Buying vs. Leasing a Car (Pros and Cons)

In this video I discuss whether you should buy or lease a car. So which is the better option? The truth is that there are two aspects to this decision.
There is the mathematical decision, and the personal situation decision. Some people like to drive new cars every three years, so they think it's better to lease a car. Some people like to drive cars longer than those three years and take care of their vehicle, so buying a car may be a better option for them.
Leasing a car is generally better if you're the type of person who likes new cars every three years. There are pros and cons to leasing a car vs buying a car. Some of those Pros is that you know you'll have a modern vehicle with all the updated amenities. However there are also some restrictions when leasing a car that you should be aware of.
Buying a car is generally the better option if you were someone who likes to hold on to their vehicles and likes the repair and work on them yourself. if you hold on to your vehicles for five or more years, it usually makes all the sense in the world to buy it and drive it into the ground. The person who owns their car can also sell their car at the end of ownership allowing them to recover some value of the vehicle. You can't do this if you lease your car.
Watch the entire video to find out if you should buy or lease your car!
Sources:
It was easiest to use the numbers from the Khan Academy video below because there are SO many different situations when it comes to Buying vs. Leasing a car that CANNOT be covered in one video. There are so many different makes, models, and manufacturer incentives that change over time. I decided to stick to a general overview for this video, along with my personal opinion at the end. For the original numbers please see the link below. Thanks again for watching! :)
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My mission is to provide my viewers with actionable content that enables them to create financial wealth. My videos are a reflection of my real-world experience as a real estate investor, stock market investor, student of finance, and entrepreneur.
This channel allows me to share my passion for personal finance, stock market investing, real estate investing, and entrepreneurship. I produce content that I would want to watch, and because of that, I give 100% effort in every video that I make. I also believe in complete transparency and open communication with my audience.
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DISCLAIMER: I am not a financial adviser. These videos are for educational purposes only. Investing of any kind involves risk. While it is possible to minimize risk, your investments are solely your responsibility. It is imperative that you conduct your own research. I am merely sharing my opinion with no guarantee of gains or losses on investments.
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[@7878lonewolf]

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]

You and me both bro, you and me both.

[@faq1006]

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]

He is just like a teacher, completely wrong.

[@pranavansada8970]

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

[@SpasticLizard]

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

[@ellenknell3249]

Buy a used car and marry a mechanic.

[@WhiteBoardFinance]

Lol smart

[@9Achaemenid]

Hard to find a nice female mechanic to marry lol

[@lisarobinson3521]

@@9Achaemenid 😂😂😂👍

[@Littlesassybigheart]

Lmao

[@joemccallum710]

Shady bitches everywhere!

[@pimpnorris2097]

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]

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]

@@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]

@@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]

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]

@@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.

[@SeedOfSins]

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]

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

[@ZeroAmillion]

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

[@Rez10000]

@Don K lmao I found the friend

[@spoonerdee]

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]

I've been buying used with cash my whole life

[@Femaqui07]

Who is the n1 salesman in question?

[@michaelseipp9102]

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

[@whitemailprivilege2830]

DoughnationCreative hahahahaha

[@StevenPenny]

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

[@SunsetSheen]

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]

🙌🏻

[@fabrice8940]

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

[@redcloud5813]

Better to buy slightly used.

[@fabrice8940]

@@redcloud5813 not in this market. Period.

[@redcloud5813]

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

[@MusicLover-sr5wr]

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]

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]

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]

See my comment I made.

[@williebender1895]

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]

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.

[@Jessicatorres_768]

"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]

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]

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]

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]

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]

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.

[@ravenskyhalo]

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]

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]

@@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]

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]

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?

[@jamslam5641]

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]

Seems like leasing is a no brainer then

[@Brigh578]

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]

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]

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]

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

[@Pip1024.]

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]

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

[@arhanjamesdulger904]

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

[@darkgiggler]

@@arhanjamesdulger904 lmao

[@boogienow]

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]

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]

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

[@boogienow]

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]

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

[@kayleigh9516]

@@crazyoldbiker938 best answer ever

[@stjepanhauser7595]

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]

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

[@dnielrable]

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]

You don't have to pay insurance for car?

[@dnielrable]

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

[@Dabal_R]

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

[@dnielrable]

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

[@tuiroakwood]

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.

[@jamescrawford2547]

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]

Exactly - it comes down to consistent cash flow

[@mattcee7113]

How about financing then trading the car in?

