Finance expert: Leasing a car is a ‘waste of money’
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- Опубліковано 2 лис 2023
- Personal finance expert Suze Orman talks to CNN's Chris Wallace about her tips for saving and spending. Watch the full episode of "Who's Talking to Chris Wallace," streaming November 3rd on Max. #CNN #News
There's a reason we don't teach financial literacy in schools - the big money doesn't want you to understand wealth; they want you indebted for the rest of your life so you have to work to pay them while they ensure your wages never increase. If we taught children how to avoid this trap how would they retain their power and wealth?
There are pills for paranoia now.
People don't really seem to have much common sense. So that's a factor.
as a "well-off" guy, who did it the hard way (almost), you are RIGHT. I always recommend studying the life of Warren Buffett... but few people take that advice. Their loss.
Well said, if you are debt free and don’t chase the next fad, then you can live a stress free life with no strings. 👍
In our state, a Financial Literacy course is a high school graduation requirement. It was instituted immediately after the economic crisis of 2008-09.
I’ve been a Susie O . Follower and she’s helped me be what I am today . Retired at 58 and house paid off no credit cards . Living life !
I have always followed her practical methods. I got out of debt, paid my house off before i retired ... have my savings in CD's earning 4%, fixed annuities earning 4%, and money markets earning 4.5%. Vehicles were paid for long ago. Thank You Suzie👍🏼😁 (from a financially secure 67 year old widow.)
I agree I lease cars and never put a dime into repairs while my friends dump thousands of dollars in their used cars
@@pauladam8918You're not telling the truth, in other words, you're lying. I've had a car since I was 16 years old, always buy them 2-4 years old, am in my 60's now and all I do is change the oil when it's time, $40, brakes every 3 years, and a yearly checkup and that's it. I usually get rid of it after 4 years having spent next to nothing, so where's the thousands of dollars? You're saying that to make YOURSELF feel good. Yes, leasing is a waste of money and all you're doing is renting the car, period. Can't drive it over a certain amount of miles, afraid someone is going to scratch or dent it and YOU have to pay for it, etc, so it's a total waste of money.
@@user-dj1sg3hm5i So since you don't keep a car for more than 4 years, you essentially lease the car as well. You technically purchase a reasonably new car and then resell it after a few years. Thus you take on liability doing that as well. You also likely save nothing vs leasing a similarly reasonable car since you are always either making payments or coming out of pocket a fairly large amout of cash that can no longer earn you interest. Your resale or trade in are impacted by the same items you mentioned in your reply to paul. Too many miles, less vehicle value. Too much damage, less vehicle value. In either scenario, a car is a depreciating asset that you pay for. Leasing or buying, you waste money. Wanna really save money? Move to a location where a car is not needed. Thus you save on every aspect of car ownership. For me, I will avoid car ownership in a city in South East Asia. Added bonus, rents are affordable there too. No need to call anyone a liar. We all have our own experiences.
@@user-dj1sg3hm5iExactly. Leasing a car is plain STUPID. I own two used cars and all I do is get the oil changed every 3,000 miles.
@@GnosticCushite EXACTLY! Don't know what universe that person lives in 😀. It doesn't cost thousands of dollars to maintain a used car. I'm with you 100%.
She actually does really good work. So many people lack financial literacy and she doesn't sugercoat her words when she tells people not to splurge their money on frivolous items.
Check out the video on her debit card. It was a consumer rip-off with fees of over $30 a month and was never recognized by the major credit bureaus.
except on this she's isn't totally right, sometimes leasing is better
Exactly!! 👍
@@ronaldmason7053over $30/month on fees?! 😮 Can’t believe there are actually people that would be so financially unwise as to even consider using something like that.
Everyone spends money on things someone else thinks is a waste!
Totally agree with her opinion about leasing a car. I'm 57 years old, and I've had four cars in my life. I keep them and maintain them. I don't want a car payment until absolutely necessary.
Not even that. I buy cars only when I have the actual money. No payments ever .
I've taken a lot of her advice from 20 years ago. Wow. I didn't realize what a positive impact she's had on my life.
I can never get enough of Suzi’s straight talk.
I bought a brand-new Chevy Tahoe in 2004. Took out a 5 yr loan but paid it off ASAP (approx 50 months). I still have it. Runs like its brand new. Haven't had a car payment since 2008. No major repairs whatsoever. Other than basic maintenance (oil, brakes, tires), I've probably spent less than $3,000 total for repairs. Every month that goes by, another $400+ stays in my pockets.
