Leasing Vs Buying A Car - Dave Ramsey

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[@taylorannparker]

I bought my own car at 20. I’m now 28 and still have the same Jeep paid off. Sometimes I think I want a new car but no car payment is so nice 😂

[@damonsmith7661]

ikr lol

[@terminaterjohn]

Awedome! i have my same 2015 paid off Elantra and was thinking about a new car. but having no payments with a working car makes too much sense.

[@atislam1]

I bought two car. Paid them off. No car payment feeling is great 🙂

[@hearsay516]

We buy used cars for just 1k-6k and have no debt whatsoever. I will not have any kind of debt no matter what

[@xxonlineratxx4081]

Have 2013 a Nissan Sentra paid off

[@kylecollins6835]

That is probably the most calm I have ever seen Dave when someone asked about “should I lease or buy”.

[@GuitarsAndSynths]

only lease if have a business and can write the lease off on taxes.

[@PS2Damon]

if you are a public figure that people ask advice for you GOTTA get used to answering the same question 5,000,000 times

[@benbryceholden1]

I’m pretty sure the difference is the fact that the caller was new to listening to his show. Had he been a long-time listener, I doubt Dave would have responded so calmly lol.

[@umtozzi]

​@@GuitarsAndSynthsI don't think Dave would support a lease in any circumstance, whether it's part of a business or not.

[@mikeynoels7210]

I think part of it is he hasn’t made what Dave considered the mistake. What he usually gets is calls about how can I undo my decision, they already got into a mess. This man is asking what would be best to do with his options.

[@nilestalbot1020]

I'm learning a lot from other people's mistakes

[@mangoryder7139]

Right on

[@RealRamRamInThecut]

Do what’s best for you

[@blacklyfe5543]

Me too everyone does

[@moneymade8530]

A wise man will learn from others mistake a foolish one will learn from his own

[@gtf5392]

@nilestalbot1020 - that’s the way to do it.

[@kenjones7240]

I bought a car, paid it off in 4 yrs and drove it for 17 yrs total. So for 13 years I used that money to invest AND save up to pay cash for my next vehicle. In my opinion, people have a very expensive obsession with vehicles.

[@khadijahjones2460]

It’s a status symbol. So they think.

[@TheHoriginal]

@ Ken wow really cool 😎

[@douglaswilliams6834]

@Ken Jones Congrats, dude! I just bought my wife a brand new Subaru. Paid cash for it. Meanwhile, I'm still driving my 12 year old Wrangler, and even though I want a new Takoma, instead of making a car payment, we are putting money in the bank every month until we have enough to pay cash for the Takoma. Debt free is the way to live.

[@wolfgangkrausser3220]

I agree 👍

[@Josephalexk]

@@douglaswilliams6834 You shouldhave bought a used Subaru. I like your idea of switching from wrangler to Tacoma. Jeep is highly unreliable

[@javiv.s.2777]

Why are others trash talking people who already know they made mistakes and are here to fix them.

[@markmittens]

It makes them feel superior

[@rn2cro03]

You're really grumpy

[@angelacrobat7332]

Try to remember something people, money will always come and go. Try not to obsess over it too much! Everyone is so concerned about percentages, decimal points, and dollar signs, and how much I’ll have when I retire at 65 or 70. Just stop….look around the world, and understand that one day it’s all going to be over anyway. Do you want to live your life obsessing over every quarter, dime, nickel, and penny you have? Or do you want to enjoy your life? Take care of your finances yes, but don’t forget to go live once in a while too. Just don’t put yourself in a predicament where you owe so much! Do that, and all of you will be fine. Have a great day 👍

[@toptrims]

This!!! Thank you! What’s the point of obsessing over saving if you’re always going to have to obsess over saving even once you retire? There’s no freedom in that.

[@quietstorm_1lovepierre131]

This… is… the… way! 🤖

[@hockeycentral1149]

I'll tell that to the bank

[@Ari-hn7gd]

@@toptrims you don’t need to obsess over it. Just do it. You will be old eventually or you may get sick and the stress that comes with both of those if you didn’t save your entire life is intense

[@ebonysharee]

Amen!

[@DavidAntony-gq7id]

Been watching, listening, and paying attention to all of predictions and forecasts since early Covid. He hasn't disappointed yet 👌

[@harrisonjamie794]

Well said! I am also here to learn how to invest after listening to a lady on tv talk about the importance of investing and how she made 7 figures in 3 months, somehow the video taught me nothing and left me even more confused, I'm a newbie and I'm open to ideas on how to invest for retirement

[@DavidAntony-gq7id]

@@harrisonjamie794 lookup KRISTIN GAIL CUNNINGHAM , this is her name online, she's the real investment prodigy since the crash and has helped me recover my loses

[@harrisonjamie794]

@@DavidAntony-gq7id Despite the economic crisis and the rate of unemployment now is the best time to invest

[@DavidAntony-gq7id]

@@harrisonjamie794 Investment now will be wise but the truth is investing on your own will be high risk. I think it will be best to get a professional👌

[@harrisonjamie794]

@@DavidAntony-gq7id Thank you, Going through her profile on her webpage out of curiosity, and surprisingly she seems proficient. I appreciate this.

[@Bestfriend-650]

My only regret is why I didn’t find Dave 10 years ago :(

[@WadeRobrsn]

Solid Snake If you make the right moves you'll be fine. Some of the people he gives hope to are in insane situations. Glad to have found him at 20yo.

[@PlainVlogs]

I found him at 16 and honestly kinda wish I didn’t so early lol. I struggle to spend money now!

[@T980J]

I'm 27 and I couldn't agree more

[@moeanthony9308]

Why? He's not that great. Sheep followers

[@mkingadiffernce]

Alot of people feel like this.

