The BEST Way to Buy a Car in Retirement | New, Used or Leased?

[@HolySchmidt]

Hi everyone, check out one of my most popular videos: Retirees Spend 80% of Their Income in These 5 Areas | How Do You Compare? This video just cross 650,000 views! kzbin.info/www/bejne/jZ-rdGyBodyEY9k

[@joelrussell5265]

Geoff, your advice and information is very helpful and serves as a sound second opinion (third and fourth in some cases) for my family. That stated, would you be open to exploring advice for current Federal employees retiring in the next five years? Thank you!

[@curlydave7689]

You missed a big deal for retired people -- newer cars have much better driver assist technology. Distance maintaining cruise control, back up cameras, collision avoidance, lane keeping, blind spot assist, etc. Sure, I can and do safely drive my old truck without any of these features, but it is surely helpful to have a co-pilot.

[@jerrypolverino6025]

You can add some of these features with some GPS such as Garman, and back up cameras are cheap.

[@InHellBaby1]

Reliability is the most important thing to me, followed by safety features.

[@stephen1991]

That true, my insurance guy quoted me a price for insuring a new 50k suv that was less than what my 2013 is. That’s the reason, with all the tech it’s a much safer vehicle.

[@oldcodger4672]

@@InHellBaby1that’s why we bought a 1 year old Lexus, with 4 years left on the new car warranty.

[@Rocky-xx2zg]

After age 85-90, they should not be driving a car. JMO

[@jameschaves5723]

Funny story, I recently pulled up to a well known restaurant in my 2010 Honda Accord and had it valeted. They looked at me funny!! That night we had a $250 meal and by the way I tipped the valet $25. Silent wealth is the way to go!!!

[@elliottpeabody1287]

Yep, that story was real funny!

[@kenfrank2730]

@@elliottpeabody1287 Yeah, I'm still laughing.

[@great-garden-watch]

Just drive an old mustang. They forget to sneer because its a mustang. It will work with any sports car

[@jameschaves5723]

@@elliottpeabody1287 merry Christmas

[@jameschaves5723]

@@kenfrank2730 merry Christmas

[@thullraven1]

I bought my hot rod daily driver brand new in 2018 when I was still working. I had it paid off a year and a half later. I plan to keep it until it drops, or I do. I retired debt free at 59 and plan to stay that way. car payments are not an option. As for Leasing, Dave Ramsey calls it "Fleasing", and I agree. You'll always be upside down and in payments. When you are retired and on a fixed income, one of the last things you need is a car payment that never goes away.

[@ceesklumper]

Since I am a mechanic, I buy older cars and keep them forever doing all my own repairs and maintenance. A car costs me around $400 a year that way.

[@gosman949]

I do the same by buying new with all the options and driving for more than 20 years! I get the enjoyment of a new car for the first few years!

[@susette7066]

We have a garage full of tools, husband has years of experience on gas engines- our son is right there with him. Used cars can be the best- he has done everything except rebuilding transmissions. We don’t make $60K very often and have a really comfortable life. If he hated working on motors or had no talent, it would be different. Just saying that we really spent a lot of time teaching the kids to be self-sufficient. Quality doesn’t cost- it pays…

[@bob_frazier]

I'm a proud bottom feeder. I only buy used cars from private owners, and I prefer buying from wealthy older people because they typically maintained their cars and didn't abuse them. I hold them much longer than Jeoff would recommend, but I've been lucky with only one major repair bill in 20+ years.

[@jvd9202]

I'd be interested to know how you find those cars.

[@bob_frazier]

@@jvd9202 Use to use Craiglist more, but now Auto trader is a better choice. Keep vehicles so long I don't have to find too many. Last one, flew to Denver to buy a Ford King Ranch from a 74 year old retired airline pilot. 10 year old truck had 20,800 miles on it, like new, stored inside, etc, etc.

[@PeterHernandez-lg2eh]

1 car owner with the owner's name on title, plus all the recommended maintenance records. Check ob2 with bidirectional scanner and most important check for rust underneath vehicle

[@Laura-rx9mp]

Hmmm Ive leased my last 3 cars and happy to do it. As a single retiree I must have a dependable car and people that help me when I have issues. Comfort and peace of mind more important to me!!!! Thanks for the video

[@DrSchor]

regular Maintenace will keep your car running for 20 years. you are deluding yourself by thinking that spending silly money on a lease is the only way to have peace of mind

[@Laura-rx9mp]

Agree. However the exorbitant amount of money I spent in maintaining vehicles was too much and I like modern conveniences in a car. Yes I pay for it and if is ok. I deserve it! Cheers

[@beerster]

I just bought a new 2023 Rav 4 Hybrid for msrp + 400. Total cost 38,200. I paid cash. I plan to drive it for 300,000 miles. @ 10k miles per year, it should last for 30 years. I'm 71. My daughter, an actuary at a life insurance company tells me, it may last longer than me. I also have a second vehicle. It is a 2018 Tacoma TRD Off Road Long Bed truck with 23,000 miles on it. I bought it new and it is now worth the same as it was when new. I have a longevity problem, not a car depreciation problem.

[@HolySchmidt]

Nice one!

[@edrose4583]

I wouldn't count on a frame/unibody lasting 30 years, particularly if you live where they salt the roads.

[@kenfrank2730]

Not all Toyota dealers have a market adjustment, or amount they add to the MSRP. My dealer does not, even though the Rav4 hybrid is in high demand. Enjoy your Rav4 hybrid, mine should arrive soon.

[@arvieearp7498]

Your financial circumstances are undoubtedly superior to mine but I just cannot see myself parting with $38K for a car especially all at once. I would much rather have those funds working for me. I did pay $21000 cash total including taxes and fees for a Camry 10 years ago and I still have the car.

[@PeterHernandez-lg2eh]

Same here 71 retired lineman diyer

[@felinespirits]

Now that I'm retired, just the thought of car payments makes me cringe...

[@peterdallman4550]

Payments don’t worry me in the least. I don’t need a fancy, expensive car. I live where we get a lot of snow and I like Subaru’s. I could easily go out an buy 10 new cars today cash. I bought a car in 2022 that offered .05% interest over 5 years. My old Subarus was paid off and they offered me $10K that I used as the DP. So I financed 35K That 35K stays in my investment portfolio and earns way more that the interest I’m paying. That’s worked for me for my last three cars I’ve financed at under 1% interest.

[@peterdallman4550]

That said, I still have the 2004 Volkswagen tdi I used to commute that has 510,000 miles. Not one one road breakdown, have only done regularly scheduled maintenance and a few replacements like the clutch and camshaft. That car has paid for itself 2-3 times over.

[@Barb6106]

Totally agree! I have no payments now..and can’t go back. Plus adds so much to total price AND on a fixed income the big chunk every month for a car is a waste. Plus, right now, inventory on used cars is low (people are holding on to their cars) ..as well as new cars. Dealers are really enjoying this-the price of used cars has gone up to eye watering levels…some almost same as new. I was going to buy (used) last year, but I’m just holding out for as long as I can to see where this craziness goes. Bless my Honda Civic-an ‘06 with over 200k miles and never a major cost beyond tires and brakes. A true blessing to have something so incredibly reliable.

