Is Leasing A Car The Right Decision in Retirement? With David Fernandez #64
Is it a good idea to lease a car or finance the purchase of a car? Does this equation change when you factor in retirement? What are the drawbacks of leasing a car? If you’ve ever wondered if leasing a car is the right decision for you at this point in your life, you’ve come to the right place! On this episode, I am joined by my special guest and brother-in-law, David Fernandez. David has years of experience as an auto broker in the New York metropolitan area and he’s eager to share his valuable insights. Make sure to have pen and paper close by for this informative episode, you don’t want to miss it!
You will want to hear this episode if you are interested in...
Learning from my guest, David Fernandez [1:15]
Understanding how an auto broker works [3:00]
The advantages and disadvantages of leasing a vehicle [5:30]
How maintenance costs work when leasing a vehicle [11:00]
Costs that are owed post-lease [13:00]
How COVID-19 has impacted the automotive sales industry [19:00]
Closing thoughts [23:00]
What is an auto broker?
We’ve all been on the lot of a car dealership - usually pressure-filled and stressful - what if there was an alternative? What if you could purchase or lease a car without stepping foot into a dealership? For those who are considering leasing a vehicle, connecting with an auto broker in your area might be a smart decision to make. As an auto broker, David has spent years helping hard-working people just like you get into the car that fits their needs.
According to David, auto brokers know the intricacies of dealerships, financing, and buying in a way that the typical car buyer most likely hasn't learned. Brokers have years or decades of experience in the industry, often on the other side of the desk. Auto Brokers carry no inventory so they are often able to negotiate people a better deal then they could negotiate on their own. Many times they are able to save clients THOUSANDS of dollars. Tune into this episode to hear more about working with an auto broker and so much more!
Leasing a vehicle
Let’s face it, the idea of having really nice car that you don’t have to worry about when it comes to repairs and maintenance is a dream for most people. The vast majority of people have become accustomed to the idea of purchasing or financing a vehicle - without really considering the other options available to them, namely, leasing a vehicle.
Here are a few of the benefits of leasing a vehicle;
You drive the car during its most trouble-free years.
You're always driving a new-model vehicle that's usually covered by the manufacturer's new-car warranty.
You’re often able to afford a more expensive car compared to purchasing.
The lease may even include free oil changes and other scheduled maintenance.
You don't have to worry about fluctuations in the car's trade-in value or go through the hassle of selling it when it's time to move on.
At the end you just drop off the car at the dealer.
Some common drawbacks of leasing a vehicle;
In the end, leasing usually costs you more than an equivalent loan because you are paying for the car during the time when it most rapidly depreciates.
If you lease one car after another, monthly payments go on forever.
If you don’t maintain the vehicle in good condition, you’ll have to pay excess wear-and-tear charges when you turn it in.
If you decide that you don’t like the car or if you can’t afford the payments, it might cost you to get out of the lease.
You’re limited to an annual mileage allowance and you’ll have to pay a per mile fee if you drive more than this allowance during the lease.
If you are ready to learn more about leasing a vehicle with all the benefits and drawbacks considered then make sure to listen to this episode featuring David!