumes a large chunk of your monthly income that you have to pay out of pocket to maintain. Buy used or lease new.

@glambykeniaac

3 жыл бұрын

🙌🏻

@fabrice8940

2 жыл бұрын

Finally someone call out his direct bias, which he states multiple times

@redcloud5813

2 жыл бұрын

Better to buy slightly used.

@fabrice8940

2 жыл бұрын

@@redcloud5813 not in this market. Period.

@redcloud5813

2 жыл бұрын

@@fabrice8940 I agree, now is not the time to buy a car, new or used, because of the chip shortage.

I’m trying to scroll down through comments for opinions on which one is better to lease or to buy. It makes it hard to find one cos everyone is talking about the green marker 😩

@YouTookMyAccountName

4 жыл бұрын

Like he said, it depends on you or your situation. He seems to lean toward buying (used), as most people will from a financial standpoint. Maybe you just gotta ask yourself some things or make a pros/cons list. Are you a car person? (yes-buy, no-lease) Do you develop emotional attachment to your cars or other things? (yes-buy, no-lease) Do you prefer to have "newer" things? (yes to both...) Don't take this as professional advice as it's just supposed to help you think.

@derrickbergman4973

4 жыл бұрын

Leasing is MUCH MUCH easier and you end up in the exact same place overall. His 12,200 sale price is approximate (good luck selling your car privately) and in the lease if you want to keep your car you know that is the right price to buy it for.

@compaholic83

4 жыл бұрын

See my comment I made.

@williebender1895

4 жыл бұрын

If you consider a high end car I’d lease . If you want just a nice car like Chevy ford consider buying a 1-2 year old one with factory watery left on it and extend the warranty too. Also stay away from 6-7 year car loans. They’re designed to put you in a car you’re not ready for same as a 30 year mortgage

@bjornolson21

4 жыл бұрын

Not sure what you ended up doing, but if you are looking at a quality vehicle that lasts, I’d say buy instead of lease. I was one of those people that constantly bought and traded in after like a year, and then leased a car for 3 years. I purchased an ‘11 Lexus suv with 32k back in like 2014, then traded it in a year and a half later for an Audi 2 dr then traded my Audi for a lease on a brand new civic touring. I liked the option of the civic. Anyway, now I’m looking for another car and I wish I had just kept my Lexus because it would’ve been paid off by now and I’d have a relatively nice quality vehicle with less than 100k miles on it. But if I want that same vehicle now, I’d have to find one with low miles and I’m looking at spending another $15k on top of all the money I’ve already spend to end up with no vehicle.

"Having recently gained more knowledge about personal finance, I've subscribed to your channel. I want to commend everyone who's tirelessly working to earn a living while also building wealth during this recession. At 45, I'm retired, along with my 51-year-old husband, and we're debt-free. Our plan is to relocate to Thailand. Thanks to our frugal and financially savvy lifestyle, as well as our commitment to saving and investing in the financial market, we've been able to generate passive income even in this recessionary period, allowing us to sustain our desired lifestyle."

@alicebenard5713

10 ай бұрын

Congratulations on your early retirement, Interesting indeed! Currently, I am in dire need of investment advice or tips. Last year, I hesitated and failed to take any action until the year concluded. However, this year, I am determined to try something new, as I am very receptive to various investment ideas. I want to be retired in my forties or fifties.

@Jessicatorres_768

10 ай бұрын

No problem at all! If you're seeking to earn substantial profits from your investment, I would suggest determining your investment horizon and implementing a long-term plan. I worked with Nolan Velden Brent to create a long-term investment strategy, and he assisted us in managing our investments while we focused on my jobs without any concerns.

@alicebenard5713

10 ай бұрын

Thank you for your advice. It's challenging to find a reliable investment advisor here, and I appreciate your input. Seeing the successes you've achieved through investing, I would love to have access to your investment advisor's information if you wouldn't mind sharing it.

@Jessicatorres_768

10 ай бұрын

I work with *Nolan Velden Brent* ,who is based in the United States. If you would like more information about him, you can conduct a search online. He even got featured on CNN recently.

@brittanynicolette9473

10 ай бұрын

Thailand is really a nice comfy plan to retire. Working with a skilled financial planner can be compared to having a mentor in the field of finance. I used to struggle to invest on my own and ended up losing money, but things changed once I started working with *Nolan Velden Brent* . He played a pivotal role in helping me improve my financial situation. Previously, I relied solely on my job and salary for income, but now I have found ways to generate additional income with ease, which has allowed me to leave traditional employment. Nowadays, I believe that investing is not a choice, but a necessity for anyone who desires financial independence and a good quality of life.

I like to lease my car because I like luxury cars with the latest technology, body style, and very little maintenance. I also enjoy the way new cars drives versus broken in used cars. I negotiate the extra warranty and gap coverage. I factor in the amount of road trips I take a year into my mielage allowance. In three years I look forward to experiencing my next new car.

@christopherhachet8204

4 жыл бұрын

Nothing wrong with that. I prefer owning cars outright.

@crazyoldbiker938

3 жыл бұрын

Well, since we are all going to die anyway, it really doesn't matter.

@Chris-yp1cd

3 жыл бұрын

Remember , you are going to pay for the rest of your life . I don’t want to be a slave .If , I was a car dealer , I will love to have a costumers like you ! Better buy and keep it for a long time !

@WhoDatizz602

3 жыл бұрын

@@Chris-yp1cd You're going to spend your money on something weather it's a car or something else in life. I can't take the money with me when I die so I'm going to enjoy my life. My ride is a important part of my life that I enjoy.

@Chris-yp1cd

3 жыл бұрын

WhoDatizz602 , nope , I am investing my savings. Have my own apartment/house or in the stock market instead of paying/renting eternally and leave nothing for my children when I die . I want to have good money when I retire and even leave a legacy for my children. That is why , I am spending my money wisely and making good financial decisions. Why should I spent hundreds of thousands of $ in the long term to upgrade a car that will never belong to me .

I've done both. Basically, if you like to drive a new car every 3-5 years, go with the lease. If you keep your car until the wheels fall off, then buy. Leasing does offer some advantages over financing..... 1) You can transfer the contract to anyone else. 2) You can drive a luxury car at an economy car payment. 3) You pay sales tax on the payment and not the entire vehicle. 4) You don't have to worry about trade-in value, just turn in the keys. Of course there's also downsides such as needing to carrying higher insurance limits, mileage limits, GAP insurance and fees like bank & disposition fees.

