Leasing vs Buying a Car: Which is ACTUALLY Cheaper in 2024?

Leasing vs Buying a Car: Which is ACTUALLY Cheaper? We discuss this in today's video with a full scenario based on a Rav 4 Hybrid. We also talk about who buying a car is better for, versus who leasing a car is better for. Please note around 6:40 I do say the number "11,595", but that is ME not reading the number correctly, the text on screen is correct (11,195). If you enjoy this type of content, make sure to SubbbbbBSCRIBE!!!

Timestamps:
0:00 - Start Here
0:45 - Leasing
4:02 - Buying
7:06 - Comparing Apples to Apples
8:00 - Returning the Car Scenario
11:15 - When to Lease vs Buy
13:05 - When Buying is Better
13:28 - Who Leasing Is Good For

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PS: I am not a current Financial Advisor, any investment commentary are my opinions only. Some of the links in this description are affiliate links that I do receive a commission for & they help support the channel!

[humphrey]

Would you rather lease or buy? Drop a comment!

[TuBui]

Adulting is realizing that the 6-figure job you dreamed about can only afford a new, mid-range toyota or honda

[chuckz]

I think a factor that was missed for all of the lease situations was during the "buy the car after the lease is up" the 21k is shown as basically a cash payment when most people will have to take another loan for the purchase so the interest on that 21k loan will make the total ownership cost even more post lease.

[DrGeneralkumar]

One big reason why I lease is opportunity costs. I'd rather pay lower monthly payments for a better car, and not tie up my capital in a loan. Id make more money in the long run investing the difference.

[jimv]

I was stupid when I was 24 years young and bought a brand new 2001 Toyota Tundra for $30, 000 cash……should have bought used…..I just finished college and deserved it was my reasoning……but I guess the good part is I still have it 22 years later and it runs just fine……

[matwx]

Best comparison & breakdown I've seen so far. Thank you brotha.

[jochuba]

That is the most intelligent video that tackles the question of buy vs lease. Thank you.

[randxalthor]

One small detail that might be worth highlighting the next time is that most people will have to finance the residual value at the end of the lease in some way, as they don't have $20k+ laying around. That would add interest to the lease cost to own.

[kurtg]

Never put money down on a lease. It's a rental and any money you put down, you lose.

[NimaOmaisj]

BRICS seeks to create a new currency, considering gold's historical role as a store of value and medium of exchange. However, the functionality and acceptance of a gold-backed currency in the current global financial system are uncertain. Creating a new currency requires careful consideration of economic, political, and logistical factors.

[Loveless]

Another pro for leasing: if you’re on a work assignment in a different town for a set period of time, it could make it easier when your assignment ends to simply return the car rather than find a buyer. Oddly specific, but pretty common in certain industries. Great video as always!

[somehandle]

I work in a tech job, most of us drive old beaters, and it makes me proud. One guy even has a late 1990’s Civic and I’m slightly jealous, in a competitively frugal way. A paid off car is the only car I’ll ever own, I learned that after the payments were done on my first car loan.

[consumerdebtchitchat]

From the ages of 16 to 50 I always bought used cars that were about 5 years. After dealing with leaking oil in the driveway. One vehicle needed a total transmission overhaul and it never ran the same way after a 5k repair.
I have never believed repair shops are very honest. They can always find something additional to miraculously find wrong.

At age 50 I decided to lease. ALL of those problems above have been solved 😂😂. I no longer need to keep a car repair maintenance account. Bumper to bumper warranty 36, 000 miles. I get the lease damage waiver which few people seem to know about. I get a new vehicle every 3 years.

My second lease ends this year and I could buy out my Toyota Corolla for 16k. I hold an 812 credit score and have all the access I need to zero interest loans. It would take me 10 months to pay it off.
But I'm going to go back to leasing my third car because quite frankly it's a luxury I'm willing to pay for.
The peace of mind is unreal.

[EytsirhcChristye]

I owned a few junkers and always had surprise maintenance bills and it was less expensive and less stressful to lease a brand-new car and I miss leasing. 😢

[amirr]

that was one of the best videos that clarify which one is more reasonable . thanks Humphery

[Ubiquitous_]

I love these comparison videos. Seeing the numbers really gives the proper perspective for the big picture. I want to drive my car for 30 years, that may not be realistic but that's what I'm shooting for.

[mrburns]

something missing on your last analysis about getting a leasing over buying is, I dont have to worry about maintenance, battery change, tires, etc. The car is always serviced, when it need maintenance they ive me a spare car, and they even put the kids sits in place. I travel a lot and I know my wife doesn't have to care about it. We are not petrol heads. Safety and comfort over all.

[JacOnMac]

I don’t know if this happens a lot but I leased a 4Runner from a giant Toyota dealer 0 down super low payment all the SUV bells and whistles. Insurance was not that much more. 2 yrs in it had an electrical issue they took care of immediately. Repairs on cars I’ve owned NEVER go that smoothly. About 3 months before lease end the dealer started making offers for a lower payoff to own it. Leasing sometimes is not the red devil ppl make it out to be.

[darksplash]

So far the best video on leasing vs financing a vehicle but i still think there are several important things to keep in mind to be able to determine the true cost for each one. What is the average number of years a person keeps their financed vehicle, how many cars on average do people finance in their lifetime, average maintenance costs for total cars owned in a lifetime, and this doesnt even account for car crashes or how safe cars are after 10 or 20 years.

[michaelraju]

Awesome video, learned a lot. Thank you!!