EXPERT EXPLAINS! Should You Buy, Finance or Lease Your New Car!

[@davidp.4727]

Pay cash but don’t tell them until after negotiations. Also, stick to your budget and don’t accept extras, warranties or “documentation fees”. The consumer is in the driver’s seat, dealers need to remember this.

[@VeronicaUSA]

Best answer that's what I do every 3-4 years

Leasing is a cycle where you never stop making payments. If you have the cash it’s best to pay it all outright. Leveraging may be good but the interest on car loans or lease will always be higher than interests on High Yield Savings or CD’s so use the cash!

[@Bobventk]

The is why you actually INVEST money, CDs aren’t investing. They’re saving. And you get the crumby returns that you deserve

[@bobsylviapeters8651]

A lease advantage that nobody seems to talk about is what happens in the event of an accident. If you smash up a leased Toyota however caused, it has to be repaired by a Toyota-approved body shop. At the end of the lease, you can hand back the car to the dealer a not have to worry about about CARFAX reports lowering the value of the car at trade-in because it's been in an accident. Toyota Corporate takes the hit. If you buy a car and get into an accident, CARFAX records the accident resulting in a much lower trade-in value if you want another vehicle.

[@waffles1ca]

Great information, thank you. I have so far avoided leasing because I have a history of driving a lot of km’s per year. I will consider leasing in the future.

[@AllenReinecke]

The numbers aren't making any sense IMHO. More opinion expressed than data. 1) Toyota rates are 4.99% for 60 months for a 2025 Camry. I can get 4.4% interest on my savings. More if I locked them down for a period. So cash versus finance is essentially awash. Stock markets pay back only over the long term. Risky over 60 months! 2) Leasing works out better than financing if the resale value of the vehicle is going to be poor. Not so applicable to Toyotas 3) Leasing is not at all appropriate when you drive significant miles per year 4) Financing or leasing is useful to maintain or build credit history, whereas cash does nothing for that. 5). Whatever you do you'll lose money in a vehicle. Typically $2000/$3000 per year over the long term and much higher if you trade after just 3 years. Everyone needs to review their own situation and decide what's best for them. Initial outlays, savings, interest rates, monthly payments, miles per year, accident/vehicle damage risk, model resale value, tenure of vehicle, condition of vehicle at resale, etc. Do your research!

[@arvinDskipper9003]

In canada the financing rate will go upto 9.0%

[@koko-wt1ub]

For point 1, don’t forget you pay tax on the interest income, it’s not a wash, do your research!

[@flat6gts]

@@koko-wt1ubUnless you invest in a registered account like a TFSA or RRSP in which case any interest or investment income is tax-free

[@michealofori8614]

Is this rate for leasing or financing

[@Outsider.Reviews]

Any dealership personnel will want you to lease. It guarantees you will be back inside their doors and you end up with less value or none at the end. Stop buying cars every couple of years!

[@TruthHurts922]

This is completely false. High end cars dealers are picky with who leases right now due to the high amount of repos and condition of cars post lease. I was as Bentley and they denied 2 people leases while I was there. They pushed for financing options. The sales guy said they have criteria 10x More strict for leases right now then financing bc they are losing

[@Outsider.Reviews]

@@TruthHurts922 You are referring to the U.S. market I'm assuming? This guy works at a Canadian Toyota dealership and we don't have a repo crisis going on or anything like that.

[@The1KovacsAttila1]

@@TruthHurts922 A car dealership never loses on a lease! The bank/leasing company does! The car dealer always wins when a car leaves its floor, no matter the financing solution!

[@garystar1592]

Thank you for the straight unbiased explanation -:)

[@backtoshallabal6662]

lease is better IMO. Like no matter the brand after a few years you are just paying for new brakes, tires, the car will slowly brake down and become a headache to fix no peace of mind. I'd rather pay money to get a reliable source of transportation everytime as when you lease you always get a brand new vehicle.

[@TruthHurts922]

I used to think this was crazy but I leased my second car and I agree with you. My lease is up in two months and I think I’m going to lease again. Plus when your Loyal to a brand you get really good deals. I’m about to be in my third Maserati

[@backtoshallabal6662]

@@TruthHurts922 Exactly. ITs better to get a a new vehicle.