So remember people, Susie gave examples of wants versus needs. You may want a new car or a larger car, but do you really need one? When I was gowing up I wanted a lot of things, however, I realized, I couldn’t afford them, and so rather than going into debt, I waited until I could afford them, but that wasn’t always the case, I did manage to get myself in a lot of credit card debt, but I also decide to do something about it.
So rather than spending my golden years, working under the Golden Arches, I hire other people to work for me. Capeesh! Cheers 🥂
The sad thing is that a huge portion of the population requires experts to point out the obvious.
The sad thing is that a huge portion of the population unquestioningly believes experts who obvious already agree with what they think. That's how people fall for con games.
The US economy is built around constant, never-ending consumption. Businesses and government leaders don't want citizens leading simple lives within their means - that would absolutely tank the economy! Spend spend spend is what people are told their whole life. have the latest and greatest products, or you're a loser!
My wife and I choose not to ride that particular merry-go-round. We have old cars, old phones, we repair rather than replace wherever possible, and although we are lower-middle income, we live fairly stress-free lives when it comes to money. Simply because we don't spend that much. But we still have food on the table, an annual holiday, transportation, internet access etc. Just not the top tier of any of those things.
Zionist lobby should be impeached Freeds the US economy Free Palestine and also, free ukraine
Zionist lobby should be impeached Freeds the US economy Free Palestine and also, free ukraine
Supporting these endless wars is a waste of money. Having open borders is a waste of money.
IKR
I wasn't paid to stay home during the pandemic. I also made minimum wage during that time. I'm sure there are lots of people out there, like me, who aren't spending like there's no tomorrow.
👍
Yeah, I get tired of hearing how everyone got rich during the pandemic when literally every single person I know that wasn’t a multi millionaire to begin with didn’t benefit financially to any significant degree
@@jameswillard1not sure what you mean by people getting rich during a pandemic. Where’d they get all that money to get “rich?” How do you get rich just because you spend less? I think you’re referring to how people saved up a lot more money during the pandemic because they couldn’t really spend their money anywhere. Saving up more money isn’t the same as getting rich.
My takeways: 1) don't buy a home if you're over 60 and are not filthy rich and cannot pay it off within two years (also, remember the taxes -- they never go away); 2) make sure you have a will; 3) finance your car but don't lease it; 4) get term life insurance, NOT whole life; 5) save something out of your paycheck. 6) pay down your credit card debt and keep it that way; 6) money market etc -- save it there.
I have been telling ppl about her for years!! She's why I pay my cars off and working to get my house paid off so I'm set for retirement!! ❤her!!
Must not be planning on a long retirement if you think your "paid off" car will last for all of it😂
@@upminer6162you totally missed her point. She’s just saying that she doesn’t owe any debt and is on track to go into retirement because of it (other than still needing to pay off her house). Since it’s common sense that you won’t be saving as much for retirement whenever you have any kind of debt. That has nothing to do with her thinking that she won’t ever need to replace her cars.
I remember when she was a TV spokesperson for GM. telling us that 'cash back' was a good financial move.
She's a total shill from the gitgo.
This lady is brilliant!
I'm grateful that I had the opportunity to teach personal finance at a Catholic high school for three years. I know most of my students will make good financial decisions.
Gaining control of finances is simple. Use a spreadsheet set up to auto-subtract monthly essential expenses from monthly net income. Then it can be used to track monthly excess income to make decisions about saving and spending on non-essentials. Then copy that spreadsheet to multiple sheets with each sheet representing one year into the future for as many years as desired. Finally, auto insert the previous sheet’s ending balance as the next sheet’s starting balance. With those additional sheets automatically doing all the arithmetic, decisions can easily be made about future-year spending and savings depending on net income flow and expense changes as they shift. I’ve been doing this since 1995 and have never accidentally dug myself into a financial hole and have never overdrawn a bank account.
First, people need to learn what is .. and how to do ... a spreadsheet.
Leasing a car is not always a waste of money. Lower monthly payments and you can negotiate to purchase at the end of the lease. Write off if you use the car for work. Not stuck with the car if you don't like it as many dealers will exchange it for another vehicle. If you are going to purchase a car buy a 3-5 year old vehicle not a new one
It is true that there are some benefits of leasing as you note. They are however not free of charge. Buying a 3-5 year old car is excellent advice.
Only losers lease. That's why both words start with the letter "L".
@@alananderson7903Was your demeaning comment really necessary? There are some in a position to lease a new car. Does not make them losers.
