Buying, Financing or Lease a Car in Germany? Which is worth it?

 

1. The video starts by discussing the various ways to acquire a car in Germany: buying, financing, and leasing. It emphasizes that while having your own car is a significant financial decision, the best option depends on individual circumstances and financial status.

2. Buying a car makes you the owner with no further financial obligations, but you are responsible for repairs and depreciation. While it seems less attractive due to high interest rates, financing is still an option where you borrow money from a bank and pay it back in installments. This adds interest to the overall cost. 3. Leasing is essentially renting a car for a fixed period. The car remains the property of the leasing company, and you pay a monthly fee. You must pay for the car's depreciation and the leasing company's profit. 4. The video argues that buying a car in cash is always the cheapest option if you have the money saved up. This is because you avoid paying interest or fees associated with financing or leasing. 5. The video discusses the argument of using the saved money for investment instead of paying for financing or leasing. While possible, it emphasizes that investments come with risk and may not guarantee higher returns than the interest or fees on loans. 6. The video then focuses on the depreciation of cars, illustrating the rapid loss in value during the first few years. It explains that this depreciation applies to all cars, whether bought with cash or financed. 7. The video concludes that buying a new car or leasing a new car is not financially advisable due to the significant depreciation in the early years. This makes leasing a new car less attractive, as you are essentially paying for the depreciation. 8. The video shifts the focus to the used car market in Germany, emphasizing that it has changed dramatically since 2020. Germans are keeping their cars longer due to increased car production costs and supply chain issues, resulting in a surge in used car prices. 9. The video highlights the rising cost of new cars due to increased production costs and emission standards. It also mentions the impact of rising interest rates and energy costs on the car market. 10. The video provides a comparison of costs for buying a new car, leasing a new car, and buying a used car. It suggests that buying a used car 3-4 years old is a more financially sensible choice, as you avoid the steep depreciation of newer cars. 11. The video emphasizes the importance of paying for a used car in cash if possible. If that's not feasible, it recommends making a down payment and financing the rest to minimize interest costs. 12. The video concludes by advising viewers to consider their financial situation and avoid unnecessary spending on brand new cars. It emphasizes that buying a used car can be a smart decision, especially considering the current market conditions.