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Hi guys, really like your show and I’m thankful you talk about real life/important stuff that has opened my mind. I’m currently in the market to buy a new car, I have never had car payments cause I used to buy used cars and pay it at once but now I want a new car and I’m faced with either leasing or financing. Could you talk about leasing vs. financing if you have any information please? Thanks again.

Nine times out of 10, buying a car is going to be a smarter financial decision than leasing if for no other reason than you get to own the car after you pay it off versus return it to the dealer despite having paid them thousands in leasing costs. I’ve never leased a car (or rims, yes that is a real thing and a horrible idea) in my life. I also have no plans to ever do so. However, as with most things, buying or leasing is ultimately a personal decision. Everyone is different, so you have to try and find what’s best for you. Also, different leasing companies will offer different costs. This means you should definitely do your research, ICL might be a good starting point for this. The few times I’ve seen it make sense includes two caveats: 1) you have great credit (740+) and 2) you are able to land a “$0 down” lease. Generally speaking, if you’re going to buy an asset that doesn’t appreciate in value, you want to risk as little of your own money as possible on the downpayment and/or land an extremely low-interest rate. One of my favorite articles on this topic comes from Business Insider and it includes a flowchart. Everyone that knows me knows I have an unhealthy fondness for flowcharts but this isn’t about me: Check out this Should I Buy Or Lease My Car Flowchart to tailor your decision to your circumstance.

Whatever your decision, enjoy your new car!