My husband and I have been married for 44 years. We have never bought our dream cars and we have been very happy with the used cars we paid cash for. We paid off the mortgage on our house in 15 years by living on one paycheck and saving the other one. Sure, there were times when it sucked bullets. But we have been debt free for the last 25 years and our kids do not have any student loans to pay off (college savings). Close friends and family members thought we were crazy...at first. Living frugally really does pay off!
@francoisnguyen6623
Жыл бұрын
I learned this the hard way. It’s gonna take me a year to save enough to buyout my lease. I have one more year left on the lease. I’m choosing the buyout option at the end of the lease because I put a lot of mileage on it. I would pay too much in fees and I’ll still need to get buy another car. After this lease is done I’m never leasing again
@bestillfarm1645
Жыл бұрын
I got in a situation where i had no car (timing belt went) and no money saved up. So i leased, cause it the payment was well within my budget. We actually liked it and leased like six cars since then, all for right around $200/ month. So for about $3500/ year (monthly plus downpayment and fees), i never had to think about car troubles. NOWADAYS, lease prices have gone up HOWEVER i have had the cash to buy out my truck and because of the crazy inflation, if i can sell it for its current KBB value, I'll make back every cent i ever paid on it. Then I'll buy a decent used truck. All this to say, it worked for us for about 10 years. No regrets.
@westbccoast
Жыл бұрын
Kudos to George for explaining what cash means, you know someone is going to show up with a suitcase full of cash. Thanks for explaining all of this George.
@pamm99
Жыл бұрын
Thanks for this, George. Been thinking about this very topic a lot because I’m helping a friend who is in financial trouble, AND she’s leasing her car (something I warned her never to do!). What I realized about leasing that I hadn’t realized before is this: on the show you guys are always telling people in financial trouble to sell their cars, get something cheaper, and use the difference to put toward debt; well when you lease your car, you have NO equity! And that’s on top of all the other things you mentioned! So you’re really paying a lot of money for a rental.
@sidharthchand8072
11 күн бұрын
Get a mechanical inspection and a smog if that’s applicable in your state
@crulius.pontanian
Жыл бұрын
And when people want a new car it is not just any new car. What they want tends to be fancy, large, and/or more luxurious of a car, which really cranks up that price.
@FloppyPENGuinn
Жыл бұрын
At this point I solely watch for the memes. The editors never disappoint me. I love it
@gop4usa12
5 ай бұрын
I fell for the lease option one time. Then after doing the math, comparing what my total cost would be after three years between buying and leasing, leasing came up at $2000 more. I stopped the bleeding by doing a lease buyout. I still paid about $200 more than if I had financed it from the get-go. But I still saved a considerable amount of money thru my quick action of buying it out. And I saved even more than I originally calculated because I made several principle payments along the way.
@derekz8074
6 ай бұрын
Leased a 2020 Subaru Impreza Sport. zero down $314/mo for 36 mos. vehicle was totally covered under factory warranty. all oil changes included too. at end of lease i bought out car for 14k$ then drove over to car max sold it for $29k. got about 19 mos free, only paid for 17 mos on a 36 mo lease. leasing highly depends on economic times and the resale value of a car as well as manufacturer specials. its not for everyone, cuz most dont even understand financial benefits
@MidnightMogwai
Жыл бұрын
Instructions unclear, opened 27 credit cards and bought a brand new car with the credit card points
@Bookishwisdom786
Жыл бұрын
How much did you spend in those 27 credit cards to get those points that is the most concerning 😂😂
@Bombstark
Жыл бұрын
Please explain… because I don’t think you paid for it with points alone.
@MidnightMogwai
Жыл бұрын
@@Bombstark this joke went right over your head brother
@mikezerker6925
10 ай бұрын
@@BombstarkI think it’s called superstacking points… I’ve done it too! You open up a bunch of new cc accounts taking advantage of the introductory point offers and interest rates, and use the points for purchases like exotic cars and private jets! Then you close all accounts and file for bankruptcy or simply flee the country! Easy peasy!
@ProJvst
9 ай бұрын
i hope you paid it off fast cause interest rates on a credit card are higher then interest rates on a car
@perfectlymprfct
Жыл бұрын
This week I counseled a 26 year old with a $804 leased car payment and no investments and a couple with 2 leased car payments $560/$750 considering selling their home, which is 30% of their take home pay.😢
@GeorgeKamel
Жыл бұрын
Yikes. So sad
@yangzaoli1077
10 ай бұрын
crazy
@TVHouseHistorian
6 ай бұрын
I love leasing. No, it’s not financially wise, but then I had a specific agenda in mind when I walked into the lease deals. After taking a good couple of months to research what leasing is, reading about the pros and cons, all the fees involved, and the fact that financially, leasing is the *worst* way to acquire a vehicle, I concluded that leasing was a good fit for me and my goals. I was completely non-committal, so my goal was to acquire a car I would essentially “date” until the end of the 3-year term, at which point I would either commit to purchasing the car because I loved it, or trade it in for a brand new lease. I leased two cars total, and after the second lease was up I knew for certain this was the car I wanted to purchase outright and keep until death do us part. Yes, it was the more expensive way to acquire a vehicle, but I don’t regret it in the least. I leased for convenience, and had a plan going into the deal. If I had to do it over again I wouldn’t change a thing. For most people, I would *never* recommend leasing. It’s simply not reasonable in most cases. For people who want to lease just because it helps them get into a car they otherwise couldn’t afford, leasing is a terrible idea. For someone who just wants to “date” new cars until they find the one they absolutely fall in love with AND they have an end goal in mind to pay off the final lease, it works. There just has to be a reasonable end goal in mind. Priorities.
