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

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Күн бұрын

Пікірлер: 45

@davidp.4727 5 ай бұрын

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 Ай бұрын

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

5 ай бұрын

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 Ай бұрын

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

@AllenReinecke 5 ай бұрын

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 5 ай бұрын

In canada the financing rate will go upto 9.0%

@koko-wt1ub 4 ай бұрын

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

@flat6gts 3 ай бұрын

@@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 Ай бұрын

Is this rate for leasing or financing

@waffles1ca 5 ай бұрын

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.

@Outsider.Reviews 5 ай бұрын

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 Ай бұрын

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 Ай бұрын

@@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 Ай бұрын

@@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!

@alexandregiovannibordes1844 3 ай бұрын

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

@backtoshallabal6662 5 ай бұрын

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 Ай бұрын

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 Ай бұрын

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

@euci3207 4 ай бұрын

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

@TruthHurts922 Ай бұрын

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

@416nighthawk 5 ай бұрын

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

@user-tb7rn1il3q 2 ай бұрын

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 2 ай бұрын

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.

@davidparker7156 Ай бұрын

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.

@garystar1592 5 ай бұрын

Thank you for the straight unbiased explanation -:)

@Ryan-cf6lc 5 ай бұрын

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 5 ай бұрын

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

@bradhewitt6779 5 ай бұрын

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

@ToyotaWorld 5 ай бұрын

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 5 ай бұрын

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

@dianagregory9721 2 ай бұрын

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 Ай бұрын

Your owning a depreciating asset

@dianagregory9721 Ай бұрын

@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.

@OTPLAYLIST 5 ай бұрын

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

@ToyotaWorld 5 ай бұрын

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

@OTPLAYLIST 5 ай бұрын

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

@ThaoNguyen-jv4up 3 ай бұрын

I like owning stuff

@richlin2384 2 ай бұрын

Which dealership do u work at ?

@ToyotaWorld 2 ай бұрын

Maple toyota

@andya8898 3 ай бұрын

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.