Lease vs Buy a Car (Best New Car Buying Strategy in 2020)

[@notwaitingtolive]

What are the most frequently asked questions about leasing? I answer those 11 questions here: kzbin.info/www/bejne/rGOrpXuVedWXeJo [How to Lease a Car (11 Frequently Asked Questions)]

[@ScottiMac0007]

Where you been man?

[@notwaitingtolive]

I've been renovating houses this summer. One job just rolled over right into the next and then the next thing you know 3 months have gone by. I also just finished the classes to become a real estate license. I need to take the final test soon to become licensed.

[@Shinobishin04]

Glad you’re back. Stay safe.

[@notwaitingtolive]

Thank you. Same to you. I appreciate you coming back to watch this video.

[@itsnick37]

I don’t like saying “agree to residual” because that’s non negotiable? Am I missing something?

[@notwaitingtolive]

I don't think you're missing something. But what makes you say that? I agree the residual value is not typically negotiable (the closest you can get to negotiating residual value is to seek an alternative residual value through a third party lease lender like US Bank). However, I say that both parties "agree to residual" because purchase price and residual value define the cost of the lease. Therefore every lease agreement is an agreement to the residual value, whether it's been negotiated or even explained to the leasee. Because residual value is a bet on the future value of a vehicle, and that bet can still be optioned on the free market at the time the lease expires, the free market more or less determines the residual value for both parties. Keep in mind there's always the potential that the leasor or leasee could be thousands of dollars off of the market trade-in value in either direction at the time the lease expires.

[@MichaelMarteens]

Good to see you back! This sounds crazy. So it sounds like you pay more money to not own a car? Sounds wild.

[@notwaitingtolive]

Same to you man. Glad to see you back. Leasing can be a $1,000+ cheaper compared to buying in states with the highest sales taxes. The tax savings just needs to be greater than the acquisition cost of the lease. But in general I don't think most people find themselves turning in the car they bought exactly when they turned in their lease. Even though it's typically at a premium I would still consider leasing personally. And most likely I think my fiance will be leasing her next car. Her most recent lease expired last month. I'm thinking about turning that process into a video as well.

[@mejt223]

thank for the info!

[@notwaitingtolive]

You’re welcome. Happy to help. I appreciate you taking the time to leave feedback.

[@mejt223]

Im on their site now. Its good stuff. thanks again!

[@NotShowingOff]

If the dealer goes out of business, is the lease still valid?

[@notwaitingtolive]

Yes. The lease is usually held by the manufacturers financial institution. Even if they went out of business the lease contracts would be purchased by a third party as part of the liquidation of assets.