Buy vs Lease: Jason Taylor Discusses Cars, Homes & More

Leasing, financing, renting, buying… the labels are easy. The real challenge is figuring out which choice actually protects your future when the purchase is big and the sales pitch is bigger. Jason Taylor, CFP, gets practical about the buy vs lease decision and why the “best deal” is usually the one that fits your life, your cash flow, and your time horizon, not the one that looks cheapest on a monthly payment.

We start with the rent vs buy home question and the truth people hate to hear: housing is local. Appreciation can be steady in one city and flat for decades in another, so the smartest move depends on where you live and how long you plan to stay. From there we move to cars, where leasing vs buying often turns into a costly trap through mileage limits, per-mile overages, and end-of-lease fees for every scratch and ding. Leasing can be a niche fit for certain business owners, but for most people, ownership and a longer holding period usually win.

Then we tackle the “investment” myth around RVs, boats, ATVs, and other toys. If you only use them a handful of weekends, renting can deliver the fun without the maintenance bills and depreciation. We also get into real estate investing basics like keeping reserves for vacancies, using leverage thoughtfully, and even creative ways to reduce a home’s cost by renting out rooms. Finally, we touch education and essentials: community college and credit transfers to cut student loan costs, negotiating with schools, and why an emergency fund beats appliance financing every time.

If you like clear, numbers-based money advice you can use right away, subscribe to MyPocketFP, share this with a friend who is on the fence about a big purchase, and leave a review with your toughest buy vs lease question.

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Transcript

Welcome And The Big Question

SPEAKER_01 0:03

Welcome to My Pocket FP, the podcast where your wallet finally meets its financial planner and they actually get along. Join your host Jason Taylor, certified financial planner, money sensei, and your guide to financial freedom. Whether you're planning for retirement or just trying to figure out where all your money went last weekend, we've got you covered. Get ready to take control of your financial life with smart tips, surprising insights, and yes, an app that fits right in your pocket. This is My Pocket FP, because your future deserves more than guesswork.

SPEAKER_00 0:46

Today we're breaking down the buy versus lease dilemma for major purchases from cars to homes to appliances. Welcome back, everyone. I'm Julie Schwenzer, co-host and producer in the studio with Jason Taylor, a certified financial planner and the creator of My Pocket FP. Jason, thank you again for joining us. We love learning from you.

SPEAKER_02 1:06

Thank you, Julie.

SPEAKER_00 1:08

So, Jason, let's get into it. When should you buy versus lease when it comes to some common big ticket items?

Renting Versus Buying A Home

SPEAKER_00 1:16

I mean, if you want to start with a home, that's a big one right there.

SPEAKER_02 1:20

It is. And you know, the hard part with this question is when it comes leasing or renting versus buying a house, a lot of that depends on where you live. Because house prices are different in every um city, not only every state, but every city. So it isn't a straightforward answer. A lot of times, you know, especially first starting out, renting does make sense to help you build up some capital to actually buy a house later down the road.

SPEAKER_00 1:50

And then what about like appreciation of the house? Like that seems to be a safe bet if you're in a good area or a popular area.

SPEAKER_02 2:00

That is the key. Is that once I said this way, a lot of the answer depends on where you are? Um, we're fortunate here in Colorado, our house prices go up, you know, pretty consistently, whereas you know, some other states it's pretty flat for decades.

SPEAKER_00 2:13

Does that mean that there's a lot more newer homes there? Because you know, a lot of people are moving there, so they have to keep up.

SPEAKER_02 2:20

The the demand is lower than the supply if the price is staying flat.

SPEAKER_00 2:25

Yeah. And then what about cars? This is a big one too for people because I mean it is expensive. They want a decent car. But uh, what about the leasing versus buying

Why Car Leases Cost More

SPEAKER_00 2:37

cars? What advice do you give to people for that?

SPEAKER_02 2:40

This is where financial planners get a bad rap because leasing is not usually a good idea, rarely ever. Um, maybe if you're a business owner and you you need a new car every three years or so, it might be worth leasing, but for the most part, you're gonna lose out if you lease versus buy.

SPEAKER_00 2:59

And that's because like you mentioned this too before. You said something about like the companies that lease, they are in a lot of cases, are they expect you to go over the miles that you have the contract for, and you're right, because it happens a lot.

SPEAKER_02 3:15

Yeah, well, I mean, they you know, most people buy, you know, they give you like a thousand miles per month or twelve thousand miles for the year, and then you can pay extra on your lease if you want 15,000. Uh, and then they charge you, you know, a mileage rate over that if you go over 15,000. It adds up very quick. Also, if there's any dents or dings or scratches, they charge you for every little thing and they nickel dime you at the end.

SPEAKER_00 3:39

Yeah, those are good points.

RVs Boats And The Rent Option

SPEAKER_00 3:41

And what about like recreational vehicles or like golf carts or boats? That one seems to be you know confusing to a lot of people about is it worth the investment? Because you can almost never sell it at what you bought it for.

