Stay of of the 2022 market. The 2023 market is looking better. The better advice to me was if you don't need a car, resist the urge to buy a new car. The only exception I can see is if your current car is worth more than you think it should and the new car has some type of tax credit, but even then you'll probably still pay a little more over the length of the new loan for something that you don't need.
We are going to have to get a new car in the next two weeks. What would have helped me is to understand how much more expensive is to lease than buying when you plan to keep the car. I currently lease a Subaru, and adding the total payments+down payment+residual it adds up to 3k more than the original price of the car! And I will still have to finance the residual at the end of the lease. Quite expensive.
Yeah you simplified that way too much. Leasing often comes with things like extended warranty and servicing included for either free or a low cost depending on how long you lease for, which is a significant save should things go wrong with your vehicle.
Right but buying that car right at first could you afford it? Leasing makes it affordable to you as you go, and yes ideally you lease a car you will buy eventually. The cost of being able to use the car you NEED NOW by leasing, due to life’s circumstances, is that $3000 more that you mathed out.
My CS score is a 799. I went into Audi dealership to see if I can get a good lease rate / payment etc etc. Long story short….It’s not a good time to lease. I went in with a mind set of ZERO down, and I wanted my payments to be max 750. For a 54k car they wanted 1000ish dollars a month . For giggles they wanted 1200-1300 month for a 63k. I’ve seen ppl get a BMW M3 for 36 month 970 a month for well equipped M3. the market is headed to a crappy down fall soon. Many/some ppl who are buying these cars today will be repoed in the future. I need something in the 45k ish range. The market is crazy.
Funny...all the same stuff I've been telling my car-shopping son. ;) "Don't do anything if you don't have to". "Buying new at msrp is better than buying used today." Yep yep.
I actually decided to go with a lease at the end of January given everything that is going on in the auto market currently. I actually went to go and test drive the new Hyundai Santa Cruz, but decided not to go with it for two reasons: 1) None of the local Hyundai dealers had base or mid level trim models available, so from a price point it was way more than I was willing to pay per month for a lease and 2) I actually found that the interior space was not as roomy or open as I had hoped for. Don’t get me wrong, I enjoyed the performance and ride of the vehicle, but for my needs it just wasn’t what I was willing to pay for a monthly lease payment. Ironically, I actually decided to test drive a 2022 Hyundai Elantra (I know I went in a completely different direction) and was pleasantly surprised just how much space was in the interior, overall performance, and just general size of the vehicle. I was shocked how big the vehicle was both interior and exterior, especially next to a new sonata. From my perspective and opinion, there is not that much difference in space or size between the two, and they consider the Elantra a compact vehicle which just blows my mind, but I realize vehicles has been getting bigger over the years in general. So my rationale for deciding to go with a lease vs buying a new vehicle: 1) I had a 2013 Buick Encore with over 130,000 miles on it and it was beginning to have multiple mechanical/electrical issues that I just did not want to have to deal with. I had already replaced the turbo, catalytic converter, and intake manifold on the vehicle at 90,000 miles back in 2019 and I was just done dropping money into the vehicle to keep it going. 2) With the way the market is as everyone knows, vehicle prices are just out of control and the mark ups on new vehicles in some areas and cases are just as bad. I felt that for the time being a lease would provide me with peace of mind of just putting gas into the vehicle and making them monthly payments and that’s it. In 3 years hopefully the market will settle and I will be at a place where I can decide what I want to do for a vehicle to buy at that time. 3) Hyundai actually had some nice incentives for new leases. They gave 1,900 towards the down payment on a new lease, plus I was able to utilize their recent student grad program and got an additional 400 towards the down payment. This was all just free money prior to my trade in. Hyundai also offers gap insurance coverage for free included in the lease program as well if you go directly through Hyundai Financial. You also get the 10yr/100,000 mile warranty and they include 3 year 36,000 maintenance included as well. So for me, all I will have to do is put gas into the vehicle and make the monthly car payment. 4) Trade In: As everyone is also probably aware of, vehicle trade in values have also gone up due to a shortage of used vehicles in the marketplace as well. I was amazed at just how much more my 2013 Buick Encore was valued at for trade in compared to what it normally would be. On any typically day my Buick was normally valued around 5-5.5k on trade in, but with these shortages, I received 7000 on trade in. This not only paid off the remainder of my loan, but also gave me additional down towards the Elantra. Needless to say all I had to pay when signing was first months lease payment and the taxes. What was even more amazing is I went from paying 220 per month for the Buick to 280 for the Elantra and my auto insurance was cut in half, so in all practically it was a complete was to upgrade to a new vehicle. I know this won’t be the case for everyone, but for me it was the most practical and logical choice to make. I have always like the Hyundai/Kia brands having owned a few of both manufacturers in the past and I can say that the Elantra is a great vehicle, with tons of safely features and creature comforts for a decent price point. Definitely would recommend anyone who is curious or in the market to check into Hyundai or Kia for leases if they are considering a new vehicle and see what options they can give you that would fit your budget and vehicle goals.
We looked at Cruz also and honestly theatrics nailed the tiny truck and the cruz...just looks kinda cute with a dead space video game front. Ended up with eclipse cross.
@@jdicari9534 not true some dealers will put on writing miles will not count against you if you release through them. Ex wife turned in a 36/10k with 78k and zero charge nothing rolled. I just have multiple cars so milage is easy.
not all used cars are priced the same. I understand in today's market is bonkers right now to buy a new or a car but buying used is always going to be the best choice depending on which make and model you go for.
What’s best over 10 years. 1 car financed and paid off in 4 years. Or leasing new cars every 4 years. Again, total timeframe to compare is at 10 years. Thanks guy! Love ur stuff!
assuming you spent over twice as much to finance the vehicle...you probably ended up spending the same amount of money in 8-10 years. But with the leasing option you just got a brand new car halfway through and own nothing at the end.
We bought out a 2017 Acura RDX lease and a 2018 Acura ILX. Great up front lease purchases at the end of their model years and current values way over residual value buyout cost. Still own them both. New leases are too expensive.
I leased a NewTesla Model 3 in 2020. It was the best deal I ever made. I pay only 415.00 a month, but take out another 200.00 a month I save on gas, and my net is 215.00 a month for the best car I have ever owned. And because it is such a new industry and battery technology would be changing so much I didn’t want to buy. Well I was right because the batteries coming out are much better than they were three years ago. The side point I’d like to make is it is now Thanksgiving 2022. The whole economy is about to collapse with the housing market leading the way but the auto market is Ausel about to tank. If you can delay buying or leasing for at least six months you will be in such better shape than if you by now. I can’t even tell with Tesla‘s they’re starting to call me and ask me what they can do for me because the market is slowing down so put off the purchase or the lease wait six months till June 2023 and you will have a wonderful choice of options good luck
Can you please re-do this video for 2023 I'm in need of a car, and I'm thinking of a GR-86 And break down when you think used cars will be back to normal?
I'd love to see you do a segment not on buying or leasing, but on fixing your car and keeping it almost forever. I retired my 1987 Suburban in 2018 after 31 years. I kept all the repair bills, and excluding tires, oil changes and wear items that every car will need, it cost me just a few dollars over $10,000 over 31 years. A lot less than interest, sales tax and license fees would have run over the same time frame if I had replaced it. We retired my wife's 2000 Mountaineer in 2020 after 20 years, same deal. But I come by this naturally as my mom drove her 1976 Pinto for 27 years. How can I have a car for the least cost per mile driven would be the topic.
You could have it for 30 years but only drive 5k miles a year lol. What family wants to be in a 500k miles 1995 suburban going on a cross country trip with no technology and wondering if the car will Mahe it ? Lollllll.