[@julesmartel254]

I am leasing a 2024 Tacoma TRD off road w/premium package MSRP $55,000 I hardly drive and will most likely have less than 10,000 miles on it, which I am allotted, at the end of the lease, I like new every 2 or three, now I used my 2014 Tundra as a down payment, they gave me $16,000, which got me a great payment of $231/mo, before I signed anything I expressed my concern to the dealership that I'm not going to have 16 grand to put down if I want to get into another lease in 3 years and keep my nice payment of $231, which I can easily afford being on a fixed income, so what are you going to do for me, their response was well we have no idea what the car market will be in 3 years, but if we want your business I'm sure we can make something happen, as Tacoma’s will most likely have a great residual value. My plan is to get into another Tacoma but a downgraded one, TRD sport with upgrade package which I think is about $4 to $5 grand cheaper than the one I have now, but with still some of the features I like!! Did I make a mistake or do you think I may still be in good shape?

[@lcc726]

When he said not to pay cash and use that $ to invest it bc the car is a depreciating asset and instead finance it. The car will depreciate regardless. unless u have a good interest rate which is hard to come by these days financing isnt a good option bc ur not only paying for the car but interest on top of that.

[@alexandregiovannibordes1844]

The best strategy is to buy a used car every 10 years!

[@euci3207]

Leasing, cheaper monthly payment , but a never ending car payment, no thanks.

[@TruthHurts922]

Financing apr is 12 % right now unless your buying cash your payments aren’t realistic any longer

[@416nighthawk]

What if you drive 40-45K a year? Leasing isn't an option in that case?

[@user-tb7rn1il3q]

If you drive that much you should be buying used with high mileage. You’re destroying the value of a new car driving that much.

[@user-tb7rn1il3q]

I’d never pay cash for a car because it’s risky. The dealer won’t give you the title. While leasing does work for some I always finance and pay it off quickly. I won’t start paying down the loan until DMV issues the E Title in my name. Dealers generally will give you a better price if you finance. If you pay cash and there is a problem with the title or the dealer goes under you could be out the cash and the car.

[@Ryan-cf6lc]

Hey Marcello, can you explain why multiple security deposits maxes out at different amounts? For example, the Tacoma off-road premium maxes out at $5500. The Highlander LE max is out at $7500 and the Highlander LE hybrid maxes out at $10,000. Thanks for the reply.

[@ToyotaWorld]

Not sure. They are just flat rates by model lines that are pre set

[@ThaoNguyen-jv4up]

I like owning stuff

[@OTPLAYLIST]

Can you talk about does the dealership get kickback from leasing?

[@ToyotaWorld]

No we do not. Only on financing through banks. Which isn’t often

[@OTPLAYLIST]

@@ToyotaWorld strange.. I went to a Lexus dealership.. and the salesperson said the condition is either trade in or lease or finance

[@bradhewitt6779]

Get 2% on gic And finance for 7 % . That does not make any sense 😕

[@ToyotaWorld]

Ummmm it does when your cash is still worth the same value or more in 2-7 years while your car is worth 50% less than what you paid ? Bro

[@tomlau6117]

7% every payment !! Stock market who know you will win or lose

[@richlin2384]

Which dealership do u work at ?

[@ToyotaWorld]

Maple toyota

[@davidparker7156]

If the choice is a high interest rate or pay cash, if your cash is earning less than the high interest rate then cash makes more sense. The car will depreciate weather you pay cash or finance.... So I dont understand the argument you make.

[@dianagregory9721]

A least is a waste of money you own, nothing after a lease. I rather pay more monthly so I own it at the end of 5 or 6 years instead of throwing money away.

[@mavindraganga3398]

Your owning a depreciating asset

[@dianagregory9721]

@mavindraganga3398 I don't look at that way. Yr car will last many years if you properly maintain it. So, whether it depreciates or not, I plan on keeping my vehicles for many years with no monthly payments. But if leasing works for you, that's cool. I have leased in the past, then bought my vehicle and it's just not for me.

[@luxurybuzz3681]

Buy a used 5-10k vehicle cash. Rent a sports car on Vacation

[@IamRMFC]

No way you started that clean shaved and stopped for a haircut 🧐

[@aa77655]

Is it change 2025 model ? Or just face left

[@jamesstuart3346]

I'll try not to buy any cash 😅

[@koko-wt1ub]

The cash vs financing example makes zero sense, clearly dude is not an accountant 😂

[@andya8898]

Don’t lease ever! If your plan is to long term own the car, dealerships will make you add dumb upgrades on a lease. They will also require you to have a more expensive insurance to protect their vehicle. Don’t lease. Dealerships only want you to only think about payments. I paid off my car 6yrs ago. Trust me you can pay for any repair with money in your pocket from not giving it away to a new car every 4 years.

[@mr.kamote2475]

His right dont buy a car with cash iffffffffff…. You don’t have it….