Leasing vs Buying a Car: Which is ACTUALLY Cheaper in 2024?

[@humphrey]

Would you rather lease or buy? Drop a comment!

[@saiーツ]

lease because I like the idea of upgrading every so often and having complimentary maintenance. It also opens up more decisions on which car to choose since Im not having to worry about long-term reliability

[@LtMadWolf]

I leased my 22 Tacoma sr5. I really love the truck plan on saving the money and buying it out. The beauty of leasing is you can try and talk down buy price before you sign the lease. I personally leased because the interest rates are way to high on cars right now. there at like 12-16% in Arizona.

[@brocksolomon8953]

Buying a couple year old used car is the way to go. Anything else and you're throwing money away

[@triple_gem_shining]

​@@brocksolomon8953but then you can't look cool to all your friends who don't like you 😎 Jk

[@brocksolomon8953]

@@triple_gem_shining 😂

[@TuBui2]

Adulting is realizing that the 6-figure job you dreamed about can only afford a new, mid-range toyota or honda

[@humphrey]

lmao seriously

[@brocksolomon8953]

No adulting is realizing that buying a new car is stupid

[@TuBui2]

@@brocksolomon8953 amen

[@etvow]

@@brocksolomon8953 No. Adulting is realizing that Toyota dealers are able to sell their Certified Used cars for $10K above the MSRP of a new one just because people like you are always recommending used cars.

[@brocksolomon8953]

@@etvow yeah I never said buy from a dealership.

[@IsabellaAriau2m]

Tax laws can be so complex, and it’s super helpful to break them down like this. Understanding how different policies can impact our finances is crucial for making informed decisions.

[@AidenLiamf7q]

Making profitable investments during this time of political change can be risky without that insight. For me, working with an adviser is the best first step to navigate these complexities and make informed choices.

[@AlexanderOwenb9l]

I think having an investment advisor is the way to go. I've been with one because I lack the expertise for the market. I made over $490K during the recent dip, highlighting that there's more to the market than we average folks know.

[@NatalieHannahq3g]

Hmmm this is quite interesting, Please can you leave the info of your investment advisor here? I’m in dire need for one.

[@AlexanderOwenb9l]

Nicole Anastasia Plumlee can't divulge much. Most likely, the internet should have her basic info, you can research if you like.

[@NatalieHannahq3g]

I just googled her and I'm really impressed with her credentials; I reached out to her since I need all the assistance I can get.

[@chuckz28]

I think a factor that was missed for all of the lease situations was during the "buy the car after the lease is up" the 21k is shown as basically a cash payment when most people will have to take another loan for the purchase so the interest on that 21k loan will make the total ownership cost even more post lease.

[@sweetpickleinc]

This! Big oversight. Also, “older” cars typically have higher interest rates as risk mitigation for banks. I’m guessing if you just had a chunk of cash (say, $21k) laying around, you would’ve purchased a used car outright in the first place (current used car market aside).

[@pauljiltsov9950]

Right on point, I was about to mention this myself. That's the reason why people don't buy out their cars after their lease. It is very hard to fork over 21k in one payment if you have been driving the car for three years already. And, that's if you have the money for it. Lease is just lease. Three years and then move on to the new car. You will always be driving the newest model and won't have to worry a out breakdowns.

[@vladnegin5918]

Yes, also In most cases you will need to go through a certification inspection, and that means you might have additional costs on top of that

[@Steve_in_NJ]

I did the math and doing a lease buy-out this year would mean I spent $12,000 more if I keep my Hyundai Kona. It's just cheaper to lease a newer Kona. I would need to take out another loan -- a used car loan -- if I was to keep my current 2022 Kona, and interest rates are higher for used car loans than new loans.

[@LawnFlex]

100%. Glad this was one of the first comments I saw cuz this was totally overlooked.

[@Loveless100]

Another pro for leasing: if you’re on a work assignment in a different town for a set period of time, it could make it easier when your assignment ends to simply return the car rather than find a buyer. Oddly specific, but pretty common in certain industries. Great video as always!

[@MarkM58]

military!

[@CrushDani]

You could probably just sell it back to the dealer and still break better

[@skrt4k]

@@MarkM58 YES!

[@jordynwhite3986]

@@MarkM58 Thank you for your service!

[@TheYellowSnoman]

This is a really dumb idea. It's easy easier to find a seller than return to dealer and buy yourself out. Stop justifying bad decisions. Buying is always the better option

[@randxalthor]

One small detail that might be worth highlighting the next time is that most people will have to finance the residual value at the end of the lease in some way, as they don't have $20k+ laying around. That would add interest to the lease cost to own.

[@HarfelJ]

That's what I was thinking. Later in the video, he says that paying in full at the end of the lease is the general expectation. That doesn't make sense for the dealer or for the buyer. Whether you pay from your wallet or a bank gives you a loan, money is money, and the dealer will probably be happy to take it 😶

[@hannahtate923]

You don't have to finance anything - you just trade in the car and get a new lease

[@2004cyrus]

@@hannahtate923lmao wrong! When you lease cars, you pay a money factor (a lease interest rate). Your comment is mind boggling.

[@hannahtate923]

@2004cyrus uhhh, I was responding to the specific comment above. I know you pay an interest rate to lease. The comment was that you have to finance the residual amount of a lease at lease end and that most people don't have 20k lying around. And you don't need to. You can just turn one leased car in and get a new lease. You don't need to buy out the car at lease end. In fact, we even sold a leased car back to the dealer 2.5 years ago - as in, they gave us money to give back a leased car that we didn't actually own, and we didn't have to buy it first. They just gave us the money. In summary, you DO NOT have to buy out a leased car at lease end. You DO NOT have to pay the residual value. And you DO NOT have to finance the residual value if you don't have the money at lease end. You can simply walk away or start a new lease instead.

[@2004cyrus]

@@hannahtate923 correct. I’m in the car industry- my family owns a bunch of franchise dealers in Florida, Texas, Missouri and a few other places. That’s the only reason I mentioned the money factor. Congrats on getting a dealer to give you money for nothing in return. That’s highly unusual and they won’t be in business for long,

[@jochuba]

That is the most intelligent video that tackles the question of buy vs lease. Thank you.

[@stevenlimbach3827]

Another scenario missed. Lease car, ( got mine with almost nothing down, since I have been flipping leases since a no money down deal in 2013), Buy car after lease, drive for a bit less than a year, sell car. My lease payments for a $21000 car were $209/month for 36 months, $7524. Bought car for $13000 after lease. drove for another 7 months. Sold car for $16000. Total cost for about 44 months was $4524 or $103 / month !! Worked out pretty darn good for me ! ( Honda Civic 2019 )

[@AutumnOriginals]

Did you pay in full when the lease was up?

[@TheSageSpartan]

Literally just thought of this

[@Ubiquitous_1]

I love these comparison videos. Seeing the numbers really gives the proper perspective for the big picture. I want to drive my car for 30 years, that may not be realistic but that's what I'm shooting for.