@SuperFilmregisseur

Жыл бұрын

Seems like leasing is a no brainer then

Argued with my ex about this. Well theres a reason shes an ex, and a reason shes always broke.

@michaels8597

5 жыл бұрын

well we all know that some women think they know everything..it's hard to debate with someone devoid of logic and mentally all over the place..

@HM-dw4bp

5 жыл бұрын

A bit misogynistic, no?

@madjackgamingandfitness498

5 жыл бұрын

@@HM-dw4bp he did say some. I would agree both are very capable of being know it alls.

@michaels8597

5 жыл бұрын

@@HM-dw4bp .did you read the word SOME before you responded???So i guess if someone said SOME guys are aggressive or liked casual sex,you would have something to say as well????So in response to your question,NO,you dont have a logical position to even ASSUME anyone is a misogynist...next!

@michaels8597

5 жыл бұрын

@@madjackgamingandfitness498 ..yeah,i love when someone chimes in directing their two cents to anything except the subject..that should have been obvious that i did say some,yet because some folks have nothing to do but be petty,that's what makes the world what it is..

Leasing is an incredibly viable option. Cars are an expense, and when you lease you don’t have to worry about the inevitable repairs and maintenance your car will need. And you get to always drive the newest cars with the best safety features. Selling a used car when you’re done with it is a huge pain as well. Leasing is much better for anyone with a decent influx of money.

@pazangalang

2 жыл бұрын

Exactly - it comes down to consistent cash flow

@mattcee7113

2 жыл бұрын

How about financing then trading the car in?

@redcloud5813

2 жыл бұрын

I guess Dave Ramsey is wrong.🤔

@rlee7389

2 жыл бұрын

@@redcloud5813 Dave Ramsey is wrong a lot

@LeaFaye

2 жыл бұрын

why do i keep hearing you dont have to worry about maintenance and repairs. who pays for the repairs?

A car is a lifestyle decision. I don't care if my clients buy, rent, lease, take the bus, I don't care. The most financially efficient thing to do is take the bus with a free pass or steal a bike. Some want fancy cars, some want roller blades. I don't give a damn. The car they drive is a personal choice. But if you pay 17,700 for a car and sell it for 12,000 you did not purchase an asset. You purchased a liability. All cars are liabilities unless you are using it to make money. It is purely a lifestyle choice. The only thing that matters is that they are saving enough money and getting a high enough rate of return to live in the future the same way they are living today adjusted for inflation without their money running out before life expectancy. So if leasing a car, like in your example, allows them to save $300/mo that gets a person to save the required amount to live in the future the way they are now, when they cant't work anymore. Then saving the $300 is worth leasing

@Geneiveve

2 жыл бұрын

Very intelligent way of looking at this scenario. Thanks for your comment.

I've run this scenario on a few different cars. I've found that it's a hit or miss, depending on the terms they give you for the lease. The muscle cars always worked out to heavily benefit the buyer, whereas brands like Mercedes Benz nearly always benefit the leaser, assuming the buyer also sells after 36 months and buys a new luxury car. You can keep it longer and it begins to balance out, but if you're the type of person who's already sold on buying luxury, you probably always want the newest one, so the lease will be your best option.

I lease as often as I can. I always trade them in for a different car, always have a positive equity when I trade in. I like most people always have car payments. Mileage is never an issue since I always trade them in before the lease term ends. So, it's the benefit of low monthly payments, positive equity during the trade in. No maintenance cost, and new car every 3 years!

@Helena42246

4 жыл бұрын

Agree I prefer leasing. I’m only 7 min away from work and if we need to travel long distance we use another vehicle. I also take care of my cars that I lease. If I’m making payments I consider Myself the owner. I prefer updates every 3 years.

@jameshall8038

4 жыл бұрын

How many miles can you drive on average ? Looking to either buy or lease just have questions

@boogienow

4 жыл бұрын

James Hall you can drive what ever miles you want to drive as long as you trade it in like any used car or buy it at the end of your lease

@crazyoldbiker938

3 жыл бұрын

Well, since we are all going to die anyway, it really doesn't matter.

@kayleigh9516

3 жыл бұрын

@@crazyoldbiker938 best answer ever

I think it all depends on what works best for you, which is why it's nice to have videos show you both options like this! My very first car I ever had was gifted from my parents, but it was a beat up used car for $2,000. It lasted me 3 years and I loved it. When that broke down I ended up financing a new Nissan with my dad as a co-signer because I drove a lot of miles to and from school, so I needed something reliable. What did I find out? Just because a car is new, does not mean it won't have issues. Now I'm negative in my car and can't wait to pay it off to get something different. Whether you decide to lease or finance, just do your research on the vehicle beforehand and make sure you really like it!

@jucxox

2 жыл бұрын

This

Absolutely no one in the recent history of whiteboards. Marko: *uses a light colour pencil in a whiteboard*

@benniebukulu3656

4 жыл бұрын

Tf

In Australia, the minimum interest rate for a financed car is about 7.8% so definitely buying and keeping the car makes a lot of sense

As someone in the retail automotive industry. I wish I could show every customer this video. Too many times I've come across customers who have no idea what situation their in. Great video!

@urArchitect

2 жыл бұрын

I am interested in purchaseing a new car. I am researching brands and have settled on two but Don't necessarily want to get locked in to one over the other. Is leasing a good option to see how each brand fits in my lifestyle?

Now it made me think to lease instead of buy. I want to change my car every 3 years and I want to get rid of those costly maintenance fees when the car reached at least 5 years. Watching in 2020. Thanks for this very informative topic. Your voice sounds very pleasant to listen to.

@crazyoldbiker938

3 жыл бұрын

Well, since we are all going to die anyway, it really doesn't matter.

@arhanjamesdulger904

3 жыл бұрын

@@crazyoldbiker938 are you going to post this at every comment 0?

@darkgiggler

2 жыл бұрын

@@arhanjamesdulger904 lmao

More than 50% of new car owners are upside down in their car loans. Most people who lease are using it for business reasons only and writing off the the payments as tax deductions.

@bonafidehustler-entreprene8781

Жыл бұрын

Thats nice to know.

