There are different advantages to buying or leasing a car. Mainly leasing allows for you to use a new car more often but it comes at a steep price. Buying a car requires financing or a huge lump sum in the beginning. Through this video, you see that leasing is generally a losing proposition because you are essentially always paying for the initial steep depreciation of a car. Then when you lease another car you do it all over again! This is a major drain on your networth and has significant costs associated with it.
How’s it going everybody doesn’t beat the bush today i’m going to talk about if you should buy or lease a car the people that are most interested in leasing a car are the ones that want to drive a brand new car every few years a typical lease goes anywhere from two to four years the town payment is about 10 to 20 percent the price of the car you can drive about 10
To 15,000 miles every single year if you go over you have to pay about 25 cents or less every single mile that you go over now you don’t they worry about keeping your car in good enough condition so that when you turn it back in that’s right you have to give the car back you don’t own the car you just borrowed and yet you have to pay all these monthly fees that
There are no unexpected damages otherwise it would levy a penalty on you now we’re going to understand how they actually calculate these least monthly payments most the time you’re leasing a brand new car so you take the price of the branding car and then the ending value of the car when you turn it back in so in two to four years whatever value they think that
Car is going to be you subtract that from the initial price of the car the difference between these two is called the capitalized cost it’s just a term they use to refer to the amount of depreciation of the car over the time that they’re using it now because they’re not giving anything away for free depreciation that you incurred for them they have to tack on an
Interest and then that is your monthly payment now leasing a car is generally a really bad idea to me because you’re taking a brand-new car you’re borrowing it and then you’re incurring most of the depreciation and then giving it back and then you’re doing it all over again so if you keep on doing this every three years you’re going to spend a lot of money every
Couple years this is the exact thing i advise against on this channel because every time you do this you’re actually losing a lot of capital from your networks if you repeatedly do this you’re going to be losing a lot of money in the form of depreciation every single year yes you get to drive a brand new car but then you also incur the really really steep cost of
The depreciation here’s what the depreciation is going to look like for most cars the first year you can lose a lot of value some cars going to lose more values and others some of them that keep really good value is not going to lose as much as you can see here the first three years is where you incurred the most loss of the vehicle so the answer is no you should
Lissa car unless you want to burn some money in terms of building your networks and also financial independence it’s best to get a used car that’s a few years old because most of depreciation has been taken by someone else who happens to maybe lease the car already if for example you’re already financial independent and you already have a whole bunch of extra money
To spend yeah sure go ahead and buy a new car or even lease if you really want to because you have that money to burn but before you’re able to go around burning your money because you have too much to spend it’s best to save it instead and invest it one less thing to mention is that you could potentially lease a used car but then there are a lot of risk involved
With this because the car is somewhat user ready and they may have the mechanical problems because the older it gets it may have more mechanical problems when you return the car it has to be in good condition so while you’re having it if it has any kind of problems you have to pay the money to fix it before you can return it i hope you enjoyed this way of never
Leasing a car because it’s actually a really big waste of money currently i cannot think of a good reason where someone should actually nice a brand-new car every single year this is mainly because when you have a new car it really does not give you any advantages of transportation from one place to another other than perhaps showing off to other people that hey
Look i always have a new car type of deal i hope you enjoyed this way of thinking about leasing a car and hopefully i crave your opinion from actually wanting the least car to actually wanting to buy a used car don’t forget to give me a like on this video comment down below let me know if you soo prefer leasing a car and if you have very good reasons to it please
Let me know i like to know what those reasons are if you’re interested in supporting this channel off an audible link down in the video description below where you can get a free audiobook and if you don’t like the audiobook or the service you can cancel it before the trial period end you can still keep the audiobook even if you cancel it and you can still help
It into this channel i also have a 30-day free trial for gamefly down below where you can rent out a video game for 30 days free and if you don’t like the video game or the service you can cancel it before the trial period ends and you will not always think i also have a patron over here don’t forget to subscribe thanks for watching
Transcribed from video
Should You Lease or Buy a Car | BeatTheBush By BeatTheBush