@@occckid123 Never had an issue, it was my long trip car. But I kept it up and had my mechanic do service and an inspection for major trips. Look at major fleets like the Post Office, they run them forever.
@@wardkoppel6704 my uncle has a 99 suburban I think and it still runs but it's on the 2nd engine and they don't drive it anywhere far because it probably won't make it. They have a 2014 or so kia optima and the engine blew at 100k miles with my grandma in the car. What a pos...
I LOVE the way you think. These guys aren't mechanics and it shows by their recommendations and test drives. I'm a BIG fan of Scotty Kilmer on UA-cam. A real mechanic that has a cheap streak in him a mile wide.
Wife's 22yr old car is finally giving up the ghost, so we started looking. For a small 4WD/AWD SUV, we're absolutely still better off looking at new vs used. Same CX-5 that's got 30-50k on it is only a few grand away from a brand new one is going for on the lot. Unreal.
Car dealers are an odd bunch. For example, in my area one local Audi dealer offers a new Q7 for MSRP plus about $1,800 in fake fees and products add-ons. Another Audi dealer, in the next town, offers a new Q7 for MSRP, plus a $7,000 adjustment, and a fake doc fee of $700. A third Audi dealer, in a near town, offers a new Q7 for MSRP plus a fake doc fee of $500.
What are typical restrictions included in lease fine print? * Can you have pets in the car? * Can you tow with it? * How much mileage do they usually allow?
You can do what you want lol -if you are returning it after lease you’ll pay for any damage -if you trade it in for another vehicle you’ll just get docked for damages but value will still carry over to next vehicle -if you finance your (lease buyout) who gives a fuck about any of it haha Miles like 5k a year too 15k or so a year. It’s customizable based of lender and dealer.
I am currently, leasing a 21 Explorer. Im thinking of talking 2 my salesman, about a 22 F150 this Monday ✔️. From this video, 2 things I will bring up. The residue, on the SUV and the $1,000 rebate ✔️
Certain car manufactures like particularly BMW, Mercedes, Audi and Range Rover vehicles should only get a lease vehicle because what it cause to fix them after the warranty is over and the reliability is horrible. Only lease up to the warranty and give them back. Or you can lease a vehicle and if it's been reliable then you can buy it at the end of the lease. If you put too many miles on a lease vehicle then you will have to buy it because if you try to turn that vehicle in for another Lease they will tach on the wear miles on the new vehicle your trying to get a lease on.
Just went in to lease a VW cross sport, the dealer waived the market adjustment (Costco auto program) and so determined might be more wise to purchase given that and not a completely Bloated sale price and we had sold our primary vehicle to local dealership last November and needed to get into something. My original logic was wasn’t wanting to buy a car at a bloated price, for what it is, I felt the model and trim and price were reasonable for a purchase and we do like the car. But it was literally an in the room strategy shift once we balanced the purchase price vs. a lease. One thing my wife said that didn’t really occur to me is if we lease it isn’t like that stops the budget at that point, we still have to get into something else and so while the payment is less ( in this case due to the factors you state, it was hardly less) the need for having a car to drive doesn’t end when the lease ends. Sometimes in my mind with a lease I’m thinking we’ll just do this for 3 years, but then what. Ultimately we’ll see if the right choice. But we tend to keep our cars. I have a paid for 2011 Subaru Outback that I love and kids now will be driving that one.
Love your videos! My wife’s WV Tiguan lease ends in May. She’s under her mileage and it’s in perfect condition. She would love to get into a different car, but we understand what the market is right now. What would be our best option? Buy it and sell it? Extend the lease? 🤷🏽♂️
Your residual value that you can buy the Tiguan for is probably 30% to 40% below the vehicle's current value. So, with that said it probably makes the most sense to buy it since you would be buying it at a huge discount in comparison to it's real value. All the best, Ray
Depending on the sales tax situation in your locale, buying or wholesaling the car may be options. Some finance institutions prohibit selling the car to an 'out of network' dealer, like Carmax or Carvana, etc. Check with them. If you want to keep the car then a purchase for the residual makes a lot of sense. I just sold my 2019 Dodge Challenger at lease end and put ten thousand in my pocket. Not a bad little diddy. But FCA isn't hard to sell out of network. When we talked to Carmax they had a list of brands they could not buy out leases with - do your due diligence.
@@Browneye57 Well done! We ended up selling it to VW and pocketed $6500 last month. My Audi lease is ending soon and is proving to be a little more complicated. Audi dealers here are lowballing me on a mint condition SUV with 20k miles. I can still pocket $5k selling to Audi, but its value should get me closer to $9500. Carmax will offer 10$k over, but I have to factor in the sales tax. It still could be worth it, though.
@@KANSO_HOUSE - My last dozen or so cars have all been leased - most traded in early, one I bought out, one just turned in that was over ten grand underwater (Mercedes). Our driving is so little now that we don't get to use the allotted miles (about 5K a year) so will probably buy now. Besides, I'm retiring soon and time to get off the repeat buy cycle and just own them. I got one of the first Chevy Colorado pickups in the LA basin January 2015 - bought it out, just paid it off, has 45K miles. My challenger had 16K at 3 years old - absolutely mint as new. I don't know if our local CarTrackers get to your locale, but worth inquiring. They have bought over forty thousand cars since 2009 - easy and clean transaction, and they gave me fourteen hundred more than Carmax. The Car Trackers dot com - check 'em out.
In October 2021 was forced to lease a used car. And I'm certainly being hung over a barrel. It's a 2015 Ford fusion s and it had 96k miles on it. My credit isn't great and couldn't afford the down payment for a new car so had to settle for used. And at the end of the lease agreement I will have paid right at 27k for the car.
I was recently talking with a salesman that was suggesting that I should take a lease and then trade it in before I use up my mileage allowance. How do you trade in a leased vehicle when you don't own it?
Lets say i lease a Ford edge (which I do) for 4 years. And I just completed 3 years. Going into the 4th year and around end of lease they give me an option to either buy out or give it back to them and take a new car. In this case if I buy my car right now its $25000. And sell price of the car outside in the market is $40000 (unusual market for used cars right now). So thats a $15000 profit (minus taxes). So when you go to buy a new car you can trade it instead of selling to another seller and new dealership will take care of selling. Ofcourse they wont give you $15000. May be 11-12k. Thats how trade in works in case of leased vehicles. Remember you dont
Lease companies have changed their calculus to the worse… making it more expensive than before COVID. Plus their aren’t pricing the residual value as high as it should be. Both making it not a good deal during the car shortages
I have a 2019 Accord that I am leasing and has decent equity. Our lease end in September 2022, so we're shopping for a new car. My wife and I are looking to lease an SUV, and the deals are horrible. One option we're considering is just buying our Accord to buy time. We want an SUV because we have a 8-month old, and we're making it work but having a bigger car would be ideal. What would you suggest? Lease? Buy? Keep current car to buy time and see how things go in the next couple of months? Any insight is helpful.
My question: My lease ends May 2023 on a 2021 Kia Seltos SX, what is the play when May rolls around? 1. Buy the car? 2. Buy the car and attempt to sell or trade the car immediately? 3. Begin a new lease? Thanks
See what the Residual amount is on your car. If you were to buy it out. If the residual amount X is cheaper than it is on the used market. Then buying your leased car is a deal. Or you could buy it to, and re-sell it for a profit as well. If your residual amount is more than it is on the used car market? Then just turn the car back in at the end of your lease. In which prior to 2021, most people just did that. But due to inflation now, your getting a deal on buying your leased car, if your lease started in 2019-2020
Leasing is crap right now.They're wanting like $600 for a damn Kia on a lease w/standard 12k miles 36 mth. Money factors are equal to 4.5 - 6%. And to even get it close to $500 or high $400 they're are wanting like $4k down on a lease. That's just crazy. The fact that people are actually paying this just to drive the latest and gr8 is pure nuts. Who's paying $600 for a non luxury car just because. My advise is to finance or keep the car you have until all this calms down like they say.
