Suze Orman: Don't Ever Lease A Car

If you're in the market for a new car, don't even think about leasing one.
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That's according to financial expert and bestselling author of "Women and Money" Suze Orman.
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This Is Why You Should Buy A Car Instead Of Leasing It, According To Suze Orman | CNBC Make It.

[@JStuartofficial]

Rich people buy assets. Assets go up in value. Then once those assets produce money, they use that profit to buy toys. Dont use your regular income to buy depreciating assets.

[@alino5469]

You are right rich dad

[@dchawk81]

Cars get you to work where you make money.

[@waflletoast11]

A car is not an asset if it depreciates. It's a liability

[@dchawk81]

@@waflletoast11 It can depreciate to $0 and it's still an asset. The loan itself is the liability. Market value doesn't determine what is and isn't an asset.

[@chrisrstt]

you dont take money to the grave!

[@josev6660]

Sold my 1999 Honda Civic for 1200 on February to get a 2009 Honda Accord for 3800 last week. Can’t wait to get a 2020 accord in 2030 😎

[@1SavageQueen89]

Jose V 😂we think alike...I really want the 2020 Toyota Highlander but I told myself not until 2030! My little Corolla will drive just fine until then I’m sure. Congrats on your new car btw 😁

[@cristiansoutside]

Quenna Savage wish I was you😭

[@1SavageQueen89]

Cristian Seja 😂 I swear I’m not that exciting to where you would want to be me. What do you mean?

[@AO-wg3pt]

Jose V yes! I always buy Honda’s. Had my civic for years and years. Now about to pay off my accord

[@doomtomb3]

Don’t you mean a 2019

[@misshoneynevercame4832]

I know some wealthy people and they all own their cars. One even drives a Toyota Aygo. Driving a big expensive car does not equal wealth.

[@himmie1]

It's better to lease. Leasing is just paying the money that car depreciates if you buy it

[@misshoneynevercame4832]

@@himmie1 That only makes sense if you're talking about a $100.000 car.

[@JJZ-dk5ui]

+those cars have jinormous repair and maintainance bills.

[@camabkamuvoba7467]

@@himmie1 it's better to buy if you will keep the car for 10+ years

[@alfredoalcantar8691]

Wrong is better

[@patrickboyd3364]

I drive a 2009 Acura TL SH-AWD with 161,900 miles had it for 6 years now still running 💪 cheaper to pay for maintenance every few years than making car payments for 5-6 years.

[@babyb9969]

Patrick Boyd yessssss

[@GucciGirl78]

‘09 Acura TL here too! 170k+ miles, had her for almost 10 yrs now, still running great just a few minor complaints :) But I must be honest, the new Type S is very nice and it’s calling me LOL 😩

[@CJ-fh5xq]

@@GucciGirl78 The new TLX looks nice! Maybe in a couple years when they depreciate I'll look at purchasing one.

[@bree5212]

I WORK in the auto industry and there’s a reason all my successful, multi-millionaire clients lease. Cars are money-pits- it’s well-known. The average person will put 12k in repairs (excluding routine maintenance) on a car in 10-years of ownership. We literally save thousands by leasing cars since the money factor converts to a lower APR than what banks offer for financing & we NEVER have to pay for repairs as the cars are always under full warranty. Many manufacturers even rope in maintenance into the lease. If you still insist on buying a car; buy used and get warranty. It’ll pay for itself when you have the first issue.

[@SaceedAbul]

I love her “I have serious money listen you peasant”. I can get behind that

[@MSE9107]

I learned that the hard way! I was an econ guy, i knew it was a bad idea, people told me it was a bad idea.... I still found a way to justify it financially... It was a bmw, it drove so nice, had more power than anything I'd driven before and it got me so excited. Anyway, that excitement went away after a month or two and the lease payments stuck for 3 years. I was young and very honestly very stupid, especially cause I knew it was a bad idea. I still wanted to have a nice car cause I loved cars. Years later and thousands of dollars spent, i don't own the car, and have no car and think of how my life would be like by now if i had bought a cheap used car, kept all that extra income to invest it. I live in a city where I don't need a car and now I wish I had all those extra thousands of dollars saved. Luckily I learned my lesson while still young and i know I will never put myself in a situation like that again. Normal cars will always be a bad investment.

[@hero2006]

She's absolutely right. I leased one a few years ago. Dumbest idea I've ever had. From now on, everything including cars I buy with cash or I do without.

[@Sanpedranoazul]

I love this woman, she's so practical!!!

[@AlexAK]

What if you’re leasing a car and can easily afford it, and prefer not to buy a new car that depreciates in value or buy an old car that breaks down and you have to constantly maintain and worry about? If you own a business you can write off your car payments as a business expense, get to drive a new and reliable car, and if it was to ever break the dealer has a loaner ready for you same day, if you have a busy schedule you have no problems or concerns, your car is never a worry.

[@FLRSKLVR]

I lived in the US for about 5 years and this was one of the craziest things to me as a European. 18 year olds driving brand new cars on a leaseplan and paying $500+ a month in lease payments. In Europe you couldn't even get a car on lease for that amount unless you make like $75k or more annually, which not many young people do, and if you do you should be able to buy and own a car instead of leasing one. In my opinion the rules for leasing a car should be a lot stricter.

