[00:01] about $375 a month, but if you buy this Honda Civic, your payment over 36 months is roughly double that. Leasing a car on the surface is much cheaper than buying a car, but in actuality, it's one of the most expensive ways to own a car. When
[00:14] difference in value of what it's worth today compared to what it's going to be That's called residual value, and it's a price that the dealer estimates your car will be worth at the end of your lease. If the car is worth $30,000 today and
[00:27] the residual value is 18,000, that means when you lease, you are financing that $12,000 difference spread out over 36 months. When you finance the car to buy entire amount, and that's why the payment is higher, but then you get to
[00:40] keep the car when it's done. Leasing can make sense if you want a new car every if you're trying to build wealth, you're just going to lease a car, you're going another car, and this cycle continues. Buying the car and keeping it long-term
[00:53] is almost always the better financial move, even if it is tougher on your budget up front. Which one are you doing? Let me know in the comments.