Episode 026: Why Car Leasing is a HUGE Mistake

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Today’s episode is absolute full of it. I start us off with a little rant on celebrities and their opinions, millennials drinking coffee for retirement and my problem with the latte factor.

Next we we jump right into a GREAT question from a listener on leasing cars. Have you ever wondered why every car commercial now sells a lease? There is a reason why and it’s costing you way more than you could imagine.

By the end of the show, you will be able to give a lecture on exactly how the car lease works, why car companies make the most money with the car lease, and how leasing any vehicle is the most expensive way to drive.

Now, I have a few questions for you all…

What are some of your questions you would like answered on the show? Simply leave a comment at the bottom and let me know or you can contact me here and ask anonymously.

Are you enjoying the podcast? If you do, would you be willing to leave a review for the show here? The more reviews the podcast receives, the more people will learn about it!


Mentioned in this Episode

Money Peach TV – Car Payments Suck

Car Payments Suck (Podcast Only)

Success Story: 5 People Who Dumped Car Payments Forever

7 Steps to Selling Your Car Like a Boss

Selling Your Car When You Owe More than It’s Worth

Why I Drive a Piece of Crap


Show Notes

Video of the Meryl Streep Rant (YouTube) [1:44]

USA TODAY – Millennials Spend More on Coffee than Retirement [6:23]

Acorns Grow (Microinvesting) [6:45]

Question from Listener on Car Leasing [15:57]

Breaking Down the Car Lease [16:28]


Listen in iTunes      Listing in Stitcher Radio


Chris Peach Author 150x150

Chris Petrie

Chris (Peach) Petrie is a personal finance expert, money coach, speaker and podcaster.

In 2011, Chris and his family were exhausted from living paycheck-to-paycheck and facing a mountain of debt. They started going against the society standards of misbehaving with money and made the decision to take back control of their lives and money. Within seven months they paid off $52,000, started saving like crazy and began building real wealth.

The word spread fast and Chris started showing friends how to create a budget over dinner. Soon after he started showing their friends how to do the same and eventually Chris started teaching personal finance classes around the community. As the need for the classes grew, Chris launched Money Peach in 2015.

Money Peach was created to help everyday people remove the stress and fear of money by showing them how to save more, make more, and keep more of their money.

Chris Peach has been featured in places like Business Insider, The Huffington Post, Elite Daily, and CheddarTV.

When Chris isn’t at “work” he can be found at the Crossfit gym or riding on the fire truck — Chris is also a full-time firefighter in Phoenix, Arizona.


  • The mileage overage…. If you go over the miles, you’re digging into the residual value set by the bank. They set it based on what they believe the depreciation will be based on the miles and term you SAY you’re going to do. If you go over, you pay for it. You’re paying for their depreciation because you’re using more of the vehicle than what you said you would, so if you didn’t pay it, the bank would be handing you money to drive as much as you want in the vehicle. God this is just awful, please approve my comments so these people know how untrue this is. If you go over your miles you’ll pay for it, who else would pay for it?? The dealership??

    • 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…..

      • 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 🙂

    • 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.

  • It’s March, and I finally got round to listening to this episode!

    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!!


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