[@jimcarbone820]

Me too !!

[@elliottpeabody1287]

@@peterdallman4550 You should be very proud of yourself. 🤪

[@WilliamCunninghamII]

Excellent discussion as usual. Funny situation in our case. We have a 2005 Toy Corolla as our only car, it is at 225000 miles. We are retired. We have plenty of money for a car purchase but I just can't bring myself to do it. The Toy is paid off runs, great (with exception of the oddball check engine lamp every now and then) is cheap to register and gets pretty decent mileage. I look at cars, ICE, EV, whatever... and they are just crazy crazy expensive. I just think about $40 grand sitting in the driveway doing nothing 95% of the time depreciating, registering, insurancing ...and I just say...NO. The most expensive major repair I have done was struts at $700.00 about 10K miles ago. Other failures too but not crazy expensive ones. I seriously wonder if I will ever replace it. As long as parts are available I can do major repairs for the cost of a one month payment on the Camry, maybe two months if something really bad comes up. The other thing you may be missing in your model is obsolescence. Makers are loading these new cars with screens and software and yada yada. How long did your tablet or smart phone last, when did you need to do a software update, how much hassle was that update, could your new car be bricked with a bad software update, how much is mfg going to charge for subscriptions for those software updates? The simple old 2005 Toy is running just fine 18 years after purchase, not a single software issue and all the old LED displays work just dandy, not going to happen with modern cars...period. It is enough to make you want to buy a bicycle. The worst thing about this is we look like paupers when we show up at our friend's house. I just park out of sight, stroll in and tell em a limo dropped us off.

[@Barb6106]

Yes to every comment!! I have an 06 Honda civic..215k mikes.. only tires, breaks and a windshield washer reservoir replacement (something ate a hole!🙄🤪). I’ve not had a car payment in 12 years and don’t want one. I bought my Honda as new-hated every month sending in payment. Now I don’t care what anyone thinks of my little car-the paint is looking a bit sad-but unless they want to buy me a car, they can keep their options to themselves. I recently looked into getting a replacement used car this time. The prices!! Almost as much as a new car..they are running much higher than before the pandemic started. Dealer delight! I watched my friend, busy and distracted with the screen of her Tesla..and hoping the car saves her from herself. Plus, the recent fires in her area had her panicked when the power went out and, after returning home, she could not charge her car for 4 days..and it was too far to go to a charging station. She started to worry about trying to flee if her car isn’t charged. Then what? She, too, had to start over when a truck backed into her.. the damage was slight, but car totaled. She now owns a Honda!😂😂used!! You are so right… your hard earned money sitting out in the driveway doing nothing but going down in value. Sounds ridiculous.. especially now on a fixed income. Thank you, little old Hondas and Toyotas! 🚙

[@WilliamCunninghamII]

@@Barb6106 Holy cow, the prospect of being trapped at home due to extended power outages never even occurred to me. Probably would very quickly occur to me if a fire was lapping at my side yard. Get out those sneakers AND RUN!!! hahahaha

[@philipem1000]

I have a Matrix same year and it is so reliable and runs so well, and it costs me literally nothing to buy or own (got it used about 8 years ago) has 150K miles and gets superb mileage.I added a GPS and a nice stereo to it for a couple hundred bucks. I have had new brakes, oil, batteries and tires; nothing else. I wouldn't mind owning a nicer or newer car but if this ever fails me I think I'll just Lyft -- or look for another old Toyota. And i seriously don't care what people think about my ride... I think it looks good enough.

[@tulsavol6653]

A car is to go from point A to point B. It may well be the biggest scam in our capitalist system. Buy two- three years old, then maintain with oil, good tires periodically along with windshield wipers and batteries. Avoid whistles and bells. Keep to basics and simple. Drive it forever if possible. Keep remembering you don't use it 95 percent of the time and that you now pay yourself that ridiculous car payment.

[@PeterHernandez-lg2eh]

Totally agree 😂. My problem is I'm too frugal

[@fjohngte]

It's funny that when I shop for a vehicle that is 2-3 years old, dealers are asking for prices that are at or above the original sticker. In the past, it might have been cheaper to buy a slightly used car but that isn't the case today.

[@neumeisteranimalhospital2627]

Agree. The current market has slightly used cars selling for over original sticker. If you want a new car, you may have to wait six months and pay MSRP. Now is a bad time to buy any vehicle.

[@whattheheck-ii2vt]

Also agree. I bought a used car last year that was two years old. The price was about the same as new.

[@HighCountryRambler]

Never lease and always pay cash for at least a 1 year old vehicle and drive it until the wheels fall off, put them back on and keep driving it. It's been money in the bank for me for many decades. All my cars and trucks are considered new if they have under 200K miles on them/'showroom fresh'.

[@oldtymer9106]

great reminder for me! my bro gave me his 2015 Nissan versa back in 2019 when it had 72k miles on it.- 4 years later its at 127k and I was just thinking when should I replace it. Your comment of 200k miles gives me a goal to shoot for!

[@Qrail]

Yes. 200,000 is doable in a non Japanese car. I had 2 SAABs with over 200,000 miles. Too bad they aren’t made anymore.

[@anitas5817]

Exactly what works for my husband and I.

[@Jeff-p5i2w]

Please spare me that nonsense. Nothing goes wrong with your old car.I never tell people what to do, but when I see these comments, I just laugh. I had an old car, and I vowed that if I'm ever in the bucks, I'll never drive an old junk again. Thank God that came true, and I never drrove an old junk again.

[@HighCountryRambler]

@@Jeff-p5i2w You must have a angry complex.. Didn't say 'nothing goes wrong", actually I said that when I drive my wheels off I put them back on and keep driving. You do you. Been in retirement for 6 years, I keep enough "spending cash" on hand in my checking account to pay cash for 5 brand new BMW's, yet I currently own 6 cars and 3 trucks and 2 motor homes, all were used, and will always be used. Again, you do you, and I''ll enjoy my retirement.😊

[@skowmi5681]

I’ve worked and saved my entire life so I could enjoy my retirement. During my working life I drove vehicles for a long life span. I lease in retirement because I want a reliable vehicle with the best safety features. I’ve earned it!

[@bdcochran01]

Same attitude as my girlfriend. She leases an Acura

[@andrewshenton6541]

@@bdcochran01there are many factors,i and my wife leases primarily because we live in Vermont ,things fall off a lot,and i dont like costly surprises

[@carolbaughan8768]

​@@bdcochran01I have been thinking about it.

[@marytee3963]

I am currently driving a 2006 Pontiac Vibe with 146K miles. I bought it in 2007 and paid cash. It has a Toyota Corolla engine and has cost me very little in repairs over the years. I keep thinking I would like to buy a newer car- OK if it is 3-5 years old. But there is nothing wrong with the car, everything works, including the air conditioning. And cars cost so much now, that I keep putting off even looking for another car.

[@RedEyeC]

Drive that baby til the wheels fall off 😉

[@susette7066]

There is a lot to be said for being content…

[@resourcefulqueen]

I have a Vibe too (2007) and appreciate the features.

