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.

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.

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

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

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

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...

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

Excellent analysis - very helpful - Thanks!

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

Hi Shari. Thanks for informative video today!

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

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.

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

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

Very helpful info, thank you.. 👍

Great information. Thank you.

I appreciate your video. Thanks.

I always pay cash for my vehicule and I keep them between 15 and 20 years...... Always buy the best ar in their categorie : CRV Honda....Ford F150 I bought a Honda CRV 2007 EXL........dealer in Montreal asking $36 750 in 2007....test drive...perfect.....that 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 fall........you shop in the big city and you buy outside the city....like 100km northbound....... I have a F150 2004.......almost 20 year use for my business........Paid $45 000........$2368 per year and you add $1500 for maintenance per year. But for now is very difficult to buy a car can last for 15 years.....they are all crap

Really helpful video

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 things!!!!!

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.

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

Wait, "negotiating out some of the dealer fees"? How'd you do that? Most dealers won't budge on these and say it's AOK if you just leave, someone else will buy the car.

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!

You should do a video on Leasing with Bad credit

I financed my Honda HRV through my credit union. Didn't put any warranties on and I pay extra on the payment each month. I would never lease. Ever. I drive 55 miles each way to work. However I have a friend who always leases a Mazda and the dealership treats her really well. She gets an excellent price and doesn't drive very much. They take care of the maintenance. I actually don't care about negative equity since I keep cars for a long time.

We normally keep our vehicles for 15-20 years or until they need major repairs. We save money every month so we can pay cash when it’s time to replace them.

Unless you can write it off as a business expense, I would avoid Leasing, or as Dave Ramsey would say, Fleasing. Yes, the payments are lower, but you also usually have mile restrictions and are forced to carry the maximum coverages on your auto insurance policy. In addition, in most cases you are still responsible for routine maintenance.

In the USA best is to lease, because fixing a car here is more expensive than what the car is worth I was overseas and they fix cars in other countries for 1/10th if the price here in the US, it’s ridiculous

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

If you need the car for more than 3 years, then just buy it. Otherwise, lease it. Best benefit of leasing is you don't need to worry about the resale value of the car. If the resale value at the end of the lease is higher than the lase residual value, , then you can profit by selling the car at the end of the lease directly to a dealer. If the resale value at the end of the lease is lower than the residual value, then just return the car to the dealer and walk away. Let the car company take the loss. I leased 7 cars during the past 20 years, had no repair costs and very low maintenance cost. If you want to sell the leased car, don't buy it and then sell it, just sell the car directly to the dealer before the lease expires, this way you don't need to sales tax. This is a real world example, I sold my leased car to the dealer for $28500, my leased car has a lease residual value of $23174, so I made $5326 profit on the lease. It's important, DO NOT Do a lease buyback and then sell the car. If i did so, I would have to pay $2164 in sales tax. I would have only made $3162 profit then. Do a lease buyback only if you like to keep the car.

You forgot the taxes which are 13 percent here in Ontario in your calculations.

So I am 19 years old, September I got a Toyota Corolla SE manual which in my understanding is on a “short term lease” which should be up soon as I’m hitting my 10k miles which should end my lease with it. I want a gr86 it’s my dream car to keep but I understand leasing is cheaper but should I finance instead of leasing if I get the chance?

Lease makes great sense if you can write it off taxes as business expense

It depends on one's needs vs want but for me i see leasing as a waste of money and paying cash into a depreciating asset is not viable for 99% of the populace . Financing is better i build credit and i don't have to pour my money in it all .

Don’t buy or finance a car under any circumstances for the next 2 years. 1) Supply sucks (You will pay full price or more) 2) Interest rates are coming down. 3) NEVER lease. Always pay cash for a car. If that dumb gas guzzling F-150 is $100,000 and you don’t have the money in the bank, YOU CANT AFFORD IT!! Average car payment is $750/mth. That amount invested wisely is over $2 million in 30 years.

Unfortunately, I can't wait as my 2010 charger is falling apart lol. I ordered a corolla hatchback 33k with tax. Gonna be paying cash id rather die than pay 7% interest.

No way would I lease a car these days. I own my Subaru and its going to have to do for now.

If you absolutely need a new car the best choice rn is cash. Never let them know until you're about to sign for the price. Apr is close to 8-9% so it's almost an extra 3k. It's not worth it to really even buy used considering prices. Best 2nd choice is lease then buy after 3 years if you're happy with it

Of the 2 new cars I've bought, I've only done cash. I hate doing monthly payments and in both cases the interest rates to finance were both terrible. Though the earlier one is at a time of lower interest rates...I still couldn't believe how bad Toyota Canada's interest rates were and these days they're abysmal. Subaru Canada interestingly is way better but now its high interest rates which for me was basically the same as before. There is a bonus to going cash, not mentioned though. Cash buyers have the easiest time saying no to the finance office products. No longer can they hide behind increases to the monthly payments but now must give the full price of what it is they wish to sell. This is far less attractive for them and a big reason dealers as a whole didn't like cash buyers for some time. If you think you're prone to being swindled, cash buying is the most straight forward approach because you can truly focus on that out the door price. That said dealers are increasingly trying to say no to cash buyers. Not only do we typically not buy extra products but the kickbacks for financing are not collected either. There may be a way around it by pretending to finance, but make 100% certain you know there is no prepayment penalty. That way you can still proceed despite that obstacle.

