Should You Pay Cash, Finance or Lease A New Car? Expert Explains Which Is Best

Leasing VS Financing A Car. Is it better to lease a new car or is it better to buy and finance with a loan? In this video we discuss whether you should buy or lease a car. Which is the better option? I explain the pros and cons of both leasing and financing a car to help decide which one is the better option. We also look at whether you should pay cash for a car instead of financing or leasing. If you need help with how to buy a new car, watch the entire video to find out if you should pay cash, finance or lease a car.

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ABOUT ME

With over a decade of experience as a professional car buyer and auto consultant, Shari Prymak has helped thousands of consumers with their car buying needs. Car Help Corner provides honest, objective, consumer advice with all aspects of car buying and car ownership. For more professional advice, check out Car Help Canada, become a member, and subscribe!

[PamenterDoug]

You need to talk about why dealers do not want you to pay cash. They used to love cash deals, but now are addicted to all the extra fees they can charge.

[larrybellehumeur-ijer]

Can we make this video mandatory for high school students? Too many adults do not know these basic tips.

[ilovetotri]

Great video! I thought I knew almost everything when it came to this topic. I did not. Thanks for such an insightful video!

[davefranklin]

Here are my two tips: 1) if you happen to be buying a car during one of those periods where they have 0% financing (e.g. like after 9/11), don't put anything down. Sure, your monthly payments will be a little higher, but it's not costing you any interest $. 2) If you have a 401K through your job, and if it's available, consider using a 401K loan - essentially you will be paying yourself the interest, and the payroll deduction may be pre-tax. When I bought my current car, a 2016 VW Passat, the dealer was motivated to sell, because VW was still in the midst of the bad PR from the diesel emissions scandal. After negotiating the price down, they mentioned there was a $2500 or $3000 credit for using VW Finance. I said ok, didn't put anything down, and bought the car. Between then and when the first payment came, I arranged for the 401K loan. The first payment came, I set up an account on the VW website, and hit the Payoff the Total Loan button. So for the $2500 or $3000 credit, I paid something like $80 interest. Now admittedly, when I retired, I still owed about $800 that I had to pay back to myself to avoid it being classed as an early withdrawal...

[christinad.]

This channel is living up to its name. Very helpful video.

[ctclardy]

From someone who was in the retail auto business for 20 years and a finance and lease manager for 9 of those, you have given excellent, clear, and concise advice on the buying methods for automobiles... though, I would wait for another 18 to 24 months when inventories are up and interest rates are down... you then have much better negotiating power or what is called a buyers market.

[jasmineprymak]

Good tips to know ! Giving those real life situations or examples were very helpful for me. Well done Shari!

[jaycasbon]

Excellent analysis - very helpful - Thanks!

[lafettemorgan]

Leased Jan 2020, bought out the lease and Im glad I did. I love my highlander the prices arr thru the roof now.

[ashleylitebrite]

Hi Shari. Thanks for informative video today!

[afzalshaikh]

All options are horrible right now. Fix your car and keep it 2-3 years longer than you had hoped for!

[winstonmiu]

It’s crazy how a base Corolla retails in the mid-20s already in 2023.

[haroldoldhair]

Great video.

I can't recommend enough.
Hold on to what you got for as long as possible.
Buy used in cash.

[DNTsmokeCRACK]

I can’t imagine how anyone would lease a car right now. Just looked at a Hyundai Tucson and it was $689 per month. For a small Hyundai. I asked the dealer if he had made a mistake and got me a quote for a pallasade and he just laughed and said no, the pallasade would be well over $1000 per month.

Similar story at ford, where we currently have an edge for $419. It’s coming due soon so we went in to speak to our guy, who we’ve leased our last 4 cars through. He said he could do a new edge for a similar payment. Great. Turns out Ford thinks $599 is similar to $418.

Seriously. Who is leasing these

[Doug-jfhx]

Leasing is great if you buy the car out after the lease. I have done this several times and it was less expensive compared to a simple interest finance loan at 7% to purchase.. save the delta between the lease and paying it off and then pay cash at the buyout. Mileage does not matter and you keep the maintenance up to date because you are keeping the car.

[Jim-bhgs]

Thank you, this was very helpful. I am saving it for regence as zi shop for a car for the 1st time in 20 years.(Honda)! This undoubtedly will be my last car which I hope to have until they take the keys.
In the end, I will probably do cash but you gave me food for thought.

[pkj]

V helpful! Subscribed 👍🏽
I’m looking to get a new vehicle- unsure if to buy or lease. Does the 1.5% rule still apply in the USA, now that interest rates are 8%? After listening to your video, I’m thinking of financing the vehicle w a large down payment to bring down my payment. Didn’t even think of that option till watching your video. Saving 8% is massive!

[jtjt]

Prefer leasing new car every 2 years Note.. when you turn the car in, you actually have equity in the leased vehicle that goes to a down payment on the new car

[anyanwuazubuikecollins]

Who thank you so much you just solve my mystery about leasing Nd financing great Job. If I was to take a 2024 Toyota Camry for uber which you you

[christianduval]

I always pay cash for my vehicule and I keep them between 15 and 20
Always buy the best ar in their categorie : CRV Honda....Ford F150

I bought a Honda CRV 2007 in Montreal asking $36 750 in 2007....test was my choice.
Turn arround and buy it in the US....Della Honda Plattsburg for $26 500 US....not to mention the US dollar was almost at pars with the Can dollars.

Aslo always buy your car in late shop in the big city and you buy outside the city....like 100km

I have a F150 20 year use for my $45 per year and you add $1500 for maintenance per year.

But for now is very difficult to buy a car can last for 15 are all crap