@briantii
2 ай бұрын
It’s just renting a car. If you can afford it and want to always have a new car it’s not the worst thing. You just have to realize what you’re doing and ensure it’s not hurting your long term plans.
@crowdgametrivia
Ай бұрын
Car Leaser here. And I love Ramsey solutions and their team such as George. But I do find their videos about cars speak in ideals but not reality. There are some amazing car lease deals out there. There are for sure some brutal bad ones out there also. But I’ll be honest my affordable 2 year car lease on a reliable vehicle under warranty is helping me get out of dept and achieve my financial goals. (Not debt free yet about 1 year away) For many years I did as Ramsey said and bought old cars I paid cash for and had my emergency fund to pay for repairs. But I bought one car that the repairs would have been the price of a two year lease and there was a good chance it was going to need even more repairs. So instead of spending more money on repairs I decided shop around for another used car. I noticed a few dealers had some competitive lease rates and I found one that offered me a 2 year lease with warranty. The distance limits for me a single person is not a bother. And they didn’t change admit fees beyond license which I would have to do with any car. Should everyone lease? No Are there good deals out there for some people? yes. Love Ramsey solutions and George but I politely disagree with their view on car lease. I am not saying everyone should lease but it can be a good short term option
@sarahshealthyrecipes
Жыл бұрын
Always cash. And my in laws blessed us with an old van without paying which was a huge blessing while we were paying off debt. I look forward to paying it forward someday ❤Thanks for the warning, George!
@ciscoshibler3214
Жыл бұрын
For work I drive a 2005 gmc yukon with a ratchet strap holding the passenger door closed and a ratchet strap holding the front end together lol 😂😂😂 it just keeps running and running. I can't kill it . Iv had it for 5 years with no issues and paid 2k for it... it ain't pretty, but it's mine.
@LuisTorres-lo8qj
7 ай бұрын
Well, I paid in full my Camry LE 2023. I feel like I didn't have any option. I am by myself here in the states, so I wanted a good, reliable brand new car since no one will take my hand if I see myself in mechanical troubles. But I acknowledge otherwise, other situation... I even should buy a 4 years old car that would be perfect, but I didn't follow the Ramsey Show back then.
@monkito69
Жыл бұрын
So when I get an Uber I burn money because I’m not going to end up owning the vehicle? Or did I get my money’s worth by being transported from one place to another?
@NovaPrincess
4 ай бұрын
Are you arguing that Ubering everywhere is smart as long as you get from point A to point B, math be damned? 😅
@MyNameIsNotCraig
Жыл бұрын
I love this video and the advice.
@AD-qd7ps
6 ай бұрын
I’ve never understood why so many people get a lease car - as most of the time its not beneficial for them. I know someone who has a lease, but for them they want a new car every few years and want the high touch service that comes with it (ie they get the car picked up for maintenance ect - don’t ask me how this works as i have no idea). But for that person, they earn alot of money, and can easily afford it. So for them, it works - but for the rest of us its just a financial drain.
@JoeLopez
Жыл бұрын
Spot on. The main issue is too many people buy a vehicle based on monthly payment…
@BadPhD777
Жыл бұрын
Exactly. Can't afford the payment? Make it a longer loan! Stellar idea!
@curiousgeorge1465
Жыл бұрын
@@BadPhD777 We need to educate our selves and our youth and learn to be independent (not a sheep). They big corps have too powerful of a marketing campaign and keep nudging impressionable minds in the wrong direction. We need to know we have other options. It can be hard to remember opportunity cost when making these types of choices
@cnh7262
Жыл бұрын
Great topic! Thanks George
@blackbutterfly233ify
11 ай бұрын
Can you make a video on what kind of car to save up for?
@nickolashaustein
3 ай бұрын
I bought a new 2023 model Y just over a year ago in April 2023 for $62,000 the trade in value for the car now is $33,000 its lost almost 50% value! now tell me how a lease wouldn't have been a better deal than losing $29,000 of value in a year. The truth is that right now car values are extremely volatile so it's hard to truly know what a better option would be. Even at private party value it's lost over $20,000 in value. My lease payments in a year's time would have only been around $10,000.
@Ojisan642
11 ай бұрын
The way Dave said to decide if you can afford a new car is, if you didn’t have insurance and the car exploded in your driveway, would it impact your life at all? If no, then go ahead and buy the car.
@mocheen4837
Жыл бұрын
I leased a car once and ended up buying it at the end of the lease. We wrote the lease off for our business. My friend had a lease and the car was hit while parked. The car sustained $15,000 in damage and had to be repainted. He repaired the car and returned the lease for a different car.
@ungphuc
Жыл бұрын
Lol people who try to argue that renting is a waste of money are same people who justify leasing a car
@thetuna7441
7 ай бұрын
If you lease the right car you can have equity in it at the end. Leasing isn’t a total scam.
@booya6437
Жыл бұрын
My 2 year lease cost me $6,800 for my 2020 F-150. I paid $245 a month and then bought it out and paid it off within 9 months. Leasing is usually a bad idea but not always.