Never buy new (let someone else eat the depreciation. Always lease a high end vehicle like a Benz Audi or BMW. Another thing I've come to learn is having one leased vehicle and one bought vehicle helps with payments and also helps with maintenance cost. What you save on the lease payments can go towards the bought vehicle. Plus that lease vehicle will always be under a bumper to bumper warranty so in theory you will never be down two vehicles at the same time if something were to happen. Which if you have my luck... it does

@stevep927

5 жыл бұрын

That's a whole other topic and irrelevant to this discussion. Obviously if you buy a older car you may save money but if something fails it could end up costing you more

@GCHG2014

5 жыл бұрын

That's your argument for being irrelevant to the discussion? Lease vs buy. Never buy new, If you want a high end vehicle lease it due to depreciation. But what do I and Dave Ramsey know...

@diegoeleazar9154

5 жыл бұрын

Ive only spend $10,000 on a very good used Corolla and Rav4. Feels good, dept free.. cheap gas, cheap maintenance, cheap on insurance too.

@GCHG2014

5 жыл бұрын

@193001 kiplssd I cant speak for all dealerships but I know of some that are sticklers on scratches and dings,(Kia) but my experience is that if you have a good relationship with your dealer most of the dealers will be more generous on door dings. Also I have learned that a dealer that has its own body shop is not so fast to nickle and dime a dime size ding. Maybe I'm lucky but I've never been charged for anything. I also take very good care of my cars.

@Bigbrowndawg

5 жыл бұрын

Lease those because after the lease period, they become money pits per Scotty Kilmer lol.

I feel like there is one aspect missing: when buying for $459 vs. leasing at $159 for 3 years, what if you took the $300 you saved by leasing and invested it for the same 36 month period?

@naveed1328

4 жыл бұрын

Also. Maintenance is free for lease and sales tax only for 36months

@peppersaltman1805

4 жыл бұрын

Mind... Blown!

@terryeffinp

4 жыл бұрын

Most people won't do that, either because they don't have the discipline or the reason why they are leasing is because they can only afford $160 a month. Though I dig the idea.

@jonwojcik4494

4 жыл бұрын

Tried this in 2006 right after i got out of high school! I was one smart frootloop and could do math, of course you would want to invest it! Then the economy went bust in 2008, lost 50% of it investing and i learned that risk should be involved in the equation. On top of that, carrying dept is just plain stupid(even in the form of a lease).

@terryeffinp

4 жыл бұрын

@@jonwojcik4494 You only loose if you sell, the dow jones peaked at about 14k in '07, dropped to ~7k in '09. If you sold you lost 50 percent. If you rode it out the Dow is now up to 28.5k. You would have doubled what you had in by 07' plus all the gains of buying in from '09 to present.

A closed end lease gives you the ability to purchase the vehicle at a prearranged price at lease end. If the vehicle value exceeds that number, you can purchase and resell, or use the equity as trade value. I’ve done both.

The keep scenario changes everything...in my opinion it makes more sense to operate the car in a long term lease (rental scenario). You are never the owner of the car, but you don’t have the worries about carownership either. You pay a monthly fee and have no more worries about the car and after 5 years you get a new one! Edit: Also, cost of ownership includes maintnance and registration fees, as well as insurance which aren’t high in the us, but can cost a considirable amount in countries of Europe.

Buy what appreciates. Lease what depreciates.

@travis1240

4 жыл бұрын

The math doesn't support that. Depreciation is factored in to the lease price and then some.

@hojaeyun6747

4 жыл бұрын

@@travis1240 apparently this is the reason why people like you don't have a chance to be wealthy. We all heard of the term " time is money" but nobody really understands what it means because you guys are financially illiterate. Doing math on a value that depreciates over time is utterly useless .

@sasca854

4 жыл бұрын

@@travis1240 The math certainly _can_ support it.

@MuscleNMind

4 жыл бұрын

@@hojaeyun6747 time value of money ftw

@williebender1895

4 жыл бұрын

Travis Nelson false their is no depreciation hit via lease that’s why most people do it. It’s a money factor

It'd be great if you could include the consequences of buying vs leasing when an accident occurs (when insurance kicks in and when it doesn't)

@Geoffr524

3 жыл бұрын

Almost the same with my lease car but I had electronic parking brake engaged. Dealer repaired gear selector (which was ripped apart), and replaced window. Thief couldn’t roll the car. Every day I always use electronic parking brake.

@j.m.sworld251

2 жыл бұрын

@DJ Ness Thanks for thinking about us future readers!

@TuBui2

Жыл бұрын

@DJ Ness thanks for the wisdom DJ

Car Leasing is the most economical if the car will be used SOLELY for business for tax offset benefits. While Car Purchase is the most economical if the car will be used for personal use. And car Leasing for personal use is the most expensive option. Never lease for personal use as he explained. Number does not lie!

For anyone having trouble with the green marker: turn on the blue light filter. It helps a bit.

did no one catch he said its "situational for everyones situation"

@calebgore1914

4 жыл бұрын

That was the only reason I looked in the comments.

@chichi41

4 жыл бұрын

So, whats the beef?????

@carmentall1166

4 жыл бұрын

I caught that too. He does a great job.

@crazyoldbiker938

3 жыл бұрын

Well, since we are all going to die anyway, it really doesn't matter.

Sadly you can watch how ever many videos you want on this topic but it still doesn't change the fact that it boils down to preference. For the person that wants the latest technology, safety features and new designs leasing is always a better option; but for those that like the ownership aspect as well as the hands on approach, purchasing is the better option. The only part that I would like to add is to the terminology, in my opinion you're "renting" both. You don't own either car through either method unless YOU complete paying through whatever method whether leasing, leasing to own, or purchasing. People preach ownership, ownership, but "lease" the latest iPhone... Remember to DO what FITS YOUR lifestyle.

@WhiteBoardFinance

5 жыл бұрын

Agreed

@coreejacobs4780

4 жыл бұрын

💯💯💯

@betruetoyourself7162

4 жыл бұрын

Everyone’s preference is to have the latest and greatest. The safest shiniest most up to date. With a limited budget, I think it about choices. Where I live many families live together with several generations together. I see new Mercedes Lexus and Tesla’s. It’s all about choices imho

@adryonna1

4 жыл бұрын

I think your comment makes the most sense. It is really about preference. I can own my home and lease my car. OR I can own both. It really boils down to what you want and what works for you. Of course, be wise in all your choices but the end all it is up to you. I replied a whole year later to this comment.

