In this video, we will discuss some of the benefits and drawbacks of buying a car versus leasing a car.
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I was just thinking about this today. Thanks Man.
Thanks for checking out the video! There’s a lot of confusion on this topic
your artwork is legit! Very nice dude
Hey man I love the vids. Hope you respond to this and I very much enjoy the videos about investments. Hope you had a merry Christmas
Hey Gavo thanks for supporting the channel! I try my best to respond to all comments. Wishing you a great 2019! – Nate
Leasing is better,it helps with credit score and loans. Most salesmen/saleswomen want you in a car to make those sales,and thus they don’t want to see them being returned by any means. But if you have the money to get a car,go for it it’s worth investigating (but remember) depending on what car is it has depreciation value on it’s market value.
uber is better.
Kevin O’Leary agrees
😂😂😂😂
Buy used version of earliest year of the design you like. I.e. 2006 Subaru Sti
Good tip
Btw Nate that shirts looking fresh bro 💯
Great answer to a pretty tough question. Glad to see you’re back at it my man!
I think buying a used car is the best way to go
In many cases, yes
Did you buy or lease your car? 🚗
I buy and keep a minimum of 10 years if not longer. If you look at the investment opportunities you give up when you continuously make car payments the numbers are crazy. Additionally I just hate having payments. LoL 🤣
I always buy a new car and keep it for than a decade. I get my money’s worth and since I have been the only one who’s been driving it, I tend to have less problems than people who buy used cars or have shared drivers. Works for me.
Togglefree What if I could make a higher percentage investing than the auto loan’s interest rate? Should I still pay cash for it?
I always buy brand new every 3 years and then trade them in. I pay cash for my small cars. I paid just under 16k(tax,tags,title and all fees) for my car that I have now. I drive them for 3 years trouble free and then trade it in after 3 years. It cost me roughly 2k per year when I do this. I think 2k is a reasonable amount for a trouble free ride. I also bought a brand new car when I turned 18 and drove it for 18 years and the depreciation and maintence cost was actually more than buyng a brand new small car every 3 years and trading it in.
I’m currently leasing n have been for 20 years..lol. But when this lease ends in March I plan to buy a used car, couple yrs old, and keep it for a long time, hopefully. I’m tired of car payments. … Good vid. Thanks.
I only watch because your super cute🤩🤩🤩
Alexander Kristensen lmao pause
Are you a boy
You pay sales tax on each and every lease payment. So if you lease cars forever, every month forever, a portion of your payment is sales tax. Same with upfront money. Every lease inception, up front money is due again. If you lease for 3 years as of against payments for 7, you have 3 upfront payments which could exceed the initial 7 year purchase’s down payment.
Rules of thumb:
If you are a dweeb and know zero about a vehicle and don’t have a good friend family member who knows, lease the car.
If you are unsure of your situation in 2-3 years down the road and anticipate still needing a car, buy the car.
If you want some Euro trash ride, lease the car, it will depreciate with a bullet.
If you want an American truck, buy the truck, rate of depreciation is far less.
Leasing makes huge profits for the dealerships because they only talk in payment amount, not initial sales price of unit (full sticker).
Leasing makes great used cars for the dealerships to sell for massive profits. As Nate mentioned, you beat the car up and the dealership makes massive profits charging for excess wear and tear.
Leasing is the gift that keeps on giving……to the dealership !!!!!
Public transport > car
In many ways, I agree unless you live in a rural area like where I grew up. It was a 25 minute drive to school
Yeah right lmao you obviously never dealt with the mta in nyc
I personally lease, but I also only commute to work and school about 15 minutes so I don’t need a nice car
Interesting
Thanks for sharing, Jake, wishing you the best of luck on your channel
Thanks man, you too. Your sub count has been going crazy lately
According to Dave Ramsey leasing and credit cards are the devil!! Regardless of your situation or self control!!!!!
Look at grant cardone instead
Don’t listen to dave ramsey lol. He’s a literal embodiment of the baby boomer.
If you can afford then buy the vehicle. Paying interest , control mileage, full insurance, not my thing. On the other hands if you don’t have money and you need a vehicle then for sure .
Nice video Nate.
Thanks for sharing your opinion Ali
I enjoy just owning stuff and not owing anybody anything.
It feels great to be debt-free
Great video topic! Bigly discussed topic here and will really vary depending on a lot of factors of your personal lifestyle!
Thanks Nick!
i have a lease two more years on it….under my moms name but i make the payments…i bought a used car for 3k but it broke down within the year….probably should have gotten a better used car by doing more research oh well…
So u reccomend not to lease ur vehicle for Uber?
Always buy!
Did you buy or lease that shirt?
Maby he’s renting his shirts
You don’t have a option of always going with new. Sometimes you can buy a used one such or sometimes you are forced to buy a used when a company discontinues a certain car such as my dream car which is Nissan 350Z. I will buy a used one when I get my license. BTW ima show this video to my dad since he was confused in the difference between leasing and financing thanks
I go the route of buying a car after the big depressiation and before it typically needs those big repairs. Don’t usually need the latest and greatest in my car (for now) my future car is a Tesla. Do you buy or lease yourself, Nate?