[@joyt458]

I financed a CRV 72 months when I was earlier in my career. The minute my income increased, I paid the car off two years early and started saving/investing the car payment money. CRVs last forever and have great resale value. I’ll probably have it another 10 years. Super low maintenance costs and extremely reliable.

[@Circa65-wk8th]

Great cars but abysmal mpg. Buy a city car and you'll stop bleeding money.

[@miguelotero7904]

@@Circa65-wk8th wich one are city cars?

[@Circa65-wk8th]

@@miguelotero7904 I drive a Peugeot 107 which is a re-badged Toyota Aygo.

[@paulbar1768]

Man it’s always good to watch a Dave Ramsey video every once and awhile to keep you on the right path!

[@realdavebob]

When I go back to bad debt habits im so happy to find DR on youtube again

[@jojog79]

The only thing not mentioned that should be taken into consideration is maintenance costs on a used car. Depending on the person, and if they can't work on the car themselves, those amounts can add up. Should have been mentioned.

[@milladakilla4519]

I agree, say what you want about leasing but the peace of mind for maintenance throughout your lease is appealing to a lot of people.

[@tompain2751]

Maintenance/repair costs, will never add up to car payments. .

[@milladakilla4519]

@@tompain2751 good point, especially with a new car being leased

[@samjam6989]

@@milladakilla4519 Not to mention if you own a business and could have it as a tax write off leasing is a no brainer

[@samjam6989]

@@tompain2751 That depends on what used car you have. If you have an old lexus that uses 15L/100km premium gas at $2/L plus the cost of expensive maintenance vs. a leased hybrid car that uses 5L/100km and zero maintenance cost, calculate how much that monthly lease cost vs. that older car. Not to mention having unexpected expenses like major oil leaka, AC not working, blown head gasket etc. A blown head gasket for a lexus cost $6000 to fix, A new toyota corolla cost $25000. I mean spending $6000 to fix a depreciating asset where you wont see the benefit of that $6000 in resale value will make the car just totalled where you might as well eat the $2000 cost of not repairing it at all since the car value is only $8000. Another issue is longevity with Used older cars. The best is to buy a one year old car that still has warranty where you dont pay for freight, delivery and extra costs and save on high tax.

[@bullswoodworks8398]

"Broke people ask how much down and how much a month"......"Rich people ask how much" I Love Dave Ramsey

[@ima8533]

And wealthy people don’t ask they just Get

[@thullraven1]

@@ima8533 But we're still picky about what we get.

[@Mike-cz2yw]

And.... so what

[@thullraven1]

@@Mike-cz2yw It's a mindset thing. You can give a broke people a ton of money and they will be broke again over time unless they change their mindset and get some discipline.

[@randomyoutuber7898]

​@@thullraven1facts 🔥

[@Dyrtbag68]

Listening to Dave is like listening to an awesome grandad.

[@Elizabeth-yg2mg]

Brother, for me...

[@sMaShEdToMaToS]

Thanks Dave. Watching your videos talked me out of financing a $50k car

[@ShenryRNBSN]

Found this guy early in life. His info plus my being a nurse will hopefully set me up for success.

[@aajordan2000]

The thing that was my epiphany was this... I would not have though twice about financing 40k to 45k. If I pay cash I would only spend between 10k to 15k. That is a big difference.....

[@kiaharper7172]

Seriously! Isn't that crazy to start to understand how are silly minds work!

[@smhca]

everyone being recommended this : Please keep in mind.. Dave uses a one size fits all approach to his advice and most the time there are better options for your particular situation. :)

[@Freedom20241]

When is debt the better option?

[@lpmederos10]

When purchasing something will leave you broke

[@Freedom20241]

If buying something will leave you broke, that’s a key indication you can’t afford to buy it.

[@christopherlush7066]

@@Freedom20241 Debt is a better option when the cost to finance is lower than the gains you could make with your money being placed elsewhere. Dave is great for people with no impulse control, but not everyone.

[@mrfab4383]

@@christopherlush7066 or don’t get into debt and just keep investing, you don’t need fancy cars.

[@JTrip20]

That total purchase price really hit home. Wish I heard this 3 years ago.

[@JustMe99999]

You should never negotiate with a dealership on "payment" - that's how they get you. Always on price (also better if you come in with financing already arranged through your bank or credit union so you get a better interest rate).

[@ouissandy2806]

Yes!!!!! I look at how much total not what it cost today. I learned to not be cheap but shrewd learn the difference.

[@ristekostadinov2820]

Leasing is for rich people who want always the latest and greatest and don't want to own for a long time and don't wanna care about maintenance.

[@2starSwelling]

Riste Kostadinov yesh sort of true leasing is for people who already waste it on ubers and taxis or already financed a car for years and have a old car

[@hectormorones8733]

%100 true

[@2starSwelling]

Hector Morones wouldn’t say rich tho

[@DoctorSmartyPants]

I'm pretty sure you are responsible for maintenance on leased vehicle. Perhaps not repairs though.

[@SupremeGarage]

Exactly. If you were to finance and "buy" the same car, the car's the blue book value would depreciate over 70-80% by the time you were done paying it off. And when that happens you'll probably end up selling it and financing another car...

[@PHILLYPHILable]

“I’ve been both, brotha. “ HA HA

[@jmsjms296]

So you've been both. brotha and “ HA HA: Nice!

[@cindymarks4758]

He's making $125K and still expects his parents to pay his student loan debt?!! 🤔

[@DoctorSmartyPants]

Caller is of the Entitlement generation.

[@cheesebear3353]

Disgusting

[@the_handro]

My thoughts exactly. This guy needs to do something about his loans and not have mommy and daddy bare the responsibility of paying them off

[@lukewilliams6607]

Every generation has entitled idiots.

[@TubeDeviant]

He is entitled, but he also said 125K between him and his wife.. Still entitled though.. haha.