@juliansmith2250

4 жыл бұрын

@@adryonna1 Still appreciated!

Buy used, no car payments is the way to go. I leased 2 cars for 3 yrs, over 20k later and I had nothing to show for my hard earned money. Such a waste. Live and learn

@self.improved

3 жыл бұрын

I'd say it definitely depends on your tax situation and whether or not you own a business. If if it's for personal use only and you don't have to drive for work then I'd agree completely.

@steponefinance4282

3 жыл бұрын

@@self.improved I'm definitely talking about for personal use.

@gabrieleward

3 жыл бұрын

You might have something to show.. but when you sell it with the fall in price you will have lost about the same..

@steponefinance4282

3 жыл бұрын

@@gabrieleward why would you sell? Buy used and drive that baby till it doesn't drive no more. I'm not fascinated with new cars, I'm fascinated with not wasting money.

@gabrieleward

3 жыл бұрын

Step One Finance that’s your choice. Other people prefer to drive a new car and not have to worry about when they’re going to break down

Marco - I just wanted to say thank you for all of your videos! To me, you are like an awesome older brother (even though I am way older than you!!) that takes the time to explain everything very carefully to a younger sister whom needs cliff notes versions of complicated ideas and ideals! Keep them up! I have told both my daughters' ion their 20's to subscribe and learn!

Appreciate the video, thanks. Glad you mentioned it’s vehicle specific. I’ve leased many times where it ended up being cheaper over 3 years to lease vs buy and sell because the finance arms had inflated residuals that gave a good lease rate, but 3 yrs later the vehicles didn’t hold value as expected so selling it wouldn’t have netted the proper amount. I’d like to see a video explaining MF, converting to a APR, and the intricacies of lease payments with regards to all of the initials fees so one can easily see how most dealers rip you off on the lease rates. So many times the lease rates equate to a vehicle sale price significantly higher than sticker because the math for leases remains a mystery for many. Dealers perpetuate this myth by stating lease calculators aren’t always accurate, and ultimately that’s a bunch of bull. I’ve explained leases to friends many times, and I’ve negotiated many leases with proper math and end up with favorable rates, but 99% of the country simply doesn’t do the math on them. Obviously you prefer to buy, but with how many people out there ending up leasing it would be nice for them to go in more educated. Thanks again!

@ImmaDotAplayer

3 жыл бұрын

Hey man, that was an insightful comment you put there, can you please just expand a bit more on the maths you do on the lease rates and how you negotiate a better rate? I bought my first car (Ford focus 2005) and am looking to get into leasing a car with positive equity every 3 ish years.

This assumes you could sell it for that price. Doesn’t count the time it would take to sell it or headaches involved.

@g4l4h4d1

4 жыл бұрын

max19116 he did mention that he followed the typical depreciation rate, but ultimately it’s vehicle specific

@christophershanklin112

4 жыл бұрын

It depends on the car and the miles

@number1fansince

4 жыл бұрын

Not always I like the hassle of selling

@crazyoldbiker938

3 жыл бұрын

Well, since we are all going to die anyway, it really doesn't matter.

@CobraDove1111

3 жыл бұрын

Yup

No, we can’t see green marker!

You deserve 5 Stars for this presentation! Thank you for being very clear, considerate, and concise as well. You should teach elementary students because they tend to get distracted. I believe your teaching style will help them stay focused over a period of time.👍🏾👏

Informative but that marker color was a poor choice.

@WhiteBoardFinance

5 жыл бұрын

Agreed! I didn't realize the green was so light. I won't be using it in the future! Thanks for the compliment and for watching

@leetronix

5 жыл бұрын

Yeah that was a very bad choice 🤪

@CINTERPOL

5 жыл бұрын

Lol

@andrew881000

5 жыл бұрын

lakertime987 I could see it just fine

@ninja.saywhat

5 жыл бұрын

@@WhiteBoardFinance a white marker would have been brighter, just sayin

Purchasing is definitely the way to go.. With leasing you will NEVER stop paying monthly for your car. With each lease renewal and car swap, you will walk out with another 36 month payment plan. Then it's rinse, repeat. The dealers love that deal because you keep coming back to rent more cars. By the time you renew your lease to start another one, I have already finished paying my purchase and will end up with no more monthly payments. I will also have collateral/equity for a nice down payment should I wish to purchase another vehicle at a later time. No more money out of my pocket. the equity trade in alone drastically lowers your monthly should you want to trade for a newer model. And I won't have mileage limitations. With a purchase you can always sell the car if you find yourself in a financial pinch. Instant money in your pocket once the car is paid in full. And there are no prepayment penalties. Double up your monthly payments when things are good so you can get out sooner. Don't forget with leases you have the return fees, wear and tear item costs, mileage overages, etc. and God forbid you get into an accident with a leased vehicle. You will pay dearly when you return it. They will hit you with enough fees when you're up but the scam is they will waive those fees if you lease another vehicle from them. A Sucker's deal! But honestly, there really is no need to change your car every 3 years. Sound advise....Buy a good reliable car and keep it for awhile.. Stop throwing money out the window. Use it for smart investments. Or stay broke.

@oumarngouh6525

3 жыл бұрын

Such a wise advice. It was very very educative😍 Thanks for sharing your knowledge 👏🏾

@colechapman3382

2 жыл бұрын

Couldn’t agree more. I bought my first car when I was a senior in highschool. I didn’t really have a need for a car so I decided to work and save for when I go to college. Now I’m in college and I still own the car and it’s still working. I bought a 2012 Outback and it’s been great. I don’t need a new car every three years and I think the whole enterprise of lease and dump is incredibly wasteful. Paying that much for a A to B transportation seems wrong to me. I know people complain about maintenance, but if you buy a good reliable car like mine, your golden. I let the other suckers deal with depreciation and now I can probably sell it for just as much as I paid for it given how crazy car prices are. That’s instant cash in my account if I need the money. Not a bad deal. My parents have always been stressing buying instead of leasing. If only more people would listen to them we wouldn’t have 1.5 trillion dollars in auto loan debt

If you own a business, a "lease" is in reality a "rental", which is 100% deductible for business purposes. The "rental", commercial auto policy (auto insurance), repairs/maintenance, and fuel, is 100% deductible... when used primarily for your business.

@williebender1895

4 жыл бұрын

KnowledgeApplied not only a business but jobs that have a 1099 or self employed

@knowledgeapplied

4 жыл бұрын

@@williebender1895 Exactly.