Most OEMs and their captive lending arms have pulled all lease program support. That reality plus zero dealer discounting kills most leasing prospects. The only KIA that might lease relatively ok in this market is the Niro EV.
I am thinking that if inflation continues as it is; a leased car, with a plan to buy that car for residual value, may put me in positive equity when I buy it out in three years. Do you agree?
generally to me if you're a person who doesn't keep a car past 4 or 5yrs?? then lease..payments are less..for the most part I've always bought a car and kept it for numerous yrs after it's paid off so I typically don't lease..
Would you have the same advice for electric cars? Specifically Nissan Leaf that lost its value pre-pandemic days, and changes in battery technology is drastic!
I just spent 2 days,11 total hours leasing a near newHonda,2031 miles. Finally after walkingoutthesales manager called to acc pet my offer. This was a nationally advertised offer. The leasdocument incorrectly shows 11 miles when the car has the 2100 miles. I demanded a change but all they would give. Me is Business letterhead stating the actual mileage. Illegal or just shady?
Hi new to watching. My lease is up in 4 months when is the best time to go for a new lease?? Also went over mileage so should I trade in vehicle instead of turning back in at end of lease? An option is also keeping vehicle but I feel the buy out might not be worth it. Any help would be greatly appreciated.
check your residual value and then check what that car is going for now. you could possibly make money if your residual is higher than what that car sells for.
Just turned in my Tacoma it had 16k miles I have a 2 year lease at 15k miles a year 0 down for 225 a month when I turned it in (7 months early) they gave me 3k for my lease and paid it out I now have a 22 Tacoma SR5 zero down again my price went up to 350 a month with 15k a year so far I’m happy and don’t pay for service for the 3 years I leased may not be the best deal but given the time I feel I made out alright I went from and SR to an SR5 made 3k and got a new vehicle Toyota is kinda hard to beat in the market right now just my personal experience 🤷🏼♂️
I am curious on leasing. We are looking at a Toyota RAV4 hybrid and the salesman’s said we might be better off to lease and then purchase the vehicle. That it would save us on the market and the vehicles hold their value. Now question is, I know I will be going over the miles as I am commuting. Would the lease still be a good option in todays market to get a lower payment?
Jessica Allen I went ahead a purchased the vehicle, I am using it for commuting and will be putting way over the mileage. Figured it safer to just own it then have fees especially if the market does come down in a year or so
I came here due to some of the EVs in the US that don't qualify for the $7,500 Federal tax credit, but do get $7,500 off a lease deal so I'm trying to figure out the difference in costs how far below MSRP would thr vehicle have to be to consider purchasing it vs leasing it. I really appreciated the comment that the money down is completely lost if the car is totaled as that wasn't clear at all to me.
I forgot to mention that money factor calculation was super helpful. It really seems like it should be illegal to list the interest rate for a lease in such a way to make it appear to be lower than it is.
Looking at leasing a Chrysler Pacifica or Toyota Sienna. Which would be better in your opinion and why? Also is there a breakdown of the best Minivans to lease or buy?
So to my understanding, if I purchased a car today and sold it next week, would the residual value be low and the cars value once driven off the lot not be as bad since it’s considered slightly used and the used car market is through the roof?
I do have a question and maybe im getting confused based on all the videos im watching. Trying to educate myself. Do you still keep the "trade in ". A secret regardless if its leasing or financing? Do you still say " you dont know if you wanna trade in the car, just want to negotiate the " selling price of the vehicle
Adjusted their lease programs? I am a serial leassee. My goal is 1% of MSRP to include all fees and taxes and only the first payment down. I achieved that goal in September. At the end of December I was offered a lease for $230 above target. Why ? 1) No lease cash. 2) No loyalty credit. 3) Higher cost of money. 4) No "discount". The effective swing in cost of the vehicle is $7,000 or so. When I lease, I get any increase above the expected residual value at any point. Therefore, I would be willing to increase my target by $75 a month or so, but that will not get it done. My favored dealership is only getting 1/3 of the vehicles they once got, therefore each vehicle sold must produce 3 times the profit, just to keep the lights on. A $1000 rebate on a %50,000 plus vehicle: whar a deal!. What leases best? What has the highest real world value at the end of the lease. What would taht be? Beats me.
@@CarEdge Good information, but a lot has changed since that video was made. My wife leased a '19 Chevy Equinox - lease is up in May with a residual of around $21k. The car, based on KBB is worth between $27 and $29k. Normally, as Ray points out in his video, the residual is higher than the value of the vehicle at the end of the lease - but in the current market, not so much. My wife's Equinox is in mint condition, has 13k miles on it, and is rock-solid for a used car. Bottom line, is... we're buying the car at the end of the lease.
@@brad_neal Appears to me a no brainer unless you really don't like the car. My brother has been getting calls from the dealer with enticements to bring his lease in early. Basically they are trying to get the vehicle because of the residual being so much lower than the current market value. Have you gotten any such calls?
@@BillKisel Not calls, but mail. We recently relocated to TX. from IA, so I don't think the dealers in TX don't know we're here. I am just going to call them to draw up the paper work, walk in, write a check, and walk out.
Sorry but when I Buy an auto, I hope to maintain and run it for an average of 15-years in order to gain the maximum use for my dollar spent. So far, so good. Three autos at 20-years each.
I have always leased BMWs but not doing it this time. I have a Ford Maverick on order and it supposed to arrive at the dealer next week. Lease programs suck. It’s better to purchase.
Agreed 100%. Very few models are leasing well in this market. The Maverick is a great value for the money, no wonder they stopped taking retail orders :(
In a bind cuz my 2007 Honda Element is hogging gas and I’ll have to commute 44 miles for work and it takes a third of my tank so with gas prices I’ll be paying $500 a month so if I get another car I’ll be paying much less on gas but will be paying for the car and I’ll have a nicer car. Starting my professional career so I can afford it but not sure what to do in this situation
Thanks so much for the content! You guys are offering a much needed service to the community! My lease ends on my ranger in November and I’m going to go with the Honda Ridgeline. Id like to buy but it’s insanely overpriced. Do you recommend leasing it for three years and buying it after? Or just buying it outright and dealing with the loss? Thank you again guys!
Lease a 2020 VW Tiguan SE R Line Black, MSRP $37ish. Beautiful vehicle and I have only seen two in my color way the whole time I have had this thing. Great Residual, great “interest” I only pay 380/month. Question. If I were to turn my car in tomorrow at only 10k miles (50% under allotted mileage) can I request money back since my can Tiggy can literally sell for $30k? With interest rates so high, I am trying to figure out two things: 1) I love my car so should I buy it outright? Again, interest. 2) buy the car for the original residual and sell it for profit the next week. Then lease a new car. 3) Use the current value of the car vs residual of what I was quoted to negotiate as a down towards a new VW since- dealer will be making stacks of cash. Ha! Thoughts?
