I'm Bruce Mouncey, and I help the best people, drive the best cars, the best way possible. I'm talking about leasing one of the top 3 import brands, and in this video, I explain why. I can help you drive a great car for less than you would believe possible. You can reach me at (816) 671-4546, or email me at wmouncey@rollinghillsauto.com.

1. YOU CAN’T
AFFORD
TO BUY
MY CAR!
BRUCE MOUNCEY OF ROLLING HILLS AUTO PLAZA

2. MY MISSION IS TO HELP YOU MAKE SMART
CHOICES
• I HELP THE BEST PEOPLE, TO DRIVE THE BEST CARS, THE BEST WAY POSSIBLE.
• The “BEST PEOPLE” is YOU, the educated customer.
• The “BEST CARS” are the 3 best brands available, TOYOTA, HONDA, AND NISSAN.
• The “BEST WAY POSSIBLE” is through LEASING.
• Today I want to talk about the last part, leasing. If I can’t convince you why leasing is
the best way to drive a car, in ONE slide, you don’t need to read any further.

3. FIRST, AN IMPORTANT CONCEPT: DEPRECIATION
• Let me take an analogy from home ownership to explain a concept:
• One of the benefits of buying a home is that you have the ability to capture the
appreciation, if the value of the home goes up.
• But in times when the homes values are falling, does anybody want to “capture” the
DEPRECIATION?
• So, if vehicles typically depreciate, why would anyone that is smart enough to lease a
depreciating house, choose NOT to lease a depreciating car?
• Can I share a little more information with you now?

4. TYPICAL BUYER’S PHILOSOPHY
• Leasing is complicated/waste of money/somehow illegitimate
• (Really) I want to own because I understand ownership:
• Pay the negotiated price
• Drive the vehicle for a while
• (The vehicle depreciates in value)
• Trade the vehicle in for some amount
• Do it again
• Life is rarely this simple, and the simple solution is rarely the least expensive

5. (SOME) DRAWBACKS OF OWNERSHIP
• You assume all the risks that come with ownership:
• You are committed to pay the whole price of the vehicle no matter what
• If you pay cash, your cash is tied up in the vehicle (CASH FLOW)
• Borrowers pay interest on the whole price of the vehicle (CASH FLOW)
• Sales tax is due up front (CASH FLOW)
• You do not know what the trade value will be (THE BIG GAMBLE)
• If you have a loan, the equity may not pay off the loan (NEGATIVE EQUITY)
• Accidents reduce the trade value, even if insurance fixes it (DIMINISHED VALUE)
• Insurance may not pay the whole loan off if the vehicle is totaled (THE GAP)

6. VEHICLE DEPRECIATION: DO YOU WANT ALL OF IT,
OR ONLY PART OF IT?
• You can’t totally escape paying for depreciation with a vehicle, but you CAN make a
smart decision about HOW MUCH of it you are willing to pay for.
• Let’s use a different term for “purchasing.” Let’s call it, “Pre-paying for 100% of the
depreciation.”
• Likewise, “leasing,” is the same thing as, “Paying for PART of the depreciation.”
• When you purchase, it is as if you plan on keeping the vehicle forever, so you must
pre-pay for 100% of the depreciation up front. Then, if you sell it later, you will
recapture whatever depreciation is left unused.
• When you lease, you only pay for that part of the vehicle you are going to use up.

7. HOW AUTOMOBILE LEASING WORKS
• Instead of paying for the whole purchase price, you pay only for the portion you use.
This is called the “capitalized cost.” You also agree to drive the car for a certain time.
• You only pay interest on the capitalized cost. (This is a big deal!)
• You only pay sales tax on the lease payment each month, not on the entire purchase
price, and not up front.
• The guaranteed repurchase value at the end of the lease is fixed by the factory. This
is called the “residual.” The vehicle will never be worth less than the residual.
• You have three options at the end of the lease: Turn it in if there is no equity, or
either trade it in or buy it outright if there is equity in the vehicle.