[@sethtenrec]

I’m into year 23 for my Toyota Tundra (if I was doing this today it would be a 4Runner, check CR reliability survey) Buy a quality vehicle and take good care of it.

[@unrealenging1670]

This is the badest review ever 😂 Bro you “forgot” the insurence/taxes and mantainance you pay EVERY Month By finance a car Lets talk also about the feeling of not to worry about nutting if you lease Totaly wrong comparision

[@somehandle215]

I work in a tech job, most of us drive old beaters, and it makes me proud. One guy even has a late 1990’s Civic and I’m slightly jealous, in a competitively frugal way. A paid off car is the only car I’ll ever own, I learned that after the payments were done on my first car loan.

[@jackz4149]

My car is paid off but I need to trade in within 5 years timeframe, otherwise I’m sure the repair cost will be high

[@wjm3018]

​@jackz4149 it won't u less you can fix your own car or if you have a honest mechanic. This will still save you alot vs paying monthly car pmts. Dealership mechanics rip you off

[@nfzeta128]

​@@wjm3018That's true that they rip you off but some of that is reliability cost because finding a good mechanic otherwise is like thrift shopping.

[@youzongliu]

Why?

[@DakotaRowehl]

Newer cars cost so much to repair. I'd be scared of driving anything out of warranty at this point. I had a Nissan CVT blow up at 40k miles. I've just chosen not to have a car after my sentra was totaled by someone on their phone.

[@richscott2483]

Buying outright is best. Forget Leasing unless you have the means to write off on taxes. Overall, Mr. Yang did a good job covering the Pros and Cons.

[@coolpras26]

Could you elaborate on this 'write off on taxes' thing you speak of? Trying to learn.

[@rotagbhd]

@@coolpras26 Less than 10% of Americans itemize their tax return to write things off, as the standard deduction is more than what 90% of people could itemize. Unless you have more than $14,600 of interest payments/charitable donations/work related write offs, you'll just use the standard deduction like the rest of us.

[@jerrylundegaard2592]

If you use the vehicle in a business you can deduct from taxable amount the cost of the vehicle sssocisted with business use. You can do this whether you lease or buy. Accountants have the knowledge to process the write off.

[@usmc2msu213]

Remember, when you buy a car and pay it off, the longer it’s in your driveway, the more money you save. Even decently pricy repairs are still cheaper than a car payment over a year’s time. All this is true if you buy a dependable car AND maintain it. Buying always wins when it’s over the long term.

[@JoeLopez]

Absolutely

[@Jeff-p5i2w]

That works for you, but you're not listening to what this guy is saying. My comment is posted, and the reason why I lease a car is a piece of mind. I'm 74 and my days of going to Joe's garage is over.

[@sunshadow9704]

But you drive outdated vehicle. It’s boring.

[@usmc2msu213]

@ better than living in debt.

[@JoeLopez]

@@sunshadow9704 Adulting can be hard for many.

[@khoihuynh9308]

bought my 2013 civic about 8 years ago for 14k. paid it off in 3 years. havent had a car payment since. the car is still worth 14k lol. this is probably the main reason why rich people/people that are good with money say to keep your first car. my maintenance cost is low. basically just oil changes, buying a set of winter tires and swapping them. can't remember if i had to change my brakes/rotors. really nothing to worry about. buy the car if you can take care of your things lol.

[@jasonstathoom5142]

That's about priorities. Someone would say the life's too short to drive a civic for 8 years to save some money.

[@Joey_DiGs]

@@zzz-x7p true, statistically they drive f150s

[@bhavishyachandra]

Great video, one minor correction: You can indeed trade in a lease or transfer it to someone else, Most dealers will pay off the lease and you only owe the difference amount between your remaining residual and current value. If you lease a car like an M3 or a 911 or a Civic, you can probably walk away from a lease without owing anything

[@etsoccer91]

I’d also say that, for example me, I have calculated a monthly allowance for car payment that I am okay with. I don’t care if I pay for a car. I like getting new cars every 3 years and everytime I need to look for a new car I take my current lease and get a quote from car max. 5 cars in a row have had at least 4-7k offered over residual value left in the lease. I take that quote to dealership and say I’ll take a new car from you if you match car max offer. I’ve never had to put down more money in 15 years for a new car. Just my experience.

[@matw1x]

Best comparison & breakdown I've seen so far. Thank you brotha.

[@unrealenging1670]

This is the badest review ever 😂 Bro you “forgot” the insurence/taxes and mantainance you pay EVERY Month By finance a car Lets talk also about the feeling of not to worry about nutting if you lease Totaly wrong comparision

[@JacOnMac]

I don’t know if this happens a lot but I leased a 4Runner from a giant Toyota dealer 0 down super low payment all the SUV bells and whistles. Insurance was not that much more. 2 yrs in it had an electrical issue they took care of immediately. Repairs on cars I’ve owned NEVER go that smoothly. About 3 months before lease end the dealer started making offers for a lower payoff to own it. Leasing sometimes is not the red devil ppl make it out to be.

[@coolpras26]

Why do you think repairs on cars you've owned 'never go well'?? I'm curious. Is that because you don't buy those cars new? Or is that because you are careless with the scheduled servicing? Or do you think it's because a 'leased vehicle' is technically not yours; you're merely RENTING it and the dealership owns it, and so they're more possessive about it as you might not 'buy it out' and they'd have to sell it to someone else, and so they need to keep it in top shape?

[@ilpmuRk]

@@coolpras26well not only they need to keep the car in shape but probably either they themselves are the mechanics, or the mechs are business partners so no ripping off is incentivized. Guessing tho

[@diganto1987]

For international workers in USA, leasing a car makes more sense if they do not have the visibility of their employment. This was the case with me. In 2019 Nov (just before covid) I ended up leasing a car, and at the end of 3 year lease, I had the assurance of my employment and ended up buying my car. At that time, residual value of my car was 16k but the used car value in market was more than what a new year was in 2019.

[@amirr566]

that was one of the best videos that clarify which one is more reasonable . thanks Humphery

[@humphrey]

Glad it was helpful!

[@Trinidiva25]

Thank you for this detailed explanation! I’ve watched other breakdowns of leasing vs buying and it was poorly explained and lacked clarity. This was excellent!

[@kennethko1534]

13:00 great summary (for those of you that don’t want to watch, that summary and conclusion is worth trusting…). This video is super well done - the analysis and numbers are clean, only one bad assumption made throughout (few people can sell a rav 4 at 79% value after 60k miles…even dealers here in LA cannot get that for a 2019 rav4, no shot a normal car owner can). He warned about it both on screen and mentioned a few extra words about it as well in the audio. Very responsible and fair.

[@coltm6788]

The money factor on a lease(which can be converted to interest rate) vs. interest rate on a purchase is the most important variable. Sometimes the lease money factor is cheaper than the interest rate which makes lease total cost of ownership cheaper.