@williebender1895

4 жыл бұрын

KnowledgeApplied it really bothers me that society has made nice cars the enemy. People need to do what’s best for their situation

@Nattymatty7

4 жыл бұрын

So I’m self employed, you think it’s worth to lease the car than finance?

@yophilli

3 жыл бұрын

Willie Bender it is the enemy, all that money for a car that I don’t own?? What’s the benefit?? You could have invested that money. Just buy a used RELIABLE car and make no payments lol. You writing it off will only take away so much on taxes

It only makes more sense to buy if you can actually afford the higher monthly payments.

@crazyoldbiker938

3 жыл бұрын

Well, since we are all going to die anyway, it really doesn't matter.

@TnTteam09

3 жыл бұрын

@@crazyoldbiker938 🤣💀

@drewrobinson1839

2 жыл бұрын

What if u buy outright like a real cripppp

I think one important aspect of leasing (at least in Germany/Austria) is that the value after the lease is guaranteed. So you don't have to worry if the car will hold its value or not. Say value after the lease was guaranteed 20k but the car ends up being worth only 16k. The leasing company pays that 4k loss. And if the car is worth more you get the difference in the pocket.

Thank you again for another great video explaining car lease and ownership difference, you are really good presentation skill and great confidence

Great break down help me decide on what I'm going to do.

Very good video man, these are things I knew but it's good to see it on paper(on the board) to see how much more it makes sense. I learned these things with trial and error it's good to see that young people will be able to see this and learn before they make these costly mistakes people like me had to make in order to learn.

I realise this is an American example so it may be very different to the British market but I don't think the maths tends to work out like this example. The reason for that is the deposit required on a new car is much higher than the down payment on a lease which is typically 3, 6 or 9 months times the monthly fee and that fee itself is also lower than your monthly payment for a straight loan. For me, switching to leasing meant paying less per month and still being able to get a car I couldn't have afforded to buy new plus at the end of the term, when the warranty is up I can just hand it back and get another nice shiny new vehicle. The longer you own a car, the more things go wrong and I don't want to have to deal with selling at the end of it. The biggest consideration should be mileage. I have a short commute so do less than 10k per year which is perfect for leasing and I can opt for a cheap pre-reg deal because it makes no difference to me how many previous owners it has unlike buyers who may be haggled down more aggressively because they would become the third owner. It's horses for courses and depends whether you see a car as an asset or a liability as it gets older. The worst possible option is pcp and paying the balloon payment to keep the car. If you're leasing, don't keep it. If you're buying, don't buy new unless your planning to keep it until it's time for scrap

@WhiteBoardFinance

5 жыл бұрын

I think life situations play the largest role in buying vs leasing

Came across your video by chance but really enjoyed it. Very informative. You have made me seriously think that buying a car is an overall better option. Thank you.

@WhiteBoardFinance

5 жыл бұрын

Thanks for watching!

You didn't account for two things that swings the Lease as favorable, even in your "keep" the car scenario: 1.) Deferment of Sales Tax. For a Buy, you have pay/finance all the sales tax into the loan. For a lease, you pay it monthly. Meaning, in a Buy, you are paying interest on 100% of the sales tax, where a lease, you are paying the sales tax monthly, and then bulk at the end. (If you live in a state with no sales tax (there's a handful), then you lose that advantage of course.) 2.) Subvented Rates. In the scenario where 0% financing is offered, you are correct that for a Buy, the low APR is in lieu of rebates, so you're essentially losing the rebate to take advantage of the 0%. In Leases, however, that is not the case, the Rebates on a lease are in conjunction with any low money factor (lease equivalent of an APR). You also put the "Buy" at 36 Months, when anything under 60 months is incredibly rare. A fairer comparison would be to make the buy for 60 Months, and then make the Lease for 36 Months, plus finance the Residual for the last 24 Months (and bump the residual finance rate up a bit since you're financing a used car at that point). I realize that would make for a more complex video, so I can appreciate sticking to the simpler scenario. Good work, and good commentary on the "human nature" aspect.

I would recommend buying slightly used so its already taken that initial hit in value and it still should be under factory warranty. I bought my first ever new car last year but it was only because my credit is pretty much 800(almost no interest and I have a really good salary with very little debt) and the dealership I went to offered a huge discount because of my workplace. We work directly with the dealerships service department. If you go used make sure to get the car fax, service history, and stay far away from old rental cars!!!!

@catdel7914

Жыл бұрын

Where do you work?

@bluegorillacookies

Жыл бұрын

Right now slightly used are more expensive than new.

Informative, and I can appreciate and thank you for making these videos. Maybe think about the fact that your leasing or buying guide doesn't take into account that today's cars are so advanced that it's more cost effective to get a new car every 3 years. I say this because the cost of upkeep will be crazy if you plan to hold onto these advanced cars, especially electric cars. When they develop faults, the cost of repairs will be crazy and you won't have the option of doing it yourself like older model cars. You'll be stuck into going to the dealership for repairs. Getting rid of these advanced cars after 3 years by leasing makes more sense to me. The technology for vehicles changes too quickly. Buying outright used to be the better option, until the vehicles became too advanced to repair yourself.

@WhiteBoardFinance

5 жыл бұрын

Thanks for your feedback. This is why I buy older used cars with cash. I drive a mint 2011 BMW with literally 0 problems in 2 years of ownership.

Thank you! I am one of those people that keep my cars for as long as I can. (10 years) To me a car is just a way to get from point A to point B.

@NoName-mr1lh

5 жыл бұрын

Same here, I buy them reasonably cheap and keep them until they die or become too expensive to repair. It's just a workhorse to get me about.

@crazyoldbiker938

3 жыл бұрын

Well, since we are all going to die anyway, it really doesn't matter.

@jordanvarnim947

3 жыл бұрын

CrazyOldBiker it’s getting old. Stop copy pasting at the end of each comment.!

@bkkersey93

3 жыл бұрын

@@jordanvarnim947 Lmao I know! He must have a lot of time on his hands.

@thegrmcrckr488

3 жыл бұрын

My dad was the same way. He was frugal, saved all his money. I loved him dearly. He died and didn't really spend any of it. I work hard and love cars. I became a mechanic and worked on cars, trucks and boats till I got sick of it and did something else. I now lease new fancy cars and buy used fast cars. I budget for fun. If you just want to save your money and die with it, what is the point. I'm going to have lots of fun and I am. I still budget for a rainy day, but I know that its a balancing act and people should still have fun.