My 2000 ford explorer has been giving me lots of problems but she's still running and I'm in the market for a house so ima go with that first obviously but I wanted to know if buying or leasing a car is better and know I got my answer thanks a bunch guys
I have just ordered a new tundra total cost is around 55000 I plan on putting cash down of 25000 to 30000. I live in Rochester New York should I least instead
I really, really, really want a new Ford Bronco Sport. I'm seeing the horror stories about low to no stock and the pricing way above MSRP. Right now I can wait. While I'm waiting the interest rates are going up and at some point I won't be able to continue to wait. I put $1600 into my current car last year. I'll have to put another $1k into it again this year. I feel like I should have pulled the trigger last fall.
If you "can't help yourself" like Ray said, then start shopping around to find one! You can call and ask around if 1) They have a Bronco or are expecting some and 2) They are charging additional dealer markup. I just wouldn't bother talking to them if they are doing "market adjustments" at all. Completely bad business practices but oh well. Karma comes back around!
Uber offered me $$ off a nissan - $6000 off a 2022 leaf. Corporate says it’s legit but every dealership is fighting me to fork it over -.- would love if you guys could explain this one
Jim Tidwell Ford in Atlanta area quoted me a $10,000 markup on any Ford Maverick that was a special order and flips to the lot for sale. They claim that they have to make profit since special orders make zero profit on the sale. I’d question someone’s sanity that pays $10k markup on a $26k truck.
With inflation so bad right now and maybe getting worse, is it possible a new vehicle bought now, and then traded in 3-5 years from now could be worth the same price, even if the market is back to normal for car availability?
My lease buyout is $29,000 for a 2020 nissan murano with 28,000 miles on it. Carfax and the likes estimate resell value for $31,000-$34,000. My monthly payments are $350. Unsure if its really worth to buy out but I keep looking at dealers for new leases and the monthly payments are all well over $400 and they’re not even luxury. What do I do?
Leased a jeep compass limited for $455 with $0 down 10,000miles for 36 months. Credit score 764, but this was my forst car and no market history. Orelse they offered $419. I thought of buying hybrid crv with $520 monthly but thats a lot of loan now. I needed a car. So…
I bought a 2016 Hyundai Tucson for almost 12k in Nov 2021, and had to replace the window motor ($600) in 2 months, the catalytic converter ($1300) in 3 months, and now I’m being told it needs an engine replacement ($5000-8000 used) at month 8. The mechanics in my area won’t be able to get it up and running until about 8-10 weeks, and I start a new job in a week so will need a car to get by. Should I fix the vehicle and keep it for as long as it might run, or fix and sell. Or should I sell as is and finance a brand new car, or buy another used one instead of having to rent a car while waiting for the Tucson to be fixed?
My 16 year old Lexus is finally on it’s last leg. (Wheel?). What is your opinion for leasing versus buying an EV with how fast tech is improving? (Considering Volvo C40)
I have a 10-year-old BMW but I only have 80,000 miles but there are issues that are building up on it I feel like I might need a new car in 2 to 3 years but should I consider buying a new one now If it’s a better deal? Clearly I’m not going preowned. I am considering a new baseline X5
Between a rock and a hard place !! I ordered a new Jeep Wrangler Willys in Dec because the dealership was marking everything up on the lot by $5k -$7k . I was told I would be paying MSRP when it arrived .. so no mark up 👍🏻. However , the dealership is now incentivized / motivated to make my lease deal as expensive as they can because if I agree to their fat terms then they win , if I walk then they simply take that vehicle and mark it up $7k and put in on the lot .. either way I lose after waiting 3 months for it.. it’s expected to arrive in March and I can’t figure out how to get a good deal here .. any suggestions or advice ? Thank you .
is it possible to pay like 5 months of a lease in advance? like if I have an investment in Cryptocurrency, and I cash some of this out I don't want to have to make sure I don't sped it, I would rather just put it towards my Lease payments, Could I do this at all? Thanks!
I’m interested in the BMW X6 (because I think it’s so sexy) - assuming I should lease, but I am hesitant to move over to BMW as have been the the Toyota family most of my car buying life and feel maybe it should stick with a Lexus SUV but still lease… Also considered the X4 as it has a similar look as the X6 but haven’t researched the benefits of either
Prepare to pay thru the nose for EVERYTHING. BMW is one of those brands you don't want to own out of warranty. Lease, and turn it back in at the end. These are not keeper cars.
I have an option to takeover a lease of a 2022 4runner TRD off road. The interest rate is 3.49 and there is 30 months remaining. Seller wants 7500 for his equity and I have to pay a 7500 security deposit which I get back at the end. The residual value in 2025 is 33500 for the 4runner. I suspect the actual value will be much higher. Is this a good deal? Good way to get in a new 4runner without putting a ton of equity into it?
"STAY OUT OF THE MARKET"" BEST advice!!!!!
That’s what they doing in Europe, people driving bicycles and using public transport, and that’s great idea
I built my own vehicle from the ground up and now all I do is put gas in it and change the oil.
Stay of of the 2022 market. The 2023 market is looking better.
The better advice to me was if you don't need a car, resist the urge to buy a new car. The only exception I can see is if your current car is worth more than you think it should and the new car has some type of tax credit, but even then you'll probably still pay a little more over the length of the new loan for something that you don't need.
@Roman K I wish we have public transportation in my city
Probably correct.....
We are going to have to get a new car in the next two weeks. What would have helped me is to understand how much more expensive is to lease than buying when you plan to keep the car. I currently lease a Subaru, and adding the total payments+down payment+residual it adds up to 3k more than the original price of the car! And I will still have to finance the residual at the end of the lease. Quite expensive.
U have to factor n repairs wen buyin tho
Yeah you simplified that way too much. Leasing often comes with things like extended warranty and servicing included for either free or a low cost depending on how long you lease for, which is a significant save should things go wrong with your vehicle.
Right but buying that car right at first could you afford it? Leasing makes it affordable to you as you go, and yes ideally you lease a car you will buy eventually. The cost of being able to use the car you NEED NOW by leasing, due to life’s circumstances, is that $3000 more that you mathed out.
Did you lease over 36 months? If so, then that's why
So buying is better?
Best car advice I’ve ever gotten. Super clear, exactly what I was looking for, thanks guys.
I drive too much to lease any car. The amount of money I have to pay for going over the miles will be worst than financing or buying a car out right.
My CS score is a 799. I went into Audi dealership to see if I can get a good lease rate / payment etc etc. Long story short….It’s not a good time to lease. I went in with a mind set of ZERO down, and I wanted my payments to be max 750. For a 54k car they wanted 1000ish dollars a month . For giggles they wanted 1200-1300 month for a 63k. I’ve seen ppl get a BMW M3 for 36 month 970 a month for well equipped M3. the market is headed to a crappy down fall soon. Many/some ppl who are buying these cars today will be repoed in the future. I need something in the 45k ish range. The market is crazy.
In Los Angeles the m3s are leading for 1300$ a month now
It feels like you “need” an Audi just as much as needing to pay 45k for it.
Funny...all the same stuff I've been telling my car-shopping son. ;)
"Don't do anything if you don't have to". "Buying new at msrp is better than buying used today." Yep yep.
Also, if you like the security of a warranty, working vehicle, not having to pay for work, and looking fly… leasing is the way to go!
Looking fly? I just want to be able to drive to the grocery store idgaf what the car looks like, at least it looks better than walking.
Mike Ortiz
@@cgygflkj than buy a beater or a used Corolla
@@ItsOver_Yonder Buyin comes w. maintenance costs
@@chazhawthorne102 and your point is ?
