This Real Estate Idea Is Stupid

Brought to you by the EveryDollar app. Start budgeting for free today. I am a 70-year-old retiree. My wife and I prepared well for retirement and have no debt, including our home. I would like to lease a car for three years and then give it back and repeat the process every three years. At our age, I don't want to worry about paying for car maintenance. Considering that we can easily afford this, is it okay for us to lease rather than buy a car? Leasing a car does not get rid of maintenance. You're still responsible for the maintenance. You're thinking because you're driving a newer car, you're not going to have any maintenance. Maintenance is not included in a lease. The warranty would be on the new car, whether you bought it in cash or whether you leased it. And the quality of the car, not needing as much maintenance, might be what he's referring to. I want to drive a nice car, so I don't have to worry about paying for car maintenance. Well, you do pay for car maintenance, but you don't have to pay for it if there's not much. Like a brand new car, you don't have a lot of maintenance on it. So that's what I'm thinking he's thinking about. I want to drive a nice car that doesn't require a lot of maintenance. If that's what you're saying, it's ridiculous to do it the way you're talking about. You should just buy the car. Go buy a brand new car. It sounds like you're a multimillionaire. If you're a multimillionaire and you want to go buy a $100,000 car, go buy a And then three years later, if you feel like that car is getting old, then write another check, get you another one. And you're going to take a loss on that car. But you're going to take a bigger loss if you lease it. Because 100% of the loss in value is built into the lease. So whatever you would lose by buying a new car and trading it every three years, you're going to lose more than that by leasing because the lease covers at least that plus a profit plus a cost of capital and the interest. Yeah. Yeah. So your theory breaks down. And if you think that leased cars have less maintenance than cars that are paid for, that are the same exact car they don't. And there is no lease maintenance program. Now you could rent one at Hertz and Hertz will keep it, but that would be like super expensive, right? If you want to go over Hertz or dollar rent a car and rent you a car the whole time, they'll maintain their car, but you're going to pay through the nose for that, obviously. And that's not what you're talking about. So I'm thinking that what he's talking about is that a nicer car doesn't require as much maintenance. And if I get a new car every three years, I'm not going to have to worry about it. And if you can afford to do that and you want to do that, I don't have a problem with that at all. You it's just, you're losing a lot of money. Um, in the first three years is when a car loses its most value because cars lose 70% of their value in the first five years. And so a hundred thousand dollar car becomes a $30,000 car in five years. And so that's burning cash. Don't wait for the interest rate to be perfect before buying or refinancing a home. Talk to Churchill mortgage, smart buyers, buy the home they can afford now and then refinance later. If rates improve, Churchill helps you make decisions with confidence instead of guessing. And Churchill mortgage has a webpage with special offers just for our audience. Go to churchhillmortgage.com slash Ramsey offer. This is a paid advertisement NMLS ID 1 5 9 1 NMLSconsumeraccess.org equal housing lender. But if you got a lot of money, you can afford to do that. I just bought a brand new Ford Bronco Raptor package. Okay. But I can afford for the thing to be worth nothing in a few years. I can afford for that. It's not going to affect my life. I've got enough margin. And if that's you, you've got enough margin and you want to do this, I'm fine with that. You know, that's, that's why you've worked, but don't, don't lease it. Don't, don't lease it. No, no, horrible, horrible, horrible, horrible. Did I mention that it's horrible? Create your free every dollar budget today. The simplest way to budget for your life.