Why I Plan to Only Buy Cars Not Lease Them

I used to love leasing cars but since you typically can’t list a leased car on rideshare platforms like Turo, Hyrecar, etc., I now am only thinking of buying cars.

It’s kind of like real estate — when you rent you can’t turn the place into an asset. But when you buy a place, you can turn it from a liability into an asset. Same with cars.

[Elxchino]

dude bought a pair a glasses and had an aha moment

[duncanduncan]

You can also buyout your lease after the 3 years for the residual balance remaining.

[antiquarian]

why would you want to buy a car for the purpose of cash flow? seems like a headache especially if someone destroys your car. Rather lease and then use cash to invest in other assets such as stocks.

[michaelsteuart]

That’s a funny way of saying you now work for DoorDash

[anikor]

I am about buying a car cash, however car is not a financial asset nor an investment as it loses it’s value. So doing a lease is not bad. Having a vehicle is only a personal asset.

[edwardfiorvante]

That’s very true. Over the last couple of years the people who leased there cars received thousands upon thousands of dollars trading in there leased vehicles. Sometimes the lease car they drive for a couple years was completely free. You can’t lease a car and realize equity!!!

[CarlosRamos-xrrj]

Let’s put things into context. The OP rents out vehicles which generates him cash flow. For him, this is a great option. For us who don’t rent out vehicles, his game plan doesn’t apply.

Always remember what your financial goals, budget, and lifestyle is when considering what option to take when purchasing or leasing a vehicle.

[RealityTrailers]

To each their own. I'll be leasing because I actually do my own research.

[inkdoo]

Depends on leasing agreements and you might lose money in depreciation if bought

[stevemasters]

The problem when you lend out your car is that your car insurance might not cover and damage or lawsuits that might spring up

[univac]

Leasing is another word for renting. Your ‘Lease Payment’ has a non disclosed cost of money worked into it, usually a double digit number. Would love to see a law where that cost of money, essentially an interest rate would have to be disclosed to the consumer. In the end, buy, hold and keep is better in the long run when looking at it financially. But yes, as the vehicles ages you can expect some repair bills but almost always the repair bills on an annual basis would be less than a car payment. If you own a car it has a book value. You wouldn’t get rid of it for nothing, so that book value is part of your net worth. I see people’s point about it feeling like it’s not an asset because their are so many costs associated with keeping it on the road. Financially it’s kind of a necessary evil in places where public transportation is not readily available.

[DanLeary]

I just sold my leased vehicle to Carmax and got $2000 in equity. Different finance companies allow you to sell to licensed dealerships, not private parties.

[tortillachip]

People that make videos like this keep calling vehicles assets. They are liabilities. Not assets.

[Rambo]

Problem is when it comes to selling the car you bought you’re going to get a lot less back than what you put in. With a lease most of the time it will include its tyres, maintenance and will always be in warranty. Compared to what you pay with lease to what you pay to buy and the drop in the value when it comes to selling as well as paying for its maintenance, over the years leasing can work out cheaper.

Cars are not an investment generally.

[Revenant_Knight]

Leasing only make sense if with zero down the payment is half or less of your projected 60 month loan payment, or if you live in an area such as the salt belt.

[brandinojam]

It makes sense that a dealership wouldn't allow you to rent out their lease vehicle on Turo but you can still use that lease vehicle for business purposes like Lyft, Uber, Doordash, or other self employed ventures so long as you stay within the mileage agreement.

[ivanluis]

Is it smart to lease with option to purchase a good idea?

[JoeL-redc]

Worked in auto repair in the 90's when leasing took off, I found the majority of folks leased, because they could get into a vehicle about two steps above what they could have been able to buy. I saw a lot of "broken hearts" at turn in time when they found they were over mileage and saw the bill for fixing mechanical issues and new tires, just to turn the vehicle back in. and since they traded their old car in to get on lease in the first place, they had

[itsprincejay]

Making it an asset comes with a lot of downside the vehicle’s depreciation would increase drastically, and you’re at risk of completely losing the car. It’s good money but not if it’s your daily

[zBMatt]

This has got to be the most confusing video I’ve ever seen lol.

1. A car will never be an asset unless you have a company, there is no difference between an owned and a leased car here.

2. Owning a car is far more of a liability than leasing a car just as owning a house is far more of a liability than leasing one.

3. You should only be leasing what could be considered a “luxury car”. A car you only plan to own for a few years, something that possibly goes out of style or goes out of date in terms of features. This way you only pay for depreciation on the car rather than the full price of the car when you planned on getting rid of it rather than riding it till death anyways.