[@oscarmonroy6337]

Cars are all expenses expenses and more expenses! The maintenance, insurance and gas ⛽️ can really add up !

[@faithfirst01]

That’s right Susie!!!! I’ve had my car since 2008. I purchased it brand-new car (Toyota) and I still runs like a champ. I will NOT buy a new car until this one goes out!!!!! I don’t care nothing about keeping up with the Jones, the Jones need to worry about keeping up with Me 💴 💰💵!!!!!!

[@mustasheolll2020]

Honestly, driving a shiny new pickup is kinda cool.

[@xavier3241]

It all depends... leasing is smart if you don’t want to ever worry about maintenance. Doesn’t have to be the best car... I leased a 2015 Mini Cooper Countryman for $219 a month, plus insurance it all came to $326 per month. All maintenance included for 3 years. Got a great deal out of it, and when the time to turn it in came, I was clean of debt. Now, what I never recommend is financing a brand new car. Yes, you get a better rate, at the same time you can go through a CU and get the same rate on a good used car with low miles and you didn’t have to deal with the depreciation.

[@CryptoDad83]

You don’t understand how leasing works do you? You never got a GREAT deal. You got ripped off by paying nearly 14% interest on your Mini Cooper. Plus you had to pay PREMIUM on your insurance to have a GAP COVERAGE , which you pay 10%more than a used car. Bottom line. You got ripped off, you wasted nearly 12k for nothing. Always buy used car. Buy a used Honda or Toyota that has clean records, have a mechanic look at it, and just do oil change that costs $80 a year.... don’t be lazy to do research and always make your money work for u... You will forever be BROKE and live 100x less wealthier if u continue to FLEECE your car!

[@dchawk81]

@@CryptoDad83 Yes your numbers are pretty accurate but here's the thing. Not everyone is put in the poor house by having some form of a car payment. Peace of mind has value and $326 for it is kind of a bargain. Vehicles are so stupidly insanely complex these days that long term ownership isn't as viable as it once was and used isn't necessarily a great deal. And those revered Japanese vehicles aren't what they once were. If I was stuck in an HOA or apartment complex or something similar where I could only have one vehicle and couldn't work on it myself, I'd lease. And I'd never stop leasing.

[@KennyakaTI]

@@dchawk81 So you want to have a car payment forever?

[@dchawk81]

@@KennyakaTI If I couldn't work on my own stuff, absolutely. It would be like the electric or water bill. They just are, you pay it, and don't think about it. I have enough tools to have purchased several cars...and I've still purchased MANY cars. Not everyone in the world is flat broke. Is it nice to not have a car payment? Well, yeah. Of course. But it's also not the end of the world unless it's a burden to you.

[@KennyakaTI]

@@dchawk81 I never said anything about being flat broke.

[@fieldofdreams1986]

Not an expert...but I knew that.

[@00rr53]

Not always. Lease is much better for small business owners. Its all deductible.

[@ak15567]

So is buying. That 20k towards a new car is a business expense and is deducted from profits, in addition you can deduct depreciation value of the car each year.

[@bbser]

I like Suze but didn't take her advice on this one. Leased a brand new 2015 Forester for 42 months. I live on an unplowed, dirt road (uphill) in snowy Massachusetts woods. I needed a strong, dependable all wheel drive - because, for one thing, my shoveling days are over. I want to be confident and secure in ice and snow back and forth to work, so I needed THIS car. I was looking at a used, 2012 Forester but the payments were out of my price range - but the lease wasn't. Anyway, I finished the lease at 42 months and ended up buying the car (in cash). Lots of snow and ice since then - I love this ride. It's been 5 and a half years and I haven't even hit 30,000 miles yet.

[@noone-vt2hn]

bbser so after lease i have option of buying it?

[@bbser]

@@noone-vt2hn You should be able to - any dealership would prefer a smooth transition from lease to buy from the original owner.

[@maxiginbella1384]

Thete is nothing wrong with leasing expeciaaly if you can afford it and if you have a business. Also, anything goes wrong ot need maintenance, just bring to the dealer and they hadle all of that. People follow your heart and live your life. We live a world that makes us feel guilty when we treat ourselves or that tells us to wait until we're retired to enjoy our spoils.....smdh

[@whatever5922]

ASG x most of the time yes

[@noone-vt2hn]

cellophaneboy would you recommend going that route

[@anngutgesell5135]

Ha, my highlander is 18 yrs old and I have no plans of giving it up. I paid $20,000. in cash for it and she’s still going strong!!

[@mustasheolll2020]

Good man 👍

[@octaviakf]

The used car that’s new for you 😂

[@mustasheolll2020]

All the repairs will be new too. Buying a 10 year old used car is best because of all the savings, and it will be fairly reliable. I’d buy a new car if I planned on keeping it for awhile.

[@Meadestorm]

I work at a law firm and drive a 98 corolla. And guess what??? At the end of the month, I have plenty of money to save. Why. Because I don’t waste my money on needless things.

[@gregoryvierra6114]

And? Not everyone at a law firm makes a lot of money.