Thank Suzie I watched you religiously going back to 1996, I followed all your advices and now at 49 I have a network of over 1.4 million and by age 67 I’m expecting to retire with over 5 millions, Suzie & John Bogle’s from Vanguard are my heroes🙏🙏 I’ll always be grateful to you.
Me too! I'm 52 with a net worth of 1.2M. She's a smart lady. I don't understand why people hate her so much.
My office is filled with model cars, and when I was a kid there were pictures of cars all over my walls. For me, my car is not just my transportation it’s a toy, it’s a 45 minute escape from reality during my commute. I have my 401(k) IRA, and my house to be my smart money decisions. Every three years I lease my favorite car on the market with a giant smile on my face as my reward for working so hard; And I’m happy to do it. If I were to buy a luxury car every three years, the losses would double the amount I’m spending on leases.
You could buy Porsche GT3s or other rare cars and end up selling for the same that you bought it for 5-10 years later. Just another option if you’re a car guy.
@@fvr12345 yeah but 15K miles a year kills cars like that and I need a large backseat for work. Otherwise I’d have a six speed manual Murcielago…which doubles in value every five years lol.
@@fvr12345you can do that with leases, too
Buying a car is usually best. You can pay it off, own it, and drive it a long time without a car payment.
But I don't want to own it.
I bought one of her books when I was 27. I'm now 43 and am financially in good standing because of her.
The last car I had I financed. The MSRP was $25k. After paying the sales tax, the extended warranty, dealer processing fee and the finance charges for the loan the total finance charges came up to $32k. Add on an additional $6k for maintenance and repairs. I paid the car off in 4 years and when I decided to trade the car in, I went to three different dealerships and my highest offer was $5k, after I kicked out $38k😂. Never again
I did a lease on a car once. It was a new 95 Toyota 4Runner SR5 with a 3 year lease of 15k/yr, and 10 cents per mile over 45k mileage. That was a good lease at the time. Now here's the problem... When I wanted to turn the car in the dealership wouldn't give me a good lease again on a newer model. They wanted the vehicle because it only had 40k miles on it (below the lease limit) and they did all the maintenance (they knew the car), and they could get top dollar as a used vehicle.
So I said I would buy out the lease, and they wouldn't give me a good loan rate. So I found a bank loan that was really low. Then I got screwed by them (dealership) and the state. I paid above the FMV and I got hit with both state taxes and license fees again (I paid those originally on the loan). I kept the vehicle for almost 15 years total though. So I got my monies worth out of it.
I swore to myself to never do a Car Lease ever again. And I haven't. Stay within a budget when buying a car, go with a 5 year loan and fight for the best interest rate, and put about 10-15% down on the vehicle to keep payments manageable. And plan to keep the car for at least 10-12 years so you can recoup what you put in, plus a few years of putting that payment away to help on the down payment on the next one.
If you can find a dealer who is a manufacturing clearing house then you might get a good deal on last years model sitting on the lot. Also, buy in July or August because the dealers will want to move the current inventory for the new model year coming in September/October. If you can, find the Fleet Manager at the dealership and work a deal, they will usually be more flexible. Lessons I've learned after buying & owning 6 cars (mine and my wife's) over the last 30+ years.
I've had ONE for 25 yrs. and bought that used. It's been great and still a joy to own and drive.
This gal started a credit card that you filled with your dough if you had no credit. To build credit. But it took a dive, and everyone who had money in that card lost all their money.
And in a world where nothing ever goes wrong with a car and the stress of fixes and maintenance on aging vehicles don't exist...this is perfect advice.
Unless you are smart and buy a toyota.
I think she is correct in the sense that if you have the credit to lease a car, you'll get great financing terms to buy a brand new car, model year, pay it off in 4 or 5 years and then you can ride that thing for 10 more years without a payment. Cars regularly go upwards of 200k miles now and some car makers give great warranties (like Hyundai) for 100k miles. Meanwhile, the person leasing will be paying every year as they get into new cars. Sure they get the most modern technologies and best looking cars, but they're paying to rent a car instead of owning one.
And once that car you own does start giving mechanical problems, you can finance another, and you can use the money saved from those years you weren't paying to invest, grow and possibly pay off that car sooner or buy it outright with cash.
I only disagree in that there are assumptions in that "usually" vs "actually" can be two different things. I did the Dave Ramsey thing (used car, emergency fund, etc.) and I wouldn't wish it on my worst enemy. I leased a really solid car next (which I ended up buying and have had for 6 years) and I literally had zero stress...which meant I had re-captured all the time and energy wasted trying to save a few bucks. Money isn't my gauge of a rich life...abundance of time and lack of stress are what I optimize over all else...