@GeorgeKamel
Жыл бұрын
Still a bad idea.
@rustyshackelford3109
Жыл бұрын
@@GeorgeKamelhow is that a bad idea? I get a lot of people will not do research but leasing the right vehicle under the right terms is a win compared to buying out right.
@louyht7
Жыл бұрын
@@rustyshackelford3109 A lot of people like 94% people when they go leasing the car they only focus on monthly payment lol There are way you can get lower monthly payment
@Love2Banime
Жыл бұрын
I was told by my former coworker that suggested to leasing a vehicle to save money. I didn't believe him and paid my car, now i own it.
@Janiiii
7 ай бұрын
I done two leases my dad was right alllll along I should of never done it
@n.g.l.
4 ай бұрын
I heard that people lease BMWs and Range Rovers because they don’t want to deal with the maintenance issues.
@desertfox1792
Жыл бұрын
Hey George, this video really motivated me to take the next step in my vehicle situation. I'm currently leasing and saw that my finance provider allows a lease transfer. I already located someone who will assume the lease, but the used car prices just seem to be crazy. What's your opinion? Do you think I should wait for the car market to soften more? I can pay the used car in full, which is what I am planning on doing, so I don't have to deal with payments anymore. Thanks for the great content!
@LuKiSCraft
3 ай бұрын
Does your 2013 Model S come with unlimited supercharging? Holy crap that's a hack lol. I have a Model Y but have to pay for supercharging
@emunews
9 ай бұрын
When you lease, you get a new car every 3 years. This means that you never (or rarely) have to worry about anything breaking or needing repairs. Getting a new car every 3 years also means getting the latest technology. When I previously leased a car, I got Android Auto (which I use every day) and safety features like lane keep, automatic breaking, side-view cameras, etc.. I'm not sure how you measure the financial advantage of not getting killed or injured in a car accident. It would have been nice if this video looked at all the factors involved. It doesn't matter how much money you save if you are dead.
@emunews
9 ай бұрын
BTW, even if you ignore safety improvements, a new car probably gets better gas mileage. Not only does this save money, but also reduces your carbon footprint which helps the planet. Again, it would have been nice if this was covered in the video.
@BagsNBaguettes_327
Жыл бұрын
I bought a new 2022 Lexus 350RX which cost 55k and put down 41k, just paid it off last month. Driving that thing til the wheels fall off. We don’t have any kids so I splurged and can afford it based on salary and net worth.
@tarzz25qwe
Жыл бұрын
This is great information! This channel needs more subscribers! I probably won't subscribe, I got too many already, but y'all should!
@GeorgeKamel
Жыл бұрын
Hurtful
@leonchen89
Жыл бұрын
I leased a car once in my early 20s. 3 years and 30k down the drain. Never again. Dumbest thing I have done.
@Mike-dd8bd
Жыл бұрын
You can always buy the car at the end of the lease though. I guess people forget you are paying off the car in a lease.
@leonchen89
Жыл бұрын
@@Mike-dd8bd the problem was that I had no money to buy the car at the time of lease end. It was stupid of me to lease. It was a $55k BMW 2 series with a $30k buy out.
@zakkrick
Жыл бұрын
My old friend lease his 4Runner and paid 740 per month because he had no credit score smh. He thinks 740 is a great deal but we all thought he was stupid. I can say whatever I want about him, we ain’t friends no more. Screwed me over with money too
@NovaPrincess
4 ай бұрын
Car leasing is stupid. I don't know why anyone would do all that just to own nothing in the end. 😮
@derekdykstra7560
Жыл бұрын
Air frying is harder than it looks
@matthewwilliams9200
Жыл бұрын
It's not the car we want It's the car we deserve
@cobbler40
Жыл бұрын
When you look at new car prices you realise the monthly payment is not paying it off.
@thebeddoctor4273
Жыл бұрын
I know it might be dumb but I lease my vehicles because I've been able to have brand new cars with the newest safety for my family for under $200 a month. But now that rates are much higher I paid cash for my last vehicle which is older.
@r8alvar
Жыл бұрын
The only lease worth getting is a new lease on life.
@hvaball150
Жыл бұрын
A lease special is almost always a better deal. Today you can get a $28k honda for $4k down and $259 per month, $17000 residual, 36 months. Assuming you had $28k in an index fund and would withdraw either $259 or $417 per month... The value remaining at 36 months is A, pay cash, value $17000 (the car). B, finance @ $417, value $20919 ($17k + 4k car equity) C, lease @ $259, value $23605 (all index fund) This guy would have you believe a $17k car is better than $23k in cash ...
@GeorgeKamel
Жыл бұрын
Take the L bro this ain’t it
@GeorgeKamel
Жыл бұрын
@@siva47931investing assumptions to justify debt doesn’t count as math
@hvaball150
Жыл бұрын
@@GeorgeKamel take the T bro, Tool ... Don't even comment really. Weve already heard your rehearsed video. These insta responses are even dumber.
@tpolarbeart
Жыл бұрын
Don't forget you have to pay for any door dings or damage to the vehicle or any extra miles you drive.