[@TheDjcarter1966]

Your best plan in retirement is to have NO debt. Just buy whatever car you can afford to pay CASH for...the end!

[@curlydave7689]

I have been retired for nearly 18 years and have enough mortgage debt to make a strong man faint. I have no intention of prematurely reducing it. There are multiple mortgages all between 2.5% and 3.25% interest. With real inflation at 7% to 8% the lenders are paying me to use their money. Debt free is highly overrated.

[@davemalone8784]

DJcarter- you are exactly right

[@georgek3398]

I agree !

[@georgek3398]

Don’t waste your time with this lecture! If you are retired Chou buy brand new or whatever fits your budget , end of the story

[@user-wt6zf4ek9k]

I live in Boca Grande area and unfortunately, I need to purchase a new car. I knew the market was out of control and I just couldn’t justify spending that much money because my portfolio has lost over $27000 this month. alone my profits are tanking and I'm don't see my retirement turning out well when I can't even grow my stagnant reserve.

[@AdamGreene222]

I'll suggest you find a mentor or someone with experience guide you especially for your portfolio diversification.

[@laszlolee]

true, A lot of folks downplay the role of a professional until being burnt by their own emotions. I remember couple summers back, after my lengthy divorce, I needed a good boost to help my business stay afloat, hence I researched for license advisors and came across someone of due diligence, helped a lot to grow my reserve notwithstanding inflation, from $275k to approx. $850k so far.

[@EmilyMoore-n7n]

@@laszlolee How can I contact your Asset-coach as my portfolio is dwindling?

[@laszlolee]

@@EmilyMoore-n7n I'm been guided by "Susan Bauer Normansell," who is widely recognized for her competence and expertise in the financial market. She has a thorough understanding of portfolio diversification and is regarded as an authority in this field.

[@EmilyMoore-n7n]

@@laszlolee Thank you for this tip. It was easy to find your coach. Did my due diligence on her before scheduling a phone call with her. She seems proficient considering her résumé.

[@robertceccon1277]

I've watched many, many lease versus buy videos. This is the best one by far.

[@richardc488]

Mr Schmidt, I purchased the most expensive car in retirement then I ever paid before and got 0% too boot!

[@dolittle6781]

If you are fit or trying to get fit, ride a bike safely around town, and drive your car just enough to keep the battery charged up. The car will last forever, using it mainly for absolute necessities/emergencies. Live in walkable towns and cities. Use mass transportation. Cars, we love them, but they are expensive. They’ll keep you or make you poor. If it’s not one thing, it’s another with an automobile--oil changes, various fluid leaks, tires, batteries, insurance, theft, break-ins, parking lot dings, traffic tickets, parking tickets, car washing and waxing, accidents (some serious-but hopefully not), stress, road rage, traffic jams, toll roads, ice and snow, salted road damage, and floods and other weather-related damage. Don't forget to wisely use rideshare services and order stuff online (certain foods and other items) when you can. Get out of that metal box on wheels more often so you can get some physical exercise with friends in tow and enjoy life.

[@dolittle6781]

@@armslength2618 Thanks for your thoughts. I love cars but often they don’t love me back. Such is life!

[@Richard.Cabeza]

The US needs more cities with good public trans. I lived in Seattle and barely drove my truck. Used my bicycle along w/bus/train. What's another good city to live in with great public trans?

[@dolittle6781]

@@Richard.Cabeza. I get it but transportation is transportation. It’s all sedentary travel-resting on your backside-except when walking or riding a bike. Our sitting down lifestyle is a big part of why we get sick and need so called healthcare providers. Eat and drink healthy foodstuffs and walk or ride a bike. Be different. Get out of those polluted cities, and you are on your way to healthful living.

[@robertkat]

It depends were you live. Flat area OK. If you have hills in Town, forget riding a bike.

[@dolittle6781]

⁠ I hear you, although most cities I have lived in are pretty flat. And hilly cities like SF still have plenty of non hilly roadways. As you know, folks ride bikes in all kinds of weather and terrains, from coast to coast and around the world. Bikes existed long before cars. It’s a personal preference thing. I totally about the hills-some people love them while others hate them. Some of us bike nuts love bikes so much that we won’t go anywhere without them. But yeah let’s all stay safe, fit, have fun and enjoy the freedom of one of the greatest technologies ever invented.

[@tomsgamer985]

Why not just live someplace where you don't need to buy or own a car? As part of my retirement strategy, I moved back to center city Philadelphia in a condominium that I will finally pay off in February. I can use Zipcar to get hourly or daily access to a car as I needed it. Without a car, I walk a lot which saves money and has improved my health. Buses and Regional Rail become free to me when I turn 65. Going carless is more feasible if you live on the MegaCity One corridor (Boston to DC) as you can use rail and get plenty of flights. Better things to spend my money on than a car!

[@rossmcgreg6r642]

Good info. I'm sure you meant Camry XSE ( not HSE, Toyota don't make an HSE)

[@patcurrie9888]

I always bought used, luxury cars while raising a family. 2 to 4 yrs old with low miles, Buicks and Lincolns, some paid cash, no payments. Lately I have bought new cars, Chevy's, a 2018 Camaro and traded it in for a 2019 Impala. My Impala has 15,000 miles & I plan on keeping it, since V6 sedans went away. New cars with turbos won't last as long, major work on turbos at 75,000 or so.T4 Cars you'll be lucky to get 150,000 miles. My Impala will last 300,000 miles, similar to last V6 Camry (that you can't get anymore, they killed the Avalon)

[@thomasg5968]

My spouse and I (retired with 600K in 401K, 100K in cash and $3675 in combined monthly SS) have no debt and we own our home. We “treat” ourselves every 3 years to a new car by leasing. We like to say it’s our only vice. I know that it is technically debt, however we can easily budget a payment of less than $400 a month and a small down payment for a new Honda CRV every 3 years. It works for us. Good video, BTW. Thanks!

[@edhcb9359]

You know that CRV would go forever if you just bought it instead of leasing it right? And they barely change model to model. 🤷🏻‍♂️

[@BirdDogey1]

Hondas are low depreciation vehicles so a lease isn't a bad way to go. I'm driving a 10 year old Lexus. No complaints but will consider a BMW lease if the interest rates come down some. Never have had a nice new car and am getting old. Thought it would be a nice thing to scratch off the bucket list.

[@glennet9613]

Why lease and not just buy it outright? I do agree it is worth buying new and upgrading regularly because the technology is changing so fast. Things like heads up displays and adaptive headlights make driving so much easier and safer.

[@BirdDogey1]

@@glennet9613 You pay the depreciation on a lease and not the entire value. This is why the lease payment is lower. It is not wise to lease a vehicle with a high rate of depreciation. Conversely, leasing can make sense on a vehicle that retains much of its value. I worked in an accounting office for many years. One of our senior accountants leased BMWs. She wanted to drive a new "luxury" car without absorbing the entire cost. Buying a BMW would have meant a substantially higher payment and very expensive repairs that present themselves at mileage beyond the typical life of a lease. Keep in mind the mileage on a lease is negotiable. Some people don't care what they drive and are happy buying a Corolla even if they could lease a Lexus for roughly the same amount of money at least for the first 36 months. The Corolla would be cheaper beyond that.