[@redcloud5813]

I guess Dave Ramsey is wrong.🤔

[@rlee7389]

@@redcloud5813 Dave Ramsey is wrong a lot

[@LeaFaye]

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

[@brianparra4205]

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]

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?

[@madjackgamingandfitness498]

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

[@michaels8597]

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]

A bit misogynistic, no?

[@madjackgamingandfitness498]

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

[@michaels8597]

@@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]

@@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..

[@swaggod226]

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

[@aquagirl1222]

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!

[@markjohnston5691]

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]

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

[@peppersaltman1805]

Mind... Blown!

[@terryeffinp]

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]

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]

@@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.

[@sonamsam23]

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

[@WhoDatizz602]

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]

Nothing wrong with that. I prefer owning cars outright.

[@crazyoldbiker938]

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

[@Chris-yp1cd]

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]

@@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]

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 .

[@kingjames0574]

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.

[@juliansmith2250]

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]

Agreed

[@coreejacobs4780]

💯💯💯

[@betruetoyourself7162]

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]

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]

@@adryonna1 Still appreciated!

[@qasimansari7540]

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]

Thanks for watching!

[@MultiScoffer]

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.👍🏾👏

[@LindseyMHull]

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]

This

[@DanRichter]

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.

[@IrfanKhan-ig1tj]

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]

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.

[@Mford1212]

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]

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

[@Femaqui07]

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

[@benniebukulu3656]

Tf

[@stephanieflores5989]

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

[@usernameisusername]

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

[@jajajaja2624]

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]

Thats nice to know.

[@steponefinance4282]

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]

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]

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

[@gabrieleward]

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

[@steponefinance4282]

@@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]

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

[@will2tao]

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

[@favio1415]

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]

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]

@DJ Ness Thanks for thinking about us future readers!

[@TuBui2]

@DJ Ness thanks for the wisdom DJ

[@spadebusiness8946]

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

[@billk5296]

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.

[@zacharysaul7410]

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

[@calebgore1914]

That was the only reason I looked in the comments.

[@chichi41]

So, whats the beef?????

[@carmentall1166]

I caught that too. He does a great job.

[@crazyoldbiker938]

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

[@Albert-vi7te]

Buy what appreciates. Lease what depreciates.

[@travis1240]

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

[@hojaeyun6747]

@@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]

@@travis1240 The math certainly _can_ support it.

[@MuscleNMind]

@@hojaeyun6747 time value of money ftw

[@williebender1895]

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

[@tulrob]

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

[@n00bslayherttv92]

Wholesome, in the first 10 seconds. Subscribed. Thank you.

[@arefkr]

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

[@iselili2]

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

[@backtoemocovers]

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

[@panagiotisstathopoulos1656]

Great video. I was clueless til you explained it to me. Keep up the good work

[@lakertime987]

Informative but that marker color was a poor choice.

[@WhiteBoardFinance]

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]

Yeah that was a very bad choice 🤪

[@CINTERPOL]

Lol

[@andrew881000]

lakertime987 I could see it just fine

[@ninja.saywhat]

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

[@GCHG2014]

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]

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]

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]

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]

@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]

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

[@dougz2855]

Great information Marko. Definitely like and share worthy!

[@gadinagill342]

WOW so smart, great video! Markooooo! Darker colors are more visible on whiteboards, my vision is already bad, felt like i had to strain my eye to see the green! Again, great video!!

[@codyenders3016]

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]

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]

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

[@saigoneze4746]

i love this channel .You da man Marco

[@Knucklehead123]

Thank you for this help!

[@MS4323]

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

[@maikaimakena9424]

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

[@ilyarubinshteyn8456]

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.

[@HDeemand]

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!

[@igorl8367]

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]

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]

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]

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]

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]

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

[@7389]

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]

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]

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

[@jordanvarnim947]

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

[@bkkersey93]

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

[@thegrmcrckr488]

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.

[@drodNY]

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]

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

[@colechapman3382]

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

[@mail06513]

Thank you for the clear unbiased explanation.

[@mirajeRX]

Awsome job dude. keep up the hard work. Still enjoying your content.