@GeorgeKamel
Жыл бұрын
Yes, I mentioned all of that in the video 😀
@tpolarbeart
Жыл бұрын
@@GeorgeKamel whoops I missed that. I listen while I exercise. Thanks for the video it's great to show this to people when they don't believe you how bad leases are
@tammyjohnson5368
Жыл бұрын
Great video once again. I've never leased a car. I just didn't understand it. Thanks for the knowledge. BTW, you have a few typos in the video. 🙂
@spankulator
7 ай бұрын
I did a 4 year lease on a new vehicle. Turned in with 21k miles when had 40k miles. Still made me pay disposition fee. Crooks
@joec.5009
6 ай бұрын
i don't mind it because i like driving new car every 3 years. and i can afford it.
@oceantrident
Жыл бұрын
Yo
@ThanhTLam1
Жыл бұрын
you said model s but in the video i see model 3....
@elchapojr6219
Жыл бұрын
Leasing sucks
@mayagriffin2826
Жыл бұрын
I’ve heard of some ppl selling their leased car for a profit. Is that a thing?
@godfrey_kayanja
Жыл бұрын
Great video and advice! What about the tesla model x though? The one where you filmed yourself driving to starbucks with Graham Stephan. In that video you said you’re going to pick him up in your tesla model x. 🫤
@GeorgeKamel
Жыл бұрын
Never said X. I said S.
@SpoonHurler
Жыл бұрын
Walking into the finance office and continuing to ask how much it will be if you put more and more on the car until you say you'll just pay it all in straight cash is so much fun.
@slippinslidewayz
Жыл бұрын
I always buy private-party but I want to buy at a dealership just to do this 😂
@rhaythe
Жыл бұрын
Man, I wish I could have been listening in on that conversation.
@reaper-sz5tm
Жыл бұрын
I did this on a V8 mustang, brand new off the show room floor. Kept raising the down payment $3-$4,000 at a time and then at the end said just kidding, here’s a cashiers check
@SpoonHurler
Жыл бұрын
@@reaper-sz5tm man, I wish I did it with a ride like that... Mine was just my niece's used Prius but one day soon 😂
@reaper-sz5tm
Жыл бұрын
@@SpoonHurler you will get there!!! I told my wife my next goal is a viper but she said that’s the 5-10 year goal, gotta wait on that one
@alexeatsLV
Жыл бұрын
FINALLY! Someone else shares my anger towards improper apostrophes during xmas cards!
@dforrest4503
Жыл бұрын
X’mas cards. 😂
@nics4934
Жыл бұрын
Paid 2500 for a 2000 Toyota Camry a month ago and loving it so far 👍 all thanks to the Ramsey Team and Scotty Kilmer
@manfredmann2766
Жыл бұрын
Oh what a feeling to drive……….. 😂 old commercial jingle
@charlesbuonopane9912
Жыл бұрын
Scotty Kilmer is a national treasure. Love that guy
@bluestonemetallic7
Жыл бұрын
….I am still owning/driving 25+ y/o Camry V6 w/ nearly 400K miles on the clock since new to me…like 20 yrs ago. I am thinking of pulling-the-lever on a brand new BMW M4 Competition cabriolet. Tired of my ole Camry to be honest.
@dforrest4503
Жыл бұрын
@@bluestonemetallic7it’ll still last longer than that new BMW. You should keep both.
@scottmcgilvery8511
Жыл бұрын
First car was a 2000 Camry - wish I still had it
@joshuategeler3419
Жыл бұрын
As someone currently in a lease, I can say I will have burned 18k in January when it's up. Dumbest financial move I've ever done. I'm now going to be paying the lease and saving to buy a car at the end of it.
@GeorgeKamel
Жыл бұрын
Live and learn. Glad the stupid tax is almost over. Never again my friend!
@MrCooper89
6 ай бұрын
Just buy the lease? They provide you with a residual when you sign the lease contract. As much as I like George, this video was definitely made for engagement, not actually educating people as everything he stated should of been known by those who take advantage of leasing.
@asnmdnss
4 ай бұрын
@@MrCooper89Just drive a used car. You're not taking advantage of anything by leasing, they are taking advantage of you lol
@MrCooper89
4 ай бұрын
@asnmdnss There's nothing more annoying than people who think they're financial gurus because they watch a couple of Dave Ramsey videos on KZitem. It's so obvious when they come out and parrot things like this, but most don't realize that Dave's giving advice for people who are terrible at managing their finances. It's what his content and his advice is geared towards. Next you'll be telling me that it's better to just save up cash and buy a car outright -- the usual go to response of the impoverished financial gurus.
@asnmdnss
4 ай бұрын
@@MrCooper89 ok bruh...keep leasing cars then. I'll drive my paid off car. I don't agree with a lot of what Dave says but this is kinda common sense bruh lol
@Matt-rk3de
Жыл бұрын
George is educating financially illiterate adults, in a manner how you would speak to a 3rd grader. He’s brilliant
@fuse911
8 ай бұрын
The truth is. If you cant explain something complicated to a 3rd grade by simplifying it so even they understand is what makes a true teacher.
@LindseyHarvell-vc4ez
4 ай бұрын
Bought a cash car 🚗 in 2021 for $7000. Drove it for 3 1/2 years and just sold it back to the same dealer for $6000. Paying $1000 to drive a car for 3 1/2 years plus maintenance and gas is a pretty sweet deal. 💰
@drivewayhero
7 ай бұрын
Havent had a car payment in years. Both cars are 13 years old now, still running good but showing their age. Whenever i think of getting something newer (usa such a car culture country), 5 minutes into looking at the cost, insurance, registration.. I change my mind 😂
@jmbpinto73
6 ай бұрын
my daily driver has 37 year old and running strong. I try to maintain it the best i can. Whenever i decide to resell it, unless something horrible accident, i can get purchase value out of it again, so the actual ownership cost is fuel, maintenance and insurance.