[@jerrylundegaard2592]

There are actually three important variables on a lease, each can be an issue. Firstly there is the price paid. If you do not negotiate the price (capitalized cost on a lease) you will make a bad lease. To the dealer a lease is a sale, a sale to the leading company at the price you negotiate. Secondly there is the money factor. If yo do not ensure the money factor (multiply the money factor by 2,400 to get the interest rate) is applicable to your credit profile you will make a bad lease. Always demand the F&I manager reveal the actual money factor the leasing company approved. Thirdly there is the residual value. This is set by the leasing company and is not negotiable. The RV will vary by the length of the lease and the mileage allowed. Also there is the issue of the acquisition fee. This is a fee from the leasing company and is not negotiable but may be included in the capitalized cost (the amount borrowed).

[@2Greenlid]

Purchasing is always financially better, A lower monthly payment does not mean financially smarter, actually the opposite!

[@uncardedreviews9721]

​@@2Greenlid Wrong. Purchasing isn't always better, especially when it comes to an asset that rapidly depreciates with use and age.

[@charleswalker6109]

In some states, such as Missouri, you pay property tax every year on a vehicle you own. This tax goes down slightly each year, but you could be paying out thousands of dollars in annual taxes on the vehicle you purchased. In comparison, many leases cover this property tax over the term of the lease. Another thought, don’t put any money down regardless of lease or purchase. Instead take that down payment money and have it work for you in a way that it (the money) will compound and provide you the cash needed to buy out the lease at end of term, or to make your monthly payment, etc. I purchase rental properties that yield monthly cash flow and that cash makes the monthly payment on the vehicle while also providing me with a tangible, appreciating asset.

[@sergeydudukin4214]

You still pay tax just not upfront but spread over the year like escrow property tax with mortgage.

[@charleswalker6109]

@@sergeydudukin4214 in regards to your comment, to which scenario are you speaking?

[@sergeydudukin4214]

@@charleswalker6109 i am saying that in case of leasing you have to pay 6% sales tax (in KY) of the price of new car and then usage tax also based on current price of the vehicle. Just instead of one time payment it spread over lease term. But that does not eliminate it. And that is not cheap to do that evert three years.

[@darksplash2191]

So far the best video on leasing vs financing a vehicle but i still think there are several important things to keep in mind to be able to determine the true cost for each one. What is the average number of years a person keeps their financed vehicle, how many cars on average do people finance in their lifetime, average maintenance costs for total cars owned in a lifetime, and this doesnt even account for car crashes or how safe cars are after 10 or 20 years.

[@KreeH2023]

Car buyer here, typically buy Toyota/Lexus and keep them for over 10years (current Prius is at 13 years). Usually pay off vehicle pretty fast, usually cash to avoid credit interest payments. Its really nice not having any car payment for years. I think leasing also is good for BEVs since the EV market is fairly young and battery tech is advancing year-to-year.

[@i.d.6492]

Literally any modern car with proper maintance will last 10 plus years even chevy sonic.

[@rockon8174]

Google already developed a battery that can get 1000 miles off of one charge!

[@jlam3297]

That's so much information. I wish there was an excel sheet out there where we just plug in the numbers and it tells us exactly how much it would cost us for each option. haha

[@tombrooks2215]

Great video Humphrey. Very informative. One thing that you didn't mention about returning a leased vehicle after the term limit beside mileage, was damage. In the 'small print' of all lease agreements is damages will reduce the value. The value placed on a returned lease, is that it has to be in same condition the vehicle began, with regular wear and tear. Every nick, dent, scratch, bruise, bang will be reduce (by percentage) the value. This means that there could be serious additional payments for the damages. Even windshield and tires. And trying to stay within the milage limitations means you may have to park the car for months before the term ends, so you don't get charges the expensive milage charges. I've seen it as high as 23 or 25 cents per mile.

[@piperpilot26]

One strategy that was given to me by a dealership was to lease initially to get a lower monthly payment, and then at the end of the lease term, buy it out with a loan from a credit union.

[@davidreidenberg9941]

I’m wouldn’t believe anything that anyone at a dealership tells me.

[@jerrylundegaard2592]

There are negatives to that. One is the acquisition fee on a lease. You do not pay that on a purchase.

[@consumerdebtchitchat]

From the ages of 16 to 50 I always bought used cars that were about 5 years. After dealing with leaking oil in the driveway. One vehicle needed a total transmission overhaul and it never ran the same way after a 5k repair. I have never believed repair shops are very honest. They can always find something additional to miraculously find wrong. At age 50 I decided to lease. ALL of those problems above have been solved 😂😂. I no longer need to keep a car repair maintenance account. Bumper to bumper warranty 36,000 miles. I get the lease damage waiver which few people seem to know about. I get a new vehicle every 3 years. My second lease ends this year and I could buy out my Toyota Corolla for 16k. I hold an 812 credit score and have all the access I need to zero interest loans. It would take me 10 months to pay it off. But I'm going to go back to leasing my third car because quite frankly it's a luxury I'm willing to pay for. The peace of mind is unreal.

[@sadpisces2345]

Do you have to pay a deposit every time you renew a lease?

[@glizwill]

@@sadpisces2345 you can if you want to to drop the monthly payment down even further, however you won’t get that money back

[@redbeardsfireworksshowcase]

Make sure you shop your vehicle’s value at several Toyota dealerships. You can apply any equity to your next lease. If your car is worth more than the payoff, you’re golden.

[@redbeardsfireworksshowcase]

@@sadpisces2345usually no deposit. The dealership will ask for first months rent, tax,dmv any dealer fee up front as a part of your down payment or some will roll all of it into your monthly payments.

[@marcoglara2012]

@@redbeardsfireworksshowcase “Golden” if you think the value of that vehicle is equal to all that money. 35k -40K or more for a “budget” car is wild. I honestly believe the primary reason people pay so much for cars due to a lack of maintenance knowledge.

[@jimv77]

I was stupid when I was 24 years young and bought a brand new 2001 Toyota Tundra for $30,000 cash……should have bought used…..I just finished college and deserved it was my reasoning……but I guess the good part is I still have it 22 years later and it runs just fine……

[@jerrylundegaard2592]

If you have driven that Tundra for 22 years, paying $30K when you bought it was smart.

[@objc]

Lucky, I had a 2000 Tundra I paid cash for and it developed a number of expensive problems after 10 years. Traded it for a small Honda, far cheaper to drive.

[@sethtenrec]

I bought a 2001 tundra new, it was an advertised special base model about $21,000. Still have it 23 years later.

[@dianagregory9721]

No that wasn't dumb because you kept that vehicle for many years and got to experience buying a brand new car. I don't think it's a waste buying a new car if you plan on keeping it for a long time. You certainly have gotten yr monies worth.

