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  • Apr 5th, 2017 1:46 pm
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[OP]
Member
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Sep 1, 2010
230 posts
64 upvotes
Hamilton

Lease VS Finance

Hey all... I've been shopping around on vehicles for about a month now, and haven't full decided on what to get yet.

I've also always owned / financed all my vehicles, but at this time I figured it would be a good time to explore lease.

I'm in sales and travel within my territory frequently, but should be able to keep my yearly KM under 25k.

What are all your thoughts on LEASE vs FINANCE?
Pros / Cons... your own experience and thoughts is greatly appreciated.

Thanks!
WTF REF
8 replies
Deal Addict
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Jul 26, 2007
4561 posts
2176 upvotes
Toronto
Calculate on all your cars you purchased one by one in past and divide the car expense (purchased price minus sold price minus maintenance fees) by total months owned will give you monthly cost of each of your cars.

Compare that to various ads should give you an idea if paying extra (usually) for lease is worth it or not.
Newbie
Jan 20, 2017
33 posts
18 upvotes
WTF REF wrote: Hey all... I've been shopping around on vehicles for about a month now, and haven't full decided on what to get yet.

I've also always owned / financed all my vehicles, but at this time I figured it would be a good time to explore lease.

I'm in sales and travel within my territory frequently, but should be able to keep my yearly KM under 25k.

What are all your thoughts on LEASE vs FINANCE?
Pros / Cons... your own experience and thoughts is greatly appreciated.

Thanks!
Are you a self-employed sales guy or on the payroll? If you are an employee, financially you are almost always better off buying rather than leasing. If you are self-employed, it can be pretty even depending on the circumstances.
Deal Addict
Jan 8, 2007
2446 posts
962 upvotes
Calgary
This topic comes up almost daily here. Pros and Cons to both. In my opinion not all cars are good lease candidates. Myself I almost always lease now as I like to free up my cash to put it to work elsewhere. Good cars to lease are ones with low interest rate and high residual. Also you want something that is fairly popular and easy to resell should you decide to attempt a sale at the end of lease.

Think of leasing as financing portion of the car you use. That's all it is. For example: Say you finance a car for 6 years and your buddy leases same one for 3 years. After 3 years he gives his car back and you decided to sell your financed/"owned" car at the same time. Your total cost of ownership will be pretty much the same, even though you have nothing to show for your lease.

The only time I would finance a car or pay cash for one is if I know 100% that I am keeping it long term.
Deal Addict
Feb 19, 2017
1852 posts
1212 upvotes
Okay so you're gonna hear a lot of pros and cons about leasing vs financing and so on but here's what it comes down to.

If you want car payments to stop and keep the car longer term go finance.

If you want endless warranty and never need to concern yourself with car repair or long term maintenance go with lease.

Both are valid for different people, personally I finance reliable cars (Honda, Toyota, etc) and keep them for around 10 years (that's the damn plan) but if you want newer cars and never need to worry about repairs lease is a good option. Also if you need to put on "face" as it were lease is a good option new cars every few years can help project a sense of accomplishment (image matters to some people, otherwise luxury cars wouldn't exist people).

Also only lease German luxury, never buy.
RFD is love. RFD is life. I wish I had an RFDer for a wife.
[OP]
Member
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Sep 1, 2010
230 posts
64 upvotes
Hamilton
aleks wrote: This topic comes up almost daily here. Pros and Cons to both. In my opinion not all cars are good lease candidates. Myself I almost always lease now as I like to free up my cash to put it to work elsewhere. Good cars to lease are ones with low interest rate and high residual. Also you want something that is fairly popular and easy to resell should you decide to attempt a sale at the end of lease.

Think of leasing as financing portion of the car you use. That's all it is. For example: Say you finance a car for 6 years and your buddy leases same one for 3 years. After 3 years he gives his car back and you decided to sell your financed/"owned" car at the same time. Your total cost of ownership will be pretty much the same, even though you have nothing to show for your lease.

The only time I would finance a car or pay cash for one is if I know 100% that I am keeping it long term.
Thank you for the reply.

I figured this topic is common, but I did a quick search and I couldn't find one.

Right now, the options I've been looking at is...

2017 Honda CR-V EX

2016.5 Mazda CX5 GS

2017 Nissan Rogue SV AWD Moonroof Tech

2017 Hyundai Tucson LUX AWD

So I'm looking in the crossover section.
The Hyundai has the best interest rate at 0%... and on the road, I see more of them than any of the others. So I don't know if that means that it's the best resale because everyone has one, or if it's too common that the resale would be lower.

Either way, it seems as if leasing is the best option for dealerships? They get the vehicle back still in its prime before anything starts to go wrong :)
WTF REF
[OP]
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Sep 1, 2010
230 posts
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Hamilton
LoANeal wrote:
If you want car payments to stop and keep the car longer term go finance.
This is the best point.
WTF REF
Deal Addict
Feb 19, 2017
1852 posts
1212 upvotes
WTF REF wrote: This is the best point.
Was kinda what sold me on going with Financing. Because I don't want to be trapped in the endless payment cycle. Sure be nice to have new car every few years and never worry about repairs, but I am just too darned cheap to do it.
RFD is love. RFD is life. I wish I had an RFDer for a wife.
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Nov 2, 2013
5306 posts
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Edmonton, AB
It depends on vehicle and situation, but generally leasing is more expensive. Though it makes more sense for people who don't drive much and always want to drive new and don't keep their vehicles long. In that case it's a waste to depreciate a vehicle financing it for those who put on little KMs a year and then just sell the thing in a couple or 3 years.
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