[@tianaonyt]

Ehhh I can’t vibe with this one. If you’re young. Maybe college age or just not settled into you permanent city or job leasing is a great option. People who talk up getting a cheap/used car really take for granted knowing things about cars or not being someone who gets manipulated every time they need to get work done on their car. Having a car for 12 years is a serious commitment. If it’s relatively new it could be underwater for years. If it’s used you could be stuck with crazy maintenance or repair that could also put you underwater. You want to know everything you can about your car compared to others before you do it. When you lease, nobody is forcing high payments on you, you don’t have to put down money and you definitely don’t have to keep it more than 36 months or renew immediately.

[@dchawk81]

Yeah I don't recommend a cheap old used car to anyone who isn't mechanically savvy. Buy new or almost new (1-2 years) and keep it forever.

[@cristiansoutside]

Don’t worry, I plan on keeping my Cybertruck till im at least 30 years old

[@PrincessOfTheUniverz]

Same!!! 500 miles range, come on!

[@tomlxyz]

Makes me wonder: Is that a short time range or did you get one while you're so young? Neither seems too smart

[@dii-N-sd]

I bought my SUV new back in 2008 and paid it off in 2 yrs. I took great care of it. So it still looks and rides like good. I couldn't care less about driving the latest model. And I LOVE not having a car note!

[@joshharwood720]

I have a "community based" job that requires a lot of driving to multiple counties that requires I have full auto insurance. In order to get into a job like I have I leased a car for the first time and have not missed a single payment. It helped raise my credit score which the job I got helped me to get a home loan, the payments of which is cheaper--including insurance and property tax--than for the house my wife and I had rented for a year beforehand. The car I am leasing was used but has been very reliable and I hope to drive it until it runs into the ground.

[@natalibessey4089]

In my opinion, as long as you have self control to not continually lease cars, its actually the smarter thing to do. Instead of spending 5 years of paying interest on a car, you can get a lease for 3 years. About half of the car is paid off interest free and you also had free maintenance included. Buy the car out after the lease ends with a 2-3 year loan instead of the average 5 year and you’ll have saved yourself a pretty decent amount of money.

[@cheezybred]

Leasing is the most expensive way to drive a car, those payments can be used to invest and make you money instead of burning it away every month.

[@CryptoDad83]

Dude u r so smart I agree and I’m doin same thing. It’s really sad people think they are getting a deal when leasing car, but truth is that you are gettin ripped off smh..

[@zohanjames7793]

I disagree. Leasing can be a great bargain if you plan to buy the car. At the end of the lease, you can negotiate a better price for buyout

[@Anonymous-ji4sb]

Go to a new car lot and open the hood of a brand new car. New cars are filled with plastic and electronics. What happens to plastic and electronics when they get older? They break. I see more late 90s and early 2000s Toyotas and Hondas on the road than I do like 2005-2011ish. GDI, turbo chargers, and CVT transmissions are just the icing on the cake. Cars just simply aren’t built to last anymore. Personally, that’s why I think the average person would be better off leasing today because soon after a 60 month car loan is paid, the car is probably going to start falling apart and the car won’t be worth that much money.

[@bitehunter122]

Pure. Simple. Thrifty. Inspirational!

[@Dejan_23Unlimited]

When you buy, you own and if there are any major problems you are stuck. Big problem can and occur all the time. On the other side, leasing you are safe And you are not paying a lot more, for safety of 50-70-100k

[@ronylaguerre5155]

It’s good to be frugal but if you enjoy things like a nice nice new car you should definitely lease it... save money obviously but enjoy your life stop listening to people who don’t know your situation

[@babyb9969]

Rony Laguerre don’t listen to this dude lol. you don’t need a nice new car to survive in this world, you need a reliable car that gets you from point A to Point B

[@ronylaguerre5155]

Cherry R clearly you didn’t read what I said

[@Aman-rs4uz]

Cherry R you didn’t understand what he said

[@Aman-rs4uz]

I 100% agree

[@TheFactorySeven]

I agree and disagree. It all depends on your financial situation

[@jvarela965]

J Paul Gettys advice on buying anything was you buy things that will appreciate in value and you rent things that depreciate in value. 3 yr car loans disappeared in the inflationary 70s. I was born in 1965 and I have seen car loans go from 48 months to 60 then 72 and now 80. People are not being irresponsible today they have not had a pay raise since 1979.

[@joes0406]

Some of us are so strapped we have no choice but to finance one for 5 years,even the cheapest one. Car places tell me they don't finance a vehicle for under a certain amount...guess it's not worth it to them. And not gonna buy a piece of junk for a couple thousand and end up with endless repairs or a replacement shortly down the road.

[@Uniikex]

My dad used to trade second hand cars and at one point I really wanted a brand new car and finance it. My dad was completely against it and was like whether it’s my money or yours no way and that’s because the money it leaves the showroom it’s always lost thousandsssss in values and that I should only buy a car I can afford and pay cash for. Couple years later, this makes so much sense and I’m glad I listened.

[@TeeroyHammermill]

Well it can be smart to lease if you already own a car. Lease can save wear and tear on the car you already own. Have you priced off warranty car repairs lately?

[@666dynomax]

what are you even talking about. If you have the money to rent a car, do it... but don't try to convince anyone its cheaper. You really think a car manufacturer or finance company are going to lose money on the deal???

[@TeeroyHammermill]

@@666dynomax renting a car from a rental shop is the most expensive way to use a car. Leasing is one of the cheapest.