[@forte7991]

For cash.. wow

[@cbohorquez82]

Great video Humphrey! In my opinion, if the asset appreciates, one buys; but if it depreciates, one rents the asset. Perhaps, another way would be owning a car with classic plates, which it does appreciates over time. Now, its maintenance cost could increase over time too. The important thing is to have options, right!

[@YODAddyLIVE]

There is one major financial part you missed with the current state of EV/PHEV/Hybrid tax incentives. Most no longer qualify for the incentives when purchasing but do when leasing. This can add a huge savings to leasing. Could even be a better incentive to lease then purchase once lease is over or simply lease and move on and let someone else deal with the batteries a few years later.

[@sithlordmaster181]

The $7500 doesn’t go to the customer it goes to the company leasing out the vehicle

[@scottstewart8737]

That’s the opposite of true. You get the tax credit when you buy, you don’t when you lease bcuz you’re not buying it. It only counts on a purchase

[@ian54589]

​@@scottstewart8737 Fleets are exempted from most of the origin and income requirements when you buy. You don't get the rebate directly but it is definitely figured into the lease terms. Lease deals on EVs are very good right now compared to buying for this reason.

[@aidanlueth5372]

Thank you for this, I am a first time car buyer and didn't know the true comparison between buying vs. leasing... but this cleared it up for me, the numbers don't lie and I am going to be buying a car, not leasing. Thank you!

[@atetster]

He missed a lot of info comparing. Please check other sources.

[@gamesguy]

He presented a very shallow surface level analysis. In reality leasing is often cheaper depending on OEM incentives. Right now many OEMs are offering leases with roughly 2.5% APR loans, where do you get that number financing a car? Residual values are not set in stone like he's presenting either. OEMs often subvent the lease and set them too high, which reduces the cost of leasing even further. And then there are the EV tax incentives available to leasing but not buying. He's missed a ton of stuff.

[@coolpras26]

@@gamesguy Why are EV tax incentives available only to leasing and not buying? In which country is this weird brainless law? You do realize that the reason you're EMI payments are less is because you're just merely renting car (with mileage limitations and what not) and you don't actually OWN it at the end of the lease, you have to return it. And even if you do decide to buy it out, will that option be cheaper overall vs simply financing from the very beginning?

[@robertk2530]

I lease a 2019 Rav4 XLE AWD and my lease 370 a month for 3 years with ZERO down. Toward the end of the lease I called toyota and extended the lease another year and paid 400 a month for another year. My buyout was $16900 and financed it til I could find a car I wanted without time constraints. Traded it in for $24000 and received a check for over 6k (equity) for a down payment on my new car. Sticker on my Rav4 was 32k back then and I am not really going to be a bean counter on this, but I basically paid 200 a month for fairly well equiped car and my only maintenance was a couple oil changes (Toyota has 25k free maintenance). The point is there is a sweet spot to lease a car with high resale and keep til you get the most bang for your buck before tires and brakes are needed.

[@Dannycristofaro]

This is basically EXACTLY what I'm potentially looking to do with a new 2024 Rav4 XLE Hybrid in the next month or so, so this was a super helpful comment! Thanks for sharing!

[@sunitjoshi3573]

@@DannycristofaroSo are you going to lease then buy it at end?

[@FLEXNIVORE]

I can see this situation working out the way it did because of where the market is. But it isn’t necessarily going to remain the same, so still no guarantees. Glad it worked out for you tho! 🙌🏾

[@sergeydudukin4214]

I paid 22k cash in 2020 for 2018 Lexus ES350 Ultra Luxury with 55k miles on it. I was offered same money for trading it in in 2023. But that is once in a life time situation just because of price surge.

[@WaterDR-tw8re]

Those market factors don't exist anymore

[@Albert-777]

To each his/her own,different situations for different people.Appreciate the education 🙏🏼👍🏼

[@pseudoleviathan5923]

Thanks I was wondering what was the difference.

[@FutureDMZ]

This is a great video. I still would rather lease kuz i like to change cars alot and if theres ever an accident i dnt have to worry about taking the hit on value. Plus i like the lower payments.

[@YANZHOU-d9d]

that is one benefit of leasing. You don't need to worry about the resell once accident

[@robertpayne9009]

Thanks!

[@notNaB2024]

Naive question here, but the ~$38K total cost to own when leasing a car and buying out right at the end of the lease assumes that you pay cash for the residual value of the car right? If you have to finance the residual value after your lease matures, then the cost would be higher still.

[@Scales7593]

Thank you! At about the 3 minute mark, I got out my calculator to double check the math. When I read $14…. and I heard $17… I felt inspired to try out this mathematical blueprint. This is a great channel!

[@TheComp_Troller]

I beat all of these options by buying a used car that’s around 3 yrs old (time frame when depreciation is the steepest), paying cash (with a max limit of $35k) and keeping them for around 10 years depending on maintenance and issues. I try to buy Honda/Toyota since they are always on top of the reliability list - meaning $avings in maintenance costs over the years, and they usually last 10-15 yrs!

[@DHFlip18]

I have a Honda, Toyota and a Ford econoline... buy used, pay cash, take your time inspecting the car and stay current with maintenance.

[@booksfellover]

This is the correct answer

[@TheComp_Troller]

@jrroelle Just wait a bit… I bought my 3 yr old Lexus (used) in 2021 for $28k… new, it was around $54k

[@sunshadow9704]

But neither of those vehicles offer joy of a drive. They are boring boxes on the wheels. With outdated technology and subpar driving characteristics.

[@TheComp_Troller]

@@sunshadow9704 enjoy being broke but with a nice car! My net worth is 1.2 million… what’s yours?

[@resiliencyisrough]

I’ve learned so much from you and would never unsubscribe! I appreciate your videos so much and when people ask me about financial topics I send them to your channel.

[@humphrey]

I'm so glad!

[@johngee876]

Good presentation. Every time I thought, “but wait, what about…,” he read my mind.

[@Ryan-cf6lc]

Another advantage to leasing is if your car is in an accident and the value has plummeted you can walk away at the end financially free and let the car maker take the depreciation hit.

[@CmhTX]

Only if you have gap insurance

[@MarkM58]

That is because GAP insurance is included in all leases to protect the leasing company.

[@coolpras26]

@@MarkM58 Are you sure?

[@MarkM58]

@@coolpras26 yes. I used to be an F&I manager. No lender will lease without it being built in. It protects their, not your, interests. They own the car, not you.

[@coolpras26]

@@MarkM58 So, the GAP insurance cost is built in the monthly lease payments you're saying? Interesting. How about the comprehensive or collision insurance? The mandatory car insurance we have to have. That is something separate we need to do or is that also included in the lease payments?

[@ellenclary]

Thank you for you excellent explanations. I used to by the type to buy and keep a car forever. Now that car tech is changing so quickly, it makes sense to keep replacing the car every 3-5 years, so leasing was looking more attractive. Now you're giving me even more to think about.