I remember doing an assignment on buying vs leasing in my introduction to finance class over a period of 10 years. If you bought a car and kept it for 10 years including maintenance it was more expensive than leasing 3 cars over that period. However, after 10 years the bought car was much more inexpensive to own. People also assume you’re car will be bought at resale value but that isn’t always the case. How Marko said sometimes people don’t take care of the vehicle appropriately and you’re competing against dealerships that’s have more inventory and more margin space than you do. End note: I bought my car and lease cars for my girl who likes nice things lol

@dibonaa808thegreat7

Жыл бұрын

Same.. I drive the owned and she drive the payments.Why? Cuz women drive snd thats it.We drive listen and feel our cars .

Very interesting! Something to consider though is how much you’re saving on maintenance. According to AAA study, the average cost of maintenance for a new car is $0.09 a mile. I drive 2000 miles a month. So over the life of three years, I’d save $6480 in maintenance by leasing!

Thanks! very informational! def watching more of your videos.

Thank you for the clarification! I'm done "renting" cars.

@crazyoldbiker938

3 жыл бұрын

Well, since we are all going to die anyway, it really doesn't matter.

Its really simple: you LEASE a car that will be expensive for you to maintain after 3 years. You BUY a car if its going to be cheap for you to maintain. On a 100k income, you can buy a Toyota or Honda, but I'd suggest leasing a BMW or Audi. On a 300k+ income, that concern fades away, of course.

@teekayrezeaumerah

4 жыл бұрын

Igor L on a 100k/year I’d be rolling in a Ferrari .. people are really bad with money, 100k/year is a LOT OF MONEY man, you could be saving 60k/year while living large and traveling the world ..I’m living off 35k/year (willingly) and still manage to save around 15/year XD .. btw I’m all for car ownership, there’s no point in switching cars every 3 years unless you’re trying to show off

@thisisbenji90

4 жыл бұрын

Clarity with Teekay On 100k/year while owning a Ferrari you would be living in a cardboard box and eating ramen noodles for breakfast, lunch, and dinner.

@teekayrezeaumerah

4 жыл бұрын

benjamin reynolds oh absolutely not. A Ferrari costs what, 250? That’s less than 5 years of savings on a 100k/year (living very comfortably of course). People are just bad with money ;)

@thisisbenji90

4 жыл бұрын

Clarity with Teekay Not possible. To save $250,000 in five years you would need to put away $50,000 per year. If you’re earning $100,000 per year, after you factor in taxes, retirement savings, and healthcare you would be LUCKY to see $60,000 in net income each year that actually hits your bank account. Now lets figure some real basic necessities, like a mortgage payment, property taxes, food, and utilities. For a modest house including the tax and insurance payments you might be looking at $1,500 per month, utilities are going to cost maybe $300 per month if you skip things like cable, and food you might be able to get by on $400 per month. So we’re talking at the very least $2,200 in expense each month (and this is assuming you’re single and have no kids, you better expect all of those bills to go up with more mouths to feed and electricity to waste). So now we’re already down to somewhere around $34,000 remaining for the year... which seems like a lot but let’s not forget there’s a ton of other expenses like car insurance, gas, home repairs, childcare, vacations, clothing, etc.

@teekayrezeaumerah

4 жыл бұрын

benjamin reynolds bro, don’t tell me what’s possible ans what’s not. I’ve lived off less than 20k/year for almost 11 years. In the same time period, I’ve visited around 30 countries, lived in 5 different ones all while being a student (for most part, which explains why I made less than 35 a year) I only eat organic (which is always more expensive than regular food), I don’t dress in Gucci nor do I waste money on fast fashion, but I definitely own some nice Patagonia jackets, Nike’s and all the basics. I have a MacBook Pro for work, an iPhone, AirPods, PS4 like everyone else, and a nice bike that cost roughly 2K. I don’t drive a Ferrari cause I don’t want to, nor do I need to, but I’ve owned a nice little Jeep that I bought after a couple of years of saving (second hand of course). I was 20, started with 2000$ to my name at 18 :). My expenses, rent included, food, gas, clothes, insurance, travel, electronics never exceeded 2k, and that’s the upper bar. Right now I’m at around 1.5k/month. I don’t own a house and probably never will (i don’t believe in owning a home that u live in) although I technically could buy one in cash in two years tops (given I don’t lose my job tmrw lol). I don’t want kids cause I’m not crazy so that’s one less massive expense. If I made 60k today after taxes, I’d be saving 40k a year, probably for the rest of my life..and even if I don’t invest that 40k (which would be utterly dumb), I’d still end up with more than a million dollars in savings in 25 years .. imaging the returns and dividends on 1.2 million dollars in 25 years ! Like I said, people are just bad with money and get stuck in the rat race, that’s all it is

You've made this so clear. I don't need to watch another video. I definitely want to buy my car. Renting just isn't my thing anymore.

I’m not going to say anything about the marker everybody else already took care of that 😂 😂 but Great videos, it was a blessing finding your channel my guy. I’m buying a camaro soon and this is amazing information for me.

@WhiteBoardFinance

5 жыл бұрын

Thank you Darius!

@bobsagit10

3 жыл бұрын

You end up getting that Camaro?

@thelifeofaking376

3 жыл бұрын

@@bobsagit10 not yet

@tcggggg

3 жыл бұрын

@@thelifeofaking376 how bout now?

I just discovered your videos by accident today. I love how you explain everything in an interesting way. Great job!

Nearly 30 years in the business and I can tell you leasing is in some cases better than financing particularly the Toyota brand. That said, leasing is not for everyone and yes you can still make money on leases as long as you trade it in and NOT do a lease return.

One other consideration: if you finance a car and it gets wrecked, your insurance may not cover the full value, especially if you quickly rack up the miles. Also, if you’re not keen on haggling with mechanics and worrying about maintenance, leasing is a bit less stressful and can be less costly. But you’re right, depends on your situation and lifestyle.

@davidmattae

2 жыл бұрын

That’s why you get GAP insurance

Best choice, buy slightly used. Cars depreciate most in first 3 years. Capitalize on other peoples financial mistakes.

