Suze Orman Calls Leasing a Car ‘Biggest Waste of Money’ — Here’s Why You Should Always Buy
Many car shoppers ponder whether to buy or lease a car. But according to personal finance expert and New York Times bestselling author Suze Orman, you should never lease one.
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“Leasing a car is the biggest waste of money out there. You only get to drive at 12,000 miles. You have to have a lease gap insurance. Why don’t you do what I do? I bought a car,” she told Chris Wallace on CNN’s “Who’s Talking to Chris Wallace” show in November.
Orman was replying to Wallace who had said he owned a car as he didn’t want to deal with older cars and the numerous repairs they can entail. She further stated that if you keep a car for the entire life of it and take good care of it, it’s a way of saving money. “My car is going to be good for another five years,” she added.
Orman has been reiterating this stance for many years. For instance, in a 2020 LinkedIn post, she said that leasing was a “colossal waste of money.”
Instead of leasing, Orman said that it makes more sense to finance a car. “Finance a car and after it’s paid for in full, keep it. My car is going on 12 years old,” she added.
“If you instead follow my advice and take out a three-year loan, you will own the car free and clear after 36 months. Given the dependability of cars these days, that could mean you could keep driving the car for five, seven or even more years (depending on your mileage ) without having a loan payment,” she said.
In turn, that will enable you to focus on other financial goals, such as retirement savings, she added.
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