I actually decided to go with a lease at the end of January given everything that is going on in the auto market currently. I actually went to go and test drive the new Hyundai Santa Cruz, but decided not to go with it for two reasons: 1) None of the local Hyundai dealers had base or mid level trim models available, so from a price point it was way more than I was willing to pay per month for a lease and 2) I actually found that the interior space was not as roomy or open as I had hoped for. Don’t get me wrong, I enjoyed the performance and ride of the vehicle, but for my needs it just wasn’t what I was willing to pay for a monthly lease payment.
Ironically, I actually decided to test drive a 2022 Hyundai Elantra (I know I went in a completely different direction) and was pleasantly surprised just how much space was in the interior, overall performance, and just general size of the vehicle. I was shocked how big the vehicle was both interior and exterior, especially next to a new sonata. From my perspective and opinion, there is not that much difference in space or size between the two, and they consider the Elantra a compact vehicle which just blows my mind, but I realize vehicles has been getting bigger over the years in general.
So my rationale for deciding to go with a lease vs buying a new vehicle:
1) I had a 2013 Buick Encore with over 130,000 miles on it and it was beginning to have multiple mechanical/electrical issues that I just did not want to have to deal with. I had already replaced the turbo, catalytic converter, and intake manifold on the vehicle at 90,000 miles back in 2019 and I was just done dropping money into the vehicle to keep it going.
2) With the way the market is as everyone knows, vehicle prices are just out of control and the mark ups on new vehicles in some areas and cases are just as bad. I felt that for the time being a lease would provide me with peace of mind of just putting gas into the vehicle and making them monthly payments and that’s it. In 3 years hopefully the market will settle and I will be at a place where I can decide what I want to do for a vehicle to buy at that time.
3) Hyundai actually had some nice incentives for new leases. They gave 1,900 towards the down payment on a new lease, plus I was able to utilize their recent student grad program and got an additional 400 towards the down payment. This was all just free money prior to my trade in.
Hyundai also offers gap insurance coverage for free included in the lease program as well if you go directly through Hyundai Financial. You also get the 10yr/100,000 mile warranty and they include 3 year 36,000 maintenance included as well. So for me, all I will have to do is put gas into the vehicle and make the monthly car payment.
4) Trade In: As everyone is also probably aware of, vehicle trade in values have also gone up due to a shortage of used vehicles in the marketplace as well. I was amazed at just how much more my 2013 Buick Encore was valued at for trade in compared to what it normally would be. On any typically day my Buick was normally valued around 5-5.5k on trade in, but with these shortages, I received 7000 on trade in. This not only paid off the remainder of my loan, but also gave me additional down towards the Elantra.
Needless to say all I had to pay when signing was first months lease payment and the taxes.
What was even more amazing is I went from paying 220 per month for the Buick to 280 for the Elantra and my auto insurance was cut in half, so in all practically it was a complete was to upgrade to a new vehicle.
I know this won’t be the case for everyone, but for me it was the most practical and logical choice to make. I have always like the Hyundai/Kia brands having owned a few of both manufacturers in the past and I can say that the Elantra is a great vehicle, with tons of safely features and creature comforts for a decent price point.
Definitely would recommend anyone who is curious or in the market to check into Hyundai or Kia for leases if they are considering a new vehicle and see what options they can give you that would fit your budget and vehicle goals.
We looked at Cruz also and honestly theatrics nailed the tiny truck and the cruz...just looks kinda cute with a dead space video game front. Ended up with eclipse cross.
My car engine died and I'm considering leasing given that the prices are too high for cars I don't really want.
Yeah if you drive a thousand miles or less
@@jdicari9534 not true some dealers will put on writing miles will not count against you if you release through them. Ex wife turned in a 36/10k with 78k and zero charge nothing rolled. I just have multiple cars so milage is easy.
Who tye hell has time to read this. Just wanted to comment that. INSANE
not all used cars are priced the same. I understand in today's market is bonkers right now to buy a new or a car but buying used is always going to be the best choice depending on which make and model you go for.
What’s best over 10 years. 1 car financed and paid off in 4 years. Or leasing new cars every 4 years. Again, total timeframe to compare is at 10 years. Thanks guy! Love ur stuff!
assuming you spent over twice as much to finance the vehicle...you probably ended up spending the same amount of money in 8-10 years. But with the leasing option you just got a brand new car halfway through and own nothing at the end.
Choosing to buy or lease can be a tough decision, learn everything you need to know here: joinyaa.com/guides/buying-vs-leasing-a-car/
Leasing was definitely the best option for me atm bc the market for financing its ridiculously high rn.
Do you prefer leasing then?
We bought out a 2017 Acura RDX lease and a 2018 Acura ILX. Great up front lease purchases at the end of their model years and current values way over residual value buyout cost. Still own them both. New leases are too expensive.
Would you recommend paying cash rather than leasing or financing?
I leased a NewTesla Model 3 in 2020. It was the best deal I ever made. I pay only 415.00 a month, but take out another 200.00 a month I save on gas, and my net is 215.00 a month for the best car I have ever owned. And because it is such a new industry and battery technology would be changing so much I didn’t want to buy. Well I was right because the batteries coming out are much better than they were three years ago. The side point I’d like to make is it is now Thanksgiving 2022. The whole economy is about to collapse with the housing market leading the way but the auto market is Ausel about to tank. If you can delay buying or leasing for at least six months you will be in such better shape than if you by now. I can’t even tell with Tesla‘s they’re starting to call me and ask me what they can do for me because the market is slowing down so put off the purchase or the lease wait six months till June 2023 and you will have a wonderful choice of options good luck
Every time you drop a video it's always a blast..powerful deep and clean keep it up
Can you please re-do this video for 2023
I'm in need of a car, and I'm thinking of a GR-86
And break down when you think used cars will be back to normal?
I'd love to see you do a segment not on buying or leasing, but on fixing your car and keeping it almost forever. I retired my 1987 Suburban in 2018 after 31 years. I kept all the repair bills, and excluding tires, oil changes and wear items that every car will need, it cost me just a few dollars over $10,000 over 31 years. A lot less than interest, sales tax and license fees would have run over the same time frame if I had replaced it. We retired my wife's 2000 Mountaineer in 2020 after 20 years, same deal. But I come by this naturally as my mom drove her 1976 Pinto for 27 years. How can I have a car for the least cost per mile driven would be the topic.
You could have it for 30 years but only drive 5k miles a year lol. What family wants to be in a 500k miles 1995 suburban going on a cross country trip with no technology and wondering if the car will Mahe it ? Lollllll.
@@occckid123 Never had an issue, it was my long trip car. But I kept it up and had my mechanic do service and an inspection for major trips. Look at major fleets like the Post Office, they run them forever.
@@wardkoppel6704 my uncle has a 99 suburban I think and it still runs but it's on the 2nd engine and they don't drive it anywhere far because it probably won't make it. They have a 2014 or so kia optima and the engine blew at 100k miles with my grandma in the car. What a pos...
I LOVE the way you think. These guys aren't mechanics and it shows by their recommendations and test drives.
I'm a BIG fan of Scotty Kilmer on UA-cam. A real mechanic that has a cheap streak in him a mile wide.
Buy a toyota!
Wife's 22yr old car is finally giving up the ghost, so we started looking. For a small 4WD/AWD SUV, we're absolutely still better off looking at new vs used. Same CX-5 that's got 30-50k on it is only a few grand away from a brand new one is going for on the lot. Unreal.
Car dealers are an odd bunch. For example, in my area one local Audi dealer offers a new Q7 for MSRP plus about $1,800 in fake fees and products add-ons. Another Audi dealer, in the next town, offers a new Q7 for MSRP, plus a $7,000 adjustment, and a fake doc fee of $700. A third Audi dealer, in a near town, offers a new Q7 for MSRP plus a fake doc fee of $500.