[@MrPookiexL3oi]

I just had my motor replaced on a 2006 CRV with a used JDM motor. My Total repair was way less than a monthly payment and a car note. I will sacrifice the looks that come with a new/certified used vehicle for financial freedom that way I can use that extra saved money for more important things that matter to me then a car note.

[@dawannwilliams6301]

Thank you your video is SPOT ON . I have a reliable 2013 Nissan Altima. I had a 2016 Porsche Cayenne that was recently totaled 😢. I am considering a Mazda CX90. I really want to lease a Range Rover Velar. They are really cheap used like 1/2 price after 4 years but they are known for problems and expense. A 3 year lease without having to worry about maintenance and then returning it works for me just for the experience. The Mazda will always be there and in my price range.

[@nateschafbuch9916]

Constructive criticism: you're assuming the customer has 21,088 cash to buy the residual, you should include the finance costs with a 21k loan (also would there be more fees when purchasing it, for the additional transaction?). Also: you could compare selling the "buy car" at 3 years of the 5 year term. U just need to figure in the payoff of the loan amount against the selling price.

[@2004cyrus]

I mean he is correct, I’m paying $21,000 to buy my current Mazda CX-5 lease when it’s up in May. My lease payment has only been $477/month and so I saved the cash to buy this thing at the end. Of course I’ll sell it on the private market after that to make myself $6k or so for myself since I have a super clean and low mileage vehicle here to bring to market.

[@coolpras26]

@@2004cyrus Make yourself 6k meaning? You'll sell it for how much? And why would you even sell it if you want to buy it? Why buy it if you want to sell it? Why not KEEP the car like normal people have been doing since the beginning of cars?

[@2004cyrus]

@@coolpras26 means a profit. And I did just that I sold it to a neighbor for $27,300. She was looking at a new one for $42,000 but drive mine and loved it.

[@coolpras26]

@@2004cyrus So she got fooled. And you feel happy fooling your neighbor. I feel sorry for her. If she was actually looking for a new one, she would have gotten a new one. There are no excuses. So you don't actually want to have a car. You just trade cars, got it. Scam artist. Got it.

[@ltetobago]

This is the best video ever, I paid off my car. I think i'm going to lease a new car and keep mine as a 2nd vehicle 😊

[@Jayroso_]

I’m currently in a lease, but I’m not over the mileage limits rather I’m well under the mileage limits and I know that has some value to it too but I was hoping you would’ve covered that portion on the leasing side of things

[@humphrey]

that is true, i just thought it was too many variables to control for

[@ziurziur1ify]

Thank you for the video, really enjoyed it...Can you make a video that talks about if it's better to drive a car until the wheels fall off, maybe 15-20 years, or sell the car at some point before it stops working, what would save more money in the long run ?

[@WeaverWrestler]

This was probably the best explanation of lease vs buy. Thanks.

[@mahalakshmi9898]

Excellent video🎉 👏Actually we r in a confusion whether to lease or buy a car...... Your explanation gave a perfect clarification for us... Thanks a lot...

[@sandeepd2939]

So what did you decide? Buy or lease?

[@AIAnimationandMusic]

E scooter crew checking in

[@foreverDharma]

Awesome comparison and you have covered all aspects. But one thing is unclear whether you have considered the maintenance costs such as fuel, service, tyres, insurance and annual registration in buying the car scenario. I assume all the above are covered in leasing scenario.

[@kevinhuerta-ponce138]

I’ve leased two cars and bought 2. Leasing is way better if you don’t drive a ton. The cars i have owned have caused me so many headaches. Aside from the price you have to remember that when it’s your car it’s your problem Time at the mechanic,missed days of work, cars won’t start before heading to work. It sucks. Leasing is just easier. It’s cheaper, everything is under warranty and if you really like your car after it’s done you can just buy it( but you won’t bc you’re tired of it). Is insurance higher yeah a little bit but good luck not having good insurance coverage. Your 10k policy limit won’t even cover a paint job. If you don’t like to be inconvenienced just lease it.

[@troyisaac3611]

Thank you for your comment

[@coolpras26]

Even every new car you BUY is under warranty for a certain amount of time (which is the same as if you lease it), isn't it? And you're SUPPOSED to regularly get it serviced to avoid issues. How is this different in buying vs leasing? As for the paint job thing.. if you scrape the paint off of a leased car, how is this any different from scraping the paint of a financed/bought car?

[@rotagbhd]

Leasing is the most expensive way to have a vehicle. Math does not lie..

[@beatrixbrennan1545]

I agree. I hated worrying about stuff breaking and having no way to pay for costs and miss work, etc. I love leasing. I get to be 100% confident that I won't be responsible for repairs and always get to drive a cool car, or at least one that i like. The genesis is next and I'm excited.

[@attop21]

It looks like you did not choose a good car brand to have such a bad experience

[@DanielLopez-po9cj]

Thank you so much for this video. Exactly what I’ve been looking for to decide which route to go on a new car.

[@crewisrad]

Great breakdown, but you missed a key element - if you don’t like the car you can sell it at anytime. I leased my wife a Lexus, she didn’t like it after 2 months so I sold it to carvana and made $1500. I only lease, I like trying out new cars. I do the homework, find the cars with the best incentives and never put any money down. I’ve always been able to sell the car for a profit at the end of the term because I drive less than miles per year in the lease. All that said, If you have a car you love, you 100% should buy it used.

[@Deecghest]

Just curious but how do you sell a leased car I thought it was owned by the dealership

[@wendypole5791]

Good Summary at the end. Thanks

[@1bluensx]

What you didn’t figure in, if buying it at the end and trying to resell, is that you also typically have to pay the sales tax on it. In my state it’s 7% on that 21k, so, an additional $1400. Then, you still have to try to sell it and deal with the whole scam artist market of people trying to scam you if selling privately. It’s really hard to sell a car privately when they are over 30- 40k. Most of these people need loans etc etc. I’ve been fortunate to have higher end sports cars over the last 12 years. Trying to sell them is near impossible when asking over 200k for a car, and after paying 15k in sales tax. Kind of eats into your margin. Easier to trade them in. They are depreciating assets unfortunately

[@flamencoguru]

Great video... Only think I would argue is the write off for leasing. You can do it with a car you own... You can deduct mileage... I do it for my business.

[@laurenkallie8643]

What about maintenance and repair costs? If you lease, I think it's usually part of the lease if you take it to the dealership responsible. But I think if you are buying it, you would have to cover any of those expenses yourself. Am I right? I know there's no way to predict car trouble or unexpected repairs, but isn't this something to consider?

[@goatgirl5968]

Maintenance costs are on you unless you get a maintenance plan. In theory any repairs are under warranty.

[@coolpras26]

No difference. I see some people spreading rumours here though. No difference between leasing vs financing with maintenance. If a car is in warranty, which it will be if it's new, then the company is responsible for the regular servicing and repairs if it falls within the warranty terms. As for other things, I guess you have to spend the money for it anyway, regardless of lease or finance.