[@Jeff-p5i2w]

Good for you! Leasing is not about the cheapest way to go.nobody is going to argue that point. If you can afford the payments and obviously you can.its about convince, piece of mind ,and having fun. At 73 that what matters to me. The only repair I had was a flat tire!.

[@MrCem1016]

Haven’t had a car pymt since 2013. Happy driving my 2008 Honda Accord despite some cosmetic issues as it still runs like a champ with only 208k miles on it. Though I may want a new car, not having a car pymt, just can’t justify it at this point because it’s not a need/necessity.

[@stevemathews684]

255,000 miles on our 2010 Honda Pilot so far...and it's still running just fine, thank you. Regular service/maintenance on 5,000 mile intervals has been our approach. Still driving it on long-distance trips (Alabama to Texas) to visit family, but doing so is starting to make me a little nervous.

[@georgek3398]

I’m retired , I have money, I have always bought brand new cars , and therefore bought myself a luxury Mercedes for Xmas !

[@67daltonknox]

Leasing is for businesses or people with money to burn. If you want to save money, buy a Lexus or Toyota, new or used and keep it for 250,000 miles

[@badgerlandturf]

I’m late to this particular conversation but here is my two cents worth. A car is supposed to get you from point A to B not make you someone that your not by having the latest, greatest whatever. If you want a new car, buy it. The only thing which makes sense if it’s a good vehicle. With that said, I buy used vehicles with 100k miles and drive them for 5-7 years and I pay a fraction of what new cars cost. My two cars now have over 250k miles and I wouldn’t hesitate getting in either one and driving across country. Don’t get caught up in the hype of a new car. I could buy new if I wanted to, but don’t allow those “wants” to interfere with my needs. I enjoyed both watching and reading the comments here.

[@gwine9087]

I remember a well-respected automotive author who said that, generally, the very best deal was a good (!!) 3 year old car.

[@trentriver]

It is actually more complicated than this. If you lease, you are only paying taxes on the monthly lease payments versus the entire car. Second, if you have the cash to buy the car outright, the difference between leasing and buying means that you can take the cash and invest it and that helps reduce the cost of the car lease. If you are retired, there will likely come a point when you do not need a car anymore, so you then finish the lease and you have not paid tax on the entire car - just the taxes on the lease period. So many things to consider.

[@BostonHarborLight]

The biggest advantage of buying new motor vehicle is that if you're going to keep it a long time, you'll know the maintenance and operating history from the beginning - otherwise you could end up with something that was driven hard and poorly maintained, significantly decreasing its service life. The other advantage of buying a new or late-model motor vehicle is that you will get the latest safety technology if that matters to you. The government and IIHS (whose crash tests are more rigorous than the governments) keep raising the bar with more demanding crash tests, and there are significant differences between motor vehicles within a product class.

[@jml9550]

I am not retired, but hopefully can retire in 9 years when I hit 60. My wife and I always set aside $500 a month on maintenance/repair/new car fund. And we have always buy Lexus. Always buy them in cash, maintain it well and drive it until it doesn’t make financial sense. It works for us for last 20+ years,

[@garychristison763]

I take it you've owned about two Lexus cars. Maybe four if you and your wife each have your own car. $500 a month for a new used car fund seems about right. It's easy to put over 15 years, 300K plus miles on those cars.

[@BlackhawkPilot]

Do exactly the same and make no purchases until I can pay cash.

[@jml9550]

Yep, have owned 4 Lexuses so far. Still have three in my household. 08 RX350 AWD 158k miles (teenage son’s 1st car), my 17 ES350 39k miles in her and my wife just acquired 24 NX350H. I had a 03 ES300 before i bought my 17 ES. Yes, setting aide $500 a month for 10 years gives us $55-60K to work with on maintenance, repair and/or new car purchase.

[@colemant6845]

Did I miss something.... Schmidt never stated what was the "Best" way to purchase a car in retirement.... ? He just summarized the 3 options. A Conclusion/Opinion would have been nice.

[@cricket6410]

I agree!! Conclusion statement needed.

[@BirdDogey1]

I sold Acuras right out of college back in the 80s while looking for what would be my career. We were taught that leasing was a different way to finance a vehicle. It wasn't a scam that made us more money. It really depends on what the consumer wants. However, I would caution you to avoid vehicles with high rates of depreciation since this is what you pay on a lease. Some people don't want to have to deal with repairs while they have to get to work and they want a nice car. Leasing might be the way to go. You get more car for the same amount of money but you don't get to keep it unless you buy it at the termination of the lease.

[@jimwilliams8170]

I have a good friend who buys a new car every other year. He knows it doesn’t make the most financial sense, but as he explains, it’s his personal joy. He doesn’t golf, gamble, smoke, or drink. I’ve always felt if it brings him a bit of joy and satisfaction…why not?

[@2012Edger]

I concluded that buying slightly used was the best option and leasing the least cost effective.

[@f42un84u]

Sometimes low miles+old age=neglected+bad maintenance. Sold parents cars rather than keep. Cars need to be driven and maintained. Always get profesional inspection before purchase no matter how shiny or low miles.

[@TNtoolman]

About 30 years ago, I got ahead of the game and paid cash for a used car... then put money aside each month for my next car, basically a monthly car payment. The difference is that I get interest on my money instead of paying loan interest. I keep our cars for about 7 or 8 years... the latest purchase was a year-old Lexus with under 3,000 miles for $34,000. Now saving for the next car and making interest on my car payments...

[@robertrecchia2642]

Disciplined approach

[@RedEyeC]

You are a genius. I do the same thing.

[@BigK_ThirdCoastReds]

When I retired I sold new Chevrolets and vehicles from the pre-owned lot... We buy pre-owned and a warranty. Makes great sense. Also, Please tell me what "Bricabile Fluid" is, that you said was used in Transmissions.? Can't find anything on it. Thanks and God bless Ps: Leasing is Horrible.! You get charged for dang near every scratchs, dents and new tires if needed. READ THE FINE PRINT. Just my $.02 cents.

[@bikebudha01]

My wife and I have always bought new. But with two conditions. First, we only buy from the most reliable brands. Second, we keep the cars for 10-15 years. We take pretty good care of them, and have always gotten decent money on the trade in as well. My wife is a bit better than I am, she has always paid cash. I typically do a five year loan, but on average, pay it off in three. We are both close to retirement, and the two cars we have now might just be the last cars we ever own.

[@ilikecontent2327]

This is what we do too... We buy reliable cars with great safety features. Then we drive them into the ground. My husband is finally letting go of his 1995 Toyota Tacoma truck and upgrading to a nice Honda Ridgeline(I call it the old people's truck as it is easy to get in and out of and has really nice features, and is comfy and rides like a car). So since we have great credit and plenty of money to afford payments even as we enter retirement. We are putting a good chunk of change down and getting a 4-5 year low interest rate loan and paying it off in 3 years. We figure if we stop driving it and just drive our little hybrid awd around then we will give it to our 22 year old son so he can get back and forth to college in the snow and be safe. He will be popular if friends need to move, etc.... 😅

[@bikebudha01]

@@ilikecontent2327 ha ha ha!!! I bought a ridgeline as well!!! I did my homework. Beyond all the benefits you mentioned, the Ridgeline's engine is known to be able to get to 200,000 miles. For me, that means I should be able to own the truck for 20 years.