[@rossmcgreg6r642]

You can lease some $40,000+ vehicles now for less than $100 a month ( with no down payment). Certainly worth considering. Deals vary by state.

[@nimascolari1508]

Nice. What a guy. Never seen him before. Wise man.

[@jimchristman3740]

A wealthy person told me you rent assets that depreciate and you buy assets that appreciate. A new car will depreciate as soon as you drive it off of the lot. Leasing works for me and I'm not rich.

[@MadMadz150]

Buy a used car?

[@MadMadz150]

@tRiCKy By that math you buy a car for 20K, it depreciates 160 / month and you drive it for 5 years. That vehicle is now sold for 11,400. If you lease a car worth a similar amount lets say payments are $60 weekly. Which is a really good lease rate.. Over that 5 years you pay $14,400. Plus you have to add interest or apraisal rates. So in this example (which I admit the math may not be perfect, but accurate enough) leasing is more expensive over time despite the depreciating vehicle. In 5 years the buyer paid under 9k but leaser paid about 15k

[@andrewwood6531]

Right on point Jim! Especially if you are fortunate enough

[@666dynomax]

and ain't gonna be leasing.

[@666dynomax]

do you rent your couch? TV? shoes? washer? A car isn't an asset, its a liability... you're lost bud.

[@DiegoRamirez-uy1xy]

I've heard of this saying and it has always stayed with me ever since, "cash is king"

[@daggergblue]

yea, that's fantastic, if you have cash. Just bring a big satchel full of cash to the dealership, easy peasy, right?

[@Onomato]

@@daggergblue i mean yeah 😂

[@mangoryder7139]

100%

[@tenhundredkills]

@@daggergblue Obviously, no one actually walks in a dealership with a satchel/briefcase full of cash to buy a car. You get a banker's check and buy the car that way. Easy...assuming you have the money for the banker's check!

[@Ultrajamz]

Tuning in to watch this dude get dabbed on lol

[@mikesawyer4707]

Dave is spot on. Do not take financial advice from broke people. Period. 😊

[@timswauger8381]

Or dietary advice from fat people or marital advice from divorced people.

[@MichaelMiller-ww9iy]

@@timswauger8381 Divorced people can tell you what to look for so you don't end up in their situation. Broke people don't understand money (there are exceptions of course).

[@vicizu]

Don't stay around failed people​@@timswauger8381

[@dinindukanchana8554]

Great explanation. Thanks Dave

[@CerronPritchett]

I just paid 1k for a 98 Saturn with 140k miles. I could have bought 10 cars if I had 25k saved no need for a lease or a payment. Just pay cash it’s not hard to buy a car save up for 10 months and then sell your old car and upgrade with what you have saved plus the sale of the old vehicle and just keep doing that until you get up to whatever price car you want.

[@ChrisMFlorida]

tell me about it.. I'm driving a 3k 2008 crown vic... drives just fine!

[@squishyland2000]

Exactly. I paid 2500 for a 95 Silverado single cab with 143k on it. This truck will go to 243k like it’s nothing. Why pay $20000-25,000 per 100k miles for a new pickup when you can pay 2500

[@swagmasterswag12]

That’s cool and all saving money but if that’s all you can afford you have a bigger problem in life

[@halo2bullseye922]

Thanks for the information on the leasing !!

[@sstein4777]

Great and sincere advice!

[@ordinaryJeff]

I'm always looking at new/newer cars, and my main question is always "How much?" I'm too cheap to ever get it though. Still rolling in the 89 firebird with 350k miles I bought 21 years ago.

[@ordinaryJeff]

​@Robert Blackford I'm trying to work myself up to getting something new. Minor collision a few years ago. Some idiot with no insurance hit me. My insurance totaled it. Got $1100 and fixed it myself. I do have a 'newer' car, 2000 neon that was free, but it has issues. Firebird started dying though recently, so rolling in the neon for now.

[@samjam6989]

@@ordinaryJeff If you want to buy your next car and save, dont buy domestic cars buy japaneae cars like toyota and honda that are more reliable and have cheap and readily available parts. That is if you want to save money while have a reliable transportation, an A to B car. Doesnt make sense to keep 20 year old domeatic cars like dodge neon that have terrible reliability and dodge is famous for that while trying to save money.

[@ordinaryJeff]

@@samjam6989 Yeah, it's probably time to clean up the neon as much as I can this summer and sell it for what I can. Then start looking at a newer used car.

[@dublewis547]

Sounds like a creepy car to roll around in in 2022 but whatever floats one's boat

[@ordinaryJeff]

@@dublewis547 My buddy's primered 81 chevy van with the free candy sticker and headless dolls on the front bumper is far creepier.

[@PrimitiveAK]

I have never owned a car past 20,000 miles. And the only reason I’ve leased cars is because I’ve been working in the automotive industry for the last 8 years so I get heavily discounted company leases and my company pays for car insurance and (most) car maintenance services are fully covered. Everyone’s situation is different but my ideal situation is to go through my company leasing program. I also have the option to buy out my car leases with a 18% employee discount.

[@RyGuyDCL]

This year we paid off both vehicles super early and it is a joy to not have monthly payments. Next order of business is building that emergency fund so repairs or surprise costs aren't an issue.

[@chris-hu7tm]

I agree, leasing is better thn buying

[@realalsenor]

Good advice, my friend, and I fully agree. One should not buy anything for which one can't pay cash. It means you probably can't afford it.

[@jonathan6665]

So no one would own a house lol

[@bloxgame4823]

@@jonathan6665 house is a different story, because it’s an investment

[@user-id7ut8uc2j]

Exactly. That is just common sense. There are some things we have to take a loan for a house and education and maybe a car. However one has to be reasonable. If you don't have money you need to compromise on all of these things. You don't go to the most expensive school or dream home or dream car.