Short version: I try not to step over dollars to pickup dimes - everyone has their own definition of that I suppose :)
And maybe more pertinent to Suzy's point - maybe someone just likes being in a different vehicle every couple of years...if that's what makes them happy (and yes, they can afford it), then I just don't see why that's so 'foolish'. Foolish is prescribing the 'makes sense on paper' plan on everyone's life when that rarely accounts for preference, life circumstance and what that person values most (eg saving time and stress vs. saving money)a
@@jsmcguireIII next time :)
Leasing a car is expensive, but it’s worry free. Buying a new one will save you headaches as well, but depreciation will make you lose money as well. Don’t own a car if you can’t, buy whatever you want if you can.
Worry free ? I'm guessing you never leased a car and returned it WITHOUT getting into a new lease or buying a new car. Guess what, they hit you for every nick in the paint, small wear on the seats, tires worn, etc,etc,etc .................
@@MB-rr1fb You worry about peanuts or do you drive in backwater roads?
A car doesn’t depreciated if is not an asset. 🤔
@@MB-rr1fb Many car companies nowadays provide you with up to $1,000 in damage coverage. Unless you treat the car like absolute garbage, there’s no way you owe them a dime. I’ve returned two leases cars with this coverage and it’s such a pleasant experience.
Always own my cars. Best advice I’ve ever given. To myself and others. You’re welcome.
Bad advice on car leasing. Why pay for 100% of a car when you can pay for only 40% of a car with a new car warranty (high resale cars like BMW) over 3 years, turn it in and get another new car and only pay another 40% with a new car warranty. 6 years 80% and 2 new cars or 100% and be driving an old car with no warranty and lots of miles. Why have your money sitting in the driveway when you can invest the difference? Remember…..a car is a depreciating asset……there is no value to having a car paid for.
Have a truck I've maintained for 20 years and paid it off in 3 yrs with at the time zero interest. Best vehicle purchase ever. The resale value on solid rust free used trucks is through the roof.
This is a sweeping generalization. I have leased many cars. I do it because 1) the internal money factor i.e. interest rate provided by most manufactures is less than what they will finance the loan. The lease payment is typically less than a loan payment 2) When you purchase the car you pay All of the sales tax up front vs paying half of the sales tax over a monthly basis. 3) You have the option to purchase the car and can then make the decision on that specific car at the end of the lease based on your current circumstances and if you still like the car. 4) Owning a car is a myth because it will always depreciate and require repairs. just because you don't have a payment doesn't mean it isn't costing you. 5} if you buy a new car for $40,000 with a loan, your payment is the same every month even in year 6 when the car is now worth only $10,000. 6) if you are in an accident and you own the car your trade-in value will be greatly impacted. If you lease the car you just turn it in. 7) If you don't buy the car at lease end you don't get low-balled on your trade-in. In fact you will get incentives to get another lease.
Leasing a car in 2017 was a good deal. The buyout in 2020 was a great deal for the consumer.
I've learned that it's OK to be somewhat financially illiterate if you just spend a lot less than you earn. Money just seems to pile up then, and then the trick is what to do with it.
….and THAT’S all we really need to know about financial literacy. The Golden Rule of Finance.
Yes, an saying one of my old Liverpudlian friend used to say
“You look after the pennies and the pounds (dollars) look after you.”
Very interesting that you say that it’s okay to be financially illiterate as long as you spend a lot than you earn, which never crossed my mind. But I think you are right to a certain degree. I say certain degree because even if you save a lot less than you earn, being financially illiterate can still very well get you in big trouble and drain your savings if the person encounters something unexpected and didn’t handle things correctly financially.
Just as many high schools have foreign language electives, every high school should also offer finance/money as a language. The management of money is a universal language. In all honesty, it should be a requirement to graduate.
Absolutely right.
The problem is there are not many teachers with money knowledge anyway. :(
@@elingedgarI was going to say something similar. The average money manager under performs the market and they are the supposed pro's.
@@elingedgar Accountants usually have degrees which is a prerequisite to be a teacher. And there are probably a lot of them out there who wouldn't mind some steady work, teaching kids. I'm not suggesting the teacher shows kids how to hedge the market, but instead teach them the fundamentals of how to manage, invest, credit scores, risk/reward, historical achievements of accomplished figures and the significance of saving.
Leasing is good when your have a business
I always listen to every word that Suzy says, thank you for the video
Paying rent is also a waste of money...lining someone else's pockets with gold and giving them the lifestyle that you wish you could have if you were not. But unfortunately this is how bad things have got.
