ACCOUNTANT EXPLAINS Should You Buy, Finance or Lease a New Car

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Title	:	ACCOUNTANT EXPLAINS Should You Buy, Finance or Lease a New Car
Lasting	:	14.24
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Buy used Never finance depreciating assets Only rent if you can afford to save at the same time Most repairs on cars are less than car payments when you average them over the life of a car
Comment from : @berbandis

The best advice you can get is never buy a new vehicle brA new vehicle can depreciate as much as 35 in the first 2 years of ownership brIf you really want to be smart about it, buy a 2-3 years old vehicle with low milage
Comment from : @TravisInCanada1

The biggest glaring thing she ignores is the fact that, with buying outright and financing, you get to keep the vehicle at the end of the term With leasing, you have to give it back, and you have zero to show for all that money spentbrbrHow is leasing he cheapest option??? Goofy
Comment from : @jasongraber-lm2xo

well, those numbers didnt shock me at all And for the Opp cost, you better have the cash, regardless of how you buy
Comment from : @sharadkumar8365

thanks for the spreadsheet info
Comment from : @eagyinjection

Save up, buy a used car with extremely low klms via private sale, ensure you get it checked by a qualified mechanic and you will end up paying no tax & no depreciation once you drive the car off the lot!
Comment from : @TroyBell-c6i

Isn’t there opportunity costs on all of the options? bAny/b money you spend could have been money you gain interest onbrbrI guess you can calculate it imoving forward/i after every payment until the end of the 3 year period
Comment from : @rubencashie9441

I don’t want a $1000/mo car payment and someone said dealers want $14,000 down to lease Sure hope my 20 yr old dodge truck can last another 5 years
Comment from : @freddyw4555

Buy outright… yeah… this is very basic
Comment from : @Counselor_Education_Nation

I believe your logic is flawed with the leasing costs between a resale value of 35K vs 30K because with a lease you are basically financing the difference between the sale price and selling price (or in lease terms residual value) So in this 30K resale value you would be making payments on an extra 5K of value
Comment from : @jeffm4459

None of the above Buying a new car is insanely stupid
Comment from : @jrtodd-br4zc

If you need and like a car and you can afford it, just finance it Having a main job on week days and drive uber or a second job on the weekend surely can pay for the car that you love Driving a car you dream can make your mental health better than overthinking
Comment from : @HuyNguyen-sn1ir

Lease luxury cars Buy reliable cars
Comment from : @Simonverse

OH wow! i was looking to buy a car as a first timer, and this video is recommended :)
Comment from : @Eman4you

One of the benefits of leasing that I like is the fact that my pay off is lower, because you are not required to pay taxes upfront, you pay taxes every month instead of all upfront, if I decide that I want to sell my vehicle during the lease period I owe less money since taxes haven't yet been paid, also you give the risk to the finance company if you have an accident or multiple accidents during the lease period, if you had an accident and your vehicle was repaired the resale value would go down a little or maybe lot, if you financed or pay cash for a vehicle that became un popular for any reason you are stuck with a low value vehicle and take on the depression, on a lease you can walk away from it at Lease end, and basically shield your self from an unforseen accidents or depreciation There are a lot of factors to consider when making a decision of what is better though, for example with Toyotas and Hondas a lot of times the Manufacturer offers Lease Cash, this is money, that is given to you if you lease but not if you finance or pay cash, so this will make a big difference on the total cost Also if you had bad credit and or the money factor was high you could buy down the rate by getting multiple security deposits Explaining all the pros and cons would take a while, maybe I'll make a video in the near future
Comment from : @Enrique-Rico-Olivares

Opportunity cost is way too low in these calculations
Comment from : @richardly1543

The other potentially major cost of a newer car as it ages is electronic system repairs These can be VERY expensive to fix as I’ve recently experienced Traded in the vehicle and leased a Toyota RAV 4
Comment from : @paulm4224

A significant missed item in the above analysis is that by buying or financing you will have equity in the vehicle Which in my view, makes leasing more expensive
Comment from : @josephmihalak

ah, you're in canada
Comment from : @seankang

i am confused you are referencing US dollar yet using Kilometers Why are you doing that?
Comment from : @seankang

I think the best advice would to buy a Toyota or Lexus rather than a Jeep My client drove his Toyota for 30 years He died before it did Because he was frugal he had accumulated millions in property and securities
Comment from : @t2p5g4

Which one is the best? you never said
Comment from : @Muxik4k

Slow down You are talking 100 miles an hour
Comment from : @tonybartonemusic

Learned more from the comments than the video
Comment from : @willhammer8665

Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got talking about investment and money I started investing with $120k and in the first 2 months , my portfolio was reading $274,800 Crazy right!, I decided to reinvest my profit and gets more interesting For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family
Comment from : @RiggiosMiners

