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Why wouldn’t leasing be the most efficient and responsible way to buy a car?

After all, the payments are lower, and all of the commercials on TV and ads online are pushing lease specials…

As a former banker, even I was taught that anything that depreciates should never be bought - only leased.

When we think of car leases, we think of three things.

- Lower payments
- No-hassle selling
- Write-offs for business owners.

Conventionally, these three things make leasing a very attractive way to own a car.

But something critical has come to light in the information age of the past 10 years that has exposed an unbelievable scam in the automotive industry, especially as it relates to leases.

I’m going to show you what banks and the auto industry don’t want you to know - because when leases are positioned with those three selling points above in mind, they look great.

But when they’re exposed for their true nature… they don’t look as good as you thought.

First, let’s walk through how a car depreciates.

Most cars, over time from new, depreciate lower and lower until they’re worth basically nothing.

A Volkswagen, Kia, even a Lexus, will ultimately tumble down, down, down, until it’s worth $0.

A lease always defines a “residual value” after the end of the lease term (typically three years & 36,000 miles) that the manufacturer expects the car to be worth.

This actually defines the lease payment. They subtract the MSRP from the residual value and then divide that by the number of months in the lease.

For example, a $100,000 Lexus LS that is expected to be worth $45,000 after 3 years and 36k miles has an anticipated depreciation of $55,000.

This means the lease cost will be $1,525/mo, split into $2,000 down and $1469/mo payment.

A $1,500 monthly payment is more attractive than traditional financing, which would cost over $2,000/mo for 60 mos at 8%.

The nice and friendly dealer is helping you “afford” a $100,000 car by offering you the payment of a $75,000 car.

What they don’t disclose to you is that the heaviest time period of a car's depreciation cycle occurs in those first three years.

So while a Lexus LS loses $55,000 in its first three years, it will take another 15 years to lose the remaining $45,000.

That means that at the point you return the car to the dealership, the dealer has the car back at the best selling phase of its depreciation cycle.

What makes it the best?

Well, most car warranties are four years and 50,000 miles.

So the dealer leases the car new to you, you pay for the worst years of depreciation, and they then resell the car with 1 year and 14,000 miles of warranty remaining, making a profit on it yet again.

But wait… there’s more.

The dealer will also slap a “certified pre-owned” label on that car, giving it an extra 3 years and 36,000 miles of warranty as a used car, offering “peace of mind” to the next buyer, which allows them to charge, $53,000 for the same car that they took back from you at a value of $45,000.

Now, here’s the big secret that they’re hiding from you to fool you into losing tens of thousands of dollars on cars that are not that exciting.

All cars are not created equal, and they do not all depreciate the same way.

High-end Luxury and Exotic cars, for example, the BMW M5, Mercedes AMG cars, Lamborghinis, and Ferraris, have depreciation cycles that are quite different.

Most of them certainly experience that heavy depreciation in the first three years. But what they do differently is begin to flatline at that point, and after another 5 years, even trend up.

Knowing this, would you be open to buying a two or three-year-old car, knowing that it is done depreciating and your net cost to own can be virtually nothing?

You can still have a warranty, you can still have a reasonable monthly payment by extending loan terms to 72-84 mos, and you can get a lower interest rate by using the right credit unions.

If yes, read on.

By now, you’re probably thinking, “Well, I don’t want a USED car. What about if there’s an engine failure or expensive repair that isn’t covered under warranty?”

That’s another issue the car industry, in cahoots with the mainstream media, has fooled you into believing is a problem.

I assure you after owning over 300 luxury and exotic cars, it is not.

Today, all of the major luxury car brands are owned by Volkswagen or Fiat/Chrysler.

This means they share many of the same parts, and engineering expertise.

I’ve seen multiple daily-driven Audi R8s and even Lamborghini Huracans reach over 100,000 miles with no catastrophic failures. Just oil changes and brakes.

And if you’re covered under warranty anyway, you still have that peace of mind.

“What about your monthly payment? You said above leasing gives me the lower payment?”

If you were buying new, yes.

But let's use the BMW M5 as an example.

This car is an absolute beast.

Four doors. 617 Horsepower derived from a twin-turbocharged V8. All wheel drive. And even carbon-ceramic brakes.

New, the car costs about $120,000. About a $1,600/mo lease, or a $2,500 finance payment at the typical 60 mos and 8%.

In that 3-year-old preowned window with lease miles, you can buy one for $70,000.

Using my strategies to get a lower interest rate of 5% and extending the loan terms to 72 mos, your payment now becomes $1,100.

(NO, you don’t make all 72 payments, you simply stretch the term to lower the monthly payment)

And the best part, of course, is that much of your payment goes to building equity now instead of paying for depreciation.

After 2 years, you can sell the M5 for $65,000. You’ve made $26,400 in payments at this point, and after interest is accounted for you’ll owe about $48,000.

You’ll get a check for $17,000 of equity returned to you, meaning your true cost to own the M5 for two years is $9,400, or $391/mo.

That’s less than what it costs to LEASE a new Nissan Maxima.

So instead of a lease where every payment goes to depreciation and finance charges, in this scenario where you are buying the right car, preowned, still with a warranty, and with a low monthly payment, nearly 60% of every dollar you spent has been saved.

Now that you have some real financial education regarding buying vs. leasing, I want to teach you more about the car hacking strategy in detail.

In fact, it’s actually possible to make money driving an exotic car, let alone owning it for Free.

It took me years to perfect and has allowed students of mine to buy and own cars like the Lamborghini Huracan, BMW M5, Audi R8, Mercedes G63, and so much more, without losing money.

And I’d love to take YOU to the next level by showing you all of the nitty-gritty details and even helping you get your first (or next) exotic car without it costing you an arm and a leg to own.

Get All The Training, Resources, And Community To Hack Your First (or next) Luxury Or Exotic Car Without Losing Money