Glad to hear you agree!

I love the first part. My opinions exactly…nobody “should” care about the political views of entertainers, and the fact that people are crying over stupidity just goes to show how dumb the general population is becoming. Reminds me of the 2006 film Idiocracy…we ARE heading in that direction!!

Hi again Mike,

I know you are passionate about this, which is why I am responding again. Yes, you’re 100% right – if you go over on miles you are digging into the residual value of the car. I re-listened to this part in the episode and felt like I explained it well, but if not, I will say it here: the more miles you put on a car/truck, the more you are digging into the residual value. Also, I don’t think the dealership should pay for it at all. That would be ridiculous. If the driver puts the extra miles on it and causes the car to depreciate even more, then YES, they should pay for it. Many people don’t understand this as well as you do Mike, which is I why I mention it inside the podcast. I have met with many many people who turn in a lease and are shocked at how much they have to pay in mileage penalties. Here is something we can agree on: it’s not the dealership’s responsibility to cover that fee. It’s the person who put the added miles on it.

Hi Mike,

Thanks for your comment 🙂 I think we are going to simply have to agree to disagree here. I 100% respect your opinion, but I still think you’re wrong. I don’t think you’re bad guy at all for being in the car business. In fact, one of my absolute really good friends we actually vacation with is manager of a car dealership here in Phoenix. Neither you or he is a bad guy at all, so I apologize if you felt like I attacked car salesmen; that wasn’t my goal at all (although I can see why you may have felt that way).

Here are some facts, not opinions: I drive a 15 year old vehicle and I don’t pay more in repairs than I would with payments. This whole idea of it’s better to lease a new car to save money on repairs is ridiculous and I’m not asking you to agree with it (but it’s ridiculous). It’s not even close. Last year I paid around $500 in repairs on my older truck. We can both agree that most people can’t afford to pay cash for a car and that there are people to help you finance or lease them. I am sure you and my buddy really do an outstanding job and I thank-you for providing that service to your customers. However, I still don’t think people should go out and finance or lease a new car for the rest of their lives. If I am standing in the shoes of someone in the car business, I would absolutely love for someone to continue to make payments to my business for life, but the name of this blog and podcast is “Money Peach”, not “make low interest payments for stuff you can’t afford for the rest of your life.” My goal is for people to gain an understanding of how money works (including leases), so they can make the best decision for themselves. Yes, I absolutely will give my opinion here, but when you own the blog, podcast, and website – you get to give your opinion. BUT, I think it’s absolutely necessary to receive both positive and negative feedback for a great discussion, which is why I approved your comment and sent this long reply 🙂

Paying cash is OBVIOUSLY the best way to do it, but most people can’t. And if you’re still paying for repairs in a 15 year old vehicle, you’ll be paying more than your payments in a new one. Yes I agree this is a cultural and economic trap, but the car dealerships are not the reason people don’t have enough money to buy a vehicle with cash. We help people buy vehicles by allowing them to finance or lease them, and it’s far more convenient, warranty covered, etc. By the way, the rates on a lease work out to close to 3-4%, not 15%, unless you have awful credit and get a high tier lease…..