[@ilikecontent2327]

@@bikebudha01 Yes. There is a reason they are rated No. 1 in Consumer Reports for top truck in its class. Hard part is getting one. We wanted one like 2-3 years ago, but supplies dried up! Now it is a bit of a wait to get one, but no negotiating the price. They are in big demand here because of the snow and their versatility. And all the old farms here. Or if you are height challenged like me(wife) it is easier for me to get in and out of. We haul alot of remodeling materials so we need a truck. Going to pick up cement board, blue board, studs, etc. So can't haul that in a car... sooo. Enjoy your Honda Ridgeline!! We plan on driving it all over! Haul a little trailer, fishing boat, etc. Enjoy retirement life! Now if I can just get hubby to retire! He is full S.S. age and can easily go right now, but he loves his job! Me... I already did quiet quitting. 2 more years for me. 🤦‍♀️

[@bikebudha01]

@@ilikecontent2327 Got mine in 22'. Had to wait 3 months (mostly because I wanted the new sonic grey color - which wasn't available when I first started looking). At 17k miles, love it...

[@The_Good_Life_starts_today]

I've been retired what will be two years this December. In 2001 I bought a new F-150 and it served me well including after I bought a travel trailer in 2020. Fast forward to 2022 and realized that it wasn't up to the task safety and reliably wise and bought a new 2022 F-150 with cash. I kept the older truck as it was like an old friend. However, it became apparent that it was costing me time and money keeping it washed and insured so I recently sold it for a decent price. I then took that money and put it to some good use, making improvements to my home and acquiring a utility trailer. The point is, I kept my vehicle for 20+ years and bought new hoping to get another 20 years from this truck when I'll be "near the end of the road". It's really all about timing and need.

[@jimwolfe4286]

Geoff, Terrific Video !.... I've found the Best way to buy a car is select an "off" Japanese Brand ( Mitsubhsi, Nissan,etc.) thats about 10 years old for cash ! You are right, low milage and well maintaned. One can ususally buy these cars from $2.5K to $ 5K. Here's one more trick...most insurance Liability polices cover "collision" for up to $3.5K ( about the value of the car) for an accident involving an uninsured motorist ! I hope this helps... Thank you..

[@darlenepaul2918]

Nissan transmissions are known to be garbage.They go bad really fast.

[@jimwolfe4286]

@@darlenepaul2918 You are Right !....I lucked out on the "92 Maxima , trany started to slip at 235K milage.....Car only had 16K when I bought it!....However, Nissan 4 spd manuals are bullet proof !....Thank you for your comment ..

[@edhcb9359]

Buying the unreliable brands because they are cheap is a recipe for disaster. There is a reason why some brands command a premium in the used market…they are worth it!

[@jimwolfe4286]

@@edhcb9359 Thank you for your opinon..Now ,here's a FACT.. I bought a Mits. for $2.5 K put over 100k miles on it , owned it for over 11 years ! I guess, I was Lucky or just maybe Smart...Thank you for your response ..

[@edhcb9359]

@@jimwolfe4286 Here’s a fact, Mitsubishi barely exists as a car brand in America because they make terrible cars.

[@Dave--gp1qx]

Taxes, licensing, and insurance can be a lot higher in the early years.

[@BirdDogey1]

I occasionally check the service records on used cars for sale at local dealers. Shocked to see how few cars are maintained. Not uncommon to see oil changers rarely done or transmissions never serviced. Do your due diligence. Some cars are smart to lease like BMWs due to the cost of servicing the vehicle. Don't lease a truck because of the high rate of depreciation. A Lexus has a low depreciation so a lease might be a way to get into a vehicle you wouldn't otherwise be able to drive. I'm a fan of buying a Lexus that just came off a lease because it has taken some depreciation and was serviced.

[@JBM425]

One also has to be careful about what manufacturers recommend for maintenance intervals. One can faithfully follow the maintenance schedule yet be doing their vehicle wrong; some auto makers recommend oil changes every 7,500 or even 10,000 miles, yet most mechanics and engineers recommend oil changes every 5,000 miles. A Nissan high-performance engineer even recommends oil “dump and fill” at 3,000 mile intervals and a full oil change including a new oil filter at 6,000 mile intervals.

[@randy74989]

@@JBM425 Exactly, the dealers want you to have the "free" services as a marketing ploy. Free inspection at 5,000 miles (no oil change) and oil change & inspection at 10,000 miles. That way, they get to try and sell you something at each "free" service. They tried this on my first free service at 5,000 miles. I politely declined. Thus, I ignore the factory recommendations and maintain my vehicle to suit my peace of mind. Oil & filters are cheap, engines are expensive. IMO you need to change your factory oil & filter at 1,000 miles because you have broken in the engine and microscopic bits of material are present in the oil, it's just a fact. And then every 5,000 miles or six-months, whichever occurs first, if you want to maintain and own the vehicle past the warranty period. If not, run it into the ground and see what they offer you at warranty expiration. You shall be surprised, cars are a depreciated asset unless you own a business and lease them. Then you get to write them off as a business expense. However, you better keep meticulous records for an IRS audit possibility notating personal vs business use. Double check with your accountant about this.

[@briansauk6837]

Nice and thorough breakdown of the scenarios. Only two things - one is adding a consideration on how many driving years are left. Second, carfax is borderline useless. Major repairs done by car sellers are likely to not be reported.

[@grayman618]

Buying used in2023 is crazy. Many dealers are asking for more then it was new. Leasing is never wise. Save until you can buy new or cpo . Or just drive old cars..

[@WilliamCunninghamII]

Re leasing. One additional motivation for me was try before you buy an EV. I did this 2015-2018. Very glad I did.

[@robstewart2213]

Very nice info, wish I knew this info when I was younger! Can you do this analysis again, this time using a New Tesla Model 3 or Y versus a Used 3 or Y versus a lease? A lot of older people (myself included) are holding off any purchase of any car, for an EV as their next car purchase, and many factors are different for us making the switch - especially the following: 1 Cost of New vs Used, 2 Resale Values, 3 Major Repair mileage expectations on EVs, 4 Cost of non warranty repairs, 5 Length of Mfg Warranty, 6 Lease terms, and finally 7 the $7500 tax incentive (which turns into a $7500 sticker reduction in Jan 2024). As you can see, there are lots of interesting variables that can benefit from your analysis. Thanks.

[@DDG58]

Cars last longer if you change the oil every 5,000 miles vs the 10,000 miles Toyota recommends with their new cars. Recommended the car care nut channel regarding Toyota and Lexus products.

[@jonm4501]

The reason to buy new (vs. used) is to get the factory bumper-to-bumper warranty. My 2011 Acura MDX still looks great, so I did very well.