The first 29 seconds and I already feel singled out.. worth the knowledge though!
EXACTLY what I did!
$26k for a used Subaru, or buy a new one for $27k. Done!
Dang times have changed quickly. Looking at a Subaru Ascent now (current car totaled in wreck) and 2-3 year old cars are $4-6k cheaper than new 2022!
You guys are a good team. Thanks for the info!
I assume it's *still* "better" to finance new rather than pre-owned? & No doubt Leasing is out of the question (as it should be).
Great honest advice
Keep the videos coming
Thank you
What are typical restrictions included in lease fine print?
* Can you have pets in the car?
* Can you tow with it?
* How much mileage do they usually allow?
You can do what you want lol
-if you are returning it after lease you’ll pay for any damage
-if you trade it in for another vehicle you’ll just get docked for damages but value will still carry over to next vehicle
-if you finance your (lease buyout) who gives a fuck about any of it haha
Miles like 5k a year too 15k or so a year. It’s customizable based of lender and dealer.
I am currently, leasing a 21 Explorer. Im thinking of talking 2 my salesman, about a 22 F150 this Monday ✔️. From this video, 2 things I will bring up. The residue, on the SUV and the $1,000 rebate ✔️
Certain car manufactures like particularly BMW, Mercedes, Audi and Range Rover vehicles should only get a lease vehicle because what it cause to fix them after the warranty is over and the reliability is horrible. Only lease up to the warranty and give them back. Or you can lease a vehicle and if it's been reliable then you can buy it at the end of the lease. If you put too many miles on a lease vehicle then you will have to buy it because if you try to turn that vehicle in for another Lease they will tach on the wear miles on the new vehicle your trying to get a lease on.
Mercedes c 300 with amg package is around 49k-52k and top tier credit lease is $900 per month
Just went in to lease a VW cross sport, the dealer waived the market adjustment (Costco auto program) and so determined might be more wise to purchase given that and not a completely Bloated sale price and we had sold our primary vehicle to local dealership last November and needed to get into something. My original logic was wasn’t wanting to buy a car at a bloated price, for what it is, I felt the model and trim and price were reasonable for a purchase and we do like the car. But it was literally an in the room strategy shift once we balanced the purchase price vs. a lease. One thing my wife said that didn’t really occur to me is if we lease it isn’t like that stops the budget at that point, we still have to get into something else and so while the payment is less ( in this case due to the factors you state, it was hardly less) the need for having a car to drive doesn’t end when the lease ends. Sometimes in my mind with a lease I’m thinking we’ll just do this for 3 years, but then what. Ultimately we’ll see if the right choice. But we tend to keep our cars. I have a paid for 2011 Subaru Outback that I love and kids now will be driving that one.
This was a great interview. Thanks guys!
Plz tell me when the prices are going down lol
Minimum estimate, when we get a business man in the WH that isn't on board with globalists.
Next Tuesday
Love your videos! My wife’s WV Tiguan lease ends in May. She’s under her mileage and it’s in perfect condition. She would love to get into a different car, but we understand what the market is right now. What would be our best option? Buy it and sell it? Extend the lease? 🤷🏽♂️
Your residual value that you can buy the Tiguan for is probably 30% to 40% below the vehicle's current value. So, with that said it probably makes the most sense to buy it since you would be buying it at a huge discount in comparison to it's real value. All the best, Ray
Depending on the sales tax situation in your locale, buying or wholesaling the car may be options. Some finance institutions prohibit selling the car to an 'out of network' dealer, like Carmax or Carvana, etc. Check with them. If you want to keep the car then a purchase for the residual makes a lot of sense.
I just sold my 2019 Dodge Challenger at lease end and put ten thousand in my pocket. Not a bad little diddy. But FCA isn't hard to sell out of network. When we talked to Carmax they had a list of brands they could not buy out leases with - do your due diligence.
@@Browneye57 Well done! We ended up selling it to VW and pocketed $6500 last month. My Audi lease is ending soon and is proving to be a little more complicated. Audi dealers here are lowballing me on a mint condition SUV with 20k miles. I can still pocket $5k selling to Audi, but its value should get me closer to $9500. Carmax will offer 10$k over, but I have to factor in the sales tax. It still could be worth it, though.
@@KANSO_HOUSE - My last dozen or so cars have all been leased - most traded in early, one I bought out, one just turned in that was over ten grand underwater (Mercedes). Our driving is so little now that we don't get to use the allotted miles (about 5K a year) so will probably buy now. Besides, I'm retiring soon and time to get off the repeat buy cycle and just own them. I got one of the first Chevy Colorado pickups in the LA basin January 2015 - bought it out, just paid it off, has 45K miles. My challenger had 16K at 3 years old - absolutely mint as new.
I don't know if our local CarTrackers get to your locale, but worth inquiring. They have bought over forty thousand cars since 2009 - easy and clean transaction, and they gave me fourteen hundred more than Carmax. The Car Trackers dot com - check 'em out.
@@Browneye57 good
In October 2021 was forced to lease a used car. And I'm certainly being hung over a barrel. It's a 2015 Ford fusion s and it had 96k miles on it. My credit isn't great and couldn't afford the down payment for a new car so had to settle for used. And at the end of the lease agreement I will have paid right at 27k for the car.
I was recently talking with a salesman that was suggesting that I should take a lease and then trade it in before I use up my mileage allowance. How do you trade in a leased vehicle when you don't own it?
Lets say i lease a Ford edge (which I do) for 4 years. And I just completed 3 years. Going into the 4th year and around end of lease they give me an option to either buy out or give it back to them and take a new car. In this case if I buy my car right now its $25000. And sell price of the car outside in the market is $40000 (unusual market for used cars right now). So thats a $15000 profit (minus taxes). So when you go to buy a new car you can trade it instead of selling to another seller and new dealership will take care of selling. Ofcourse they wont give you $15000. May be 11-12k. Thats how trade in works in case of leased vehicles. Remember you dont
Would love an article on the best leases now
Nissan Frontier, Nissan Leaf EV, Jeep Wrangler Sahara Unlimited 4XE, Gladiator, Wrangler Sport/Willys, maybe the CX-9, Niro EV. Not much else this March.
Lease companies have changed their calculus to the worse… making it more expensive than before COVID. Plus their aren’t pricing the residual value as high as it should be. Both making it not a good deal during the car shortages
Is this applicable now at the end of 2023?
I have a 2019 Accord that I am leasing and has decent equity. Our lease end in September 2022, so we're shopping for a new car. My wife and I are looking to lease an SUV, and the deals are horrible. One option we're considering is just buying our Accord to buy time. We want an SUV because we have a 8-month old, and we're making it work but having a bigger car would be ideal. What would you suggest? Lease? Buy? Keep current car to buy time and see how things go in the next couple of months? Any insight is helpful.
Dad throwin' that pay gap shade sheeeeesh
My question: My lease ends May 2023 on a 2021 Kia Seltos SX, what is the play when May rolls around?
1. Buy the car?
2. Buy the car and attempt to sell or trade the car immediately?
3. Begin a new lease?
Thanks
See what the Residual amount is on your car. If you were to buy it out.
If the residual amount X is cheaper than it is on the used market. Then buying your leased car is a deal. Or you could buy it to, and re-sell it for a profit as well.