Excellent video explaining the nuances. The only issue is the numbers are way off which severely impacts the analysis. In most leases, at least the ones I have had, the buyout is about 10-15% lower than the market price for the same car at 3 years old. Additionally, most, if not all cars, depreciate 45-55% over the first 3 years, so the 17,700 vehicle in question will bring back about $10,000 at sale, not 12K, and the buyout would be about $9,500. Outside of that, a very good explanation of pros and cons.

Thanks, my wife's friend is thinking about leasing car. She asked my opinion and I told her better to buy than to lease, so this explains it very well. We always buy slightly used cars and drive them until the wheels fall off.

It all depends on every individuals situation. Glad to have both options that applies to every single one of us.

Or you could pay cash for a slightly used car and drive it until the wheels fall off and pay a ton less. Buying a new car always starts with bad math....

@wesgale1173

5 жыл бұрын

100% agree. bought a car for $3000 3 years ago and did some basic maintenance and upkeep. how can you go wrong for 1000/yr

@BigUriel

5 жыл бұрын

IKR I see it all the time people buying a new car because it uses less fuel or the old one needs some expensive maintenance. What you're paying for that new car covers maintenance and fuel on the old one for years, sometimes decades.

@chrismoore9997

5 жыл бұрын

I drove my 1990 Honda Civic until the wheels fell off, then paid to get new wheels and I am still driving it. I just paid $1600 at the beginning of this year to have the motor rebuilt and a new radiator installed. Where can you buy a used car for $1600 that you can count on? With the rebuild, I am getting 35 MPG again, like I was when it was new.

@fathertime5680

5 жыл бұрын

Sounds good on paper until you have a wife and kids driving around in a beater while your at work and no way to retrieve them when they break down and her nagging every morning about the piece of garbage she's driving in and the next new thing that's going wrong. Then you break down and buy a new one just to shut her up for a couple yrs and have piece of mind

@JONNYGEEKMANG

5 жыл бұрын

@@fathertime5680 or they die because it's a 90s tin can. The one thing you can't put a price on is safety. In the last 20 years cars have gotten much much safer. With even some of the worst modern cars making the safest cars of the late 90s look like children designed them

This shows how important it is to do some research into the cars that hold there value well, this way you can get the best return possible!

@WhiteBoardFinance

5 жыл бұрын

Absolutely! I buy used cars and have no regrets. The goal is to buy right

@calvinraab8798

5 жыл бұрын

@@WhiteBoardFinance So true as I always hear in Real Estate "you make money when you buy"!

@WhiteBoardFinance

5 жыл бұрын

@@calvinraab8798 That's right!

@WhiteBoardFinance

5 жыл бұрын

All I buy is used German. Let the rich original owner take the hit, buy a great car for pennies on the dollar. Watch my video on how I made $4k on my e55 amg

@kirkthebeerslinger

5 жыл бұрын

@@WhiteBoardFinance agree and disagree at the same time-I bought a used S4 and was able to sell it and still hit my target number of COA (cost of ownership) less than $1000 per year-with the goal of $500 per year. How do you do that consistently? Buy a $2500 car and drive it for 2.5-5yrs simple. Ppl who buy $50000 cars are STUPID. It would take 50-100yrs to match my model...never gonna happen...they might get 15yrs out of a $30000 car not bad $2k/yr but still 2-4X my target. Put your money into your house and into investments (I own both FYI) Car leases and car loans are like a drug addiction-they will leave you broke (or at least with substantially less) and take you nowhere fast. Buy a used Corolla (manual) if you need a car or a used 4cyl pickup (manual) or both and spend less then $5k and you will be much further ahead with a spare car if one needs repairs...cars as status symbols are all an illusion ppl...a car in our society is important-but not for the reasons most people think.

I always find the saying "leasing is the most expensive way to operate a car" to be interesting. Because of course it's the most expensive, it should be! You're always in a new car with the latest tech, style, and comfort. Weird that a 10 year old car that no one enjoys would be cheaper to own.

@HPTechHelp

2 жыл бұрын

Clearly you don’t get it. Even if you buy a brand new car vs lease a brand new car it’s still cheaper to buy it, as this video proved.

“Buying” is a powerful word!

Awesome explanation. I leased a 2018 Honda Accord and don’t regret it at all. I’m not a car guy and don’t care to own a depreciating asset. I also would like to have the latest technology and safety features in my vehicle. I think the only negative part to leasing is worrying about miles. Very nice video!

@MrDzala

5 жыл бұрын

but you do pay for the depreciation of the vehicle...you just don't own it ^^ For each its own of course - makes sense, especially for people who can write it off as a deductible for business.

@chrissychanel5837

2 жыл бұрын

@@MrDzala You’re only paying to use it.

Great video! Love that you make it simple and straight forward. Just the marker didn’t look ok, love your videos anyways

Thank you for including the influence of lifestyle. Using this for a personal finance class for HS students.

I have a 03 truck bought itin 2010 still driving it today bought it for 6800, and I do all the work on it myself, and saved every service documentations. Average yearly cost with insurance included is 1257 dollars for the past 11 years

Buy new (don't have to worry who did what to the car prior), base model (less to go wrong), compact or smaller (enough car for commuting and it's sitting in the garage 95% of the time anyways), pay cash, drive it into the ground. Buy Honda/Toyota and 200k miles is routine. Why is this so hard for so many people?

@zdwade

5 жыл бұрын

Because who wants to drive a turd like Honda or Toyota. Buy German.

@KevinConwell23

5 жыл бұрын

Because some people enjoy their lives

@s4nder86

5 жыл бұрын

@@zdwade People are talking about saving money and having a worry-free vehicle here. Buy all the POS German money pits you want, doesn't make S K's advice any worse.

Thanks for a clear, rational presentation - black markers are the best btw. Of course, 80% of new cars are not owned by their drivers (yes, 80%), as they are leased, company cars or subject to some ongoing financial deal. New cars are very desirable things and this tends to make us think with our emotions more than our calculators when buying.

@MrHammer2088

5 жыл бұрын

Wow 80% ! .... that's a high number.. I live in NYC and just about every intersection has a used car lot 🤔.. Is it fair to say leasing is a matter of choice- and place in your financial life... Marko layed out his reasons to rather buy than lease- and that's his.. lease payments are always lower than finance - and marko fail to mentioned the difference in monthly finance and lease payments and how much being saved and compounding each month when lease.. of all the household across the country- most are leasing (renting)- and that's ok? Well of course where you live is a necessity- so it's debatable to compare (but it's still a choice based on finances) The top 1% always say- lease depreciating assets and buy appropriating asset.. And a vehicle is not an asset..