[@mustasheolll2020]

Bucky Rodgerdodger yeah, it depends. I mean, who would keep a car 12 year minimum?

[@TeeroyHammermill]

@@mustasheolll2020 Then she says she keeps her car for 12 years. So either she doesn't drive much or has more than 1 car. I'll bet she'll change her tone if she daily drove the same car for 12 years putting 15,000-20,000mi per year on it. She'll be shocked at the $2500 fuel pump replacement, $1900 A/C repair, $1000 brake jobs, $3500 transmission replacement, $3000 headgasket job. All that just the tip of the iceberg not including the stress of breaking down at the worst times and repair cost that exceed the value of the high mileage clunker.

[@crobinson2624]

The value of a car drops when it leaves the lot. It doesn’t go up in value. And what if I want the latest model that comes out every year? Leasing just makes sense for a lot of people, besides not everyone has $30,000 for a new car.

[@mustasheolll2020]

Maybe they should drive Under 10k cars (preferably Toyota/Honda) for awhile till they can afford a 30k car.

[@roachtoasties]

It's whatever works for you. Maybe you just don't want to be worried about paying for repairs after three years. New cars are safer and more reliable. Lease payments are based upon anticipated depreciation, so they're less than a finance payment. Maybe you're OK with that. After a three year lease, you still have the option to buy the car, if you want to. Buying a car from a dealer is never an investment. If it was, rich people would be loading up on new cars. If you buy a car with three years of payments, at the end of three years you have a car that has lost half its value, if not more. It's not like buying a house. Anyway, if I had Suze O's money, I would lease. New car every three years with no worries about the thing falling apart on the freeway. If it costs a bit more in the long run, so what. You can't take your money with you when you're six-feet under, so just enjoy something new in your life, and it doesn't have to be some super-fancy car you're leasing. The standard models are quite comfortable and full of features these days.

[@elonmusk8667]

She's correct! I try not to have payments too so I save enough to purchase the car completely.

[@camillemurphy73]

You can also rent a nice car for a weekend...if you want show off and change it up a bit.

[@grod805]

That's what we would do for road trips. Since we owned sedans, a rented SUV worked well then you just return it and dont have to take on a big loan

[@Mvubo]

I usually do this. And afterwards the cravings disappear. Takes the edge off for a long while.

[@mustasheolll2020]

I may rent a bmw when I turn 21. Not lease, rent through Turo.

[@jwhaynal]

I used to sell Hondas and leasing, with the intent to buy it at the end of the lease is the cheapest and most cost effective way to get into a new vehicle. All you need to know is how to covert a lease payment into a loan payment. Leasing saves on sales taxes and some years a money factor is better than an interest rate.

[@jwhaynal]

Just look at what almost all finance managers at dealerships do. They lease, because it's the cheapest option.

[@unclejezza]

You’re forgetting the X-Factor of car ownership TODAY. Cars are now riddled with plastics, particularly in the engine components. The ownership model is no longer sustainable because cars and their engines begin to breakdown quicker. Why else are cars so cheap now after just a few short years and hardly any miles? Because they are cheaply made, full of technology and packed with plastics that break down far quicker. Lease your car and change it every few years to a new one. We all apply this model to everything we possess these days.... anyone here still on an iPhone 3? Didn’t think so..... because technology moves along and the phone is now obsolete due to its degraded components . Same with modern cars .

[@thrillhouse22]

Yea but leasing also means you dont waste money on expensive repairs. Used cars mean money spent in repairs. Plain and simple.

[@Eli-kq7qt]

Exactly!! I have to agree I like Suze but she’s only giving one side to the equation here in this video.... first of all the truth is most wealthy people lease there cars bc they want to keep up an image. Most people with real money turn there cars in every 3 years to get the latest version with the latest tech. Secondly when you lease you don’t pay the same amount in taxes not to mention the fact as you stated most if not all of the repairs are covered. So I say there’s pros and cons to both just depends on the situation.

[@andrewthaboss6643]

Disagree! If you want buy, Lease, especially if you have the money upfront, if the payments and interest are lower than a straight 3-4 year financing tem, invest the difference, then at the end of your lease term buy out the car, a dep. Asset. In 3-4 years you could fairly easily double the money you would otherwise have put into the car upfront. if you are scared of a potential market downturn and want to be uconservative, Park your money in ETFs you'll make on average 30 percentage points over 4 years. So unless you've got a terrible credit score your interest rate on the payment of the car is unlikely to match ROE. You're welcome.

[@win0044]

I mean if you want to own a car for only less than a year than a lease is worth it in my opinion or if you want to experiment with different cars

[@Adrian.G-More]

if you are living within your means you can lease a car that's well within your budget. Working in the motor trade I've had many wealthy people Lease cars, yes lease. You buy the cars which are for families so you keep them as long as possible but there are benefits to both.

[@tavodupre-lpz6749]

She makes me have anxiety and makes me feel depressed

[@gregoryvierra6114]

Because the truth hurts.

[@Dreamllama17]

That’s conviction

[@mustasheolll2020]

@@gregoryvierra6114 Yep, she’s telling you the truth. Maybe Keeping Up with the Joneses is real 😳

[@mustasheolll2020]

@@gregoryvierra6114 I’m buying a new car F that 😂. Small chance I may lease in the future.