How about one payment lease? Any benefits for cars with poor resale values?
Comment from : @calvinkwan2805

Make sure you don't drive more than 093 miles per month
Comment from : @VINIDAGWOODS

this was extremely valuable and definitely gained new insights! Thanks a ton
Comment from : @LeoBantolino

Great analysis!
Comment from : @KJOConsulting

you didn't factor in whether or not someone wants to own or rent and have a new car in a few years
Comment from : @musicpatron1693

don't forget the opportunity cost of the 5000 down payment
Comment from : @ehecga

Please redo this video with the current higher interest rates as of December 2024 Thank you 😊
Comment from : @sal9805

Almost everyone knows that leasing is the most financially inept way of getting a drive, so, you could've saved a ton of time by skipping it in your video and talked only cash vs loan
Comment from : @adarshguptak

Buy cash!
Comment from : @thurston905

You never included expensive unkown repair cost of cars that break down when they are out of warranty The best option if you drive less than 10,000 miles per year is leasing In most cases there are no maintenance cost
Comment from : @williamlaw3976

I love when people lease cars hahahahha
Comment from : @Nessal83

Did you calculate the sales tax savings when leasing? In a state like California, the sales tax is nearly 10 When leasing, you only pay sales tax on each month’s lease payment (which excludes the resale value), rather than up front on the whole price of the car It makes a difference in favor of the lease Also, with your calculations, the lease is more favorable with a low resale value But when you get a lease, the resale is a guess And a high resale value lowers your monthly lease payment, regardless of how much the car will actually be worth at the end of the lease So with a lease, you should try to lease a car that is presumed to depreciate less This also reduces the total sales tax you will pay over the entire lease One last thing: lease rates on new cars are usually better than on used So maybe only look to leasing on new vehicles, especially if the manufacturer is incentivizing with an especially attractive lease rate
Comment from : @swagonman

I bought new truck 8 years ago borrowed half financed for 6 years which has been paid up 2 years ago so now I owned it and still running like new brI think buying is better if you plan to keep it
Comment from : @markk7531

On the other hand, if you buy (cash purchase) a Toyota or Lexus, with a realistic life of 15 to 20 years, and keep it for 12 years, the opportunity costs increase by the purchase cost every 3 years
Comment from : @bobforward5658

You are ignoring the sales tax For purchase or finance you pay all the sales tax But on lease you pay sales tax on the payment This means you only pay sales tax on the part of the car you use but you also are paying tax on the interest Better to lease assets which depreciate
Comment from : @charlesplewes773

Nothing beats outright purchasing There are no guarantees on job security or good health Unless you can insure against these unknowns
Comment from : @shafieks8718

This is great and I'm sure super helpful but I'm a simple man I just put money slowly into a high yield savings account and when it reached the price of the car I bought the car
Comment from : @yaboiii775

What people never calculate into these types of decisions are their time and convenience If you’re a busy person, the time it takes to just return your car is worth more than the money you would lose
Comment from : @Kunfucious577

0:33 only if the dealer( agency car) it's not a crook and don't find selling the car outright financially advantageous😢
Comment from : @jefframos

I have a credit score of 825 and was quoted $590 a month on a 2025 Camry SE, 84 months with 5k down Does that sound fair or a rip off? Thanks! I’m doing my due diligence but I’m still confused!!
Comment from : @CatsAreNiceMeow

Caveat is pronounced as three syllables, not two
Comment from : @johncrump328

I don't get the opportunity cost on cash part shouldn't it be the full amount as you pay the car in full?
Comment from : @ploverlittle532

I just looked up average mileage cap/year for leasing a car The mileage caps were 10,000, 12,000 and 15,000 So after 3 years that comes out to be 30,000, 36,000 and 45,000 miles respectively At 54,000 miles you would end up paying the cost for additional mileage imposed for the leased car In my area, I have seen the cost of $025 for each mile beyond the lease mileage cap I think you should factor that in to your estimate Other than that, everything looks good
Comment from : @DrinkingStar

Those shelves are upside down
Comment from : @stevekim280

Other than once in '99, I have always bought used Middle class people paying 60k for a car is just silly, no matter what math you throw at it
Comment from : @oregonhighway

The effects of the downturn are beginning to sink in People are being impacted by the long-term decline in property prices and the housing market I recently sold my house in the Sacramento area, and I want to invest my lump-sum profit in the stock market before prices start to rise again Is now the right moment to buy, or not?
Comment from : @KennedyVerbruggen