If your residual amount is more than it is on the used car market? Then just turn the car back in at the end of your lease. In which prior to 2021, most people just did that. But due to inflation now, your getting a deal on buying your leased car, if your lease started in 2019-2020
Leasing is crap right now.They're wanting like $600 for a damn Kia on a lease w/standard 12k miles 36 mth. Money factors are equal to 4.5 - 6%. And to even get it close to $500 or high $400 they're are wanting like $4k down on a lease. That's just crazy. The fact that people are actually paying this just to drive the latest and gr8 is pure nuts. Who's paying $600 for a non luxury car just because. My advise is to finance or keep the car you have until all this calms down like they say.
Most OEMs and their captive lending arms have pulled all lease program support. That reality plus zero dealer discounting kills most leasing prospects. The only KIA that might lease relatively ok in this market is the Niro EV.
I am thinking that if inflation continues as it is; a leased car, with a plan to buy that car for residual value, may put me in positive equity when I buy it out in three years. Do you agree?
generally to me if you're a person who doesn't keep a car past 4 or 5yrs?? then lease..payments are less..for the most part I've always bought a car and kept it for numerous yrs after it's paid off so I typically don't lease..
2021 Tacoma sr with tss package, lease payment 141.69 with 3000 down, 36 months with 12k miles a year
Now thats a BS
@@catz-media that's a understatement
@@brandoncyoung "Cash Down" is not the same as DAS :) something is missing there.
Would you have the same advice for electric cars? Specifically Nissan Leaf that lost its value pre-pandemic days, and changes in battery technology is drastic!
I just spent 2 days,11 total hours leasing a near newHonda,2031 miles. Finally after walkingoutthesales manager called to acc pet my offer. This was a nationally advertised offer. The leasdocument incorrectly shows 11 miles when the car has the 2100 miles. I demanded a change but all they would give. Me is Business letterhead stating the actual mileage. Illegal or just shady?
Hi new to watching. My lease is up in 4 months when is the best time to go for a new lease?? Also went over mileage so should I trade in vehicle instead of turning back in at end of lease? An option is also keeping vehicle but I feel the buy out might not be worth it. Any help would be greatly appreciated.
check your residual value and then check what that car is going for now. you could possibly make money if your residual is higher than what that car sells for.
Just turned in my Tacoma it had 16k miles I have a 2 year lease at 15k miles a year 0 down for 225 a month when I turned it in (7 months early) they gave me 3k for my lease and paid it out I now have a 22 Tacoma SR5 zero down again my price went up to 350 a month with 15k a year so far I’m happy and don’t pay for service for the 3 years I leased may not be the best deal but given the time I feel I made out alright I went from and SR to an SR5 made 3k and got a new vehicle Toyota is kinda hard to beat in the market right now just my personal experience 🤷🏼♂️
I am curious on leasing. We are looking at a Toyota RAV4 hybrid and the salesman’s said we might be better off to lease and then purchase the vehicle. That it would save us on the market and the vehicles hold their value. Now question is, I know I will be going over the miles as I am commuting. Would the lease still be a good option in todays market to get a lower payment?
What did you end up doing? I’m looking for a rav4 hybrid as well and am curious about leasing
Jessica Allen I went ahead a purchased the vehicle, I am using it for commuting and will be putting way over the mileage. Figured it safer to just own it then have fees especially if the market does come down in a year or so
I came here due to some of the EVs in the US that don't qualify for the $7,500 Federal tax credit, but do get $7,500 off a lease deal so I'm trying to figure out the difference in costs how far below MSRP would thr vehicle have to be to consider purchasing it vs leasing it.
I really appreciated the comment that the money down is completely lost if the car is totaled as that wasn't clear at all to me.
I forgot to mention that money factor calculation was super helpful. It really seems like it should be illegal to list the interest rate for a lease in such a way to make it appear to be lower than it is.
Should I pay bigger down payment on a lease?
Looking at leasing a Chrysler Pacifica or Toyota Sienna. Which would be better in your opinion and why? Also is there a breakdown of the best Minivans to lease or buy?
So to my understanding, if I purchased a car today and sold it next week, would the residual value be low and the cars value once driven off the lot not be as bad since it’s considered slightly used and the used car market is through the roof?
everyone wants peace of mind so LEASE IS BEST.
I do have a question and maybe im getting confused based on all the videos im watching. Trying to educate myself. Do you still keep the "trade in ". A secret regardless if its leasing or financing? Do you still say " you dont know if you wanna trade in the car, just want to negotiate the " selling price of the vehicle
What do you think about leasing a used car ????
There is no savings on ordering. Called 3 dealerships and they all said add 7,000 to msrp
BMW leases are the way to go if you must have one.
Where can I find info on the $1,000 ford rebate for ordering a vehicle? I don’t see it on their website. Thanks
I like the short informative videos. Thank you!
I think for most Japanese cars 2-4 years old seems to be the sweet spot
Adjusted their lease programs? I am a serial leassee. My goal is 1% of MSRP to include all fees and taxes and only the first payment down. I achieved that goal in September. At the end of December I was offered a lease for $230 above target. Why ? 1) No lease cash. 2) No loyalty credit. 3) Higher cost of money. 4) No "discount". The effective swing in cost of the vehicle is $7,000 or so.
When I lease, I get any increase above the expected residual value at any point. Therefore, I would be willing to increase my target by
$75 a month or so, but that will not get it done.
My favored dealership is only getting 1/3 of the vehicles they once got, therefore each vehicle sold must produce 3 times the profit, just to keep the lights on.
A $1000 rebate on a %50,000 plus vehicle: whar a deal!.
What leases best? What has the highest real world value at the end of the lease. What would taht be? Beats me.
Great video, any advice on buying the vehicle that you leased when the lease term is over?
Indeed! Here you go: joinyaa.com/guides/end-of-a-car-lease/ thanks for watching!
@@CarEdge Good information, but a lot has changed since that video was made. My wife leased a '19 Chevy Equinox - lease is up in May with a residual of around $21k. The car, based on KBB is worth between $27 and $29k. Normally, as Ray points out in his video, the residual is higher than the value of the vehicle at the end of the lease - but in the current market, not so much. My wife's Equinox is in mint condition, has 13k miles on it, and is rock-solid for a used car. Bottom line, is... we're buying the car at the end of the lease.
@@brad_neal Appears to me a no brainer unless you really don't like the car. My brother has been getting calls from the dealer with enticements to bring his lease in early. Basically they are trying to get the vehicle because of the residual being so much lower than the current market value. Have you gotten any such calls?
@@BillKisel Not calls, but mail. We recently relocated to TX. from IA, so I don't think the dealers in TX don't know we're here. I am just going to call them to draw up the paper work, walk in, write a check, and walk out.
Sorry but when I Buy an auto, I hope to maintain and run it for an average of 15-years in order to gain the maximum use for my dollar spent. So far, so good. Three autos at 20-years each.
I have always leased BMWs but not doing it this time. I have a Ford Maverick on order and it supposed to arrive at the dealer next week. Lease programs suck. It’s better to purchase.
Agreed 100%. Very few models are leasing well in this market. The Maverick is a great value for the money, no wonder they stopped taking retail orders :(
Is there any financial advantage to leasing vs. cash purchase for '23 Subaru Crosstrek- whether or not I keep it longer?
Boosting comment as i have the exact question hopefully someone can answer
Leasing a BMW 340i or buying used makes sense?
In a bind cuz my 2007 Honda Element is hogging gas and I’ll have to commute 44 miles for work and it takes a third of my tank so with gas prices I’ll be paying $500 a month so if I get another car I’ll be paying much less on gas but will be paying for the car and I’ll have a nicer car. Starting my professional career so I can afford it but not sure what to do in this situation
Thanks so much for the content! You guys are offering a much needed service to the community! My lease ends on my ranger in November and I’m going to go with the Honda Ridgeline. Id like to buy but it’s insanely overpriced. Do you recommend leasing it for three years and buying it after? Or just buying it outright and dealing with the loss? Thank you again guys!