@kiefdemon1979
Жыл бұрын
To me, a car lease is a long-term rental with stricter rules.
@JakeTerch
Жыл бұрын
So many people will say, “I need to get a brand new car for the peace of mind of not needing repairs.” Meanwhile, they are up to their eyeballs in debt. Peaceful, huh? Breakdowns and repairs may not happen with a used vehicle, but depreciation WILL happen with a new one.
@DB-bw5fz
Жыл бұрын
It’s a mindset. The vast majority of people financing vehicles only look at the monthly payments. If a new vehicle gets them the ability to finance at a longer term for a lower monthly payment, buying new makes sense to them, since it’s “cheaper” on a month to month basis. Those same people would need to finance a used vehicle as well…but if the interest rate is higher, or they can only get a shorter term resulting in a higher monthly payment, it’s seen as unaffordable, especially since they will be on the hook for any and all repairs. I’m definitely glad I got ahead of all these traps before ever getting into them. I would have easily qualified for financing on a brand new vehicle when I was 21. Instead, I bought a good used car I could afford, and drove it for 6 years. 6 years with no vehicle or debt payments makes it a lot easier to keep saving up for future goals, despite increases in cost of living along the way. I’m now in my mid 30’s, have 2 good paid for vehicles, and we finished paying off our home last year. Everything was done intentionally right from the start to make that goal a reality…but to most people, we’re just “lucky”….
@InternetUser._
Жыл бұрын
Paying $700 a month to avoid a $1500 repair every 3 years 🤡
@DB-bw5fz
Жыл бұрын
@@InternetUser._ It’s not just paying $700 a month to avoid a $1500 repair though. It’s the whole thing. That used car might cost them $650 a month, because they HAVE to finance it. Coupled with possibly no warranty and having to fund repairs, paying $700 a month for a new vehicle instead with full warranty is seen as the better choice. I know I don’t have any term lengths or total costs in there…but that’s also the point. Those types of people don’t see totals, only monthly payments ;)
@crashtestdummy1972
Жыл бұрын
@@DB-bw5fz thats spot on
@MrJimmy3459
Жыл бұрын
Having $50,000 in my savings account is more peace of mind than any brand new car will ever give me
@wealthbytes
Жыл бұрын
I leased a car one time...that was the last time I would do that. Math is your friend and can guide you away from dumb money decisions. Back then, I didn't care about math.
@MrCooper89
6 ай бұрын
Leasing is not a "dumb money decision" unless you're not the sort of person who has a lifestyle that's incompatible with leasing.
@wealthbytes
6 ай бұрын
@@MrCooper89 Vast majority of people shouldn't lease cars. They aren't using loopholes for businesses, etc where leasing can make sense. This is regarding the majority of people.
@MrCooper89
6 ай бұрын
@@wealthbytes I know, that's why I said: "unless you're not the sort of person who has a lifestyle that's compatible with leasing", but you didn't provide the exceptions you're now providing in your comment about "dumb money decisions". The average lifespan of a vehicle in the United States is 11 years -- if you bought it new that same vehicle over 11 years is going to cost you a lot more to buy through financing than it would to lease a vehicle of that same class for 11 years, even if the monthly payment of that lease gradually increases with each new lease you sign. My Silverado, for example, was initially $399 with Chevrolet's lease special at the time I signed. I just recently renewed a lease for another Silverado at that same price as the dealership "bought" my lease out and rolled over $7,500 in equity (just a numbers trick I'm sure) over into that new lease, covering fees and keeping the same payment for a higher trim level. That's basically 6 years of ownership at the cost of $28,728 and that second lease was at the height of shortages on that particular truck. The odds of it increasing a huge amount by the time this lease comes to an end is fairly low, but even it were to increase another $150 a month, the grand total for having a new truck over an 11 year period would be $61,728. Basically the MSRP of the exact truck I have now, minus potential interest over the life of a loan.
@wealthbytes
6 ай бұрын
@@MrCooper89 I have a used truck I don't make any payments on, so there is no interest and no payments at all. It's all in how you want to use your money.
@nude_cat_ellie7417
24 күн бұрын
@@MrCooper89but you don’t actually own it and had you bought, that would have been financed over 5 years and you’d have had 6 years without a payment.
@tonyd7164
Жыл бұрын
My girlfriend leased a toyota tacoma one month before covid hit in 2020. Only put on 15k miles in 3 years. The truck is worth 8k more than her pay off due to current car market. Not always a horror story.😅
@trumax33
Жыл бұрын
The last time my lease was up, it was worth $3,300 more than my payoff. Leased another, used the cash to pay off debt. I have no expenses for maintenance during the lease period and even though this vehicle has sustained over $25,000 in damage (one accident, not my fault and other damages while it was parked, also not my fault), my insurance fixed it & I get to give them back their vehicle with no repercussions...even though the value of it is greatly diminished from the damages, even though they're fixed. Not being stuck with a beater with a bunch of miles on it, constant maintenance and no value from all the damage? Priceless.
