ACCOUNTANT EXPLAINS Should You Buy, Finance or Lease a New Car

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Title	:	ACCOUNTANT EXPLAINS Should You Buy, Finance or Lease a New Car
Lasting	:	14.24
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I heard on another video that when you lease, you do NOT pay for all the taxes, and you only pay for the contracted lease amount That means that $5196 for taxes and fees wouldn't be the same for leasing versus buying Making your calculation inaccurate Can anybody with experience pitch in?
Comment from : Fe y Paz

Resale, private, or commercial?
Comment from : Theo Terrell

The more miles on a vehicle generally the less its worth It comes down to buying a car either for cash or financing for personal use and leasing if you use the vehicle for business
Comment from : DJ Kang

Always have been paying cash for my cars and yes, most of them are not top trims luxury cars, ALL are Toyotas🤣
Comment from : Omega Bulldog

Financial implication is not the only, or even the core consideration of buying, financing or leasing a car All cars are different and its value depreciate differently The brand, durability, liability, maintenance cost and enjoyment are all contributing factors These all affect the decision of whether to buy upfront or lease Sorry to say, but you have over simplified this topic
Comment from : mui pig

Thank you It makes sense
Comment from : 16SQRT169

There’s no scenario that it makes sense to lease a car If you’re low or middle class, it’s the most expensive way to drive If you’re upper class, pay cash and save on interest
Comment from : Dustin Nelson

It's pretty simple, leasing is never financially better but it will allow you buy more car than you can afford brYou always pay more interest with a lease so the the bank will always make more money from a lease For a consumer, the one exception that makes a lease financially better is when your cost of capital is higher than the interest rate of the lease during most of the termbrThere's not need for a detailed excel sheet and a 15 minute video to figure this out, but I guess you accountant has to do what an accountant does best,
Comment from : Zorglub Z

I started to watch this video because it is so practically helpful but end up being watching you so cute😂
Comment from : Jay Choi

HI, 18KM/YEAR??? - I think most people drive more per day :-)
Comment from : Robert Majewski

Madam who is leasing for 500$a month, it’s at least 1000$ a month…
Comment from : Ultimate Dissolution

What causes the opportunity cost for cash?
Comment from : Heathenwood Official

This made my head hurt 😮
Comment from : john johnson

Never lease a car
Comment from : robert melgoza

Wow! This 1080p compression ratio is fantastic
Comment from : Abdul Shabazz

America chose to privatized the cost of mobility and lined the pockets of automakers and oil corps for a century What a backwards country We need more transit options: rail, bike/pedestrian infrastructure and mixed zoning
Comment from : No_Name

I don't buy new car , I buy cars under 4,0000 miles and paying cash I don't have car payments for almost thirty years and have no mortgage before retired Now I have to taken care of my five rental properties !
Comment from : Norman Chan

Being Asian makes her more reliable
Comment from : RZ

Love it!!!!!!!!!!!
Comment from : Nuno Alexandre

What about tax breaks on leased cars?? Any thoughts?
Comment from : Raghavendra Deshpande

nothing impresses me more than someone who's good with numbers 😻😻😻 just make sure nobody buys a Jeep Thanks!
Comment from : Tim Spencer

I don't get the "opportunity" cost inclusion in the cash purchase Who cares what you could have done with the money instead if you hadn't purcahsed it for cash? The whole point of cash purchase is to not have any payments, wether purchase or lease Seems like an artificial construct to me
Comment from : Peter Collingwood

need to take into account the opportunity cost of the 5k deposit in the second scenario
Comment from : Joshua Swift

Lots of value in this video Thank you so much!! 🙏
Comment from : Ricky Fast

$300/mth for insurance, maintenance, fuel and parking is very low for most Canadians Gas prices alone on a very fuel efficient car model will be $300-400/mth
Comment from : Afolabi Lowrie

It’s very simple You want to drive a nice it’s going cost you every month You wanna drive a shit (ish) car it’s not gonna cost you brbrMain rule is to try our very best to live within our means
Comment from : TBO24

Getting a new car are so expensive these days just use public transport😮
Comment from : Aris Tee

Despite so many people telling me that leasing is a bad option when I was younger, I've always leased because avoiding car troubles/repairs is at the top of my priority list I don't have a tolerance for dealing with bringing a car into the shop, getting a loaner, any of that crap I just want to get in and go, not worry about any of the crap that comes later with older vehicles I understand this sounds like I just don't want to maintain a car and I guess that's correct, and the market gives people like me an option that suits my needs I guess we all just have to know what we prioritize!
Comment from : no name

🔴🔴 THANKS ! you would love vintners daughter ESSENCE 🏆
Comment from : Pilar Q

I'd like to see a more realistic comparison based on monthly budget Say $500 or $600 dollars a month Also, the value of the vehicle at the end of the lease is negotiated at the start of the lease Some people got real lucky when their buyout came up for option when rates were low and used prices were high
Comment from : dippitydoinit