[@derickball2994]

Do you own a home? Unlikely that you paid cash. Not borrowing under reasonable circumstances and having the ability to pay is to live a life of mediocrity. One who knows the price of everything and the value of nothing leads a rather humdrum existence

[@JustMe99999]

There is nothing wrong with borrowing for large purchases like a house or a car, assuming you can get a decent interest rate and can afford it. The problem is people borrowing more than what they can afford.

[@robertsimon6674]

for business owners /small big write off maybe good idea ...let say for example : If your lease is $400 a month and you use it 50 percent for business, you may deduct $2,400 ($200 x 12 months).

[@bullswoodworks8398]

"I'm going to be normal....which sucks" I Love Dave Ramsey

[@lyceum4177]

My NYC husband moved to SC, where we met. He was astounded that folks make car payments (interest) on a depreciating assets. Blew his mind, as he has always paid cash for used cars.

[@joeysforza]

I would love to hear a breakdown comparing a used Car’s average cost of repairs/maintainace over its life compared with a leased’s cars cost over the life of the car !!!

[@OfViseAndMen]

I believe consumer reports did a study and found that a car averaged $1400-$1700 annually for maintenance and repairs. Can't find it though

[@moneyinthebankusa]

Exactly, my car fell into pieces after I paid it off

[@alancrookston5906]

I can tell you the repairs are way less

[@spencerbott4]

This right here^

[@thullraven1]

If you get a reliable car, you pay it off and put money aside for repairs. That's what your emergency fund is for. Having no car payments is a beautiful thing.

[@ThePeterDislikeShow]

Every time I go car shopping the dealer is always quoting the monthly payment! I can't tell you how many dealer I've made their head spin by asking how much!

[@siddhantr9398]

I really liked listening to this guy.

[@CanadianDividendInvesting]

Great stuff Dave!

[@PreciousSullivan]

I paid my first car off. I was so happy…. Let someone drive it and the car got totaled. I was crushed. Financed another vehicle and now the engine went on that. For me, leasing seems like the best Option considering I’m only going to and from work. The car prices today are outrageous and I’m so overwhelmed every time I’m at the dealership.

[@antiquarian1773]

having a car payment for the rest of your life seems a bit daunting no?

[@lady8044]

​@antiquarian1773 for them, it's the peace of not having to worry about car issues.

[@chrisdudleyart]

⁠​⁠@@lady8044 Its funny how some argue what is best for YOU. Leasing has its benefits. Plus many for get the AVERAGE monthly cost of owning/operating a car. It’s a few hundred dollars per month if you keep up on the maintenance. A few times per year it can be a few grand in maintenance. Actually, leasing can be better for people with less money to pay a few guste nd monthly vs hoping to have a few thousand saved for repairs! 😅

[@NH-hp2nn]

what are the options for people who need a car but dont have enough saved up to buy one outright? It seems like leasing is the only option :(

[@PreciousSullivan]

@@NH-hp2nn Leasing is going well for me and all my trips to the mechanic are covered!

[@Perlamassi]

I don’t know anything about cars (mechanically speaking) so leasing is the way to go for me. I will not use my cash for an old car that I’ll have to constantly upkeep and spend even more cash on, and I will not buy a car that I don’t know if I’d like or if it’ll meet my needs a few years down the road.

[@maritzaserafin2365]

That’s wen you do your research about the car you DO want in the first place to see it’ll match your needs later on

[@bronxmosthated1]

Thanks brother 🙏

[@enderdavila2910]

hi, great, gerat video sir thanks for the info,

[@miketracy9256]

Having a 25K savings funnd is impressive and Dave is right, pay off the student loan ASAP.

[@miketracy9256]

I am not a fan of leasing, but if you are way under the mileage limit and it has been a great car so far, buying out the lease may make sense, especially if you can pay cash.

[@CESAR1309LAMPARD]

Very true !!!

[@bostonterriermomakasandy9722]

Totally agree!

[@shirleyanngilbreath4353]

I was gonna ask the same question regards to leasing. 👌

[@Redfeather80]

Long story short; do without whatever it is you desire in life until you can buy it cash. If your job doesn’t pay you enough money to save up fast enough to buy something cash then you should never think about owning it.

[@JesusGonzalez-mj5fn]

Amen to that

[@daggergblue]

How do you suggest one get's to and from said job? Magic teleportation? Spend whatever countless dollars on taxis, or ubers? Or did your mommy buy you a car to start off with?

[@PassportBrosBusinessClass]

Leasing makes sense for many people. Especially the rich. Some people want the experience of certain cars but don’t wanna get stuck with long-term maintenance and repairs. I have leased 2 Cadillacs after financing one. You don’t wanna get stuck paying on an OLD Cadillac.

[@ordinaryJeff]

Wait... so financing that 93 Northstar Cadillac with 180k miles at 15% the other day was a bad idea?

[@JustCalMeBozeman]

Luxury cars are a great vehicle to lease, they depreciate like a rock and can be pricey to repair.

[@sychophantt]

Always lease

[@hunterdiller7603]

@@JustCalMeBozeman I agree.

[@jmsjms296]

Are you rich? Do you need 3 Caddys?

[@waynegood9233]

The only time you need to lease a car is first you can write it off for business or you are only going to be in a certain area for a certain time I learned this 40 years ago

[@claudiacheo4041]

I may have one of the few success stories related to this topic. My husband prior to our marriage leased his current vehicle. No down payment. $250/mo for 24 months. At the end of the 24 months we had the option to purchase it for $18k, making it a total investment of $24k, and the vehicle is worth $36k. Buying it was the smart thing to do. It's basically new, super low mileage. I understand the magic is in the initial negotiation, like avoiding a down payment and junk fees. Also, leasing makes no sense for people that do a lot of driving as they will exceed the allowable mileage which will cost $ at the end.