[@kiefcheith6025]

With her logic, that means no one should be renting an apartment or a house, we should just have the money to buy a house straight up. I don’t see a problem leasing a car as long as you can actually afford it

[@leahmcdermott4189]

I disagree. I think they are different. Buying a house can be extremely costly and not everyone can afford it, hence renting is a good choice until you can afford (& want to) purchase a property. A 2 bedroom in CA can easily be 1Mil, so putting 10% down would be 100k, then closing costs, maintenance and other fees, that can be 120k, most people cannot afford that. Buying a house is a process. But a car? A CAR? Cars can be affordable so there’s no sense in going into debt to lease a 50k car (crappy depreciating ‘asset’) you really can’t afford. That’s just called living beyond your means. On the other hand, there’s lots of affordable, reliable used cars you can buy outright for 5-10k. There’s no excuse for leasing a car.. when you don’t have to.

[@sagm706]

My husband and I have always shared a car and have driven each one into the ground! Gotta 2010 Camry without hubcaps I drive to work where I make $150k and park it next to the guy making $45k with the $50k truck!

[@raya74]

The richest people drive toyotas

[@taygrice9034]

Anyone is the car business knows this is a blanket one size fits all statement & doesn’t apply to everyone. Leasing is a great option for MANY Individuals.

[@JGirDesu]

Like me! I couldn't afford the payments on buying a car. I'm a college student, but I needed a new car with great gas mileage since my school is a 16mile (20-30min) drive away. My old car got 14 mi/g while my new leased car gets 30 mi/g. 100% worth it to me. The only thing that sucks now is that I'm still making payments despite driving SO little now due to quarantine. So now it's not worth it. The dealership wins in the end since the car has barely has any mileage on it. I've been driving it for a year, and I only have 7,500mi on it. I wonder if I can "keep" the car by buying it once my lease it up, but then sell it for more due to the very low mileage. Probably not worth the hassle lol

[@francismartinez6049]

JGirDesu typical spoiled brat here

[@JGirDesu]

@@francismartinez6049 You're checking yourself in as a spoiled brat? Did we need to know that about you or something?

[@BlackScreen55]

Every millionaire i work it at my warehouse job owns and drives used cars although they can afford to buy a lambo cash

[@tomlxyz]

How many millionaires are there at a single warehouse?

[@dchawk81]

I get her theory but if you're gonna keep a car 5+ years anymore you better buy it new or VERY low mileage before anyone had a chance to abuse it. And about 5-10 years in they start to need wear parts replaced. So be ready for that. Either cash or mechanically inclined with tools. 12+ they're probably going to start needing more than they're worth. All depends on luck really these days. They aren't designed to last forever. They never were. It's just that old ones, pre-2000, were easier for the average owner to do significant repairs himself. Eg my '86 pickup is dead simple from nose to tail and parts are cheap. My '18 pickup scares me a little and parts are NOT cheap. Plus there's always the issue of inheriting swamp crotch seats and a COVID-19 HVAC system when you buy used.

[@dave-wz5bm]

Life is toooo short to drive same car for more than 10 years.

[@babyb9969]

dave clown

[@andresa6049]

Life is tooo short to be broke!!

[@michaelsmith953]

lol, i love my car, i even name it, its staying with me forever

[@babyb9969]

Michael Smith nice

[@superchargedpetrolhead]

ah, a fellow petrolhead....

[@hastyone9048]

This is completely true. Three of my wealthiest clients (20m-500m net worth) own their cars...two of which are over five years old. All have very nice automobiles but do not see the necessity for owning a new car every two years. They would prefer to build their real estate empires and own appreciating valued items.

[@mopar21]

Disagree with the buy used part. Do your research, pick one that holds it's value and suits your needs. Go in, start at 10 percent back of invoice minus rebates and hold you ground landing at minimum 6.5 percent back of invoice. Let the dealership pay that 1 to 2k in depreciation and enjoy a new vehicle that hasn't been abused, neglected and so forth.

[@superchickensuperchicken7939]

agree, I had a friend that bought a 2 years old used SUV he had nothing but problems with his used vehicle and not to mention you don't even know if the vehicle has been wrecked before even if it is one years old there is always that possible. like you said abused and neglected... but with a new vehicle you don't have to worry about all of that, buy or lease new is always better than used......

[@gopackgo933]

Except there's no such thing as a car that holds it's value

[@faithpixie]

Not true...if the interest rate is low, purchasing a car over more than 3 years makes sense sometimes so that you can invest your $ instead in the stock market if the stock market is doing well

[@genzgreen3327]

Lots of if’s in that. If everything goes perfectly, you might be better off with a loan. Life isn’t perfect. Chances are high that you will lose money on the loan.

[@Affy309]

Oh lord, not something you wanna watch if you just signed up for a 4 year lease 😔

[@Affy309]

@@name9074 about 2 months before the end of my previous lease they sent a letter saying I can buy it. They value it by the milage on the car. Personally, I don't have the money to buy it so I continue to lease.

[@brianbonilla7720]

Depends on how much you put down and finance. People pay 127 for a monthly metro card in NY for public transportation. Is that throwing money away?

