A car buying expert has revealed his top tips on whether you should opt to buy or lease your next new car – and it could save you thousands.
The expert claims to have 10 years sales experience with Mercedes and GM dealers and his money-saving advice has gone viral on social media.
A lot of buyers may think they know how to negotiate a good deal for their new car, but there’s some cast-iron rules when it comes to deciding whether to buy or lease as a payment option.
TikToker @deshonetheautoadvisor has posted a video outlining the essential information that you need to know to save money.
He says: “The first thing you need to ask yourself with buying or leasing is am I a short or long-term person?
“We’re talking about resell value – that’s all I think about when I think about buying versus leasing.
“Leasing is made for a short-term person who does not want to tie up a bunch of equity and cash in a car… if I’m a long-term person (8 to 10 years), then I don’t care about resell.”
The car buying expert goes on to remind viewers that a car is almost always a depreciating asset, so you should base your decision – on whether you buy or lease – mostly on how long you intend to keep the car, although factors such as the mileage you cover every year play a factor, too.
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He goes on to explain that some of the pros of leasing are that you always have a new car, it usually remains under warranty as most lease deals are over 3 years, and you’re not tied to the car in the way you would be if you owned it yourself.
As @deshonetheautoadvisor puts it: “Most people are getting into leases because you get more for your money, and you take less risk because if you have an accident it doesn’t matter as your equity’s not in the car.”
He finishes up by outlining some leasing cons which include having a set mileage limit and always having a monthly payment to make – so you never get to pay off the car.
Viewers were quick to comment on the video.
One said: “I have been leasing cars for past 9 years. I love leasing.”
Another replied: “love the idea of leasing… but hate the limitations of miles per year you can drive per year. most of the time the lease only allows around 15,000”
While a savvy viewer said: “I have an 08 Camry. Bought it in 2010. Haven’t had a car payment in 5 years. Only 116k miles. To each their own but I love my used car.”