[@M22Research]

Leases absolutely *do* frequently have “down payments” - often as high as $3-4,000! Just as with other car loans, it is a way to advertise lower monthly payments. Leases rarely make financial sense unless you know the manufacturer is *heavily* subventing (subsidizing) the lease. Leasing is just another way of borrowing (going into debt). You’re paying interest just like a car loan. The reason the payments are lower is simply that you don’t get to keep the car at the end - you’re paying to use up the first 24/36/48 months of the car. Leases are nefarious because they tend to encourage you to pick a more expensive car. (The lower payments.)

[@Qrail]

I leased a Smart Electric Drive from Benz. No down payment, and 3 months free on the lease. (It was a compliance car) I got the rebate from California, ($2,500) the payment was $108 per month for 33 months. I paid $1064 for the term of the lease and a $325 turn in fee. About $39 a month. The buyout was $18,880. I passed on buying it.

[@M22Research]

@@Qrail “unless you know the manufacturer is *heavily* subverting the lease”… and in your example, your fellow taxpayer also heavily subsidizing your lease.

[@dalecarlson7294]

Have purchased used cars most of my life. A good used car that has been maintained also allows you to buy a “more” car. My last three cars were 3-6 year old Lexus’. I would never pay what they want for a new one when I can get the depreciation discount on a used one. The last two I bought were certified pre-owned used cars. Lexus has the best CPO program. Besides the extended warranty I got 2 years free maintenance. I know you pay a premium for CPO but I believe the Lexus program is the way to go.

[@eah8185]

Our retirement vehicle decision revolved around a) what style was best for the lifestyle we expected, and b) would we be comfortable with a single vehicle? Style - I had driven a Lincoln Navigator and my wife a Lexus sedan during our career years. We settled on a Lexus crossover (in our case RX 450hL); we envisioned road trips and, from time to time, hauling grandkids from place to place. The longer version of the Lexus RX, with a very tight 3rd row seat at least enabled us to transport more than two grandkids at the same time. Likewise, with that 3rd row folded down, permitted us ample space for road trip luggage. Finally, Lexus has a superlative track record of quality. Single Vehicle - we gave this a "go" for six months initially, having "figured" that there were few instances we'd be going two different places at the same time so why bother with the care & maintenance (let alone the cost) of a 2nd vehicle. This decision proved prescient for us - we're now going on our 4th year with a single vehicle and can count on one hand the instances where we've been going two different places at the same time. In those instances, we've either used an Uber, or caught a ride from a friend going to the same event one of us was attending while the other used the car. Finally, regarding the question in this video - we bought. Our Lexus RX450hL was purchased new, cost us around $60K (for which we paid cash), it has 83K miles of responsible use and has a trade-in value of $31K.

[@geraldf.1222]

We have a 1996 Pathfinder. 225,000 miles. Local Beater. Low cost over the last 28 years. We have two other SUV's. 2016 2022 Those have very low miles. Long distance vacations... Bought with dividends. Everyone has different finances and goals.

[@gybx4094]

Since I can only do minor repairs, my cars are costing my huge money for repairs now that they're high mileage. I'm 65 and cant do repairs like I once could. I like the idea of leasing, since I don't drive more than 10,000 miles per year and maintenance is under warranty for a leased car. I also like the 2 year lease period.

[@lawrence5039]

I think that's pretty close depreciation on the Camry. I purchase them often for our company cars...USED.

[@woodsripper]

Great video Jeff. One comment: Consider Certified Pre-Owned (CPO) used cars. These vehicles have been inspected according to manufacturer's guidelines to allow the manufacturers to offer extended warranties on all the major systems (engine, transmission, chassis, etc.) These cars usually have new brakes and tires which provides near-new vehicle performance and warranty at 2-3 year old car prices. I have had good experiences with two CPO cars and will definitely do another when the time comes.

[@danchevrefils]

My last two vehicles are lease returns. 50k kms (30k miles), the stealership put on new tires and did all the required maintenance and detailing. 5 years later we still drive them, and intend to for another 5 years.

[@garyvancamp5452]

😊 Great video ~ 1 year old car right from a reputable GM dealer. I try to find a good loaner car from a dealer that was only used by that dealer for test drives or as a loaner 10,000 miles or less. Some people in retirement treat themselves to a newer vehicle every few years and why not they earned it.

[@pahuntnut]

leasing is for suckers, Used to be small or no money down, now its $3000 down, payments are based on the depreciation divided by 36 months, then give it back to them and start all over again.

[@jasonharris9990]

leasing is a bad choice, big payment up front to off set the lower monthly payment and as he said no equity at the end of the lease. If your not paying cash the financing is part of the cost and used will cost more to finance. Do your homework and choose a vehicle that has the best reliability rating and resale value. I generally buy new but keep my vehicles for 12 years or so. Have had many vehicles that didn't have any repairs other than required maintenance for over 100,000 miles. everyone has different needs and wants, two different things

[@RetrieverTrainingAlone]

Negotiate acceptable Out-The-Door price and pay with cash...no payment on interest. Invest the interest saving. No paying loan origination fees, 2-16% APR interest.

[@1dash133]

I'm 70, presently driving a 10-year old Tacoma. The next vehicle I buy will probably will be the last vehicle that I will own. Since I can afford a new vehicle, why not?

[@garywiley7886]

I have a 2014 Honda Crosstour I bought preowned certified from a dealer. It now has 101K miles and runs really great! Love Hondas. I never purchase new and have had great success

[@michaelhernandez2868]

I own a 2007 Toyota Tundra I bought from my former coworker, who happens to be a very big car head, with 43,100 miles on it. He has his own workshop & takes extremely great care of all of his vehicles. He takes them to car shows & contests. As of 08/2023 my Tundra has 68,258 miles on it. I drive it to my real estate properties & I get a write off for those miles every year. It's been a great vehicle & I'm treating it to a, sort of, face lift... New tires, new rims, detailing, buffing, protective shield coat all the way around & a new undercoating. I had it re-undercoated in 2016 & the tech told me it's the cleanest '07 he's ever seen. He said they're usually getting early Tundras needing metal replacing & not just a fresh undercoat. No repainting needed. I learned from a 1993 Toyota I used to own that had chunks of rusted metal fall off when I would slam the doors shut. Not again. I want to be able to drive it for another 20 years. Here's hoping

[@bubblewrap4793]

I would always add cost of insurance to total expenses for the car. And in general car insurance is less than used car.

[@westcoastjj3658]

Remember that you can save money on car insurance if you drive for pleasure rather than commuting to work, and more if you drive less than 7000 or 8000 miles a year. Be sure to tell your insurance agent to adjust your rate. You can also save money by taking a voluntary defensive driving course, available online or in person, and for GEICO, you can save even more at every renewal by holding one share of Berkshire Hathaway stock.

[@onecompass7290]

You are wrong about no down payment on leasing a car! Dealers require substantial down payments, ususally 3-4K!