Nate, hoping you’ve had a great Christmas and wishing you all the very best in the New Year! Love, love your channel. Stay gorgeous!
My car value is $6000 but I owe $12000…
that dude leasing is the most expensive way to own a car
Pay in cash
Are you wearing shoulder pads or something under your shirt ?
Something looks odd.
*Following your Instagram, I thought this video would be somewhere on a skyscraper, lol!*
*Keep at it, Nate!*
I’m glad you didn’t blindly just say buy or lease and heavily try to favor one side. In reality, it is based on your situation, same with buying a house. Great video!
Nate, Happy New Year 🎊🎈
Happy new year!
I leased a car and now have a dent and lots of scratches. It will be interesting to see what they charge me for this at the end of my lease.
If you stay with the dealership for your next lease they should give you a pass.
Buy an asset that pay your leased vehicle! 💪💰😎 make your money work for you!
That’s right.
if i was in uk i would love to use public transport as of now im in last year of uni.
unfortunately im going back to kuwait after graduation and the weather plus the overall bus systems will make you either get skin cancer from sun or simply you will be stinking like hell as average temp is 45C.
Ah that sucks. the roads are a dangerous place in kuwait. Are you Kuwaiti by birth?
i am pakistani just finishing my last year in uni in uk 🙂
tbh i might be considered a kuwait as i was born and raised in kuwait, only left it for uni but no arab countries give you a passport so not a kuwaiti 🙂
The amount you pay per month when you lease a car already has the depreciation factored into it. If you think you are avoiding the depreciation then you have been fooled by your car dealership. On top of that, you are maintaining the car as if you owned it and by the time your lease is up you can’t make any of your money back by selling. Never lease a car.
The only maintenance that is due in a 3 year lease is maybe 2-3 oil changes and 1 or 2 tire rotations. That is it. Most dealerships or manufacturers offer 2-3 years of Free Maintenance so as a leaser I am not putting in any extra money. You are making it seem like people that lease are paying hundreds to thousands of dollars to maintain a lease. Which could not be further from the truth.
Car washes and oil changes …run for the hills
buy a wrx sti, jeep wrangler or tacoma – all real assets
buy 2 yrs old.. almost all the rapid depreciation is gone.. Car prices are artificial right now. Plus the new car buyer pays all the dealer fees and ” backend ” fees they sneak in there. Just bought a 2017 for half the price it was in 2017 with 39,000 miles. So from 37000 new to 18500 happened in 24 months.. Thats insane losses for the original owner.
I lease, and I love it. I never put money down, so my payments maybe a little higher but that’s fine. The thing I don’t like about leasing is the fact you have start your search for a new car about 6 months in advance. Which is very time consuming! However, most contracts will offer insurance that covers excessive dents and scratches; I never buy it but it is an option. Customizing for me is not a big deal I generally only tint the windows. But can we point out the fact after customizing your vehicle when you decide to sell or trade it in the value does not appreciate. I have financed and now I lease; it is not for everybody but I am worry free when it comes to my car.
Slow Down no more mt. Dew..
Lets compare apples to apples
Typically 25k car lease payment vs loan payment just average numbers
LEASE
$275 a month 36 mo 12k miles a year thats $9900 after 3 years 36k miles
multiple that by 2 coz ur going to get another car after ur lease ends
$9900 x 2 = $19800 … 6yrs.. 72k miles driven
And the cycle never ends coz ur just renting a car…
BUYING 25k car @2% interest even though new cars offer even 0% but we will just use 2%
$369 a mo payment for 72 months
$26568 roughly is what u would’ve paid total
The car is now 6yr old wth 72k miles on it just paid off free and clear
Now lets look up how much a 6yr old car with 72k miles on it is selling for 1 owner clean car just like u would return ur lease… i say u look at any honda… toyota…or anything really that was 25k new with only 72k miles its atleast 10k and thats a low number.
$19800 lease total 6 yr no equity
$26568 purchase total 6yr 10k equity or
$16568 if u traded in ur car or sold it
And remember if u trade in ur 10k car and buy a new one for 25k most states give u TAX CREDIT on 10k so now ur only paying tax on 15k …
As u can see i tried to use higher interest payment and lower trade value and still you come ahead in buying or u could always just keep that car after 6yr free and no payment…you’ve had it since day one so assuming u drove it as a normal person it wasn’t trashed that car will last u a very long time another 6 to 9 years especially if its a honda or toyota lexus etc and even then it has equity in it i see 10/12 yr old accords and Camry selling for 5 to 7k with like 160k+ miles on it and they sell like hot cakes.