Thank you, Marko! That was amazingly insightful. I am on the fence about this. One thing I notice is that over the course of 3 years, the car depreciates in value, depending upon what you have. There is no guarantee that you will get $12K for the three-year-old compact, in fact, you may take a sizable hit on it. You also could look at spending $19K over 3 years (buy) vs. $7K over the same duration (lease). You have more options, being able to walk away and try something new, or having saved $12K over the three years could put you in a position to buy a car outright. I know this isn't a forum, but I would love anyone's thoughts on this, particularly yours Marko! Thanks!

@royaltyJkash

2 жыл бұрын

I agree.

@kaeknowsbetter

2 жыл бұрын

I agree

Ok, I just subscribed, this channel is becoming my personal university.

I know all this stuff but I subbed to watch your videos with my son. You educate better than I do. Thank you.

Dude you are amazing thank you 🙏 for a great 👍 video.

My dad leases his car and the maintenance has full coverage, so it depends on the deal you make. The cons you said can be avoided by not going to a dealership that will charge those things I personally like leasing because we can have a new car all the time, owning the same car for many years would be very boring, same with living in the same place your whole life...

@colechapman3382

2 жыл бұрын

I think what’s more interesting is having money in my bank account. I bought a 2012 Outback and plan on owning it for seven years till I sell it and buy another five year old used car. The longer you push back that 20-25k purchase, the better off you are. Maintenance is nothing if you buy a reliable Japanese car vs a complicated and expensive European model. I’ve been enjoying living a car payment free life and it’s been great. I don’t have to worry about a ding giving my dealership the excuse to charge me thousands of dollars and I don’t have to worry about going over the mileage limit they set. I can own it and if I do lose my job, I know there won’t be some slimy dealership taking it away if I can’t afford lease payments

Good vid but tbh it makes me anxious when you suddenly turn around feels like your watching me hahaha

The tax deduction you receive on nearly 100% of the lease for self employed people often makes the lease a better option, where the tax deduction is very minimal for a financed to own vehicle.

@shenisenicole103

2 жыл бұрын

Oh wow good info

I save a lot of money not paying taxes upfront when leasing a car and i never pay MSRP on leases. Always about 8-10k less. And I never worry about maintenance cost. Service cost is negligible with modern cars now needing an oil change every 10k miles. The peace of mind alone is priceless.

@fUjiMaNia

5 жыл бұрын

not paying taxes upfront! so when do you pay the sales tax then?

@romavictor1811

5 жыл бұрын

fUjiMaNia you pay the taxes monthly over the course of the lease agreement. So for example you lease for 3 years, and your monthly payment on the vehicle is $300, you will pay taxes on the $300 which in my case would be about $328/-

@fUjiMaNia

5 жыл бұрын

@@romavictor1811 oh I see what you meant. thanks!

Glad I learned to fix cars in my youth, I've been keeping my car from 2002 alive well... not sure I'd want to buy a car newer than 2010 outright; they're a nightmare to fix because they require so many expensive specialized tools even if you have the skills to do it. Trying to keep my current daily running good until it's viable to get/live with an Electric car that has a lot less maintenance. (just brakes n tires...batteries will probably get cheaper, but they're a lot less laborious to work on than engines if something major needs being done.)

I like your videos and I think most of them are valuable. One thing I wanted to point out is that a car or truck isn't an asset, it's a depreciative asset meaning your losing money every year. Repair costs alone will take away any value you may have in the car. An asset is something that is valuable item and it makes you money over the long haul.

@WhiteBoardFinance

4 жыл бұрын

agreed. check out my good debt bad debt video.

And at the "end of the day", you nailed It as always!

@derrickbergman4973

4 жыл бұрын

NO he did not he was wrong in many area's and omitted a LOT of information to make his purchase argument!

There is an $11000 discrepancy you forget to mention. The monthly difference kept in my pocket from the lease. That's significant, and i could do more with that on a monthly basis, vs having the higher payment to save $1200 at the end of my contract. The interest paid on the purchase finance at the end is less than you would have spent on the total cost of a financed vehicle. The cars i choose to purchase have complete dealer coverage. I might only have to worry about a single set of tires over the course of 3 years. That's worth the $1200 purchase difference alone for me. If you plan on keeping the car, just wait and but it certified used. Anything else is just a poor financial decision. Unless you just aren't affected by the overall purchase amount, or the car is something very special to the buyer, and they want very specific options, just get it used. Car buying is such a sham. If you are the smart buyer as well, you can talk the residual lease payment down as well. Tadaaaa! Lol

Good video. But as a car guy the Honda Civic and Toyota Corolla are Compacts, not subcompacts. The Honda Fit and Toyota Yaris are the subcompacts.

It makes sense to lease a luxury car such as a Mercedes. These typically run very well the first few years but start to become very expensive to maintain and repair as stuff start to break. So the idea is to enjoy the car while it's brand new and run well, and get rid of it before stuff start to break and get expensive, and then lease a new one.

Good video. I'm a cash buyer so I don't understand how Leases work. I probably will never lease but it's good to know how it works

i love this channel .You da man Marco

Great videos...I learn alot from your videos and I was a Senior Master Certified Lexus Tech for 20 years at 2 So Cal dealers. Great information... Thanks

Interesting , the stock market is currently experiencing a decline while bond yields are on the rise. However, there seems to be skepticism amongst investors regarding the Federal Reserve's plan to continue increasing interest rates until inflation is stabilized. As for myself, I find myself at a crossroads, uncertain whether to liquidate my $250,000 stock portfolio. I'm seeking advice on the best strategy to capitalize on this current bear market.

@eqshift6788

Жыл бұрын

Not sure how this scam works but I've seen it all over finance KZread channels

Not always true about getting a bad deal with promo interest rates. I bought a new Honda SUV at 0.9% and paid $6k below MSRP. Great video. Subscribed.

@amanriar7738

5 жыл бұрын

How u did that i mean got that much less price than msrp?

This was ave awesome video!!! I'm a dumbass when it comes to numbers... but I've watched a few of your videos now and you explain way better than my teaches ever did back in highschool 20yrs ago. So thanks Haha

Good explanation. Nobody needs a new car every 3 years

Nice reviews. Really appreciate your easy style of delivering important information which helps all of us.