SPEAKER_02 3:57

Well, thank you, Julie, because you said investment, and that's uh what a lot of people say with you know recreational vehicles, and then they are not investments. Investments are something that has a potential of going up in value, and very rarely, very, very rarely do any of those go up. Um, in fact, a lot of times they end up costing you more in maintenance and headaches than you even get to enjoy them. Um I'm trying to think, you know, if it was one of my colleagues or uh you know, something I happen to watch online, but they said you know, you work you know so much and you only get to use your ATVs like you know, maybe four or five weekends a year. Or your snowmobile, you know, you can only use it for three months a year in some states and maybe five weekends. So you spend more time with maintenance and um paying for the vehicle and actually get to enjoy it. More often than not, it's cheaper to just rent, you know, from you know a local source wherever you go.

SPEAKER_00 4:59

Well now I feel bad for all those people that I I pass by their driveway and you see like their boat or RV just constantly parked outside and they're not able to use it.

SPEAKER_02 5:09

That's it is sad when they see those just sitting around.

SPEAKER_00 5:13

Now, what about if somebody's gonna retire soon? Then it might make sense because they know they're gonna retire and the prices of the the boats and recreational vehicles or whatever, they might go up anyway.

SPEAKER_02 5:25

Um well, you know, I am I am a numbers guy, and that's something I will do is you know sit down and see how much it'll cost to rent it versus if you buy it and maintain it, um, and the number of uses and to see which way actually makes the most sense. Um, a lot of times with like an RV or things like that, if they plan on traveling around the country, it it makes sense to go ahead and buy one versus you know rent one for a week.

SPEAKER_00 5:48

Yeah, absolutely. And then what about real estate and um real estate investment mortgages?

Real Estate Investing And Reserves

SPEAKER_00 5:55

Any thoughts on those about people considering them before they commit? Like what should they be thinking about?

SPEAKER_02 6:03

And it it all depends, you know, you're talking about you know real estate as an investment or real estate as your first home is is kind of you know completely different concept. So if you're looking at becoming a real estate investor, um, you always want to make sure you have enough reserves in case you can't get a renter in the place when you can cover the costs. Um, and you always want to actually, in my mind, you know, use other people's money. So you want a loan on a rental property because you can write off the interest, and hopefully you're getting enough rent that it pays for the interest and you're not paying for it. Whereas if you own a home, you're paying that interest yourself. And with that in mind, you know, I tell a lot of young couples I work with and um you know, kids straight at college, there's no shame in renting out rooms to your friends or um other people to help you pay for you know that uh mortgage payment.

SPEAKER_00 6:59

Yeah, I like that because you know, everybody may need help at some point in time.

College Costs And Smarter Paths

SPEAKER_00 7:04

And then if we we can go back to what we spoke about in in the previous episode with your daughter Olivia and another episode too about education as another major expense. I mean, I know we can't say buying versus lease. Oh, you could, I guess. Bind versus leasing in terms of student loans and the long-term value. I mean, what do you suggest to students and the parents? How do they approach this with what could work for their family the best?

SPEAKER_02 7:32

We've been talking about this a lot lately, as you know. Um, I'm a big fan of you know going to a junior college or a lower cost school to start, you know, do your prerequisites. Um, and it won't cost as much. And a lot of times you can, you know, paint out of the pocket, um, or you know, even you know the student work part-time to help pay for it. Um, because it's really it's affordable if you go to one of those um you know smaller schools, like a community college. Yeah, community college, yeah. Um you can also um negotiate with the school directly, which a lot of people don't think to do.

SPEAKER_00 8:12

Oh, I did not know that. Wow. And you know, when you mention community college, that's interesting too, because I know from other people too that they were able to transfer all their credits with no problem to a lot of you know the universities or colleges. So that was wonderful for them. And it didn't matter on the resume because at the end of the day, they just showed where they graduated from.

Appliances Emergency Cash And Side Money

SPEAKER_02 8:34

Right.

SPEAKER_00 8:35

And then what about appliances? That um that can be a hard one because you do need, you know, you need to cook, you need to do things, you need a refrigerator and for other things, but somebody has an issue trying to purchase a whole item. But is that I this I really don't know much about, but if you have to lease something, is it worth it?

SPEAKER_02 8:58

No. It it'll always cost you more in the end. And that's once again where you know it's controversial with all the financial planners. Um because you should have an emergency fund to pay for that to begin with. And the only reason you should you know not have that money would be an emergency type case. There's things you can do to, you know, I I've heard other advisors online, you know, say go through your house and find a whole bunch of stuff you don't need and sell it on Facebook Marketplace. You know, have a garage sale. You know, you can find the funds if you can let go of things. So that would be step one. Um, before you know, putting on a credit card or putting on the financing or leasing, as you say, is try to find the cash somewhere else. And that's you know, a side gig. You know, you go move a couple of people's yards, you know, any age you can do that.

SPEAKER_00 9:51

Oh, that's great. That's great advice. I mean, I thank you so much for this. I think it's very helpful, and it's a good reality check, too. Like, so overall, if you can buy it, in most cases, buy it.

SPEAKER_02 10:03

Exactly.

SPEAKER_00 10:04

Yeah. Okay, well, Jason, thanks for breaking that down so clearly. We always appreciate your perspectives.

SPEAKER_02 10:11

Thank you, Joey.

Final Rule Of Thumb And CTA

SPEAKER_01 10:17

Thanks for tuning in to My Pocket FP, where we believe small monthly changes can make big positive changes in your financial end game. If you're ready to level up your money game, head over to mypocketfp.com and download the app today. Your financial planner is now officially pocket sized and doesn't charge by the hour. Until next time, keep your goals high, your debt low, and your pockets smart.