[@spouse1037]

With leasing, you can also opt to buy the car at the final value on the lease instead of turning it in, and then sell it. Companies like Car Max will even directly pay off the lease for you and give you the difference in value. We've done this in the past, and recouped a good amount of money, because we put low mileage on our cars and have opted for vehicles that hold their value very well (example Lexus) and negotiated for a good vehicle price first and foremost, and only after that, discussed how we planned to pay for it, cash, finance, or lease. We've varied the financial choices we made each time, based on current interest rates, market conditions, when did the model most recently get updated, etc. Sometimes lease, sometimes finance, sometimes cash. But yes, we always calculate the total cost of ownership over the planned amount of time we intend to keep the car.

[@lorenwillis425]

I had leased my current car, got a great initial price for it using the Costco Auto Purchase program and then got a good lease deal. At the end of the lease, I bought it for the stated value in the lease, which gave me an instant 8,000 equity vs., the retail value of the vehicle at that time. Will drive it for a lot of years/miles now.

[@edhcb9359]

No way around leasing being the most expensive way you can go, by far.

[@paulm4224]

One issue: modern cars have lots of electronic parts that are VERY expensive to fix, which I experienced this year $$$. For me that changed the math in favor of leasing. My brand new leased Toyota RAV 4 is great and very affordable.

[@stevekamitsis1327]

Steve in Florida caught your video and enjoyed it thank you. Found video to also be educational and interesting.

[@brucesmith9144]

Interesting presentation. A couple things to note. Leasing has one big gotcha: you cannot terminate it early and are responsible for the sum of payments per the lease agreement. This could have a negative financial impact if your spouse dies during the lease period and your income drops as a result. You’re still stuck with the lease and cannot break it; a financial millstone it becomes. This happened to a family member and they were stuck with the lease payments as well as a drop in Social Security income. It’s not really a good deal as it seems.

[@sgtm7]

Although, I have always paid cash for used cars, I decided many years ago, not to finance anything based on anyone's income but my own. I also believe in not having payments that I am not comfortable with. I don't go with the common wisdom of what percentage of income you should be spending on something. They say housing should be 25% of your income. I go for 15% or lower. When I bought my first house, the amount I "qualified" for was double the amount of what my house actually cost. Those are the keys to not being "stuck" with a payment you suddenly can't afford.

[@Starbeoghtuser3475]

@@sgtm7B A M! Or a house you can’t afford on your own. They know if something happens to one of them the other one is not going to be able to swing any of the payments for the house or the car

[@rogerlong2314]

Many of the new cars are not built to last, small engines with turbos, CVT transmissions, etc. For that reason I’m thinking of a 3 year lease. Also I drive less than 10,00 Miles a year. Anyway, I enjoyed your presentation. Thanks

[@Frank020]

Used is a better buy usually, because the car depreciates as it's driven off the lot. As long as it's still reliable.

[@robertgi9495]

What about the driving fun factor.

[@kennethmcdonald4807]

It's way more fun to beat on a cheap car than an expensive one.

[@drbassface]

My car has 483,000 miles and it’s paid off. Cheaper than any other option. 1999 Camry Solara.

[@tholm4307]

Well done! You win! I thought I was doing amazingly well with my 2002 Toyota Sequoia with 280,000 miles on it and still going strong. Bought the car 2 years old in 2004 with 80,000 miles on it already. Paid cash. The car is an absolute dream and a workhorse. I take exceptional care of it. My philosophy is take care of your car and it will take care of you. Cheers!

[@drbassface]

@@tholm4307 Great! Yeah. Bought my 1999 in 2001. Almost 30,000 miles. Likely a lease return. I have a dedicated toyota mechanic. Last year was expensive in repairs, including replacing the AC system. But it’s cheaper than a car payment. Cheers to you and your car!

[@M22Research]

The normal “rules” for car buying currently remain warped due to the lockdowns. In our market we regularly see 1-2 year old cars with prices the same or very close to a brand new car! This particularly applies to the bulletproof models frugal long term buyers seek - Hondas and Toyotas. So always compare the price you’re about to pay for a used car to the brand new price.

[@genehart261]

There are two kinds of debt, debt that you have to have and debt that you choose to have. I just bought a used vehicle and chose to finance it because I can make the payments out of cash flow and keep my income below the tax threshold. I do have the cash to pay it off if I choose to do so but even at 7 percent interest I can do better. I also put 35 percent down which keeps everything manageable. I am also completely debt-free otherwise.

[@jaclarkfamily]

We love crunching the numbers! We love used vehicles, but are also aware of when it isn't the better deal. For my husband's work truck that had certain work requirements, buying a brand new Toyota played out better financially for his work compensation. We own that outright so we will sell it when he leaves his job. For our family vehicle, buying about 10 year old vehicle with 100K already on it seems to bring our vehicle ownership cost down to $100/mo or less over the course of the average 7 years we drive it. We are very likely to downsize to 1 vehicle in retirement and look for a gently used option. They are also a lower cost to insure. I think our current vehicle might not last all the way until retirement so we will replace it considering the information you share.

[@Bbbuddy]

25-year-old Tahoe: $7,500, cheap repair and no depreciation. Also very useful and comfortable.

[@johnurban7333]

I bought a used 2012 Camry 10 years ago and have only had to put new brakes on it. It’s got 101,000 miles on it and I hope to keep it another 10 years.

[@JuanUvakind]

Interesting facts you present. Your knowledge and presentation is always well versed and informative. I did something different as my situation is different perhaps. Saved very much( money) prior to retiring. Bought new and no regrets. I wanted a V6 NA not a 4 banger with a turbo. We will see where this dynamic world we live in makes my choice a good choice. Thanks again Geoff and keep up the great work. I am now officially old in less than a month,62 yrs. My word where did that time go?

[@dking1362]

Oh, my lead foot and I miss my V6....so responsive!

[@JuanUvakind]

@@dking1362 sarcasm????

[@dking1362]

@@JuanUvakind No! I really do miss having a V6 engine in my car. The V4 feels sluggish; there is a gap between pressing to accelerate and the car actually doing so.

[@JuanUvakind]

@@dking1362 Understood and thanks for the clarification :)

[@donaldbrick3326]

Such wise perspectives! I do like the explanations of each option and allowing for the advantages/disadvantages of each. The decision is not only about cost, but it is good to have a solid understanding of the costs involved in each option to make an informed one! Thanks for the research.

[@josephkelleher8820]

you can buy a base camry for $29,000 plus sales tax. title, and tags. The $38,000 has to be for a high end model. High end models are a bad value in my opinion.

[@daveclark6324]

My current vehicle is a 2009 Dodge Charger. I purchased it new. It is currently over 14 years old and has just under 90,000 miles. I've always worked very close to my home (15 minute drive) and have been working from home the past few years so I haven't added a lot of miles. I'll probably be thinking of getting a vehicle at some point before retirement, so thanks for the info Geoff. 👍

[@teams3345]

I just purchased a brand new gas powered SUV cash at age 63. I love it. By the way it is a Honda. No EV in my future!!!!

[@tomschmidt381]

This is a controversial topic. We tend to keep our cars until the wheels fall off. Here in the rust belt that is more driven by years then mileage. Mostly we purchase new. One of the risks purchasing a few year old car is in that case the initial owner may have been lax doing preventative maintenance resulting in deferred maintenance problems later. Also, if you need to finance the purchase used car loans tend to have a higher interest rate. As you posted have a trusted mechanic check out the car to reduce risk.