[@rayo.5663]

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

[@derrickbergman4973]

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

[@wojciechhojdysz82]

You're missing alot of major points in your comparison which is skewing your recommendation. Sales tax. When you buy a car, you're paying sales tax on the entire price of the car. When you lease, your only paying tax on the payment. Rules might also be different in different states. At the end of three years you're $17, 700 poorer and you've also lost $5700 of the $17, 700. With leasing you're only down 5,700 and you've lost nothing. $5.7k to rent a car for three years is a good deal. With leasing, you can also have an arbitrage opportunity if the residual value and market value are off. Leases also give you a few hundred bucks to 1k as a damages waiver. Anything smaller than a golf ball dent is usually ignored. Have fun trying to sell your car with damage for 12k. Another factor is time. You can return a lease at the end of your contract and walk away, instead of trying to find a private buyer or selling to the dealer where you won't get anything close to 12k. I get the point of your video but the fact that you omit the amount of money you tie up in buying versus leasing over three years is a critical flaw.

[@manmonk6219]

With lease you are down $7724 ($2,000 down + $159x36)

[@adamjonathan1421]

Well said and explained better, why Leasing is more practical overall.

[@TheNanda11]

Right on 👍

[@crazyoldbiker938]

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

[@aliabu9756]

My kia loans is now over.. So basically i pay nothing for atleast 3~5 years to come.

[@deopatel4453]

Keep those videos coming. Well explained

[@aliaborez3987]

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

[@fredsalfa]

Thanks for clearing that up for us - Cheers

[@crazyoldbiker938]

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

[@wolverineanteater6260]

Great advice thank you.... very much appreciated..🙏

[@WhiteBoardFinance]

my pleasure please share with friends and fam!

[@cretnotonic]

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.

[@dalefischer1338]

Love your content. Thank you.

[@WAYNENYC100]

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]

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.

[@NoName-gv6nm]

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

[@TheBendalina]

Great video all the basics covered

[@knowledgeapplied]

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]

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

[@knowledgeapplied]

@@williebender1895 Exactly.

[@williebender1895]

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

[@Nattymatty7]

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

[@yophilli]

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

[@wyohman00]

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]

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]

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]

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]

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]

@@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

[@ivanpatricklambert3676]

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.

[@MiguelGomez-tb8ve]

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]

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

[@r.z.j.8261]

Great video, helped me make up my mind.

[@Khondker]

@marko Thanks for the excellent videos. Over the years, I have tried my best to explain this scenario to my brother, colleagues, and friends who consider to lease option and think it is cheaper in the long run. But a second opinion from you 'seals the deal' and strengthen what I have been 'preaching' all this time. We also have to consider the lease per month value. Different dealers will offer different monthly lease fee and it is important to shop around and consider the best lease option and compare with a buy out option before they make a decision based on their preference of keeping the car for a shorter term and never actually buying it. But you did mention that the video is an oversimplified version and I completely agree with you. There are a lot of factors.

[@thelifeofaking376]

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]

Thank you Darius!

[@bobsagit10]

You end up getting that Camaro?

[@thelifeofaking376]

@@bobsagit10 not yet

[@tcggggg]

@@thelifeofaking376 how bout now?

[@sonihrdk]

Great insight. Thank you.

[@seanh9632]

thanks Man- very helpful

[@max19116]

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

[@jaysonwalsh7666]

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

[@christophershanklin112]

It depends on the car and the miles

[@number1fansince]

Not always I like the hassle of selling

[@crazyoldbiker938]

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

[@CobraDove1111]

Yup

[@studentthe1560]

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

[@crazyoldbiker938]

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

[@redcloud5813]

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.

[@askvanita]

Great information and presentation with numbers and data. Thanks for sharing.

[@robocop581]

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

[@PaulPetersaudio]

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]

I agree.

[@kaeknowsbetter]

I agree

[@ArnelleX-us9yo]

Thanks for the Info bro...I was really struggling with this issue....

[@theaceofspades485]

Thank you!!! life predictament for me right now is definitely lease.

[@kjh789az]

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]

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..

[@neitan6891]

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

[@crazyoldbiker938]

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

[@TnTteam09]

@@crazyoldbiker938 🤣💀

[@drewrobinson1839]

What if u buy outright like a real cripppp

[@13579Josiah]

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!

[@mikeodeki4209]

Very very helpful thank you

[@DustinWoloschuk]

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

[@Hobby_Racer]

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.

[@jermainejennings1514]

Thank you for the information sir!

[@KJ-ym1qg]

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]

Where do you work?

[@bluegorillacookies]

Right now slightly used are more expensive than new.