When you buy u dont have to worry abt going over the miles… you do customization to ur car whatever u like in some cases u can get some return on accessories like remote start or higher resale value becoz of clear bra etc… dealer will take that 10k car from u and sell it for 12k easy within a week becoz its 1 owner and for the first 5yr it was under warranty aswell to which they can always buy extended warranty
Even if ur paranoid and think ur 6yr old car with 72k miles is not safe anymore or reliable lol u can sell it for 10k or trade and now go buy a 3yr old car with 36k miles or so fo like 16k … coz cars depreciate the most in the 1st 3 yrs and the rate keeps getting lower n lower after that if your smart you can see where im going with this.
There is a reason they dont have 12mo lease becoz that way people will see it too clear how dealers and manufacturers profit from them.
@Thunder lease works for u becoz u want a new car every 3 yrs however there are some that will say who wants to drive a 2yr or 3yr old car … on a 25k one can always buy extended warranty anywhere between 1k to 2k they are not so high on new vehicles that are priced around 25k pretty basic cars and then you may have 10yr 100k mi coverage…. wear and tear items you still pay for them in a lease … not to mention some luxury cars or the cars that are nicely optioned you usually have to put some down payment aswell for leaae which is more money down the drain…
People that lease always fear oh car will break down and cost more but in reality if your the original owner of the car and didn’t drive it like u stole it each time most cars will go 100k trouble free if not more
@Thunder how loaded is this exl ? Navigation? And u just had a bad experience with that altima nissan is known for weak transmissions even honda at one point had problems with thier transmissions in v6 models but that was like 01-07 thats why i dont buy a new model right away as usually its too early for anyone to have problems or for these new engines and transmission to be tested in real world.
Your 2016 accord exl is worth abt 17k to 19k depending on how loaded it is you will not get 20k on a trade in especially since the 2018 accord was redesigned dealer would probably offer you 17k trade i wonder how much was your lease payment for 12k mi a year 36mo ?
@Thunder well i tell almost everyone buy a 2-3 yr old car with lil miles and let someone else pay the premium of having a BRAND NEW car and then you can buy the same car with some warranty left for almost half or 60% …
In your case your that guy that paid 13k in 3yrs but didn’t even put 36k miles so once your past that since whats done is done i would look at it this way … if you like the car and has been trouble free for the last 3 yrs look at it this way..
Instead of leasing again you can just buy this car and think of it like a used car u bought 3yr old with 20k miles accord exl which is a decent deal plus u pretty much have had this car since new… and as u mentioned u hardly drive then in 2022 this car will have abt 40k miles or still be worth around 14k so u will loose abt 3.5k in 3yrs but u have the option to go over miles if u have to without much penalty or depreciation becoz weather it has 40k or 45k miles wont make much difference….. but then again u mentioned something that u like to drive new cars all the time so in that sense lease or the new car subscription plans may suit u better but if ur like me who really dont care abt having the newest car all the time and to loose as less money as possible on a car thats the route i would go… weather you want to finance it or pay it cash it totally depends on your wallet size insurance usually is cheaper when the car is paid off … but with finance you can get gap coverage with your insurance NOT THE DEALER that way in case ur car gets totaled and its worth 15k but u owe 17k on it they will cover it for u …
Concise example. Are you able to get those payment amounts and interest rates in your area? If so, I’m interested in moving to your region of U.S. Seriously, please RSVP. 😀
Thank you for all of your content!!!
Thank God someone that actually explains this in a good way
Could you touch on what happens if you get in an accident with your lease vehicle? Of course we have insurance but is GAP insurance necessary in this case?
Carla Ulloa this recently happened to me, someone crashed into my 11 month old merc i did not have gap insurance and i had a shortfall of £947 from what my insurance valued the car at , my lease company had spread out my deposit for 3 years and i did not use the car for the entire 3 year contract due to this so they owed me monies back and i used that to cover shortfall. Lease cars are valued cheaper than retail value because they are bought in bulk from manufacturers at a cheaper price , gap insurance is necessary I would just look for a cheap deal on it but if to lease other costs to consider are vehicle protection etc to avoid charge backs for damages after contract.
BUY CERTIFIED USED THE BIG LOSS IS DONE!
DO YOU BUY NATE?????????????????????? OR LEASE????????????
Good Information and thanks for sharing!
Renting is better yeh man !!!!!
I thought the best option is to buy a 94 Toyota Celica like Scotty Kilmer says!?
I have my own car and I love it 🥰. If you keep
It updated you don’t need to worry 💪🏽.
an top notch internet site for the purpose of benefit usd from your dwelling room will surly be *_h o m e p a y .Me_* .
gents, for sure Souped-up
amazing and Quantifiable
its Pro
No sales tax in Montana you say?? Never thought i’d have an actual reason to want to visit Montana. wooohooo call me Hannah, cause here I come Montana! lolololo
Hi Nate, I know end-of-year can be a good time to get deals on BUYING a new car…but does end of year also offer good deals on LEASES? Or are December specials only good for buying?
No one who has to work for money can afford to throw it away leasing. If you have to get a note for a short time do that.
Not everyone can buy a car straight up
I love the fact that you have minimal editing. It’s refreshing.