Podcast Summary: Earn Your Leisure – "WHY SMART PEOPLE LEASE CARS"

Podcast: Earn Your Leisure
Episode: WHY SMART PEOPLE LEASE CARS
Date: December 31, 2025
Hosts: Rashad Bilal and Troy Millings (with guest experts)
Timeframe Covered: [04:19]–[20:23]

Overview

In this episode, Earn Your Leisure explores the financial thinking behind leasing versus buying cars, debunking common misconceptions and outlining the benefits (and potential drawbacks) of different auto financing options. With input from a car financing specialist and a car leasing/buying expert, the hosts break down why leasing is a preferred strategy for many financially savvy and entrepreneurial individuals, particularly those seeking flexibility, tax advantages, and technology upgrades.

Key Discussion Points & Insights

The Difference Between Leasing and Buying ([04:19]–[05:04])

• Ownership Misconceptions:

  • Leasing: You don’t own the car (the finance company does), but many buyers also don’t truly own their car until fully paid off.
  • Buying: Even with financing, the bank “owns” the car until the loan is repaid; title stays with the bank.

• Depreciation Realities:

  • Owning a car outright is rare, and most want to trade in or upgrade by the time it’s fully paid.
  • Cars rarely appreciate; they lose value—the crux of why leasing appeals to “smart” money managers.

“Do you want to own a vehicle that's going to lose value? Very rarely do cars go up in value, so that's why leasing is so prevalent.”
— Car Financing Specialist ([04:25])

Leasing Benefits for Entrepreneurs and Business Owners ([05:07]–[05:53])

• Tax Advantages:
  • Leasing allows business owners to write off lease payments, insurance, and gas, which are all deductible as business expenses (by percentage).
  • Owning only lets you deduct depreciation, which is often less favorable.

“For me personally, the reason why at least is that as a business owner...I get better tax treatment for leasing a car.”
— Car Leasing/Buying Expert ([05:16])

• Maintenance:

  • Lease typically covers maintenance (oil changes, etc.).
  • Newer cars with warranty coverage, less out-of-pocket shock.

• Upgrading:

  • Regularly drive a new car every 2–3 years.
  • Lower upfront cost compared to the buy-and-sell cycle.

Leasing Myths & Misconceptions ([05:53]–[08:39])

• Personal Preference: Leasing isn’t for everyone; no one-size-fits-all. Some people value long-term ownership, others the ability to upgrade frequently.

• Tax and Fee Structure:

  • Leasees pay tax only on the portion of the car they use (monthly payments), not the total value (varies by state).

• Mileage Limits:

  • High mileage isn’t always a dealbreaker—there are high-mileage lease options.
  • Main benefit: Know your exact cost of ownership up front, covered under warranty for average three-year lease lifespan.

“A lot of people think that if I drive a lot of mileage, I shouldn't be leasing...I think the contrary. Even if it’s a high mileage lease, you know your true cost of ownership.”
— Car Financing Specialist ([06:55])

• Flexibility:
  • Leasing lets you adapt as your lifestyle changes—swap sedans for SUVs as needed without worrying about resale value or depreciation.

“Technology is moving so fast...in three years, your life changes. You have a family, you have kids. I come out of the lease, I go into a brand new SUV.”
— Car Financing Specialist ([07:46])

Credit Considerations ([08:39]–[09:04], [14:33]–[15:16])

• How Credit Impacts Leasing/Buying:
  • Different automakers use different bureaus (TransUnion, Equifax) or auto-specific scores.
  • A strong history of on-time auto payments can help, even with dings elsewhere on your credit.

"The bank may look at that and say, hey...they always paid their car on time. So...they're going to take care of that monthly payment.”
— Car Financing Specialist ([14:53])

Tax Strategies for Everyday Earners ([15:16]–[16:58])

• Side Hustlers & Part-time Entrepreneurs:
  • Even W2 employees with side businesses can create entities (LLC, C-corp) to gain write-off benefits.
  • Sectors like real estate, sales, and insurance can benefit from deducting car expenses through their business.

“The tax system is set up for entrepreneurs and investors. It’s not set up for employees...So if you work a regular job and you might have a side hustle, why not get that incorporated...Now you have a business; you can deduct the same deductions.”
— Car Leasing/Buying Expert ([15:30])

Price Negotiation & Car Buying Tips ([16:58]–[19:44])

• Key Terms Defined:

  • MSRP: Manufacturer’s Suggested Retail Price—sticker price.
  • Selling Price: What you actually negotiate.
  • Cap Cost: On a lease, it’s the final “price” being financed (includes fees, taxes if rolled in).

• Used vs. New:

  • Buying: If you insist on buying, certified pre-owned is safest—rigorous inspection, better warranties.
  • Certified Pre-Owned Cars: Lower price after initial depreciation, often qualify for new car interest rates.

“If you are going to buy a car, buy a certified pre-owned...Not only will they inspect the vehicle...the dealership is putting themselves behind that vehicle.”
— Car Financing Specialist ([18:13])

• Depreciation Hits:
  • The steepest hit occurs at registration/titling (often right after leaving the lot).
  • Certified cars avoid that initial loss and give more peace of mind.

Notable Quotes & Memorable Moments

• On Leasing:

  "I haven't paid for an oil change and I can't remember when...everything is paid for.”
  — Car Leasing/Buying Expert ([05:42])

• On Flexibility:

  “Technology changes. Even like the vehicle I have now...I need that technology now. So it's like you can just come in every three years, man. That's a huge benefit in leasing.”
  — Frank (Podcast Host) ([08:39])

• On Making Informed Decisions:

  “A lot of times we make decisions based out of ignorance, not knowledge.”
  — Car Leasing/Buying Expert ([16:53])

Key Segment Timestamps

• [04:19] Leasing vs. Buying – Core differences and misconceptions
• [05:07] Tax advantages & maintenance benefits of leasing
• [06:21] Leasing fee and tax structure explained
• [06:55] On high mileage leases and total cost of ownership
• [08:39] Technological upgrades and life changes—why flexibility matters
• [14:33] How credit history impacts car financing and leasing
• [15:16] Entrepreneurial and side-hustle tax strategies for car leases
• [17:05] Key auto finance terms (MSRP, cap cost, etc.)
• [18:13] Why certified pre-owned is the smart way to buy

Final Takeaways

• Leasing can be smarter, especially for business owners and those who value flexibility or new technology.
• Biggest financial benefit comes from tax deductions when leasing through a business or side hustle.
• If buying, go certified pre-owned to avoid depreciation and get better rates.
• Understand your needs: Personal preference, lifestyle changes, and mileage make a difference in the best approach.

For anyone considering their next vehicle, this episode presents a clear breakdown between buying and leasing, dismantling myths and providing solid, actionable advice for both everyday drivers and entrepreneurs.