[@Sh4rK280]

There’s also a big difference between leasing and financing with regards to tax deductions if you are self-employed. Would love to see a follow-up video with those scenarios.

[@snaps133]

Great video and explanation

[@humphrey]

Glad you liked it!

[@jaesonbang5710]

The best video on lease vs. buy. Thank you.

[@dakotadelgado8499]

As a business owner, I would prefer ownership as depreciation is split over 5 years and you can write that off instead of leasing where it is generally less. Of a write off. Then you sell car used and use money to again buy a car to continue writing off depreciation. Along with that is writing off interest on the loan. Generally more tax advantages with owning then leasing.

[@wjm3018]

Isn't it the other way around , if you have a business isn't it better to lease than finance so you can write of thr interest.

[@dr3amboy3657]

I think it's the other way around too. Leases were created for business write offs

[@smerd2]

We have never leased before but are seriously considering it now - my old car finally bit the dust but we are still paying for our family vehicle for 2.5 more years. To have two full car payments a month is just crazy hard and interest in a used car $10000 CDN is 10-35% depending on your credit level. That’s ridiculous- we are paying 4% currently and a lease is 7-8% for two years with possibly a lower payment monthly - the kicker for us is with a lease on the 2nd car I don’t have to worry about maintenance at all - just gas. To have to repair two vehicles possibly for over a two year span would be asking a lot. My A to B km/ year would easily be under the lease limit so I think at this time a lease is a better option. We may sign the papers this week. A downpayment was not recommended but putting some money down would lower the monthly payments - we just have to decide what is best. Great Vid

[@mrburns7007]

something missing on your last analysis about getting a leasing over buying is, I dont have to worry about maintenance , battery change, tires, etc. The car is always serviced, when it need maintenance they ive me a spare car, and they even put the kids sits in place. I travel a lot and I know my wife doesn't have to care about it. We are not petrol heads. Safety and comfort over all.

[@coolpras26]

'The car is always serviced' - Why would that be different if you bought the car? Every new vehicle has a certain warranty and certain free number of services, doesn't it?

[@Krazkoenig]

@@coolpras26 if you placed yourself unto his perspective, a man w a family that travels a lot and it reduce his wife tasks (maintaining the car) during his away time, leasing does makes sense for someone who aren't keen into cars besides for daily usages. especially when the car needs maintenance, there's normally a replacement car available during the maintenance period.

[@coolpras26]

@@Krazkoenig Sure, that's perhaps the ONLY point there you got, if at all. Overall, leasing is beneficial to the dealership as the lessee ends up paying way more than if they had purchased the car.

[@houndsofvalor]

Finally at 12:06 you briefly mention maintenance. Overall a very good video, however this topic should have been addressed much earlier. This is one of the main pros on the “why lease?” decision. Should be discussed in more detail IMO; AND this factor was left out of the cost comparison, which is a big omission. Buying a car and paying some maintenance even during initial warranty period is relevant.

[@alahollywood]

In my case I leased for 3 years and when the lease was ending I purchased the car the remaining balance for $14,500 . I requested a 401K loan for 16K, and I paid back my loan and with interest in 2 years. I requested 16 K to add sales taxes and I received the title form Toyota financial a week later.

[@jayharris9212]

well that was dumb

[@forkthepork]

@@jayharris9212 Depends on the interest rate at time of purchase. The 401k loan is usually interest-free. Current interest for most car loans is 6.85%.

[@rotagbhd]

@@forkthepork The average "interest" (not called as such on a lease because you are not borrowing the money) is over 14% on a lease.

[@KelseyMartins]

You lost 2 years of compound growth of 16k in the market and likely paid some early access fee and taxes on that money. Was your credit not in a good place? What pushed you to pull this money instead of a traditional loan?

[@forkthepork]

@@KelseyMartins Have you never had a job with a 401k? There are no early access fees or taxes unless you quit/get fired and take an early distribution. Loans aren't early distribution.

[@VitaMiata]

was considering leasing a model y. however, the used car market has somewhat promising resell value. therefore, i'm gonna buy. thanks for proofing my point. great math course!

[@NimaOmaisj]

BRICS seeks to create a new currency, considering gold's historical role as a store of value and medium of exchange. However, the functionality and acceptance of a gold-backed currency in the current global financial system are uncertain. Creating a new currency requires careful consideration of economic, political, and logistical factors.

[@ArturoM.Dykstra-55]

The discussions and proposals surrounding BRICS nations' potential use of gold are intriguing. People choose to buy gold for various reasons, such as its historical role as a store of value and medium of exchange, its potential as a hedge against inflation or currency devaluation, and its relative scarcity compared to other commodities. Gold also offers diversification benefits to investment portfolios due to its low correlation with stocks and bonds.

[@WeweAke]

It simply means the allocation of money toward an asset or portfolio, with the expectation of earning a return over time.

[@RebeccaGilpin]

Yes, It a procedure where you allocate money or capital towards buying financial products, expecting to earn a considerable return in the future.

[@FrankBrook-js9yh]

According to Patricia strain an expert, this can occur through appreciation in the price of the asset, earning interest, dividends or royalties.

[@ChristopherHandley-ek4ul]

I agree with you. I started out with investing on my own, but I lost a lot of money. I was able to pull out about $200k after the 2020 crash I invested the money using an analyst, and in seven months, I raked in almost $673,000

[@xWiiLLz]

Quite happy I leased my GTI 2021 at 1.9%😂 There's also a 10k$CAD difference in market resale value and buy back cost which I'm looking forward to in the next few months

[@kurtg4822]

Never put money down on a lease. It's a rental and any money you put down, you lose.

[@annadata-williams9258]

Im glad you mentioned this bec i saw a lease with $10,000 down and i got confused and left.

[@terrywilkins7914]

I was pondering that regarding the down payment for leasing a car. Thanks for the tip.

[@billlam7756]

​@@annadata-williams9258what kinda lease required a 10k down??? 100k msrp car??? Usually 3-5k down for a decent car (40-50k msrp)

[@whatskrakin37]

@@billlam7756 Lol Toyota asks for $7k down for the Camry or Corolla for their lease "deal". I did the calculations and it would only be slightly more expensive if you were to finance it instead. I'm pretty sure it was the Corolla, it was on their website like a month ago.

[@billlam7756]

@@whatskrakin37 the point of leasing is to make it affordable for people that cant afford a hefty payment (atleast for most) then you have the people that want new car every 3 years( leasing- usually on a luxury brand) I work for toyota, nobody put down no 7k on a lease unless it's like a highend level shit. Even at lexus u can find plenty of lease option for 5k down lol

[@kidsproblemsolving493]

Tons of thanks for the nice video… this gave me exact comparison I needed to make decision whether to go with leasing or buying. A new subscriber 😊🙏🏼

[@DrGeneralkumar82]

One big reason why I lease is opportunity costs. I'd rather pay lower monthly payments for a better car, and not tie up my capital in a loan. Id make more money in the long run investing the difference.