Tissot is a wonderful watch but that Bulova though My collection is aching for one
Comment from : Laszlo S

FOURTH choice :brBuy a good "Previously Owned" (a/k/aused)brvehicle and let the foolish suckers take the huge depreciation Save many, many thousands of $$$$$
Comment from : Robert Walker

199 is not available anywhere in Europe, in fact nowhere near
Comment from : Stephen Powell

100 agree , totally
Comment from : Jimmy Wang

Opportunity cost is closer to 10 based on the average returns of the S&P 500
Comment from : Athan

Opportunity Cost only applies if you take the entire car value and lock it into a GIC for the same period of time Which virtually no one does
Comment from : Me Lastname

If the second example has a lower resale value, the higher the monthly payment will be The term of the lease (36 months) is to pay the difference between total cost less residual value estimation) plus interest So, if the residual value is less, there's more pricinpal to pay in the 36 months
Comment from : F M

Buying a Jeep is wasting your money to start
Comment from : Joseph Bangs

The resale value for an individual trying to sell it themselves, or trading in is far lower than what you see dealers asking
Comment from : sleepyreader666

I finance all my cars, zero down I buy based on what I want and their weight for tax benefits Bentleys, Large heavy Mercedes SUV’s, etc I enjoy them and write them off It was easier and fun to focus on how or what i can do to earn more and afford what I want than focus on how to save and pay less money per month Plus it’s motivating and enjoyable to drive what you really like In my opinion
Comment from : Eliseo Carrillo

You neglect that a down payment also comes with opportunity cost just the same as purchasing outright does No big difference but wanted to mention
Comment from : naisi

I always buy, cash only But I keep the car for 10+ years, or until the yearly maintenence is equal to maintenence of a new carbrOnce it starts braking down to exceed the cost of maintaining a new one, I start looking for a new onebrCurrently my car is 14 years old and still running like a champ, no problems whatsoever, so a new one is still not even an idea 😂brI'd say I got my money's worth out of it
Comment from : Watch Geek

Gabrielle, great channel! In the future, could you do a cost comparison between owning a car vs taking an Uber/ride share?
Comment from : Tony Vu

Great video! It would be nice to make an update to this video for 2023 and current rates I would think buying cash wins out right these days no?
Comment from : TurboGate

Don’t get your purchasing advice from an accountant See your financial advisor Your advisor will give your personalized advice tailored to your financial situation
Comment from : iLasombra

Basic stuff really
Comment from : Bob

199 where???
Comment from : joonsup

I guess with the $5k deposit scenario we should also add the opportunity cost -but should not be material
Comment from : Manjit Biant

If the lease residual goes down, the monthly payment will change, I do not accept your conclusion
Comment from : Joe Leonhard

Don’t resell the car after three years You still have a good car that can go for several more years, unless your lease is up and you are paying for another one again
Comment from : Rajendra Gondhalekar

People need to work on their fragile egos first before thinking about spending their money ‘wisely’
Comment from : TheGomezIndustries

If leased who pays for maintenance?
Comment from : Dr Kaufmann

So like anything and everything, its all depend on the cost of moneyie the cost (interest) of borrowing money ! So next time your friend or son/fldaughter ask you to borrow some money
Comment from : Van Ng

I buy a new toyota or mazda and keep it for at least a decade
Comment from : Chad Huxington

is it possible to write off taxes by buying cars?
Comment from : Wragg

I don't get the point of leasing a Jeep Wrangler The entire point of a Jeep is to explore and wait for it go off road! Travel around, drive miles in the back country, camp, and go on off road adventures I'll never understand leasing a Jeep Wrangler just to drive around town It's mind boggling
Comment from : jAS Ras

paying 15k for a jeep per month is insane what the hells io happening?
Comment from : cakesoncups

Buy and keep driving until it falls apart Toyota, Lexus only and paid in cash only
Comment from : JML

There is no "best option" over all It depends on the following factors: financing interest, lease interest, residutal value/purchase price, tax consequences and alternative use of purchase cash Gabrielle had the lease financincg cost at three time the loan rate It can be exactly the opposite In fact, for years the interest rate for leasing was practically zero The last time I checked they were about the same Both leasing and financing allow you to use the purchase cash for other purposes Putting it in a savings account is only one You can invest it in your business Use it for tuition, etc This is an important consideration Also, the residual vaue which the company assigns to the car impacts directly you monthly payment Some companies have high residuals making the monthly payment cheaper Finally leasing gives you the opporutnity to buy the car at the end of the lease or searh for a new one With many people waiting to see when/if to buy an EV, this may be an important consideration Overall it seems like the relative interest rates for leasing or financing and your alternate uses for the purchase cash, will likely determine which is best for you (if the vehicle is being used for business purposes you also have to determine the tax consequences for each)
Comment from : James Stedronsky

I personally can’t spend more than 20K on a car It’s just not worth it
Comment from : Raindogg TV

