Financing a Car vs Leasing-What Does Leasing A Car Mean?

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Hey what’s going on everybody’s rodney samuels here again with another video being made to help you go out there and buy a car properly okay this video in particular is gonna be about leasing gonna be about leasing a car some pros and cons of leasing a car and also what happens when your lease ends what are your options when the lease ends okay if you have not

Done so already please subscribe to the channel give it a thumbs up that helped me out a lot and leave any questions or comments that you have down below i will try my best to get back to you and answer those questions and for those of you do not know i’m also an ex car salesman i was in the business selling vehicles for quite a long time so i do know a lot about

The subject and that’s what qualifies me to make these videos to help you guys out so let’s get started with some reasons why you might want to lease a vehicle instead of buy your vehicle let me just start off by explaining what a lease is a lease is some people look at it as a long-term rental car okay where you are actually making payments on a vehicle for a

Specified period of time whether it be 12 months 24 months 36 months you make your payments on the vehicle and then you have the option of turning the vehicle back in and getting a new vehicle you can get another lease or just leave the car and go without a car you have options at the end of the lease okay you’re not stuck with the vehicle okay so with that being

Said people who might like to lease vehicles are people who number one maybe the other type of person who likes to drive a newer car all the time you don’t like to have to deal with cars getting older and having to deal with repairs also you might want to you might be the type of person who likes to drive the new body style of a certain car every time a new body

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Style comes out so you might not want to be stuck in a 5-year 6-year payment on that vehicle because you know in a couple years the new body style is coming out of a new vehicle there’s new features that you want okay so those some reasons why you might want to lease a car for people don’t want to lease a car their reasons might be well that means i’m always gonna

Have a car payment and that is true if you always leave vehicles you will have a payment on your lease then when that lease ends you jump into another lease and then you jump into another lease so you always have a car payment you’ll never own your vehicle okay so just keep those things in mind when it comes to whether or not you want to lease your vehicle another

Point i want to make about leasing vehicles is if you drive a lot of miles you might not want to do a lease because the lease will cap you on the amount of miles you can drive per year and if you go over that point then you’ll be penalized for that so what happens when you enter a lease and then your lease ends well you have a couple of options the first option i’m

Gonna talk about is turning the vehicle in at the end of the lease okay once your lease is starting to come to an end you’ll get calls from the dealership more than likely if they’re following up the way they’re supposed to asking you to come back into the dealership to make a new deal on your vehicle on another vehicle now you can go in you can get another vehicle

But we’re gonna talk about turning it in turning it in you go in you say look i want to turn in my lease my lease is up and i want to give it in and i don’t know what i’m gonna do next okay so you bring the vehicle in then we’ll check over the vehicle make sure it’s not any excess damage on it you fill out your paperwork you turn the car in you give your keys in

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And you walk away all right that is the beauty of leasing for a lot of people turn the car in walk away do whatever you wanted do whatever you want to do after that another option you have at the end of your lease is actually buying that vehicle basically buying the vehicle out now you’ve been driving the car for a couple of years and if you like the vehicle and

You feel comfortable in it you have the option of keeping that vehicle by buying it out now let me just back up a little bit when you get into your lease initially you have something that’s called residual value that they will give you it’s gonna be on your paperwork and what that is is the dollar amount value wise of what that car is going to be worth when your

Lease is over based on the least that you got based on how many miles you’re going to be driving and based on how long you’re going to do the lease call the residual val value it is set pretty much in stone on paper okay so keep that residual value in mind now if you go in and you want to buy your vehicle out you can go in and you before you go in you check what

The residual value on that vehicle is okay and that the residual value is favorable to you then you might want to go ahead and buy the vehicle and what i mean by that is let’s say the residual value on your vehicle shows $15,000 now that $15,000 is the price that they will sell the vehicle to you for at least end now let’s say you look up the value of your vehicle

The current vehicle that you’re driving in its current condition with the miles on it and it says on a site like kelley blue book or something and it says that the value of your car is only $12,000 in that case it does not make sense for you to go ahead and buy that vehicle from them for the $15,000 now let’s take that same $15,000 residual value you go look up

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The value of your vehicle on a site like kelley blue book and you find out that the value of your vehicle is actually $18,000 and you like the vehicle and you want to buy it in that case it’s a good deal so take advantage of that and buy the vehicle from the dealership for the $15,000 now in that scenario where your car is worth 18 but the residual residual value

Shows $15,000 you had what’s called lease equity in that vehicle and the beauty in this situation is you can use that lease equity to put sort of as a down payment on the vehicle when you’re buying it out or if you want to lease a new vehicle you can use that as a down it towards the leasing of a new vehicle from that dealership so just to recap leasing versus

Buying firstly just determine what type of a person are you are you the type of person that doesn’t mind having a car note all the time and driving a newer vehicle that’s always under warranty then that’s great go ahead and lease a vehicle if you’re the type of person who wants to eventually not have a car note and you don’t mind driving a car that might be a

Little bit older but you own it then leasing might not be for you if you drive too many miles in a year leasing might not be for you because they will penalize you when it comes time to turning in that lease they will charge a certain certain amount of cents per mile over the lease okay so if you thought this video was helpful please give it a thumbs up subscribe

To the channel and leave any questions down below or comments and i will try my best to get back to you take care i’ll see you next time

Transcribed from video
🚗Financing a Car vs Leasing-What Does Leasing A Car Mean?🤷 By Rodney Samuels TV