[@octaviakf]

What cars last 20 years these days please let me know hello 👍🏾

[@ak15567]

Every Japanese cars...ever

[@dchawk81]

@@ak15567 Not so much. Plenty of Hondas out there in great shape with blown transmissions. There basically are no guarantees because cars have become so complex.

[@ak15567]

@@dchawk81 maybe dont pick the one that was driven by a teenager impressing girls with riced out mods?

[@dchawk81]

@@ak15567 They're problematic with transmissions. Especially 2002-2006 with the V6 Accord. They wanted it to feel smooth so they programmed the clutches to slip, which burns them up prematurely. Probably can't go wrong with a stick though. Unless you burn the clutch prematurely yourself. 😃

[@dchawk81]

@cryslala03 Why do I get the feeling that you're a Fiat?

[@cesarlugom]

It's even better not to own any car ever. I've done that for the past 12 years now and use public transportation including Uber like ones. It's faster, safer, less stressful, more comfortable and about 20 to 30% cheaper than total cost of ownership of a car. Do the math, it's simple.

[@Melina.folina.123]

Imagine having this lady as your mother

[@Albert-vi7te]

Or wife. Lmao

[@pedlpower]

I would be looking forward to the inheritance!

[@maestroadam]

I own more than 100 cars and I bought all of them with cash. I've never financed a single thing in my life. I also earn an average wage and have an average education. Just kidding about everything.

[@1SavageQueen89]

Adam Bernard Silly Bernard! 😂

[@SterlingW8]

Wow really? Sorry Suze, it depends on situation. If you live in the city with rideshare you may never need to own the car, car insurance, or maintenance costs.

[@sonyabadass]

why in every video Suze Orman on youtube the dislikes are always 10% or more than the likes... can anybody explain why?! the problem is i don't see what is wrong

[@2011October14]

cuz many are doing the opposite of what she's saying and don't want to admit that they're wrong. maybe not all but she's mostly correct about what she's saying.

[@ThePeanutbuttercup12]

Tikus Keriting shes a scammer

[@iacobus4227]

Daquan Don yeah but you’re always paying a car note. When you finance a car and keep it well maintained it’s a whole lot cheaper after the loan is paid. That money I spent on a car note goes towards my retirement fund.

[@iacobus4227]

Daquan Don no it’s really not.

[@allthingsinteresting6546]

Well how about not just buying a car at all lol makes no sense you want a new car buy one you want to lease lease

[@joecool2678]

I do things a little different but it works for me. I buy new but previous model year, when dealership is clearing out old inventory. I insist on zero% financing. I buy Weathertech liners & undercoating and I drive it until she dies. Usually about 12-15 years.

[@JasonLee-lb5qi]

I feel it's better to lease are car because instead of buying a $50,000 car you invest it in a ETF that can make you much more money.

[@d.akhtar9080]

Basically buy a Toyota or Honda because anything else will be an endless money Pitt

[@tamarastone141]

Ok Scotty

[@Sanpedranoazul]

True! Don't forget the Germansssss 😂🤣

[@camabkamuvoba7467]

@@Sanpedranoazul psh german cars got low mpg.

[@doomtomb3]

Hyundai Kia is also pretty good just sayin

[@camabkamuvoba7467]

@@doomtomb3 bad reputation

[@richardlamoureux4829]

Anything that appreciates in value buy, anything that depreciates in value rent. Last time I checked a vehicle depreciates.

[@superchickensuperchicken7939]

yeah and it take you 12 years to pay it off these days and a minimum of 8 years, who wants to be stuck in car payments that long 1/3 of paying off a 125,000 house and your payment are usually $800 per month plus insurance

[@sup_monica3597]

If your car payment is $800/month then you're bought a car you cant afford. My car is $250/month. Even with this pandemic, I am very comfortable with the expense.

[@dchawk81]

WTF are you buying that costs you 800 a month for 12 years? You trying to flex a Lambo on McDonald's pay?

[@EvadeModsRGH]

Leasing works for me in my situation

[@mgeek1]

I just can't see paying thousands and thousands of dollars on a car for years and at the end of the term, not having a title in my hand.

[@EvadeModsRGH]

mgeek1 as someone who’s really into cars, it’s worth it for me. I have a car for 2 years and after the term is up, I get the newest version of the car. If you look hard enough you’ll find good deals for leases.

[@mustasheolll2020]

@@EvadeModsRGH That’s an expensive way to drive

[@mustasheolll2020]

@@EvadeModsRGH Leasing is paying the depreciation of the vehicle. Worst in the first 3 years lmao

[@EvadeModsRGH]

@@mustasheolll2020 Better than me paying the full 120k that my car is worth

[@Cristianswaggstar13]

On the contrary, driving a fancy car tends to impress people I do like while simultaneously striking envy into the hearts of my enemies..

[@ruthiethomas8196]

😅

[@AngelicDiva1988]

Ughhhhh I’ll just keep my 03 Acura them 😂 😩

[@gforcedod]

You only live ones people, it all matters what is your income ratio to car payment. Buy a used car from an aunt or something when you are young and you are Learning how to drive. And enjoy yourself as you grow older and you are financially stronger. Life it’s not only about saving. You have to live the moment.