Yes, paying rent is a waste of money. But a lot of people just can’t even come up with the down payment. I’ve been fortunate enough to not have that problem, but lots of people that really want their own home just can’t come with the initial down payment.
@@CrystallyLavender I agree. As previously stated 'unfortunately'.
Wealthy people in Manhattan rent and take their money to the stock market instead. They do just fine. Renting in a rural area is a terrible idea. Renting in SF or NYC is smart.
Not paying off a mortgage to have tax reduction is the stupidest thing in this country, IMO. Reason: when you don't pay off a house, you need to pay the interest with your after -tax money. You don't have to pay tax for the amount of money you pay for the interest. However, remember that you have to pay tax for the money you don't use to pay the interest. So if you pay $10k a year for the interest, you save $3k (30%) in tax. That means for every year you still have a mortgage, you lose $7k.
Leasing a car is ok only if you have money to throw away. The advantage of leasing a car: you drive a new car every time you use it, no need to take care of it (after 2 years of having the oil changed for free, you don't need to change the oil as you have only 1 year left with that car). However, you can't spend a lot of time driving your car because of the 12k-mile cap. Then why do you care if you drive a new or an old car when you spend only a little time with it?
Didn't this lady get caught scamming people, and she is still
on tv?
Corporate media for you
See my comment.
Yeah, I remember some years ago and I thought she had been discredited as a financial adviser.
She was discredited.
She never deserved the credit. A lot of oprah's introductions failed tremendously in short order.
Financially literacy and credit importance should be tought in school.
I beg to differ on whole life insurance versus term. having both is great!!!
It's amazing that people don't understand that after you own the car outright and get some payment free years out of it. You get to sell it and get money back out of it. How does someone not understand that a car you never own but always pay for is more expensive than a car you pay for in 3 or 4 years and then get a chunk back when you're done with it? like, yes I'll take that crazy depreciated 30K back from the 50K car I bought. Sounds like spending about 20K less than leasing to me.
Then why would anyone rent an apartment? That would be so stupid! They don't even own it after they're done living in it!
I drive a DEPRECIATING asset to get from point a to point b...not as a freaking investment thesis. I paid a lease because at that time they had great incentives and I wasn't sure I wanted the thing for more than 3 years.
And the argument assumes that accelerated payments are affordable for folks (most max out the 60 months and even have re-finance from there - esp with current rates)...and it assumes people want to be in the same car for a decade or longer. If you do - good on you. But that doesn't mean I'm wrong (or deserve to be called stupid by Suze Orman) for having that preference.
Wrong. Leasing a car is 100% deductible if u are self employed or a business owner
The only folks I know that lease a car have a bit of money and want new vehicles consistently. Almost no maintenance, and they vacation via other transportation means.
I would never buy another car unless I was wealthy. I don't know what rates or what model cars you are looking at but it's much more cost effective to lease for economy cars. Car repairs and the stresses of buying a used car are never worth it, been there and done that
@@BigBadJerryRogers exactly - well said
if you lease, it's always a new car and you're spending money for just having it parked 80%+ of the time. you're stuck with mileage limits, not being able to modify or upgrade it unless you're ready to spend even more money to return it to stock, you HAVE to repair it or pay for any damage to the car upon return, etc.
meanwhile, I can negotiate the price on a new OR used (potentially a steeply discounted low mileage lease return) car that I can enjoy without limits and any modifications I make (tint, air intake filter, sound system, wheels, etc.) I only pay for once and they become selling points or extra value when I'm ready to sell (which I can do 3 months or 13 years later, instead of a locked in term)
it's NEVER a good idea to lease or buy a depreciating asset... UNLESS YOU NEED IT, at that point go with the option that makes more financial sense, and 95% of the time it's ownership, especially on a used vehicle in good condition. nobody "needs" a new car, but if you really want one, depending on make and model it's within a few hundred dollars over the same period of time, but for above reasons, ownership is a much more enjoyable experience and past lease term depreciation slows down so every extra year of ownership is 1000's in your pocket.
suze orman is fantastic ,very intelligent lady
So many brands are now such great quality. Nissan, Subaru, Kia, Chevy, and are affordable. Maybe leasing luxury car is best.