@MrCooper89
6 ай бұрын
Remember, Dave Ramsey and his channel is really just here for entertainment purposes. He's very good with getting people to shake off fundamentally bad financial habits, but his insistence on never taking on debt is a little extreme and ultimately hurts people who want to push their credit profile to the highest level.
@rafael502
6 ай бұрын
@@MrCooper89he'd rip you a new one if he read your comment lol. Who gives a fk about their "credit profile" when they are debt free and amassing wealth via their savings and investments??
@NovaPrincess
4 ай бұрын
@@trumax33I guess leasing is good for people rough with their cars then.
@tubenachos
Жыл бұрын
I found this out the hard way TWICE. Never again, pay CASH on a certified used car ALWAYS
@stephaniepatterson2987
Жыл бұрын
I recall spending HOURS at the dealership when buying a car in my 20s. When I paid cash for my vehicle a few years ago, i realized all that time is for the financing!! Goes so quickly, by comparison, when you're writing out a check and driving away!!
@bt2598
Жыл бұрын
I’ve been back and forth on whether I need a car here in Atlanta. I’ve been managing without one for 4 years with a mix of walking where I can, using public transit and Ubers.
@viljoisgreat7027
Жыл бұрын
I paid cash for my car back in February! Thanks to you and the Ramsey team!
@tanthom32
Жыл бұрын
My wife and I just paid cash for our first car together on Friday! Such a satisfying feeling. Congrats!!!!
@Whiskey_Jane
Жыл бұрын
I did as well and will follow the 10 to 15k plan till I die lol. Thanks team, love this show. 💜
@esteban1487
Жыл бұрын
Why would you buy something that loses at least 10% of its value when you drive it off the lot? THAT is stupid.
@zodeadlifts9295
Жыл бұрын
Or you could have financed the whole thing at 5% interest over 6 years and put your money in SPY which will likely return 8-9% a year, and every payment extract money from your SPY investment. By the time you pay off the loan, you’ll still have some leftover money on your SPY investment, thus coming out on top over paying cash
@rasheemthebestfirstone3274
Жыл бұрын
@@zodeadlifts9295how explain
@carquestionsanswered
Жыл бұрын
I get so many questions about leases on my channel...people don't get how bad of an idea it is
@GeorgeKamel
Жыл бұрын
You’re a real one 👊🏼👊🏼
@carquestionsanswered
Жыл бұрын
@@GeorgeKamel love what you're doing... I'm in entreleadership too!
@osumbrosie5314
Жыл бұрын
Getting ready to pay cash for a replacement car for my husband soon. Going from a 2007, paid off, chevy, to a much newer, but not brand new, Lexus, all in cash
@c7042
7 ай бұрын
I think I already know this. I paid $3K for my last car (used) and I've had it for 6 years and repair costs are $300 total so far. I'm going to spend $22 this week on psp cap though. Oh the agony of spending almost nothing on transportation. I pay cash for every car I buy. Paying cash prevents stupid decisions.
@milanobus
Жыл бұрын
I leased 2 Ford Fusions. Ford got hosed on both of them. Paid $200 a month for 2 years, then handed then back the keys. Depreciation was way more than I paid.
@rossmcgreg6r642
Жыл бұрын
George, well done, you are educating yourself on cars. Like the addition of getting the used car professionally inspected.
@codyadams1200
Жыл бұрын
George makes my day every time one of these videos drops
@cassidy745
Жыл бұрын
Whoa 😳 I had no idea how scammie a car lease was! So glad I’ve dodged that one. Thanks for sharing all the details of this George. You’re a true minimalist -one payment, zero interest. I like your style.
@tiffanym4202
7 ай бұрын
Please, please, please get your potential used car looked at by a trusted mechanic before buying. I bought a used, low mileage car from a dealer and have already put $4000 into repairs in just 2 years.
@thesuperdingos
Жыл бұрын
I never understood why people lease. It’s like a long term rental car.
@esteban1487
Жыл бұрын
Yes, you're renting the car for a specific time period. Lower payment than financing, and it's usually fully covered under the bumper to bumper warranty. You can buy the lease out too in most cases.
@justinbrown6922
Жыл бұрын
So they can drive whatever the latest and greatest car is each year
@esteban1487
Жыл бұрын
@justinbrown6922 some people like the new tech so they lease.
@hvaball150
Жыл бұрын
So there is absolutely no cost of owning a car? Either real or opportunity. Take the next car being bought and see the lease deal, then put the extra into an index fund. Come back in 3 to 4 years. Do the same if you paid all cash versus putting the money in an index fund and leasing.
@ib272
Жыл бұрын
I used to think like that but now I think I get it at least in theory (only owned cars never leased) leasing is for people who can easily afford it. Who dont want the burden of ownership. And that is very much an individual/situational concept.
@missjen84
Жыл бұрын
Exactly!
@zxb995511
Жыл бұрын
Even for solvent folks its not such a great deal. I know a couple who have been leasing all their life, (30+years). Now that they are retired they don't have the same income and are worried about their car situation.
@thehomeless_trucker
Жыл бұрын
@zxb995511 If they are worried about not having enough, they either have money scarcity issues, or they are broke and shouldn't have retired in the first place. Apparently they can't easily afford it.
@RevTiberius
Жыл бұрын
I wish he'd just focus on the content in his videos. All this dumb comedy stuff makes these videos basically unwatchable.
