Scotty longtime subscriber to your Youtube channel & I have a legit question: I am considering buying an older, reliable Toyota all cash vs. a low cost new car lease. I have recently seen several people on the internet debunking yours (and Dave Ramsey‘s) positions on car leasing. I really trust your decades of experience, but some of these videos actually make sense Scotty! Can you please address the opposing viewpoint to yours….‘tying up lots of cash’ in an older car and ‘lost opportunity costs’. Honest inquiry here from a longtime fan who just wants to make the right choice. Here is a link discussing the holes in your specific car buying theory: https://youtu.be/2sNZY6tKBw8
It all depends on your situation. I agree with all the points of view presented. For my situation, like Scotty, I keep my cars forever so I find a good deal on a used one and buy it - leasing does not make sense for my situation. However, I have recommend to so many members on this forum that if they really want that German car or fancy sports car or some unreliable brand’s vehicle to just lease and return before the warranty expires. I would never recommend to them to buy those. These are just 2 examples, so it really depends.
Also, regarding buying, some pay in all cash and some finance. Both approaches are fine, depending on your situation.
There is no “one size fits all” recommendation.
If you can afford it try it once. I did, and I hated it, that feeling of not owning anything and you have nothing but another payment after the lease is up.
Good rec.
It really a decision that needs to be made on an individual basis. It depends on personal/business needs.
One problem with leasing is how cars depreciate. They lose tens of thousands of dollars of value in the first 3 years. Then, their value depreciates more slowly. When you lease cars, you are paying the cost of maximum depreciation - year, after year, after year, after year ....
Realize you got a good used Toyota can last for years if you lease a car you spend your entire life paying lease payments I had a customer do that for 40 years and I told him that I had spent less than 10 grand on every car I ever bought yet in those 40 years of leasing cars. He spent well over $200,000 leasing cars that's my whole point
It depends what you want? Do you want the latest in automatice tech? Lease.
Do you want an reliable A to B car? Buy a used (or new) Toyota or Honda.
Do you own a business? Lease.
So many questions to ask and answer. Leases can be smart. Buying could be smart. Leasing could be stupid. Buying could be stupid.