[@callofduty60]

Leasing is fine if you are the type of person who can actually afford it. If your making $100,000+ /year then you can absolutely afford a $200 lease all-in. That’s just $4800/year. Which is 4.8% of your annual pay.... with a lease you don’t need to worry about maintenance or paying for repairs if the vehicle breaks down, it’s all taken care of for free by the dealership. This piece of mind is also VERY nice to have, because when you OWN a vehicle you are responsible for everything , and mechanic expenses can add up quick especially if you are buying a used vehicle. If you instead bought a used vehicle for $15,000 and it breaks down or needs repairs you are held accountable for it which adds to the overall expense of the vehicle. With a lease the day you leave the dealership you know exactly how much your going to be spending over the next 2 or 3 years.... Not saying 1 way is better than the other but I feel like certain options work better for some over others. - I leased my vehicle and bought it out at the end of the lease, but I squeezed everything I could have out of the dealer for 2 straight days before signing the dotted line. I ended up paying about $3,500 over sticker in the end... So yes, the lease cost me more money, but not by THAT much and if you include the free maintenances I got over the 3 year term it would be more like $2,500 that I overpaid by. But at the time of leasing the vehicle I was unsure of weather I wanted to actually have a vehicle for long term or if it was just for that period of time when I needed it. It allowed me the freedom of knowing I wasn’t stuck with a vehicle and could give it in at the end if I wanted too. I ended up falling in love with the vehicle and I got a lot of use out of it, so decided to keep it....and wrote them a check for the remainder of the amount on the vehicle, no more payments / no borrowing money. I think a lot of people just lease vehicles that are too expensive for them to ever own which burdens them , along with people getting ripped off by dealerships because they are too afraid to negotiate. When I’m at a dealership I don’t stop, I keep going and prodding for a better deal talking them down lower and lower and lower until they get tired of me lol... Just my .02 - again not saying 1 things better than the other, but different circumstances dictate for a person to person basis - and to dismiss leasing entirely is wrong IMO

[@RAMBALZ]

I totally agree. The money you're paying over the price is basically for the ability to have no stress with the vehicle during the use and having to go through any hassle of selling it after. As you said, the pivotal thing is, if you can afford it. These are the reasons you make make, conveniences like this to enjoy and have less stress in your life. But if you're trying to make money and build and get out of a hole then it sounds like by using your real life example that buying an affordable car could be a better way to go in the long run. The savings may even be much higher than what you reported. Every little helps I guess. Also was it 200 bucks a month? Which would be 2400, an even lower % of your annual income.

[@callofduty60]

RAMBALZ yes, I agree with ya. Also, the price of the lease and salary are not mine personally. Those figures were made up just to show that a lease could work IF it was somebody making $100k/year ... and that opt for a $200/month lease. My numbers are both different - salary and lease payment. The point I was making with my experience with my lease is that I only overpaid roughly $4,000 for the vehicle at the end of the lease and decided to buy it out.....but had peace of mind knowing I didn’t have to pay for any maintenance throughout the years, and I wasn’t stuck with the vehicle if I didn’t want to keep it I wouldn’t have had to sell it. You are buying convenience with your money just like with everything else is life. Also unless I misread you’re post, it is $2,400/year if the lease is $200/month as 200x12 = 2,400. Thanks for the reply! Have a great night.

[@seth556]

It’s not a great thing to spend money on, having a new car every couple years, but if you’re going to then the lease option is a good way to go. I agree that’s there are definitely circumstances where leasing is a good way to go. However on the flip side, for 98% of Dave’s listeners leasing is a terrible idea.

[@callofduty60]

Seth Moore I can rock with what ur saying 👍🏼

[@lindaarmbruster8407]

actually it's $2400/yr

[@tkhannibal2476]

He needs to write a 15k check towards his SL and be in position to borrow real money if he wants to go down that path. 15k car dude!!!

[@MichaelDavis-cj1yj]

Dave Ramsey's insights have been a game-changer for me! His practical approach to financial management has empowered me to take control of my money and work towards a debt-free life. The Total Money Makeover is my go-to guide, and I appreciate how he breaks down complex concepts into easy-to-follow steps

[@metallifreak100]

When he talks about people that care about monthly cost and don’t ask the total cost, I 100% agree. Now, in 2017 we financed a car. When we walked into the dealer, I told them I wanted the total cost including taxes, didn’t care about monthly payments. They listened, and it went smoothly. We ultimately got a Costco discount on the vehicle.

[@JB-ri6zp]

Yeah go try that today buddy old pal.

[@benbryceholden1]

@@JB-ri6zpit takes work to find a fair dealer, but they exist.

[@bigdawg1372]

Everybody should care about their monthly cost, are you crazy?? Saying "how much" means nothing if you can't afford the monthly cost or if you can't pay cash

[@metallifreak100]

@@bigdawg1372 affording the monthly cost was never going to be an issue. $389 a month for 60 months was the term. Dealerships will play around and say stuff like “oh you can size up and pay $380 per month”, but for 72 months. People eat that crap up. That’s what I was referring to. Otherwise if you only look at the monthly cost you could find yourself in one of those 84 month loans and not realize how more you are spending.

[@metallifreak100]

@@JB-ri6zp considering I went car shopping again not that long ago, I did try that, and it worked just fine. Even found a dealer that was accepting our friends and family discount (I work for a company that contracts with all the major auto makers). The “price adjustment” is all bs. You don’t have to pay that, and there are plenty of dealers that aren’t doing that.