@GeorgeKamel
Жыл бұрын
This may not be the channel for you. My goal is to entertain while educating. There’s plenty of straight talk personal finance channels out there you’d like better.
@RevTiberius
Жыл бұрын
@@GeorgeKamel Thank you. I really like the short, punchy format of your videos giving just the content; I'm just not the right guy for all the comedy. Nonetheless, keep up the great work!
@keithyoder4608
Жыл бұрын
I know this is not the norm. In late 2020 I leased a Nissan Leaf for $49 a month $0 down, 24 month lease. I paid taxes and title fees. 12,000 miles a year. At the end of the lease they actually "bought" it back from me and cut me a check for about $2000. There was no maintenance or cost of gas. I thought it was a pretty sweet deal. That being said the car I got after this I paid cash for and it feels great!
@xxtoptankxx6873
Жыл бұрын
Definitely the timing because of the car crisis and on top the massive gas price increase that happened made your Nissan leaf more sought after. Obviously would never attempt to recreate that exact scenario, but it’s good that you made out on top.
@dforrest4503
Жыл бұрын
At that price, there’s really no downside risk.
@jared19882
7 ай бұрын
Telling most of Gen Z that used cars can actually be reliable is like trying to tell a Christian there is no god.
@Erick10zz
7 ай бұрын
Whats the range on your tesla? Evs are like disposable cars, once the battery dies it cost like twice as the car
@romain198426
Жыл бұрын
I wish getting a mortgage was as easy as getting a car loan
@victorn6065
Жыл бұрын
It used to be. Then 2008 happened...
@kevinortiz7879
Жыл бұрын
It’s easy if your not broke and irresponsable
@thefpvlife7785
Жыл бұрын
But it is if you simply have a bank account and a good credit score, sadly
@MrCooper89
6 ай бұрын
@@victorn6065 That's why 2008 happened -- bad government policies incentivizing sub-prime mortgages.
@MrCooper89
6 ай бұрын
@@kevinortiz7879 What about illiterate?
@JakeSpradlin2
Жыл бұрын
Gots to buy with cash!!! I have a paid for 2014 Camry worth about 12k when I make 90k annually.. could I afford more? Probably. But I love my car!
@NeverMisplaced
Жыл бұрын
I work for the dealer. So I get employee leases. I understand not for general public. But I love paying only $400 month for a new wrangler and never have to worry about service cost. Always under warranty. Plus wranglers have best residual. Price I’m happy to pay for peace of mind.
@tduck828
Жыл бұрын
Yep. Sometimes leasing makes sense but for most it really does not. I've been driving my current SUV for 14 years.
@t.j.morris8385
Жыл бұрын
George didn't mention it, but Dave has said employee leases can be a good value. He's mentioned Nissan employee leases many times.
@MrJimmy3459
Жыл бұрын
$400 for something you will never own doesn't sound like a good deal to me...........
@ChowderTIO
Жыл бұрын
@@MrJimmy3459Correct; always drive new and never worry about servicing a vehicle.
@nude_cat_ellie7417
24 күн бұрын
I bought my Jeep Wrangler in 2011 and paid $415 monthly to own. 🤔
@DrKnowsMore
Жыл бұрын
Interesting that you did this video now when there are in fact very few good used cars at a reasonable price. You can still get a reliable used car, but you're going to basically pay new car prices for it. Alternatively, if you want to save money, you're going to get a car at a given mileage it's in worse shape than cars of the same mileage in the past and at a higher price.
@fearlessfly100
Жыл бұрын
Between my wife and I......we have 3 vehicles.....all paid for.....newest is a 2005 GMC ENVOY.......the trucks are from the 80s and 90s.....all run and drive.......
@pauldurand1890
Жыл бұрын
I like these videos, but it does seem similar to Graham's
@josesantos1752
Жыл бұрын
Is leasing a car for your business stupid as well?
@10RRASK
Жыл бұрын
What’s even better is when you roll negative equity into a lease, and then roll that combined negative equity into another financed car 😂 Never again!
@zxb995511
Жыл бұрын
I am sometimes amazed at the true witchcraft the banks can do with negative equity on cars. Those deals never seem to help the buyer though....
@Dorota8087
Жыл бұрын
I drove a 2002 Toyota Camry since I was 20 years old. Graduated from 2 universities with two different degrees. Paid off my first school loan then went to nursing school. Graduated nursing school and paid off 70k nursing school loan in just 2 years. Recently bought a brand new Tesla paid full with cash. I have 0 debt, car fully paid and money saved in the bank. I followed Ramsey’s baby steps when laying off my school loans and the strategy does work. I paid off the smallest amounts first and slowly but surely I now have FINANCIAL FREEDOM :)
@solidstream13
Жыл бұрын
My wife and I were going to pay cash for her $47k car. We decided to put that cash in the market for the 3 years. We made and average of 7% which equates to $10k over the 3 years. This cash investment opportunity cost needs to be part of the factor.
@dforrest4503
Жыл бұрын
If you CAN pay cash but choose whether to do so or not; I think that’s quite a bit different.
@LukeofAllTrades.
Жыл бұрын
How much did you have to pay in taxes on the $10k in gains? The taxes need to be part of the factor.