[@mustasheolll2020]

She is teaching you how to pinch pennies

[@giatomazan1769]

Not sure this is relatable to everyone i my truck is a 2007 has only 161 thou kms repairs under 5 grand I paid in full with bankers check 25 grand they didn't like that much I am thinking if it dies I will leas 2 to 3 years maybe option to buy i now only drive 8 thou kms a year and don't want ownership and costly repairs and heavy tax etc

[@OPDNETWORK]

I learning the hard way im leasing now never again ever

[@Bucks7542]

With the prices of cars, even if you buy it, by the time it’s paid off you’ll be looking for another car. These are not the old cars of yesterday where the repairs were easy and cheap. No they all have computers and is hard to fix. Some cars you have to buy parts specifically through the company. It’s kinda messed up. Leasing isn’t bad and either is buying. Either way be ready to shell out some money. The cash for clunkers pretty much got rid of a lot of cheap reliable cars. The kids in KZbin who still live in 2005 have no idea about life.

[@ChartreuseStar]

I used to follow her until I finally understood that she's advising you on personal finance... not wealth building where most of the ideas and methods would be the opposite.

[@sakispsinakis]

What a BS advice. If your time is worth $15 and your family's life means nothing to you then yes go and buy. If your time is worth $200 per hour and you value safety above all then lease. In the US especially never ever buy used. I did it and almost got killed. Every person I know who did it had issues. Americans have cars to go from point A to point B. If it drives they don't care about noises or anything. They change the oil when the light comes on and not like me every 6 months. If you live in the US and $500 per month is an issue then focus 100% on making that $500 a negligligent amount. US is all about $$$. If you want to save pennies then go live in a country with respect for it's citizens with health, education, etc. I am American but you need to hear the truth. I started working for $20/$25 per hour and now I am about $200 to $300. Once I fixed my credit I always leased. I know people who spend hours on their cars and make $80K. All they do is run errands for family, fix their cars, work on their wooden house, etc. I know others who lease BMWs and live in appartments and all they do day in and day out is focus on their job. They constantly look for ways to be better and always on the lookout for promotions or other jobs...they started at $60K and now make $500K plus. When the other guy was fixing his car which he paid cash, they were studying for a certification which then increased their income substantially. Be smart with your time since that's your biggest asset.

[@taranchenkoigor]

Oh eah, go buy truck for 80 grand in your name. Pay taxes before making those payments. Dont ever ever lease it. Expecialy if you can deduct lease payments as company expense. So what if it's goin to depreciate 15k a year? Suzy knows best, so you better listen.

[@lustyleopard6693]

Who came here from Kevin O’Leary saying don’t ever buy a car

[@amarie1852]

I thought you could lease a car and keep trading them in

[@clutchmadness]

Me laughing because I can't even afford a car.

[@byfuzzerabbit]

My dad had a 99 Camry . It was about to be 20 years old then it got rear ended by some girl texting on her phone. Because of the cost to fix vs value. Car was totaled. I always wonder how long we could keep that car going for... I’ll never know. But if I can do the same for my current car and hopefully in 15 years will have self driving cars.

[@bigbox1877]

American/japanese cars are so cheap to lease and worth nothing after driving them out of the dealership. it only makes sense to buy if you are buying a European imported car or if it is a work vehicle

[@mustasheolll2020]

Yeah, Corollas and RAV4s had really cheap lease deals before covid. Still don’t know if it would be worth it. Hey back in 2019 you could lease a base model RAV4 for 199 per month 2k or 3k down (believe it was 3k). Not bad, means you would spend 10k over 36 months. Hey, I’ve owned a couple of used cars and they can have issues, nice to lease a car because it will give a piece of mind. And who doesn’t feel good about owning something new. I don’t know personally if I’ll never lease tho.

[@victorramirez2891]

I guess it’s different if you own a business.

[@CryptoDad83]

No. It applies to all of US

[@DeltaSleepy]

Never lease under any circumstance

[@ak15567]

@@DeltaSleepy No you can lease under a business. Not every business has 20k sitting around to buy a car in cash or want to get a business car loan; you can easily lease a car for $150-$200 a month and deduct the full amount under business expenses.

[@gxorgeanthony5872]

I’m 19 and was given 2.9% interest rate on my 19,000$ car 😂😊with no down payment

[@lovelore6169]

PREACH IT🔥

[@vitaminA_1]

I can already picture her driving style.

[@mustasheolll2020]

Oh boy 😆

[@CryptoDad83]

Plz people. Stop fleecing cars for god’s sake. You do realize you pay nearly 14% interest on every leased cars? Plus pay premium 10% additional for insurance to have a GAP coverage?? Why would you want to be BROKE???

[@gxorgeanthony5872]

Bryan Kim I’m 19 and was given a 2.9% interest rate on my 19,000 car with no down payment 😂😊

[@CryptoDad83]

@@gxorgeanthony5872 you financed your new car, so it's alot better than leasing a car. Just keep your car and sell it to an individual later and buy used. The moment you drove off the car, you lost more than $5000.... New cars are never worth it!

[@bree5212]

14% interest? That’s not how any of that works 🤦🏼‍♀️ a lease’s Money factor converts to a lower APR than banks even offer. NEXT.