[@sunshadow9704]

How do you justify wasted time on used car when it breaks? And you know, most of modern vehicles tend to break starting at 4 -5 years old. Now, with lease , assuming you pull the deal where the lease cost is 1% of vehicle cost [of cause the dealer invoice cost - all rebates) (not very hard thing to do by the way), you drive latest and safest vehicle, you enjoy life and car, watching when your neighbor spends time looking for good body shop which he never finds, then gets angry knowing that his vehicle wasn't fixed up to spec and preparing for next expensive issue with his old car. To each his own With lease you buy a comfort. Who can put price tag on comfort?

[@jakedeane3003]

I agree, leasing is pretty care free and actually pretty affordable if you negotiate a good deal and know how much you should be paying. Leasing is also better if you're getting more of an uncommon car like bmw or mercedes, because maintaining a car like that is insanely expensive down the road if you finance it

[@camilo862]

Sorry, but if a car breaks after 5 years you are looking at the wrong brand.

[@sunshadow9704]

@@camilo862 Name the brand/model which is exception.

[@quantumdecoherence1289]

@@sunshadow9704 Toyota.

[@luisbeltre9602]

Toyota

[@FrankChristopherOutdoors]

This is the 4th video I have watched with a call in and everyone makes at least 125k/year ? I don’t know anyone who makes anywhere close to that. I’m gonna keep watching and look for others who are in a more “realistic” situation like myself. Sorry if this offends anyone

[@JoeUrbanYYC]

It was between him and his wife though, so they might make an average of ~$60k each

[@MatrixDiscovery]

They are lying.

[@seth556]

For a household it’s not that wild, just takes two people making 60k per year which is pretty doable a couple years out of college

[@FrankChristopherOutdoors]

Seth Moore you’re right , I didn’t hear him say between him and his wife until I watched it back again. Thanks for pointing that out

[@jenc9631]

Yeah. It took him a bit to think about it. If he makes that much he wouldn't be worrying about 200/month. I know people that make 125k/year that have BMWs and manage fine with buying and leasing.

[@chad5660]

I had leased a brand new Honda Civic Si a few years ago, really nice car but I realized how stupid that was, so I sold it luckily I was only upside down $100. Bought myself an 02 Tacoma and put 50,000 on it so far, it hasn’t skipped a beat and its a waaaay nice car than the civic because it’s not taking my money every month. All my friends made fun of me for going down in car, but now few of them are asking me if they should do the same lol

[@DivineMisterAdVentures]

Appreciate that - but it only addresses the cost of money (and related) it doesn't address the cost to keep the car - specifically repair bills, that you DON'T GET with a lease - right?? (Or any new car presumably.)

[@user-qk9ro8rp8t]

Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got to talking about investment and money. I started investing with $150k and in the first 2 months, my portfolio was reading $274,800. Crazy right!, I decided to reinvest my profit and get more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family.

[@Williams093]

Hi. I’ve been forced to find additional sources of income as I got retrenched. I barely have time to continue trading and watch my investments since I had my second child. Do you think I should take a break for a while from the market and focus on other things or return whenever I have free time or is it a continuous process? Thanks.

[@user-qk9ro8rp8t]

@@Williams093 However, if you do not have access to a professional like JUDITH ANN PEACE, quitting your job to focus on trading may not be the best approach. It is important to consider all options and seek guidance from reliable sources before making any major decisions. Consulting with an AI or using automated trading systems can also be helpful in managing investments while balancing other commitments...

[@Williams093]

@@user-qk9ro8rp8t Oh please I’d love that. Thanks!

[@user-qk9ro8rp8t]

@@Williams093 Judith Ann peace is her name .Lookup with her name on the webpage

[@Williams093]

@@user-qk9ro8rp8t Great, I will do that now. Thanks for sharing

[@michaelleahy6848]

What a difference a year makes! With the crazy prices for cars, a lease today will protect you from being massively upside down in equity. Lots of videos advising about this currently

[@-cappington2276]

What about now? Maybe I should lease that new car I want?

[@supperfresh222]

So will buying cash lol Cash is 100% equity.

[@hoffrun]

I lease. In MIchigan I pay 6% sales tax on the monthly payment and not the full value of the car. Instant savings. Always have a car under warranty , not stuck with lemons , and hope those dangerous touchscreens go away.

[@neogeo227]

Leasing is good, You are always throwing your money away with a car. For people who want all the newer safety features like Automatic Braking systems and new tech like phone apps, Bluetooth, etc... Leasing gives you that option of having all that, just like buying a new car. I don't want to buy a 4 year old car just because I am greedy and put my family at risk. The best thing about my new Subaru is, it has Eye Sight which is automatic breaking system. Can't get that with a 5 year old car or even a 4 year car because is was an option. Even when you pay off your car you are still losing Value. Since most people don't do the require high price maintenance. You are going to run into problems with that used car.

[@hockeycentral1149]

Enjoy bankruptcy

[@Mrsjengood11]

Leasing is an option for people who like newer cars ever 3-4 years

[@chada75]

I have a 2008 and 2005 P71 Crown Vic. You could buy said crown vic, Buy a new Autozone Engine, Trans, nd Rear end cheaper than most new cars and still be out of debt.

[@channell11]

The reality of it is that you can seldom make just financial argument for replacing an older car. Because even if it needs serious repairs, it's unlikely those repair will eclipse the amount of money a new car depreciates on a yearly basis. Now if it becomes so unreliable that it leads you stranded, or has some sort of condition making it unsafe (like frame rot), then you might want to upgrade for your sanity and safety. A lot of people say there's no point in putting more into a car than it's worth, but for an old car the value it provides you in transportation is likely to exceed book value anyway.

[@sydnick6696]

Okay. ! traded in my 2013 F-150 for a new 2017 F-150. The difference between my trade and the 2 year lease was $8000, so dealer gave me a cheque. I drove the truck for 2 years, and liked it, so I bought out the lease. The buy out price was about $3000 LESS than the market value of the truck, BTW, the $42,000 that I didn't spend on the truck for the two year lease earned me another 8%. I was against leasing too, but after this deal, I am a fan, as long as you have the cash to purchase the vehicle outright.

