the problem with leasing is that you don't own it after 3 yrs. You still have to buy the car out after that. I think leasing will make sense if the payment on it was like 800$

@kevinbradley8613

Ай бұрын

I just got out of a lease. Lease payments are, essentially, paying for taxes, fees, and primarily, the depreciating value of the vehicle that you’re leasing. It is akin to renting a vehicle for a few years except worse and likely more expensive than actually renting. The dealer determines what the value of the vehicle will be (approximately) by the end of your contract. They will give you the option to buy-out the lease at the price they set when you first signed the contract. Here’s who a lease is good for: the dealer. End of story. Here’s who should consider leasing: folks who don’t understand how leasing works (like myself, at the time), folks who don’t care about actually owning a vehicle, and therefore have something of value (even a depreciating asset is still an asset!), folks who would rather not be concerned with anything other than required “mandatory” maintenance, and folks who would probably trade and buy a new vehicle every few years in any case and don’t mind making monthly car payments for as long as they possess a vehicle. The car/truck is restricted on mileage, modifications of any kind are forbidden, and the dealer has the option of ending the lease at any time if they so choose. It is THEIR vehicle.

@uche007us

Ай бұрын

@kevinbradley8613 what I thought exactly. I used to date a hairdresser that leased all her cars but she got some tax credit with it through her salon. But apart from getting business credit, I really don't understand why anyone would lease especially since the monthly payment is just about 10% off from just financing.

@kevinbradley8613

Ай бұрын

@@uche007us I wound up going with the lease because interest rates on financing were so high (they’re still stupidly high). I don’t have to drive a lot and the salesperson convinced me that low mileage leasing was a better choice. Financing would’ve been a much wiser decision once I realized how a lease actually works, and the payments were not significantly lower than they would’ve been had I went with financing. I now have a financed vehicle that I hope to have paid off in two years and then if I decide to trade for a new vehicle, I will have much more bargaining power. Never again!!! Do your research or speak with someone who knows BEFORE getting scammed lol 🤦

Excellent video. Suggest you point out that with the lease you don't have a vehicle after 3 years. You must start another lease to reach the 6 years of financing. After the six years, you have a vehicle if you purchase or finance. Maybe you should raise the issue of how long you intend to keep the vehicle? A few scenarios, say 3, 6, 10 years would be interesting. Nice video.

Awesome breakdown with realistic numbers

Toyota you buy and keep long term. You dont even account for trade in value. My 2017 4Runner trd pro payed 55k new at that time has 80k miles now. I can trade in for 32k(apraised 3months ago) Most american cars, you lease as they fall apart after warranty is done. Im keeping my 4runner for at least 10-15 years. Its a waste of money to lease, the amount im saving not leasing, i can buy 3 trdpros by the time i trade in mine and my 2017 will be valued at around 20k for trade in. Dealers want you to lease. Endless stream of income for them. Not smart for a buyer.

Can’t believe these numbers, would think we’re talking about a German luxury vehicle not a Toyota… Man, what happened?

None just buy. If you cant afford it, tuff luck.