We leased a car for three years. When the lease was up, we purchased it at the predetermined amount from the lease agreement. Since used car prices had went up over that time, we saved several thousand dollars on the purchase price, plus the dealership gave us a full warranty for the full term of the purchase loan (something I demand because I don't want a car that breaks down while I'm still making payments on it), plus gave us a great interest rate. Since we were the "previous owners", we knew the car was in good shape, had been well maintained, and had no unclaimed damaged that could surprise us down the road.
but that was a one off anomaly because of luck. We did it too but rolled the lease for the same payment. Being off of lease coming up the deals are not rosey.
That was because of the pandemic. You lucked out. Congratulations. You beat the casino on this one.
Good for you but that was just luck because of the pandemic, so it really depends on the circumstances.
Who gets a tax write off a mortgage? Most people use standard deduction anyways.
I agreed with her. It is better to buy a car and maintain the car in good shape. Keep it as long as it lasts. When you trade in a car, the dealer makes a profit off it - by making the lowest offer and sell it at higher price.
People who say "leasing a car is a waste of money" are clueless... or maybe don't know how to use a calculator.
He advice is not always wrong but WOOF it is not universally applicable. Maybe for some people the pandemic was a financial boon but for a lot of people stimulus and loan freezes meant they could afford what she herself would have to admit are needs whilst incomes dissappeared and even then for plenty of people those still weren't enough.
Excellent point. Not everyone who got a break on their student loan or mortgage payments blew it on frivolous things. I know people who used the money to create college savings funds for their kids or used the money to pay down credit cards - these aren't bad things and were things they also needed to do.
Renting anything you use for any amount of time is a screw
I followed her advice about need vs. want, and I saved a lot of money and retired at age 58.
How great for you! 58 is very young and you were smart and diligent enough to heed her advice.
Consumerism did not start at the end of the pandemic.
People spent like drunken sailors long before, during and now after the pandemic.
And, as much as people want to blame the government, or big corporations for inflation, its their own compulsive spending that has prices going through the roof.
I agree and the deals they offer for leasing a vehicle are so crappy too.
My car is 30 years old. I bought it used when it was 5 years old - paid cash. It has 344,000 miles on the odometer. It is maintained by a highly competent professional mechanic. Maintenance costs have typically been 2x - 3x the cost of a monthly new car payment. Yes, it doesn't look like a new car, but it's a classic; total strangers still compliment me on it. I've been free of car loan payments for more than 25 years, and could afford a nicer house because of that. Now that I'm comfortable in retirement I'd like to buy a new(er) car from the same manufacturer, but I can't: The company is out of business. Go figure.
Why didnt you get a horse and buggy ? - would have saved some real money.
My Lexus is 25+ yo and has needed almost nothing in repairs over the years. Only one of those was something I couldn't easily do myself in a few minutes.
Since you revealed it:
think you got your money's worth out of that one! Toyotas are the only quality car makers left. (ask Scotty)... do the same thing over again, but you knew that!😁
Interesting conversation to watch… You just learn in the process
I would lease if it weren't for all the miles I drive. Payments never stop but you always have a new car and never gets to the point where you have to pay for repairs.
Excellent advice 💯
Great video!!!
Suze talks simple and wise! Agree 100% that high school should require passing 🎉a course on personal finances before you can graduate
She’s made some very good points. I drove my car for 20 years, no payments! Saved so much money we were able to pay off our mortgage early, and now I can pay cash for a car if I choose. For as little time I spend in my car, it was worth driving my old car with no payments and money in the bank. My choice and I can’t wait to retire without debt!
The generation that grew up during the great Depression knew the value of a dollar, then paradoxically their working careers coincided with the US post WWII boom, so they were wealthy. Their children, the boomers, grew up thinking that money grew on trees and threw money around like there's no tomorrow, but their careers coincided with the recovery of Europe and the rise of Asia and the decline of the US economy, so unless they inherited big time from their parents, a lot of them are in trouble.
Love ❤️ Suze ! Thanks Suze for all the great financials advices! Wishing that I can start early at my 25 years of age but now still never too late ！ super grateful!
OWNING a car is a waste of money too!
What about lease to buy? I think you could save money by taking advantage of all the incentives you get thru the first 36 months of the lease?
a majority of people used the stimulus checks on food, rent, or utilities a.k.a. NEEDS. idk if Suzy Orman is misinformed or is misinforming us, but either way its important to remember that the stimulus checks were necessary and helped alot of people
Yes, the stimulus checks were necessary for a lot of people. However, a lot of people pissed away the money on stuff they did not need. Like leasing new cars, putting money in stupid Meme stocks and Crypto currency. Also, some people just stopped paying their mortgage because they could get away with it ……. Then took the mortgage payment and did stupid stuff with it and acted like the mortgage didn’t exist. This kind of foolish behavior has put the same fools in deeper financial trouble. It blows my mind when I hear some of the stuff people have done in the past few years and then turn around and try blame “the government” for all their problems. In general there are a lot of people who are extremely irresponsible when it comes to their own finances. I am speaking from direct knowledge of what has gone on with family members and other friends. It’s sad, because so much of this is totally unnecessary and creates long term financial hardship for people. It’s easy to criticize Suzy Orman but one thing she is 100% correct about is that a large percentage of people are financially illiterate. It is a huge failing of the educational system in the US and worldwide not to address this problem.