48K for a Jeep makes my hair hurt
Comment from : @walan21

No, nothing like paying cash
Comment from : @Tomorrow32

People don’t add the risk associated with financing, missing a payment, etc Also the hit to your credit and liability if you want to apply for a mortgage or other credit later I just pay off everything at the time of purchase or seriously consider not buying the car
Comment from : @Reviews4fun1

Great video!! Can we get access to this excel sheet used in the video?
Comment from : @ArunKumar-hl8cu

you will need to pay taxes for gains in your investmentso you are overestimating the "opportunity cost" amount Also, for most investments, there is a risk associated, so you should also multiply the risk factor
Comment from : @dyau5973

I had a lease once Never again The burden of always having to consider your mileage was like being in a rolling jail I buy a car to drive, not preserve for the next owner For that reason, I’m out
Comment from : @JamieSmith-fz2mz

Lease car mileage seems off, most brand only offer max 15k mile a year So 45k total in 36 months And average it cosr 20 cent for each mile after getting over the limit, so that's extra 2000 dollars
Comment from : @paldentsering684

Saying leasing/financing works better only exists when you get those sweet sweet interest rates which are unrealistic
Comment from : @dannykshamo

Ah renting a car no thanks I'd rather buy a used car that I can pay cash for! Like a Toyota or Honda
Comment from : @MLovesacoffee

Opportunity cost has nothing to do with money, but it has to do with choice Second investments are risky, which means you could lose your money I mean unless you find a minimal risk investment, but with minimal risk comes lower yield
Comment from : @MA-rc2eo

A lot of electric cars in my quick 5 min search are currently offering financing deals to buy Some 2, some 0 Acura, lexus, subaru, etc
Comment from : @shuilaba

Gabrielle, have you done an analysis for an EV purchase? I'm saving for an outright buy of a new EV right now I'd love to hear your take on it For example, an Ioniq 5 or Tesla Model Y
Comment from : @cyberoptic5757

think financing and leasing are the samer thing if you plan to buyout in the end, no? except you save on interest if you put down payment on finance pretty sure if you calculate payments and risdiual value plus tax its the same as financing never understood why ppl are so against this
Comment from : @MTechnikM

97 of the audience will not get such a low interest rate
Comment from : @CodingPhase

I think you are wrong on your calculation, you are wrong, taxes and fees are different lease or purchase it can not be the same
Comment from : @arthurberner2023

I’d venture to say the resale value is likely to be different in reality If you do either purchase method and not lease, you’re likely to put more miles on the car Also with lease or financing, you’re likely to need to fully insure per the terms guidelines But, since you used Jeep as the example, the resale value is always going to be bad because Jeep are notoriously lame cars
Comment from : @oneonecoco

I want you to explain everything to me This was so complex but so understandable, thank you!
Comment from : @christinarobohm6920

Why is there a resale value under lease Need to umderstand Thanks
Comment from : @stevedakay8295

Hi Gabrielle, Why does the $5,000 opportunity cost only apply the purchasing out right? Wouldn't it also apply to financing and leasing? In all three scenarios, if the person had not spent the money on the car they could have invested it Am I missing something here?
Comment from : @marknelson8005

I wish I was only paying $100 a month for gas
Comment from : @sailingyemaya9781

Whether you lease or HP a car you are paying exorbitant interest rates Rate is fixed throughout loan tenure
Comment from : @PassingBy

199 is rather a lease interest rate, at least in Europe We even get 1 or less than that Of course, you have to pay a nonrefundable deposit, which will lower the monthly repayments
Comment from : @BartTricas

199 interest rate on a car loan?! That's not most of the world In the US and in Australia it's between 55 to 75, in UK its between 6 to 12
Comment from : @brilliantlights

this video just made me not want a car at all
Comment from : @Chunographx

Are you mixing current costs with future (resale) value?ie the 30k snd 35k smts 3 years from now (future value in 3 years) should be discounted to current year $s to make proper comparisonalthough most people buy because they intend to keep car beyond 3 years so I did not fibd this usefula bettet comparison (rather than varying resale value) would have been to vary length of time one intends to keep car before looking for anotherwhich is the reason why people contemplate the choices (not an estimation of resale value)
Comment from : @melrosare6268

Correction Please: Resale Value for Leasing should be Zero (0), because the dealer will just take the car after lease period and leasor will not benefit from resale value
Comment from : @ernestolponce1751

Does it make sense to buy out a lease as a sole proprietor?
Comment from : @nickjohnston3882

Definently buy used cars Much more economical
Comment from : @christianchellis9057

If you lease the right vehicle, one that retains the highest resale value, you can buy it out at a guaranteed residual value and sell it for profit I have leased 4 vehicles over the last 8 years and have sold 3 of them post buyout for 5-7 thousand dollars over the buyout price Small dealers will snap them up because they save auction fees and transport costs
Comment from : @24cupsandcounting