[@CryptoDad83]

@@bree5212 why do u think all manufacturers prefer leasing vs purchasing to customers? Plz do the math that factors in how manufacturers making PROFIT, Dealership making PROFIT, actual Vehicle msrp, residual value of the car when lease ends, and plus lease return fees, gap insurance, and higher liability insurance coverage which costs more $$$$... Leasing interest rate ranges anywhere from 14-18% interest, which lease agreement DOES NOT have to reveal this info since you are RENTING and not buying per Federal guideline policies. Please do more research and realize leasing is THE MOST EXPENSIVE way to drive a car other than daily rental and monthly subscription based plan... 80% of Americans lease and they get ripped off. OR continue to get ripped off... Period.

[@bree5212]

Bryan I work in the auto industry and deal with leases on a daily in one of the highest income zip codes in my state. Why do you assume so most auto industry employees lease? Literally over half our clients lease and they could easily afford to pay cash. You’re also mistaken....dealerships LOVE leases because we get a used vehicle in three or-so years that is required to have its maintenance on schedule. Most used-car shoppers LOVE cars like that. They’re low miles, no damage, and kept impeccable! We make more off of financing BTW or those who don’t buy warranty. If you want the breakdown over financing....my current vehicle had a price of 53k cash (after tax, title, licensing). Let’s use a 0% APR mmmmmkay. So, 53k is what I pay. The warranty lasts 4 yr/50k but, I drive 15k miles a year. I burn through that warranty in 3.3 yrs. Let’s assume I keep my car for 12 yrs.... average repairs paid over 12-years on a car is well-over 10k. My make.... more like 15-20k. The most accurate I can find is 16k... my 53k car turned into 69k. If you finance, your insurance is the same as leasing. Dude; they’re both considered loans. Gap is something you need to get whether it’s finance or lease. I’ve financed and leased and my monthly insurance payment went up $10 a month for a brand new car over my old used one that was totaled. Any-who, back to the true cost of ownership.... MAINTENANCE. Around 24k over that time. Racks-er up to.... 93k. True cost of ownership is around 93k on my car excluding yearly reg. Why? Higher mileage repairs WAYYYY MORE EXPENSIVE. Leasing a new car every 3 years? My monthly payment is 526 which includes my maintenance. Dealerships try to keep the payment as close to the same as possible each time. Let’s assume we keep it at 526. 526x12x12= 75744. I put 2k down each time and I’m at 81k. I put one set of tires and brakes (2k) each time brings it to 87k. Pretty sure 87k is cheaper than 93k. I’ll pocket my 6k over the next 12 years thank you very much 👌🏻

[@braydencordrey8544]

So smart

[@Cross-xm2fr]

Never say never

[@sirensingleton9910]

Thank you Suze!!!

[@DoctorSkillz]

I keep my cars for only two years, so I only lease. Cars from twelve years ago aren't as safe as cars from today.

[@llcross04]

Dr. Skillz yes they are. The quality was better 12 years ago.

[@Clipper1094]

llcross04 not really, but okay

[@dchawk81]

People still die in brand new cars and survive in old ones. It's extremely circumstantial.

[@DoctorSkillz]

dchawk81 Of course. But if I have the means, I'm willing to pay for extra safety. Your mileage may vary.

[@dchawk81]

@@DoctorSkillz My point is, safety has plateued recently and the odds of surviving or dying are more on the circumstances of the accident than the car itself. It doesn't matter how new your vehicle is if you get smashed between a parked semi and one that rear ends you at full speed.

[@muscleken100]

This nonsense. I don’t like to drive the same car for more than 2 years. And I know a lot of people who are weather who have very nice expensive cars. Some of use actually like cars we just don’t drive for getting around. Going by this standard we should not have anything nice. Just by the cheapest stuff around. I can afford my car I just get tired of it in a couple years so buying it would be stupid

[@mustasheolll2020]

If it’s a car I like and if I buy it new, I can see myself keeping it at least 10 years.

[@mustasheolll2020]

It’s not the same if you don’t buy it new. Some people like me are really into their cars.

[@mustasheolll2020]

This lady can go f herself that’s what I really think

[@lookitstrending4682]

I would say don’t lease it and also don’t buy it. But finance it. The money you use to buy it in full cash can be put down as a down payment for a house. You can rent the house out and use that money to pay off the finance of the car. When you are done paying off the car, you can sell the car and use as a deposit for another car and another house and repeat the same process. It’s exactly what I have been doing now. I own a property and almost finished paying off my car, I buy another house next year and another car after I’m done selling the current car I have now. Bare in mind I am also saving from my salary and I’m not even 30 yet. 😊 So yh do not pay in full for a car with all the money you have - bad advice.

[@myopinion5691]

TRUTH HURTS

[@mustasheolll2020]

That song became a meme lol

[@andrewtran9714]

She would get along well with Scotty Kilmer :)

[@youngblisslife4308]

I try and tell people in my circle this all the time

[@V21bh]

Im not buying a car when I only need it for 15 months

[@juliandinkins3226]

Yeah, No! I rather lease. There’s amazing offers out there, you can lease a new Honda with great safety technology at sub $240 with decent credit. Save the lump sum of your assets and re-invest in other areas where it’ll grow.

[@blakecunningham3937]

Why not just pay cash for a car, drive it for 12-15 years and use the would be monthly payments to invest. Thanks how you make money!

[@kentgabriel3572]

Don't ever lease a car unless your employer give you a compensation for it.....I drive a beautiful brand new car every two yrs because my employer pays for it...