I mean its CNN so probably the latter lmao
@@rootkhan3254I don’t think CNN got a “stimulus check”…
Yep, and many people I know did not have work, could not work from home (they were in construction) and could not get unemployment, because CA screwed it up bad. We were in that group. Unemployment still owes us thousands, and we will never see it.
She gives good advice but tired of financial guru's talking about stimulus checks which ended more than 2 1/2 years ago and amounted to about $2,500. The final check came in March of 2021. The exaggeration that $2,500 is some enormous sum of money and the silliness about $2,500 that was ALL spent by the summer of 2021 is so tiring. The main problem for most people is that inflation has greatly crushed their wages like never before; Suze is right that mass bankruptcies are coming for individuals and businesses in 2024
I bought a Dodge new in 03, and drove it 16 years. I bought my current car new in 19, and will keep it a very long time also.
Debt free. Credit score 820+. LOVE leasing my Toyo. Carolla. It was a luxury I wanted 5 years ago. $375 / mo ... no maintenance / no headaches. I can drive state to state worry free. And it's amazing, when I take it in for service, NO ONE tells me, "We need to add on this repair ...." LOL
I've followed Suze Orman since her CNBC days and living a blue collar debt free life is attainable.
I leased 2019 Chevrolet Volt for 3 years with a buyout price of around $20K. I bought the car for the $20K buyout in 2022. I sold it to Carvana for $30K two months later.
Leasing a car is so much better. Everything is covered and you get a new one every 3 years.
Her mistake is using the word "never" to lease a car. There are multiple circumstances in which leasing a car makes sense. For example, I wonder how Suze would feel knowing that a car accident that put her in the hospital (or grave) could have been prevented if she had updated automobile technology.?
I drive a car with 2001 technology and I have not had an accident with it.
Good for you. But, your response is irrelevant to my point.@@RaymondHng
@@edwardbutka4750 One doesn’t require updated automobile technology to avoid car accidents.
I said there are "multiple circumstances" where new technology can save a person's life. I gave one example. I didn't say IN ALL CIRCUMSTANCES. Therefore, your statement is irrelevant to my point. @@RaymondHng
I have never and will NEVER lease a car. All cash or no car for me
8:23
I have a 1996 V6 Acura and she runs so sweet and torque-y
How is CNN+ doing?
Good stuff
Agree Leasing a car as Individual is just dumb. Buy a car and keep it is the way to go especially with how much cars have gotten. Average new car price is now $45,000. That is just crazy.
So pay MORE than just the interest on the house, who doesn’t know this.
Love this woman ! She is so right ! Común sense …if you’d don’t have the money ..don’t wasted it ..for thing you can’t afford it
This was actually kool to watch. Bravo
Needs and wants? Some time back, a person in our break room at work said that because gasoline was so expensive, the company should give everybody a raise or provide some "extra" to pay for gas to drive to work. Sitting on her table was her usual $10-15 morning comfort food (a drink and a treat) picked up from the large, corporate coffee house. She buys that junk every day unless she's running late for work! Some folks really need to look at their own priorities rather than expecting someone else to subsidize their poor choices.
"They don't pay me enough."
"Then go find the job that pays you what you think you're worth. No?! Then shut up."
Suze speaks just like Warren Buffett......if you need it, you get it. Nobody needs a Rolls Royce, a KIA will get you where you want to go......or more so, where you need to go. This doesn't mean you can't take a vacation, but you need to see what you need as opposed what you want.....Thanks Suze!!!
Moderation in All Things, I've got no problem with that. But Dream Killer Suze simply wants to deny you all the things you want in life from cradle to grave.
Or much better yet, a Toyota.
She’s no Warren Buffett, she’s more of a Bernie Madoff
@@Whillie_Whonka1 That's just not true at all.
Lease gap insurance is included with most major leasing companies.
Leasing a car makes perfect sense only for a Business. It converts a depreciation expense (if you purchased the vehicle, and its' attendant schedules) with a direct charge against earnings. Like a utility bill or office rent. But as an individual, leasing is basically a way to put yourself into more car car than you really can afford.