[@dharmabeachbum]

Keep in mind he’s saying ‘and buying out at end of lease.” That’s the problem - never do that - little option to negotiate. Lease and then lease again is best method if you don’t want to own a car. Prior comments are on point, leasing is not for everyone.

[@GoofieNewfie]

exacty, you NEVER buyout a lease. Doing so takes away every advantage of leasing in the first place. I've had cars I absolutely loved and walked from because I knew if I wanted to keep it, I should have just bought it from day one. Never buy a lease at the end. I guess the only exception would be you damaged it soo much and drove it so far the return fees are more than buying it in which case you are not the type of person leases are meant for.

[@xrootzx4472]

What if I wanna get like a 2021 car and keep it for like maybe 12 years and maybe get something or is it better to lease it

[@Macktheknife247]

@@xrootzx4472 wait until next year and buy a previously leased car. Save 35%. Get the car you want. Ride it till it dies. Never buy new.

[@xrootzx4472]

@@Macktheknife247 💙💯 thanks

[@907ronin]

So you suggest renting a car forever 🤦‍♂️

[@jackdaniels5205]

Here is a lil fun fact. The picture to the left of this text with that 2003 f150. I boughtthis truck 10 years ago for 5800 dollars. Bought it cash it had 83,000 miles. I am still driving this as my daily driver 204,000 miles later. On average I have a annual maintenance cost of 550-600 a year . I do most all the maintenance work myself. Even if you took the truck to the shop for the work that annual maintenance cost would maybe be 800-1000. Which for the whole year is not bad at all.

[@nicknelly1]

Dave: “Buy your car outright, upfront, as much as you can.” Regular people: “I wouldn’t be struggling in middle class if I could do that.” 🤦🏼‍♂️ Dave….95% of the population isn’t you buddy. We need better options. Inflation is real.

[@waterheaterservices]

Scotty Kilmer waves off purchasing Mercedes, BMW and Audi, says just lease those expensive to repair endless money pits. 😆

[@time2driveohio151]

Scotty is a headass

[@sebastienc.2257]

@@time2driveohio151 I mean it’s smarter to lease those cars than buy them so he’s not wrong.

[@time2driveohio151]

@@sebastienc.2257 it’s never smarter to lease a car, Dave makes it very clear. I guess I just like having the title to my cars...

[@bravesnipz]

@@time2driveohio151 or you can finance a car for 1.99% interest rate and put that money in a high index fund and make more money. I’d rather have more money than peace of mind

[@freelanxe]

What about the cost of ownership that goes up after you keep the car longer periods of time

[@joshwatson7303]

So what would the result be if you use the car for your work and the lease payments as well as expenses on the car are a tax deduction?

[@TheDentist29]

You buy what appreciates and lease what depreciates. A car looses value once you drive it off the lot.

[@Exilis]

I don't see how someone asking these questions wouldn't be lying about their 125K yearly income.

[@tigerzoo325]

He said combined income between him and his wife

[@mdaniels6311]

So glad I educated myself about money. I almost ended up another sucker. Now I am frugal, and on track to saving 700000 dollars in the next 10 years, and own a condo I rent, and will buy another in a few months. Pay little rent, and save most of my income. I see people around me squander their precious money on nonsense, and I just dont get it....

[@westwalnutrecords]

It really depends. Leasing makes sense if you don't want to worry about maintenance etc.

[@westwalnutrecords]

@@23chnge it's covered by the dealer

[@puregsr]

That's pretty much exactly what I would do. And I'm just using common sense growing up in a typical Asian household

[@Macktheknife247]

He says that sometimes, "back in the day, this was called common sense."

[@Elizabeth-yg2mg]

Seems like Asians usually have it more together than the rest of us, seriously. More stable families, work hard, smart.

[@puregsr]

@@Elizabeth-yg2mg Honestly, I don't think it's anything special, just the same immigrant mentality that made up American traditions. It's just everyone is so eager to shake off traditions within a few generations, like religion (Puritanism, Quakers, etc) that common sense is simply lost.

[@Elizabeth-yg2mg]

@@puregsr Asians have more stable families and do fewer descents into drugs and loser-ness than Americans and some other cultures. There are statistics and studies on this somewhere!

[@sglacf]

How about if I lease a truck for business? Is it better write off for taxes?

[@jennnyandjeffs]

Typically a business is better off leasing. It does not count as inventory, and you don't need to pay annual state business tax on it. You can write off the cost of the lease as a business expense if you use the car for business.

[@rifvega]

I bought a used 2009 Honda Accord for 15K back in 2012 and sold it for 5K in 2019. 4K in repairs and maintenance so it cost me around $165 for 86 months. My experience during this ownership, selling wasn't easy, since it was an older car, repairs were a pain and I ended up driving a dated car for a good period of time. (lacking new safety features, Android/Apple car play and etc.) In summary, I think it's a great deal if you can lease a nice car around $200 with no down payment and etc. Of course, how many miles you're driving plays a big role, you can't lease if you drive a lot. I agree with Dave on paying cash if you're buying since what's the point of paying interest to the bank but sometimes leasing makes more sense. Overall though you buy or lease, look for a great deal, you end up loosing a lot less, if you buy or lease cheaper than average.

[@channell11]

There are many personal reasons why someone might want to lease, but as Dave noted, for most people it's going to be the most expensive way to drive a car.

[@davidking4779]

Renting money, buying insurance and contributions to SSI are three of the worst investments that I have made.