Lookng at a lease until we noticed the horrible residual. Cheaper to buy

No dealership I've spoken to in the past 2 years has even entertained the idea of paying in cash as an option. They're open if I have outside financing, but if I turned the conversation to giving a certified bank check for the majority and personal check for the difference they got real cagey. Seems like they're only comfortable with regular customers doing that.

Buy. But when you buy you must pick a car that will last at least 10 years. You must own the car for 10 years. This allows you to pay the car off in 5 years (typical loan time), then have 5 years to save up for the next car. Then for the next car you can pay cash (no interest!). Then you have 10 years to save up for the next car.

5.9%? Yikes. I bought new in ‘21 and got 1.9. If I have to pay 5.9 next time I’ll just save up and pay cash.

I would lease a hybrid or EV especially if you are a low mileage driver. I don’t trust EV battery longevity in terms of long term ownership costs.. My next car will be leased because there will be no ICE only vehicles left the next time I buy..

I paid 55% of the total price to lease a Mercedes GLB for 3 years Is that too much?

My main complaint about this review is he keeps saying "high pricing compared to their rivals", as if Honda and Toyota dealerships aren't marking up their cars 4-5 k (min) above their MSRP (in NY at least). Meanwhile many cars he listed actually sell at MSRP. That's IF you can find a car from one of their rivals. The waiting list for Hondas and Toyotas are months.

well, the current financing / leasing rates are 8.99% lol, sooo its cash or don't buy

You need to read "The Richest Man In Babylon." It is always best to loan money than borrow. Finance a car to look pretty...PLEASE.

Isnt it better when financing to take on longer payment plan but still try pay it off early? Just to give you flexibility with a lower monthly rate.

Option number 4: Robbery (it’s free but it comes with consequences)

Sorry your logic doesn’t make sense to me: 1) Financing is effectively = leasing (paying steep initial depreciation) + owning a used car (high maintenance cost & keep car for life of vehicle) 2) Leasing = just paying high depreciation (over and over again) 3) Used = high maintenance cost but your not paying the steep depreciation and still keep a cheaper car till the end of its life. If you buy a used well maintained car for a reasonable price, that’s the

Who has a $500.00 a month car payment budget?

hyundai accent 1.6 diesel sedan AT. bought for 4,000 dollars thats 200,000 Philippine pesos. 7 years and 3 months now . we used it for "everything " we can

Best: Stay away from all dealerships; buy a high quality used vehicle from a good owner; drive it forever; let some other sucker take the huge $$$ on initial depreciation.

Pay cash is best, however, does not provide any benefit to your FICO Credit rating. Cash, you save on not paying interest. If over the age of 70, Cash is about the only way to go because most Financial Institutions and Lenders consider you as a High Risk due to your remaining life span and likely you are unemployed and reject your loan application. Finance is excellent for people under 60 as long as you get a low APR%. It usually improves your credit score after 6 months of on-time payments. Leasing is for business owners as they are able to get a tax write-off. Leasing offers very little incentive because you are renting and any money invested does not get returned and you do not own the vehicle. You actually pay a lot due to a higher APR% and before and after fees. One of the worst things a new car buyer can do is Trade-In, it's like going to the Pawn Shop. If you have a decent and reliable car, instead of Trade-In sell it Privately or give it to a family member. If your vehicle is worth $30K you be fortunate if the dealer gives you $18 to $25K as the dealer needs to make a few grand, has to do repairs, and such before the dealer can resell. Then the dealer has no idea how soon that vehicle will sell. If you do Trade-In, be aware of how much you might be forfeiting. About paying cash, Do not say you will be Paying Cash, Negotiate a Price first. The MSRP is not the price. The dealer has an Invoice of what it cost them to secure the vehicle from the Automaker. The Dealer pays $30K as an invoice but the MSRP of the vehicle is $38K excluding the S&H Destination fee which you pay as the buyer. Most of the time you can get the S&H knocked off and strictly pay MSRP cost prior to Destination. You can potentially save $3,000 in negotiation especially if you have been a regular customer over the years and other family members buy their autos from them. Remember, a dealer must make a profit and not break even in order to stay in business. Oh! never ever buy a vehicle with a Mark Up, don't care how much you want to vehicle, do not do it. Go elsewhere! A dealer/ salesperson who does not play fair, then do not play their game...walk away.