it

Leasing vs Buying a Car, Which is Worse

run up your engine today I'm gonna talk

about whether it's better to buy or

lease a car no me I've never leased a

car because I'm not used Toyotas use

Lexus's and drive them forever I saved a

lot of money that way there are times

when leasing a car actually can be a

better decision in certain circumstances

to give one example if I have a customer

that says hey I want to buy a Jaguar I

say don't buy a Jaguar Betty so you

really have to have a jerk I say well

then lease one don't buy it at least a

new one you're not responsible for

repairs it's under warranty so you don't

have to worry about the Jaguar falling

apart okay normally do as they age and

if you get a lemon well hey you don't

know no lemonade you you're just leasing

it because I have had customers lease

Jaguars and some who bought Jaguars and

when you compared what the person leased

them paid for say three years versus

someone who bought a Jaguar and then

after three years decided to trade the

Jaguar in they lost so many more

thousands of dollars paying for it and

then going for the low resale value on a

training than they would if they would

just leased the stupid thing in the

first place and a car some of my

customers that are doctors lawyers

they're involved in businesses where the

business leases the vehicle and they

don't pay for it it's a pre tax

write-off

so these vehicles they don't care but if

you want to lease a vehicle of course if

it's a business expense that's a

completely different story but see it's

a personal one Dhar advantages why does

that your monthly payment is less even

though you get that monthly payment for

our to keep loosing cars your monthly

payments gonna be less leasing a car and

number two you'll never be upside down

in a car if you buy a car a lot of times

if you get rid of it it's three or four

years old it's upside down you actually

owe more money on the car than the car

is worth

well since you never owned a leased car

you have to worry about bad and of

course you're not gonna have very much

repair expense if any at all if you

lease new vehicles they're covered under

warranty and maybe you gotta pay for oil

change or something sometimes those are

even covered but your repair expenses

are going to be a

unless if you lease a car and of course

you never have to deal with the immense

hassle of selling a used car since you

don't own it you don't have to sell it

when you're done with it that's a big

deal a lot of people can't stand dealing

with selling a used car and the last

advantages there's no loan approval

needed in most cases it's just monthly

payments you don't own the car if you

don't pay they'll just take it at least

to somebody else now it's for a lot of

the cons to begin with leases are often

a double in disguise most of them have

mileage limits so if you go over a

certain amount of mileage a year then

you got to pay so much per mile and that

can add up over time and secondly some

leases say they only allow for normal

wear and tear well what do they decide

is normal and what isn't normal

so if you really wear the car out say

you take it out in the woods hunting or

something and you bastard suspension up

picks it all when you trade it in and

you got to pay for all those fixes

realize that you can't bring them back a

car with the wheels are falling off and

think you're not gonna end up paying for

it now if you're like me and you get a

car and you keep it forever it's a great

advantage to buy rather than lease

because if you buy a good car like a

Toyota you got this one it's 24 years

old now truthfully I only paid 300 bucks

for it anyways used but let's say you

bought it brand new well 26 years later

you're still driving that thing your

payments were gone a long time ago

20-something years ago it's still going

you haven't paid anything of course

you're gonna save money if you buy a

good car versus least one and of course

if you own a car then you have the

option of selling it any time you want

you don't have a tie-in like I see you

got a three four year lease while you're

tied in two three four year lease you

buy a car you don't like it especially

if you buy a used car you can sell it on

your up to deal with long term aspects

of a long term lease because if you own

a car there's no mileage looma t-shirts

your car you can drive wherever the heck

you want you don't get penalized for it

and of course there's no restriction on

appearance if it's bashed in you decide

to get it painted say a tree fall on

best part of it you can keep driving it

that way as long as it passes your state

inspection law some can't be too bashed

up but here in Texas they can be pretty

bashed up and still be able to try them

down a road find a customer with Toyota

who t-boned a pole bandit like a you it

look kind of like a sausage curb going

down the road but legally he was allowed

to drive it if you own a

and you do like me and buy a used one

yeah it's four or five six years old its

depreciated a whole bunch so you can get

a car that money wise maybe its

depreciated anywhere from forty to sixty

percent but it might still have eighty

or ninety percent of its life left but

the ones I buy so let's say you buy a

car for sixty percent less than what the

original cost was but it's still got

eighty percent of its life you're making

out like a gang Buster you're only

paying forty percent of the price and

the car still got eighty percent of its

lifespan left now here I'll give you a

real-life example of the difference

between leasing and buying let's say you

had a 2014 Honda Accord you put down two

grand on a lease and your payments would

be about $200 a month so over thirty six

months that comes out to about three

thousand dollars a year cost financed it

at two and a half percent a monthly

payment of about four hundred dollars a

year then an op cost you about thirty

six hundred dollars a year so you're

actually saving six hundred dollars a

year if you lease the vehicle but of

course you have to remember when you're

done with a lease then you got a lease

another car when you're done paying for

the car you own the car and a car like a

Honda Court is generally a pretty good

car so let's say it lasted another ten

years that's ten years of a free car

where you'd be leasing ten years and

even if it was only $300 a month that's

ten more years of $300 months instead of

zero and there's no way your repairs are

gonna add up to that on an accord it's a

well-made so in this respect leasing a

car is kind of like leasing property

yeah you got a short term situation

maybe you're only gonna be living

somewhere for a year or two do you

really want to deal with a hassle of

buying a house or a condo and then

having to sell it when you're gone no

you're probably just rent and then split

and go someplace else and wrap but if

you're like me and you stick around like

a tree in the ground I've been in this

house for 41 years you're much better

off buying a car or buying a house then

you are renting the thing we've seen a

car is basically renting a car

you're just not renting it by the day

you're running it by whatever the

contract is two years three years four

years or whatever so unless you're in a

business like real estate you're much

better off buying a vehicle then

in it so if you never want to miss

another one of my new car repair videos

remember to ring that Bell

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