[@scooterjsl]

this. I have $28,000-29,000 in my stock portfolio, and 20,000 ready in cash. plus the value of my trade-in. By using the lease I can fund the monthly payments with my cash. Then allow 3 years of potential returns on my market portfolio. Also with EVs I'm getting a $7500 bonus cash due to the tax credit.

[@DataMyselfAI]

It is crazy that this in not taken into consideration in any comparisons.Also the lease deal shown in the video is extremely bad

[@jons7e]

Let's say you invested 30K you would have spent on a car. Even at a 10% return as a wise investor, over the course of 36 months isn't all that great, and let's not forget you're also paying a "money factor" aka interest and fees, plus a higher asset tax (in some states) with that new vehicle, so in the end, what did you really make for all those hoops?

[@d_all_in]

How is leasing for your entire life a lower opportunity cost than having no payment tying up capital?

[@Wilvin]

Some people are just not meant to succeed in life financially. In his 3Y example, one would need to make about 31.5% return on their investment in the 3 years to make leasing the better option. How will you do that? If you lease, 100% of that money is lost. However, when you buy, a large percent of your money goes to paying for your future ownership of the car. When the loan ends, you own a car that you can sell for some residual value or use until the wheels fall off. No normal return investment will give you enough in the few years of the lease to make up for the difference. In his 3Y lease/buy and return examples, you spend $472 less monthly with a lease but end up losing $9132 with the lease option. To make up that $9132 on $472 extra a month over 3 years, you would need an investment return over almost 32%. If you know an investment, that returns 32% over a 3-year period, then you don't need my financial advice. You have life figured out.

[@S.L.S-407]

Thanks for a well thought out video. I had always heard that leasing is not the way for an individual to go bc you end up paying more. Here's the problem today, for a lot of people. They can't afford to finance bc the rates are ridiculously high which means the monthly payments are too high. The $551 and $866 amounts you mentioned for financing like leasing, also have to have added on the monthly insurance costs, maintenance costs, and gas costs which make it far more expensive than the stated monthly costs. I am looking at leasing bc of the crazy high interest rates. I have seen 6.99 and 7.99. A monthly payment of under $ 400 allows me to put aside money for a rainy day or to pay the car off at the end of the lease. Yes I am going to be paying more, but I keep my cars on average 14.3 years. Also, if the car is a lemon, I'm not stuck bc I'm not buying it. Right now I'm waiting for at least one year before I buy, bc I want a larger down payment AND I'm hoping rates go down. A rate drop of just 2% can make a huge difference in the monthly payment whether you are leasing or buying. Any comments welcome. P.S., Over the pst 43 years I have only owned 3 cars. I'm allergic to monthly payments, that's why I choose cars that give me a joy kick every time I walk up to them. : )

[@Kjertinge]

Great video Humphrey! I’ve been driving the same vehicle for about 7 years and i was just thinking about “investing” in some new wheels. I make pretty good money and I’m open to a lot of options but mentally I’m still someone who thinks of cars to get me from point A to point B. Maybe one day I’ll get my dream car but for now I want to get something reasonable, hybrid and will last me 5/10 years. So this video has definitely help explain the price differences over a set period. Thanks Hump!

[@SohelKhan-v7x]

I’m driving an Acura Tl for about 12 years now. I have driven 180k miles on it. Never had any problem on it. No major repairs. I still love driving it.

[@davidreidenberg9941]

That first generation Ti was the best one. I had the first generation TSX which was like a miniature version of the Ti.

[@sakispsinakis]

Driving a car is not just to take you from point A to point B. Here in the US we use the cars for commuting which kills the joy. Cars are supposed to be a fun thing to do! So with that in mind you buy the car you love and try to change it every 4 years max. Also if you make $150 an hour then why spend any time servicing old cars? If you don’t make $150 then fix that first! So with that in mind leasing is the best solution so find the cheapest one for the car you love.

[@kantaratpanit-unkul9057]

Exactly ! love this comment.❤😮🎉

[@stevenlimbach3827]

Yes. Ended up buying a newer used car with Heloc loan and have paid it off in full. A used car with 30 to 60K miles is often a much better deal than buying new.

[@mattd4979]

As another poster mentioned, leasing a PHEV or EV has a lot of benefits due to the tax benefits that most companies pass on to the consumer. Jeep is a great example with their 4xe's.

[@saurabhchugh9439]

Thanks for going over the math in such a precise and crisp way. However, I felt like there's another expense to be considered that there's generally a higher auto insurance you need to pay on a leased vehicle since most leasing companies require you to purchase a comprehensive auto insurance policy.

[@robertk2530]

That is not true in every state. Ohio only requires state minimums. Do not fall for that insurance scam.

[@BlackTheEngineer]

In most cases its probably better to buy but for my personal case I think it wouldve been better to lease a car rather than buy. I had less than $1000 for a down payment, about to graduate college but got a job across the country and needed a car desperately to get there and work. Now im stuck overpaying for a car already worth half of the car not im stuck in and the monthly payments are killing me. So if i couldve leased a car for less than $300 a month I would be in such a better situation and would have something to put down on a car with better credit and a good bank (i also didnt have a bank to loan money at the time, only had chime)

[@chahituppal262]

The less money u send monthly for leasing the car can be put towards other things that yield a better return, so just looking at the final cost is not conclusive enough. That money saved monthly will compound over 3 years giving a pretty good return, hoped u would go over that too, maybe next time

[@sylvias5087]

Thank you for this analysis. I have been thinking about leasing because I would like a new car but want to wait to see what the electric and hybrid options will be available 3 years from now versus what is available now. Seems to me that market is still figuring itself out. If I buy an internal combustion engine now what will be its residual value in 3 years compared to an electric vehicle or hybrid. Great information in video!

[@RunTz510]

This is exactly what I needed to see to workout out my mental calculations! Financing for 3 years and potentially selling will definitely be my next move 🙏💯

[@jerrylundegaard2592]

That may not be wise. For one reason, the acquisition fee which is usually around $800 or so. You do not pay this on a purchase. If you are sure you want to lease and then purchase at the end of the lease you might be better served to purchase the vehicle and not pay the acquisition fee.

[@allaboutcars4835]

@@jerrylundegaard2592 You need to go back and Re-read what he said! He said nothing about leasing!

[@jerrylundegaard2592]

@@allaboutcars4835 Ah the title is "leasing vs buying, which is cheaper."

[@allaboutcars4835]

@@jerrylundegaard2592 Ah the individual that you were responding to is saying that he will finance (BUY) the car, then try to SELL it after 3 years. He is not talking about leasing the car.