If you are using a lease to get a more expensive car for your desired payment, then you are correct. If you can get a significantly lower payment for a cheaper car, then leasing can absolutely make more sense. But it's important to understand the differences, and if you don't, a blanket statement like buy an inexpensive car and keep it forever is good overall advice.
I also agreed with this. It’s completely wasting of money to lease the car or even buying expensive cars. That’s the way we can still pay off student loans or even pay off the mortgage. I would also prefer to save money in the retirement plans
When my 3 year lease was up; I owed $18,000 on a vehicle with a current market value of $40,000 (because vehicles got insanely expensive during the pandemic). I bought the vehicle, and now it is almost paid off. I did not lose anything; also, the low $400.00 month payments enabled me to payoff my home 8 1/2 years early, saving me $52,000 in interest. Suzie Gorman is very knowledgeable, but her advice is for rookies.
Agree. I am currently retired and if I pulled out money from my retirement investments (Canada - RRSPs) to purchase my car I would have been taxed at 30%. A lease allowed me to budget monthly payments and I got a better lease interest rate than I would have with a loan. I am in a 4 year lease and will be able to purchase out my lease at the end of 4 years for a lot less than what a 4 year old car would cost. Current 5 year old cars for my make and model are selling $15000 more than what my future buy out price will be!
The expert drive cars that tank in value or she is not considering business owners.
Sounds like it worked out well for you. Congrats. But thematically her advice is spot on. That doesn't mean there aren't exceptions but overall most people who lease and replace cars every few years and are making payments their entire life simply waste money. Period. Even a stopped clock is right twice a day.
All good except for the fact that car prices don't usually do what they did during the pandemic. No way my bmw realistically went up in value after 3 years of ownership. So, I think her advice is coming from the right perspective because what we see now is not ordinary.
The main value to leasing is that you are offloading the risk to the lease holder, while keeping lower payments. (if the payments aren't lower, probably shouldn't lease) If your vehicle is worth less than the buyout, you walk away from it and let the bank deal with it. If it's worth more, you buy it out and keep it or sell it. Get in an accident? Don't worry about the extra depreciation.
I so agree with that statement, financial literacy should be taught always, from an early age
I invest successfully. I could explain to you how I do it in a few hours. That doesn't mean that you could do it. Human nature works against you and it's awfully hard to overcome. I struggle with it myself.
While I respect her knowledge on finance she is a little too rigid on this issue. It depends on the car you want to drive. if it is an over priced, high-maintenance, expensive to repair European car, I would lease it. I won't name the brands but they are notoriously expensive to repair not to mention reliability issues. i recall a disc jockey railing about how his new European car kept breaking down. They are great looking cars but expensive to maintain due to unnecessary overly complicated engineering.
Love this Lady , she is straight forward, yet very knowledgeable about finances. Nobody saw how COVID-19 was going to affect the world of finance however, the fact that student loans were put on pause and now have been forgiven is what many people needed to get out of debt! I wish Suzie would speak about what to look out for should this happen again.
Leasing cars is meant for the rich, yet in the US, the poor lease just as much.
She is so right that's what I am doing
Owning a car is also a waste of money.
More of this!
Hmmmmm, I spent 18 years teaching first graders about “wants vs needs” as part of our curriculum/state standards…interesting that adults don’t get it!
Leasing makes sense for businesses over buying or financing as you can write off far more when you lease
I have thought about a lease because the market for used and new cars is upside down. Used cars are very high while new cars are dropping. There seems to be quality issues across the board probably because of the investments in alternative fuels. At least if you have a lease and you run into problems you aren't stuck with it.
Leasing offloads that risk to the banks, BUT gives you the flexibility to buy at the end of term if it's worth more. If the lease payment is significantly less than the purchase, then it's probably a good idea.
Another reason to pay off the mortgage is it is the highest monthly expense. If you have no mortgage and you lost your job, you won't be in bad jam.
You do delivery full time with an unlimited lease no maintenence that new model always gets you better customers and you don't stress about repair costs because you could be already tight and you won't be economically and mentally stable to know and handle.
thats common sense ive been saying that for years. youre paying almost the same amount to rent the car as to buy it
leasing a cheap car better than buying expensive car in the long run
Buy things that appreciate lease things that depreciate.
Credit cards in Brazil have interest of 400% per year.
My sis and her hubby say they will lease 2 cars forever because that way they always have new cars with no mechanical issues 😳🫢