Taxes play a big role also When purchasing a vehicle, one must pay taxes on the full amount of the vehicle However, one only pays tax on the amount of the lease
Comment from : David Freeman

So on a lease you depending on where you live don't pay tax on the entire vehicle You only pay tax for the amount you use over the term Which I think really skews heavily against leasing in your calculations Also the lease APR (or money factor as it's called in a lease) is a bit high there but is still reasonable considering the market right now
Comment from : Blake the Tank

Enjoyed the video and found it informative but it would have been better if you didn’t use a special finance rate You are putting in a special circumstance on just one of the options
Comment from : Keith Gegg

this is some retard math lol Also my lease was 09 - you forgot to consider that buying a car outright is throwing your money into the wind with depreciation Also most people who lease only want a new car and have no plans to keep them
Comment from : BakaOppai

But you didnt put on the opportunity cost of the $5K deposit surely that must be 10 of 1370 or around $130 The other thing I appeared to miss here is the resale of the car , you show it as $35K and the lease payer never gets this so surely the buy and finance must be $35K higher at the end
Comment from : Campbell Morrison

You didn't take into account that when you trade the car you bought or financed you don't pay tax on the trade in valueso the next car your not paying tax on 30 to 35k
Comment from : TR Gee

Is it true you could lose your downpayment on a lease if the car is wrecked in an accident?
Comment from : 250 f56

You’re too cute ❤
Comment from : TV Ted

Technically i should have financed but i bought cashbrRealistically i'm debt free
Comment from : Soldano999

In GB the interest rate is around 65 i would have preferred scenarios for the higher rate
Comment from : Neil Taylor

Excellent analysis
Comment from : Michael Malarkey

Not sure how a lease can be cheaper If I buy a care, either cash or finance, I own the vehicle and I may get 15+ years of use out of the vehicle if I maintain it well But, other than the cost of maintenance, I no longer have a car payment If I want to drive a car for that 15+ years, I will always have a car payment if I lease during that entire 15+ years
Comment from : sillywwabbit

There very few excuse to not buy a car straight cash Tons of cars on the market for as low at $500-$1000 that will last a long time and have sufficient tech (radio, power windows etc) We need to stay in our lane people (including me) I got hosed on a few car deals in my late teens/earlier 20s Just bought my most recent car straight cash and im getting closer to 30 No more car debt Ever Ever Ever
Comment from : J Simmons

The big difference comes the minute the car’s warranty expires If you go beyond that 36 month period, in a loan or purchased car you may not have a payment anymore, but you likely have the heaviest maintenance and repair costs where with the lease the car is gone after the warranty is up and the only maintenance you’ve done is $30 oil changes Additionally if you use for business it’s much easier to expense vs depreciate
Comment from : traderpete007

Your interest rates are a fairy tale Finance rates are higher than lease rates You need to do your research properly You made this video for the uneducated A prime example is Subaru Canada's website Interest rate for financing is more than a lease thus throwing calculations in the reverse
Comment from : Metesh Lad

199 is NOT happening
Comment from : Billybob

Not sure if this was included in your lease calculations but on-road running costs, maintenance, registration, road side assistance etc are all covered in the monthly instalment so that's a benefit worth noting Also, in Australia we have GST (Goods and Services Tax) and the lease excludes GST so calculations for Australians would be different since the price of the car is lower
Comment from : Julius Novachrono

What you should do is not buy a new vehicle They are currently over priced 100 Besides, buying a new car is financially retarded Buy a good pre-depreciated used Japanese car and learn how to fix it yourself Otherwise, you’ll never get ahead
Comment from : Joe Bye Done

You didn't calculate NPV?
Comment from : Mana di mana anak kambing saya?

Maintenance costs? Assumed interest rate is probably a bit low here as well
Comment from : Music Stuff

that's a great discussion, must make that spreadsheet before next vehicle purchase
Comment from : Music Stuff

What She doesn't know how to use miles, yards, or feet Instead she uses kilometers
Comment from : Louie Davis

Great stuff Gabrielle, as a non-financially minded person looking for a new car this was perfect! Thanks
Comment from : Peter Ronchetti

Cheapest option yet Buy a used Toyota that wont break down like the Jeep and keep it for as long as you can lol
Comment from : No no

I would love to debate her views I have 20 years in finance
Comment from : Keep Dreaming

I’m allergic to car payments
Comment from : Tor

None of the above
Comment from : David Inghram

how do I buy an excel template like this?
Comment from : Daniel Ionescu

It’s crazy how the interest rates for financing and leasing and completely different in Poland - it’s cheaper to lease than to finance it
Comment from : TheSiemek

Very educational and practical, for me, I make around 230k a year living in Toronto Planning to buy a brand new bmw m4 for 110k cash Is it practical or financially responsible ? Hell no, but I’m a car guy and it’s my dream car, I have no debt besides mortgage, it’s not always about the numbers, we often get caught up saving money but forgot what we are saving it for !
Comment from : Jay Zhao