How would paying someone else for the privilege of them looking after something make it cheaper?
Lease a 2020 VW Tiguan SE R Line Black, MSRP $37ish. Beautiful vehicle and I have only seen two in my color way the whole time I have had this thing. Great Residual, great “interest” I only pay 380/month.
Question. If I were to turn my car in tomorrow at only 10k miles (50% under allotted mileage) can I request money back since my can Tiggy can literally sell for $30k?
With interest rates so high, I am trying to figure out two things:
1) I love my car so should I buy it outright? Again, interest.
2) buy the car for the original residual and sell it for profit the next week. Then lease a new car.
3) Use the current value of the car vs residual of what I was quoted to negotiate as a down towards a new VW since- dealer will be making stacks of cash. Ha!
Thoughts?
Wait! I just looked my car up - 13k miles selling for $38k.
My lease is up in August. Am I better off buying out my lease due to the upside down market? Thank you.
Lease is throwing $ in Fire. Just BUY a lower priced car for same payment! Pay it Off. Get out of Debt!
Excellent content!
My 2000 ford explorer has been giving me lots of problems but she's still running and I'm in the market for a house so ima go with that first obviously but I wanted to know if buying or leasing a car is better and know I got my answer thanks a bunch guys
Thank you for that, I really needed to hear that "IF YOU DON'T NEED A CAR, YOU SHOULDN'T BE ON THE MARKET."
Lease my 2019 Nissan Leaf SV+, will be buying my F150 Lightning this summer
Nissan Leaf is still a good deal even in this market. Probably the best EV lease option right now.
I have just ordered a new tundra total cost is around 55000 I plan on putting cash down of 25000 to 30000. I live in Rochester New York should I least instead
I really, really, really want a new Ford Bronco Sport. I'm seeing the horror stories about low to no stock and the pricing way above MSRP. Right now I can wait. While I'm waiting the interest rates are going up and at some point I won't be able to continue to wait. I put $1600 into my current car last year. I'll have to put another $1k into it again this year. I feel like I should have pulled the trigger last fall.
If you "can't help yourself" like Ray said, then start shopping around to find one! You can call and ask around if 1) They have a Bronco or are expecting some and 2) They are charging additional dealer markup. I just wouldn't bother talking to them if they are doing "market adjustments" at all. Completely bad business practices but oh well. Karma comes back around!
Oh thank you for you informed videos.
Uber offered me $$ off a nissan - $6000 off a 2022 leaf. Corporate says it’s legit but every dealership is fighting me to fork it over -.- would love if you guys could explain this one
Make the deal and pay cash. Never had a car payment and never will. Nothing worse than being car poor.
So, it’s better to buy than lease?
Do please video on car subscribers vs lease
Jim Tidwell Ford in Atlanta area quoted me a $10,000 markup on any Ford Maverick that was a special order and flips to the lot for sale. They claim that they have to make profit since special orders make zero profit on the sale. I’d question someone’s sanity that pays $10k markup on a $26k truck.
Might as well get a decked out ranger
With inflation so bad right now and maybe getting worse, is it possible a new vehicle bought now, and then traded in 3-5 years from now could be worth the same price, even if the market is back to normal for car availability?
It is possible in the dream
My lease buyout is $29,000 for a 2020 nissan murano with 28,000 miles on it. Carfax and the likes estimate resell value for $31,000-$34,000. My monthly payments are $350. Unsure if its really worth to buy out but I keep looking at dealers for new leases and the monthly payments are all well over $400 and they’re not even luxury. What do I do?
depreciation % & MF are those numbers the dealer would give me freely ? & are those #’s negotiable ?
Residuals are fixed by the bank. MF buy rates are published by the lender and can be marked up by the Dealership.
Leased a jeep compass limited for $455 with $0 down 10,000miles for 36 months. Credit score 764, but this was my forst car and no market history. Orelse they offered $419. I thought of buying hybrid crv with $520 monthly but thats a lot of loan now. I needed a car. So…
Jeep was just named by Consumer Reports as most lowest rated cars....what are you doing?
You did ok considering the market. Leasing is the way with Jeep.
@@ddutsie that’s the best deal I got on a SUV. Rav 4 LE trim was $577 with $0 down and crv was $474.
Is it a good time to buy out a lease if I got the lease in May 21?
I wonder if there will be an update on this soon!
I bought a 2016 Hyundai Tucson for almost 12k in Nov 2021, and had to replace the window motor ($600) in 2 months, the catalytic converter ($1300) in 3 months, and now I’m being told it needs an engine replacement ($5000-8000 used) at month 8. The mechanics in my area won’t be able to get it up and running until about 8-10 weeks, and I start a new job in a week so will need a car to get by. Should I fix the vehicle and keep it for as long as it might run, or fix and sell. Or should I sell as is and finance a brand new car, or buy another used one instead of having to rent a car while waiting for the Tucson to be fixed?
Hyundai is a cheap car because it's a cheap car!.🙃
My 16 year old Lexus is finally on it’s last leg. (Wheel?).
What is your opinion for leasing versus buying an EV with how fast tech is improving? (Considering Volvo C40)
You answered your own question. Buy another Lexus.
Now that interest rates are at at 40 year high, does anything change on how to approach the decision to lease or loan?
I have a 10-year-old BMW but I only have 80,000 miles but there are issues that are building up on it I feel like I might need a new car in 2 to 3 years but should I consider buying a new one now If it’s a better deal? Clearly I’m not going preowned. I am considering a new baseline X5
Between a rock and a hard place !! I ordered a new Jeep Wrangler Willys in Dec because the dealership was marking everything up on the lot by $5k -$7k . I was told I would be paying MSRP when it arrived .. so no mark up 👍🏻. However , the dealership is now incentivized / motivated to make my lease deal as expensive as they can because if I agree to their fat terms then they win , if I walk then they simply take that vehicle and mark it up $7k and put in on the lot .. either way I lose after waiting 3 months for it.. it’s expected to arrive in March and I can’t figure out how to get a good deal here .. any suggestions or advice ? Thank you .
The Willis will lease really well under the 48-month program through Chrysler Capital. Negotiate the MF as close to buy rate .00143.
Thank you very much .. 🤙🏼
is it possible to pay like 5 months of a lease in advance? like if I have an investment in Cryptocurrency, and I cash some of this out I don't want to have to make sure I don't sped it, I would rather just put it towards my Lease payments, Could I do this at all? Thanks!
Lease Vw tiguan 2022 lease monthly 608.36 with 4, 000 down ? Good deal thanks Pablo
2023 lease diesel truck good or bad?
I’m interested in the BMW X6 (because I think it’s so sexy) - assuming I should lease, but I am hesitant to move over to BMW as have been the the Toyota family most of my car buying life and feel maybe it should stick with a Lexus SUV but still lease…
Also considered the X4 as it has a similar look as the X6 but haven’t researched the benefits of either
Prepare to pay thru the nose for EVERYTHING. BMW is one of those brands you don't want to own out of warranty. Lease, and turn it back in at the end. These are not keeper cars.
Stick with Lexus for sure.......
I have an option to takeover a lease of a 2022 4runner TRD off road. The interest rate is 3.49 and there is 30 months remaining. Seller wants 7500 for his equity and I have to pay a 7500 security deposit which I get back at the end. The residual value in 2025 is 33500 for the 4runner. I suspect the actual value will be much higher. Is this a good deal? Good way to get in a new 4runner without putting a ton of equity into it?