8. SINGLE-PAY LEASE VS. CASH PURCHASE
• $25,000 purchase price
• $25,000 cash outlay for purchase
• $12,987 cash outlay for lease
• Sales Tax: $2,112 up front for
purchase; $1157 up front for lease
• Lease residual= $12,500
• Equity= ???
• Cash tied up for 3 years: $27,112
for purchase; $14,144 for lease
• Cash that stays in YOUR bank
account with a lease: $12,968
PURCHASING LEASING
2112 1157
25000
12987
12968
TOTAL CASH OUTLAY
Sales Tax Cash outlay Savings

9. LEASE VS. PURCHASE CASH FLOW WITH FINANCING
• Example: $25000 purchase price
• 60-month loan, 36 month lease, both
traded in at 36 months
• $0 down for both; 2.5% interest
• Sales Tax: $2112 up front for
purchase, $32.13 per payment for
lease, or $1157 (8.45% locally)
• Payments: $443.68 for purchase,
$360.77 for lease
• Lease residual=$14,500
• Equity=???
• Total cash outlay: $18,084 over 36
months for purchase, $14,144 for
lease
• Net lease cash savings: $3940
0
2000
4000
6000
8000
10000
12000
14000
16000
18000
20000
Down Payment Taxes 36 Payments Cash Difference
Cash Flow of Purchase vs. Lease
Purchasing Leasing

10. BREAKING NEWS: LEASES GO ON SALE!
• Actual sale offers taken from Honda
website on 5/26/16, 2016 Accord LX
• $23,840 purchase price, 60-month loan,
1.9% interest
• 36-month lease, 0 down
• Sales Tax: $2014 up front for purchase;
$20.28 per payment for lease, or $730
(8.45% locally)
• Payments: $416.82 for purchase; $240.00
for lease (!)
• Lease residual= $13,588
• Equity on purchase= $???
• Total cash outlay: $17,019 over 36 months
for purchase; $9,130 for lease
• Net lease cash savings: $7889
0
2000
4000
6000
8000
10000
12000
14000
16000
18000
Down Payment Taxes 36 Payments Cash Difference
Cash flow of Purchase vs. Lease on sale
Purchasing Leasing

11. THE BEST WAY: LEASING
• LEASING IS ALL ABOUT AVOIDING RISK. SMART PEOPLE AVOID RISK.
• NO GAMBLE AT TRADE-IN TIME
• ONLY PAY FOR WHAT YOU USE
• ONLY PAY INTEREST ON WHAT YOU USE
• ONLY PAY SALES TAX ON WHAT YOU USE
• LEASES OFTEN GO ON SALE, SAVING YOU EVEN MORE!
• TRADE IN ANY TIME, JUST LIKE A PURCHASE
• TAX DEDUCTIBILITY FOR BUSINESSES – 100% OF PAYMENTS ARE DEDUCTIBLE
• EASIER FINANICAL PLANNING

12. THE BEST CARS: TOYOTA, HONDA, AND NISSAN
• Leasing works best if you lease the RIGHT vehicle.
• Rolling Hills Auto Plaza is one of only a handful of places in the country where you
can shop for the three top import brands in one place.
• The Toyotas, Hondas, and Nissans at Rolling Hills Auto Plaza have some of the best
lease residuals on the market. The result: Lower payments than competitors, for
higher-quality vehicles(according to Kelly Blue Book, Forbes, Consumer Reports,
etc.).
• Now, one last surprise: You can lease Certified Pre-Owned vehicles, too!

13. THE BEST PEOPLE
LEASE TOYOTAS,
HONDAS, AND
NISSANS FROM ME,
BRUCE MOUNCEY, AT
ROLLING HILLS AUTO
PLAZA
IF YOU WOULD LIKE TO SAVE $50-250 PER MONTH
ON YOUR CAR, CONTACT ME AT (816)671-4546, TO
ARRANGE A TIME WHEN WE CAN VISIT, TO SEE IF I
CAN POSSIBLY HELP YOU WITH YOUR NEXT
VEHICLE LEASE. OR EMAIL ME AT
WMOUNCEY@ROLLINGHILLSAUTO.COM.