[@RJMeix007]

The best thing you can do is to buy a 1 or 2 year old used Tacoma, 4Runner, or Tundra (particularly 4x4 double cab 'offroad' or 'pro' model), then sell it just before the powertrain warranty expires at approximately 60k miles or 5 years for pretty close to what you paid for it. The second best is to do the same thing but with a brand new version of one of those 3 vehicles if you can't find a good deal on used, or just prefer brand new. By the time you sell it, it'll average out to less than $100/month lost. But, if you wait too long to sell, you risk running into issues such as the clearcoat showing obvious oxidation, lowering its resale value a couple grand.

[@ZEFFENWULF]

Can confirm. Got my 4Runner Xmas of 2018 and it’s held 100% of the pre-interest value.

[@coolpras26]

Why on earth would anyone buy cars to just keep selling them?? What a headache and a pain in the ..... Do you do the same with your refrigerator, microwave, house or wife too?

[@RJMeix007]

@@coolpras26 So you always have the latest tech, because when you have great credit and do finance for a living it's not really a pain. To the last one, never. Treating people the same as material objects is sinful. To the first 3, if one feels like it.

[@daisytructran9676]

Thank you for the thoughtful video and the detailed, thorough analysis.

[@tayson5327]

Humphrey, you forgot about the sale tax that the buyer has to pay which is anywhere between 9-10% in California. If you lease a car and return the car after 3YR, you only need to pay the sale taxes in your 36 payments, not the full value of the car. That is a $2000 savings compared to buying option based on your $31,475 car.

[@amanasd26]

the world doesn't revolve around California. smh

[@zf1786]

cali has one of the highest sale tax percentages so it's a worst case scenario. therefore the $2000 in savings would be the minimum amount saved. great, you live elsewhere = you'd prob save more. @@amanasd26

[@jwattie144]

@@amanasd26 It's the same deal in NY. Tax is only paid on the lease payments.

[@BB-xn1rw]

PA is the same way to. 7% tax rate though…

[@coolpras26]

Wrong. You're not actually 'saving' jack. Let me explain this simply If you're buying, you have a certain amount of monthly ( or weekly or whatever) payments and at the end of a set term, say 3 years, YOU'RE DONE. You have ZERO payments and you OWN the car FOR LIFE. No mileage restrictions, nothing. It's yours, do whatever the hell you like. Without fear. If leasing - You're paying a certain amount every month which isn't that much less than the financing amount btw, and at the end of 3 years, you have wasted a bunch of money without having a car at the end of it. Coz the car is NOT YOURS. IT'S GONE, just like all your money. Now if you say "I'll lease a new car then" - Well, in that case, you're perpetually paying monthly payments for a car all your life and you never really 'own' anything. If you do 'buy it out' at the end of the lease term, great ! But then why didn't you just finance it right from the beginning itself? Is leasing and then 'buying out' cheaper or the same compared to financing it? Imagine wasting money on rent for 20 years instead of simply using that money for mortgage payments. At the end of the day, you own a damn house vs you own nothing. You've just made some greedy landlord rich

[@DrAdrianRobichaud]

Thank you for the comparison. I run s business and in Ontario, Canada we can write off a portion of our income expenses including the depreciation.

[@Jungernaut]

Fireeee 🔥🔥🔥

[@mireillegarcia7]

great video! I really needed this detailed breakdown comparison. thank you!

[@saiーツ]

Was surprised after visiting the dealership last week that leasing was our best option since we wouldn't be keeping our car past it's warranty, and didn't want the headache of resale value and depreciation.

[@humphrey]

what make/model? tell us the details!

[@saiーツ]

@@humphrey it was a '24 Hyundai Elantra, rode really nice and we have bought 3 hyundais before; they generally last around 90-100k miles and you get the most car for your money vs the competition like toyota or honda. Especially within a lease term we knew hyundai made the most sense.

[@peeonthe3rdrail414]

@@saiーツ Yea, I think my paid for 2010 Toyota corolla with 200k miles was a better buy than your hyundai.

[@jackz4149]

@@peeonthe3rdrail414did anyone ask?

[@peeonthe3rdrail414]

@@jackz4149 This is a comment section, you're allowed to comment.

[@matsudakodo]

Great video. You're right that each deal has to be examined. Leasing Mazdas seems to be a better deal than Toyotas, perhaps.

[@Relem_13]

What do you mean about leasing Mazdas?

[@johnnyparker9928]

Very good info, thorough and to the point, even professional in my opinion.

[@wayneguy6043]

I put down $0 and $0 out of pocket, lease a suv msrp $47,000 for $500 with 15,000 miles …..I lease whatever has the deal……and I never put a dime into the leased car…..what peace of mind it gives

[@piperpilot26]

That's actually an excellent strategy, especially for models that aren't necessarily selling. I can't lease for a few reasons. One, I simply drive well over what is offered in a lease term. Two, I can't see myself having a car payment from now until I'm no longer able to drive. I purchased a 2023 Corolla hybrid SE all-wheel drive. For around 30k. Bought the car new, I plan on keeping it for 15 years. So that'll at least give me 8 years of no car payments and hopefully with proper maintenance, a low-running cost.

[@KK-bc6ok]

Another perspective is, the extra monthly fee saved by the lease, can be invested in the stock market and there is gain on it.

[@willbermudez2386]

I think its simple, if you have the credit you should buy it because even if you dont like the car enough you can sell it. If you lease it then you will be throwing your money on something you dont own. Besides, you can modify your own car with different wheels, window tint, performance mods... on a lease car you can barely wash it and be careful, if you scratch it you will lose more money than purchasing it

[@humphrey]

true true

[@saiーツ]

Not everyone wants to mod their car, and actually leasing tends to require better credit than financing. Maybe someone only wants to have a car under warranty, and will upgrade every 3-4 years. You can do simple calculations of the cost of ownership for different vehicles and compare them with each other to find which vehicles make more sense either leasing or financing. for example it's probably a bad decision to lease a toyota corolla but it makes makes sense to lease a BMW 5 series

[@willbermudez2386]

@@saiーツ youre right about the brand, but im one of those that do not like to pay for things you dont own. My wife is leasing a corolla and she uses it daily. She already passed the millage limit and now we gotta pay the extra fee, which is basically the same monthly payments as purchasing the car. The only difference is that she doesnt own the car, so at the end of the contract she either purchase the car for a higher cost than purchase it on the first place or let it go.

[@range5888]

What if I leased it and the value still holds at what I leased it for?

[@Yennn-h3b]

Thanks, Humphrey, for the impressive analysis. Now i can make a well informed decision.

[@stevem6047]

Very interesting and well done, but in limiting the comparison to 3 years you miss the savings that comes with each year of ownership. Most buyers don't sell and buy another every 3 years, and in your example if the car is paid for you're only out maintenance and the additional depreciation. Each additional year reduces the average cost per year, whereas the leasing individual starts all over with another three years of the same costs.

[@rockon8174]

Yup!! This guy, most likely, works for or is paid by a dealership to make this video