[@gosman949]

here in Texas, our cars have no rust and years go by easily.

[@davestevens4193]

Leases always have a stated residual value (buy out) price at the end of the term in writing. Try this exercise with an American car. Ouch! Buy a 5 year old Toyota/Lexus and drive it til the wheels fall off.

[@philipem1000]

My Toyota Corolla Matrix was 8 years old when I bought it it's 16 years old now and I expect it to last another 5-10 years. It's comfortable, very fuel efficient and has needed almost nothing in terms of maintenance beyond oil and tires and 7 year batteries. I figure it costs me about $400 a year in depreciation (and decreasing) costs very little to insure (no collision/comp of course). It's good basic transportation. It has 150K miles and it will do easily another 50K and cost me only fuel insurance and a little maintenance. Even so I'm thinking that when it's done I probably need to just Lyft everywhere.

[@beezneez2056]

Excellent video! I appreciate the great effort you made in calculating the differences between the strategies. I will definitely be looking for a great used car when the time comes 😊

[@mmahtnart8986]

I'm '68. The last vehicle I financed was a new '79 Z-28 with a three year note that I paid off early. I am/was a blue collar worker with no college degree.

[@nickdelonas]

There should have been a comparative summary at the end.

[@Wayondon]

Thanks. I had that “so what?” moment as well.

[@RetiredPilot]

You talk about major repairs, but not routine items. I bought a 3 year old 2017 Murano with 54Klometers (I live in Canada)roughly 20K below new. Now has 86000KM So far I have replaced the brakes, transmission fluid and in the spring new tires. I see them a equivalent to making a car payment. It is a high end Platinum edition and I have all the latest upgrades. My cost, car has lost 5K in value, maintenance so far $2500 so for 32000Km just under 20000 miles 0.37 cents per mile. And I have no debt to boot. I believe buying used 2-3 years old is good value. Cheers good review thanks, other factors are cost of financing or loss of income on purchase. In all owning a car is very expensive....

[@markplenke]

Good info for people who think they need a car in retirement, but the statistic on miles driven after 65 suggests that most retirees don’t really need a vehicle. Could you do a video comparing the total costs car ownership (purchase, loan interest, insurance, maintenance and repairs) with the cost of not owning a car (transit, Uber/Lyft or taxi, walking or biking)? The auto industry has done a terrific job of convincing us car ownership is necessary. For many, especially retirees, it’s not.

[@tobystevens3109]

Buy a brand new car, pay it off fast and do your own maintenance. Drove both my cars for 20 years, 250k. Just bought my 3rd vehicle for retirement, probably be my last. I can't get over people changing cars every few years with that never ending car payment and high insurance. What a waste.

[@vincentdesalvo1464]

If you do decide to buy used like myself, I prefer buying a certified used vehicle. Get a added 1 year/12k miles added to the original factory warranty. Peace of mind is what i prefer when I'm or my spouse is on the road. It really sucks when the car breaks down and you are hundreds of mile from home.

[@naomiemoore5725]

Semi retired. When I worked at my corporate job it was 142 miles per day Monday through Friday. Satirday and Sunday. Much more. Semi retired. Easily 500 miles a week spread over three vehicles. Unless on vacation, RV tows the Civic. Paid cash for all when originally purchased. I drive a LOT.

[@mjc63]

It really comes down to cash flow. Purchasing a vehicle late in life requires tying up a significant sum for a depreciating asset. In my 20’s, 30’s and 40’s buying a car, keeping it well maintained and running it into the ground was right for for me. Now turning 60 I can make a case for leasing a new car that will never need tires or expensive major maintenances, has the latest safety tech, and spending much less each month allowing me to max my 401k and get the match! Being able to show some “equity” at lease renewal can provide an added bonus. I consider it a rebate since I did pay for some miles I didn’t drive! Previously when my owned cars got old, I occasionally rented for some extra security on a longer trip. Cheers, Michael Albuquerque NM USA, PS I always told my Finance customers considering buying out their lease that the used car they just drove for three years is a fairly safe bet! Also, in the event of a major accident a lessee simply returns the repaired vehicle. The same car with a Carfax reflecting a major accident will probably be worth less than a car without the accident. GAP is built into my lease.

[@colemant6845]

What would be REALLY useful at the end of each YT Video... is ... "What would Holy Schmidt Do". State what your personal decision would be ... to the Question you ask in the Title. You are Welcome.

[@normhal4908]

My partner of 30 years does not drive. If I were to lease the expensive car of my dreams would my partner or estate be responsible for payments till the end of the lease if I should die before? I'm 73 and want to make things easy for my survivors after I'm gone. I have heard that the lease agreement is void once the signer is dead and the car is just returned no fuss no mess. My partner isn't equipped to deal with anything regarding selling an owned automobile. Thanks.

[@herb7877]

ALL great advice. I don't mean to be argumentative but the accountant in me, says by picking auto's that do not depreciate as rapidly as others & maintaining them above average, makes a big difference. Toyota is certainly a good example. We have had Honda's & Ford pickup's (to tow the RV). We replace about every 4 years. Due to market conditions ( and being lucky 2 years ago) I sold my P/U for just $2k less that I paid for it 6 years prior. I ordered my truck prior to things going crazy It's now worth ~$5k more than I paid. We kept the Honda because it only has 32k miles after 7 years, but market value is ~$2k less than what I paid of it.. I maintain them myself and they both are in pristine shape. As prices have ratcheted up mine look pretty good not only to me, but buyers. I've been doing this since late 80's. Again, I realize you're talking about averages. Good Honda's & pickups that are in excellent condition with low miles sell for premiums. Mine have always sold for premiums. Dad always said, "if you can't pay cash for a car, you can't afford it". I heeded this advice until the last go around when I was making ~3x the ROI vs the borrowing rate. I use to tell my clients that leasing is just an expensive form of financing. Finance companies rarely will error in favor of the consumer. Meaning the residual value will be less than the mkt value. .

[@JohnSmith-qq9jp]

If you want to buy used, find a well-cared for one (1) owner car where the owner has all of the service records. If it was serviced at the same shop/dealer, you can call them and ask them if there is anything that stands out in the service history as a problem, and most of the time they will tell you if there is. Get it inspected to be sure nothing is wrong with it or if it needs anything. You are almost always better off buying private than buying from a dealer as private owners are more willing to negotiate and are less likely to lie to you.

[@dcmsr5141]

Maintenance is key when you purchase used, I like used because of the utility value and the ease of paying it off, having said that I've had great success in the market, The rule of thumb for me is if the maintenance cost is approaching the cost of a new car payment annually, then it is time to let it go. I like to drive them until the wheels fall off. 2013 GMC Acadia bought at 60k mi and presently at 170k mi. I ain't mad!!

[@Carolmaizy]

2005 Jeep Liberty. Bought for 6000 dollars cash in 2016. 160,000 miles on it now, and still going fine.

[@gosman949]

I bought a 2007 Camry new and now, almost 20 years later only have 75K miles on it. I ain't mad!