@JNHEscapes
5 ай бұрын
I think this video is not exactly accurate. Now granted I own several businesses so our leasing is expensed, but alot of what you said can be said for buying a car as well. The fees, the title and registration, the doc fees, you never mentioned depreciation or the overall cost of ownership especially with today’s high-tech vehicles that are complete junk. I have early terminated and never once paid an early termination fee. We simply paid out the lease as it was already budgeted and our early termination was our decision. It’s called responsibility. I have never been charged any fees at a lease turn-in. In fact, even when over mileage if we are exchanging for another car from the same manufacturer as we often do all of that is typically waived. Also, if you read the legal paperwork most dealerships actually don’t have any responsibility or ownership of the vehicles as soon as you sign. Mercedes for example passes all vehicles to their Mercedes Financial Trust and the dealership is out of the deal entirely. Now the financial benefits: no depreciation! No capex! The vehicles are all opex and direct PL expenses. We do not have to worry about ever being out of warranty or about the total cost of ownership. For example: a new Nissan Frontier (that I just leased for my company truck) cost 52k new. You also pay sales tax on 52k. The ENTIRE cost of the 3 year lease for my truck is $19,200 and we are paying sales tax on that amount amortized throughout the lease. The payment is $550 a month and no matter what happens that is all we will ever owe on that truck. Do you think if we bought it outright with liquid cash that in three years, after depreciation, we would have only spent 19k? Why spend the liquid cash when we know we will replace it? That’s another point: we rent everything in life now from our data to our entertainment to our vehicles. Trust me, I have tried it every possible way and leasing is the best choice today. I never want to spend liquid cash on a depreciating asset. The money can be saved or invested. Hell 52k in a 5.3% cash account almost pays half the lease payment on the truck so if I just took the cash and parked it literally in cash right now the interest would pay half the lease and I still have my principal. Make that work with buying it outright. I think most people miss the point. If you’re going to lease you better be disciplined enough to understand what’s going on. You never mentioned the fact you can trade a leased car just as easily as any other and avoid all the potential fees or over mileage or whatever you came up with. I have traded many leased vehicles on something new. BMW also has the best corporate lease on the planet. I nearly totaled an M3 back in 2008, got it fixed and turned it back in with no fees and no questions asked. After that experience I have always had one leased BMW. This argument goes deep and I know what you’re going to say “I wasn’t talking about business leasing” but you can’t tell people all these fees and issues exist when in some scenarios they do not. Also, I have never, in 25 years of leasing, been charged a difference between the residual and the fmv of the car. The lease is a legal contract with a set residual amount. That is the beauty of a lease…it’s a fixed cost that can be budgeted. It’s basically the same thing as stock options. I have the right but not the obligation to purchase at the end or turn it in, but the cost is set. I know at the time of signing what my entire expense will be from the beginning. Another example: I leased an AMG Mercedes for my wife for Christmas. The entire cost of the lease for 2 years is $28,000. The car was $75,000. Mercedes has the worst depreciation on the planet so I am happy to fix my overall expense to 28k for 2 years and walk away at the end. Otherwise, I could pay cash, lose interest and compound on 75k and the car only be worth 40k maybe at the end of 2 years. So the lease is actually a better financial decision. Again, if you’re going to make videos about finance you cannot blanket the topic and use broad strokes. Break the videos up into scenarios. Does leasing make sense for a young, poor, single mom that needs to get to work? Probably not, but buying a 400k mile camry certainly doesn’t either. Some will say well it’s dumb to pay 28k for two years of using a Mercedes and get nothing for that money. That’s true, except once you’re a multimillionaire, having worked your ass off your entire life, a Mercedes here and there is of no concern and in some scenarios businesses actually need expenses which no one ever understands. Therefore, I would much rather spend 28k over 2 years than 75k today. It’s all about the situation. I think the general public forgets that alot too…what works for me may not work for you. Everybody is different and, again, this is why blanket statements / videos on youtube do not work.
@jack7240
Жыл бұрын
yes!! great content!!! i don’t know how many more times i can keep on saying that indefinitely🎉
@GeorgeKamel
Жыл бұрын
Keep saying it! The team and I appreciate it. They work their tails off every week to deliver the goods.
@veloaa-montreal6924
7 ай бұрын
I always liked those licence plates that say "don't laugh it's paid for", but seriously having a cheap car that's paid off has many more benefits like cheaper insurance, and saying "oh well" when it inevitably gets scratched or dented.
@egs2169
Жыл бұрын
George you can buy the car at the end of the lease. Don’t always have to give it back.
@zxb995511
Жыл бұрын
If you do that it will ALWAYS be more expensive than simply financing the car to begin with, due to all the BS fees you have to pay for the leasing terms.
@Misterkoll
Ай бұрын
Leases aren’t all bad: there are good ones and bad ones. I got a ‘21 Kona electric on a 36month lease for $138/month and $4k down. Lease buy out was $21500. New was $43k. I now HAPPILY own my Kona having paid under $31k. And that’s before you consider the value of my CD interest on that $21.5k buy out cash for 3 years, or the company stock program money that I let sit for long term gains rather than liquidating to pay in cash. Lesson 1: debt can be leveraged either way. Lesson 2: $3k/year to drive a new car is stupid cheap compared to the depreciation on an owned asset over the same period. Lesson 3: do your research and don’t simply follow the doctrine.
@lthage373
Жыл бұрын
Stick to money. There's no apostrophe at all. The apostrophe indicates possession, like the Kamel's camel.
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