[@deejayimm]

Ever since I was 16 I've been surrounded by people who ask how much per week, what's my monthly payment, how much do I have to have down. I have always been the guy that added it all up and said wait a minute this is the best way to do it. I'm 38 and I'm still just doing okay, despite all my careful choices. Rich people have something else altogether.

[@lonewolf30531]

Leasing or buying it’s all a big waste of money . Cars are a trap no matter if it’s financed for 3- years , leased or a 72 month payment plan. Financing a new car is okay If you keep the car for at least 10- years .

[@vejymonsta3006]

Buy a reliable car once and drive it as little as possible. Ride a bicycle or a moped when the weather is nice. You'll keep the car forever.

[@mrbass093]

Florida is different, if you ride your bike over here you’ll get to your destination the next day

[@HighCountryRambler]

Plus the interest on the car loan he's saving by paying cash, roughly 5% on the sale price. Never been a fan of car leasing and that 14% makes sense since the leasing company likely finances their inventory. Like being a landlord and passing down property tax hikes to your tenet.

[@Mgarguemare]

I don't trust anyone who believes that they "don't deserve better".

[@jorgeloya6420]

I have bougth 2 cars in cash.. Cheap cars and I drive them to the point of depreciation till the pistons wear out..

[@realdavebob]

Worth it. When my car’s are in the shop, public transit actually becomes likable too.

[@phillipbarlow9387]

Thanks Dave, I had no idea that leasing a car is like having a car loan that has a 14% interest rate!! Looking at the ads in newspapers and online, I always thought leasing seemed like a good idea -- based on the monthly payments...and then how much was left (i.e. the "purchase price"), at the end of a 3 or 4-year car lease.

[@Z2Z9]

Thats if you want to buy out

[@realdavebob]

Right!

[@aguilaorgullosa685]

It isn’t, his numbers are very incorrect. Lease interest is generally based on a money factor multiplied by 2400 and that is your interest rate. Most are well under 10%

[@GDaShef]

Your average person cannot afford to buy a car outright, even if it's cheap. When it's cheap, then you risk maintenance, if it's expensive you risk going into debt, most people cannot save because they need a car now for work, etc. so This is why leasing works. Just lease cheap and stop being fancy,

[@blacklyfe5543]

Leasing isn't bad it just means you don't have the cash to buy it yet

[@ronl1633]

I just found out it also cost more to insure a leased car of the same model and year...

[@jenniferannfox2316]

what is amazing is how many situations in marriage where one spouse is a "how much is it a month" and the other is a "how much is it" person. lol seriously opposites attract.

[@beau6113]

I wanted to buy a new Jeep. I had 4k saved at the time. They were running a deal, 3k off window price if you lease. I entered into a 36 month lease with essentially a 0% interest rate. I made the lease payment and saved $500/mo for 36 months. The money was stored in a high interest savings account. At the conclusion of the lease I purchased the Jeep outright using the saved cash, with only a $200 fee attached to the purchase. I made $800 interest over those 36 months, and the Jeep cost 3k less. The only reason I leased is because I asked "how much."

[@M3RRYDELUXE]

Yessss BEAU! This!

[@Droopy578]

I am an off lease inspector and inspect cars at the end of lease for large finance companies. From what 90% of the customers tell me, it's not about being flashy or not wanting a a used car so they can be debt free, it's the repairs !! People do NOT want to deal with repairs !! So they lease every 3 years cause the vehicle is under warranty aside from the regular maintenance. What's the usual repair cost for a used, 5 year or older, paid in full, car? Depending on male and model, About $2k - $2.5k a year? In this guy's case, $200 a month for a lease (must be a cheap compact) is roughly the same amount for a new car with a warranty vs a used car with yearly repair costs. Please understand, if you get a used high line German or British car, you will be way over $2500 a year. Those are high maintenance vehicles. Honda, Toyota products, even Acura/Lexus are very reliable and not so much in repair costs.

[@toptrims]

Thank you for sharing your experience! Leasing is so demonized when it makes a lot more sense for a lot of people’s circumstances.

[@user-id7ut8uc2j]

Leasing is still more expensive overall. You are paying for that convenience or luxury of not dealing with repairs. Most new cars do not need major repairs until about year 8 to 10. So if you want to lease just know you are paying more overall and you don't own anything if you don't buy car at end. You are just living an expensive hassle free life renting a car. Getting rich without rich parents requires doiing without on some things. Leasing is not the " rice and beans" of car ownership, it is caviar and champagne.

[@SportsManVegetal]

First time listening to Dave Ramsey… it’s like your drunk uncle giving advice at the family Christmas party. 😂

[@e1ectricfee1]

I only buy my trucks new, I see way to many people in my line of work with older trucks spend about 750-1500 a month in repairs. Also trucks don’t depreciate like cars. About to get rid of my truck 2018 truck, only lost about 1500 bucks of depreciation on it 2 years.

[@babblesp1367]

Shoe Gazer what kind of repairs can they possibly be doing to spend that much a month on repairs. Even at $750/month on repairs you’ll have a whole new engine within one year with that amount of repairs. I hate to ask how much of that is labor. There are things people can do on their own.

[@AboveAverage2215]

This dude is SOLID man, this is real game right here💯💯

[@jwcollect6642]

Dave, I've leased and purchased cars. In my experience if you don't drive more than 10k a year and you take care of cars you're better off leasing. Down payment is less, I get to drive a new car every three years and the best thing is if I get into an accident, I get it fixed and return it after the lease is up. If I had purchased it, everyone you try to sell it to wants to give you less as they wave the car fax in front of your face. Thanks

[@ultramazingo6943]

Agree. Leasing is not for everyone , more often than not everyone tries to low ball you. And the way leases are nowadays the money factor is really less , sometimes almost nothing. Again to each his own.

[@eats4cheaps305]

If you are spending passively for vehicles then lease. If you are spending from a budget then buy the cheapest you can full cash.