Commission employee over 120k salary Is it right choice to lease a new car?

Who are these "people" telling you to lease a new car and why does it bother you? Ask them to cover the car payments...

Trudeau needs you to help out the Cdn economy. So, buy a new car

My manager lol he lease too since he also can write off

If your current vehicle is reliable then save your money. The two new cars you mentioned may actually be a step down in class and comfort.

It burns a lot of gas
I do drive 25k km per year.
Its little much
11L/100km and premium gas

Now I am comparing
Efficient used prius vs lease new prius

The way you represented yourself by having so much left over money, and wanted to save gas, go buy a tesla.

tesla don't allow buy back. what's the point.
they know their car value well in used market.
it was my option until they did not let me buy back.
I would buy back and sell higher in used market with equity left over

RyanS735 wrote: ↑ tesla don't allow buy back. what's the point.
they know their car value well in used market.
it was my option until they did not let me buy back.
I would buy back and sell higher in used market with equity left over

You can write off car payments on loan/financed too. Lease is just easier. I would look into financing too because usually the rates are lower then a lease.

If it was me (and it kind of is because I am driving a car with 250k kms on it and thinking about a replacement), I would consider my comfort, utility, and performance requirements and get something used but reasonably current - or hang in there with your old Infiniti. TBH, I expect a major shake-up in vehicles available in the market over the next five years as fleets become increasingly electrified and crossovers continue to push sedans out of the market. Greater choice of EVs can only be good for those of us considering one as their next vehicle. I suspect that my next vehicle will be one that I may only keep for five or six years - hopefully enough time for the market to have more EVs that will appeal to me.

You've made prudent financial decisions and your job now allows you to expense some of your vehicle. If you're spending $250 a month on gas that likely means you're on the road every day. Matter of time before your POS inifiniti breaks down. Seems like a no brainer.

If you don't care for cars, go spend some of your disposable income on one of your hobbies. If you don't have any hobbies... life must be boring.

Just keep it simple...

If after the car payment you can still ...

-pay your bills on time
-take care of fam
-put money into savings

That means you can afford it.

Everyone has different priorities. Some people like nice cars and new cars. For others, as long as the car is reliable, they don't care if it is new. There are many examples of extraordinary rich people who drive very old and modest cars. Just as there are examples of people who can afford it, who drive expensive luxury cars.

You are ckearly frugal and don't like spending money just because you can afford it.

My thoughts:
* Spending money to save tax, does not really save money. The tax deduction is only part of what you spend, and the tax refund is about half of the deduction. And the deduction is only for the business use portion -- you need to track personal and business use kms. If you want to have a nicer car, the tax deductions are good, but it doesn't make sense to me to spend money to reduce taxes, as you will have less for the important things you mention like paying off mortgage faster or saving and investing.
* if you drive 25,000 km per year, most car leases will charge extra for extra kms.
* Your current car you bought used, and has taken care of you. But at some point, as it gets older, it will be time to replace it (especially since you need a car for your work). So assess when the car is getting too old and repairs are getting too frequent. How old is the car, and has it started needed more repairs?
* I don't think you can save $250 per month on gas by going to a new car. If you drive 25k per year, how much do you spend on gas each month.... I can't imagine it's more than $400-$500). And the cost of gas for the business use portion of your mileage is tax deductable.

At some point, you will need to replace your car. But don't feel pressured to do what others do. Everyone is different and everyone has different priorities. You prioritize saving and investing over consumption. When it's time for you to replace your car, you should probably look at spending more than $4,000 as you are at a different stage in your life now. Personally, I think used car prices are pretty high now, so I don't think buying used makes as much sense now as it may have in the past.

edit: shoot.. .youre pulling in $120k and youre getting a prius?
sounds like you're level headed already.
I thought you were going to buy a BMW X5 or something. lol

UrbanPoet wrote: ↑ edit: shoot.. .youre pulling in $120k and youre getting a prius?
sounds like you're level headed already.
I thought you were going to buy a BMW X5 or something. lol

It's a beige electric corolla...

KevinM56081 wrote: ↑ It's a beige electric corolla...

pretty much. I thought OP was pondering if he should splurge on that new BMW/BENZ or something.
Toyota. . . Boring... But fiscally responsible.

UrbanPoet wrote: ↑ pretty much. I thought OP was pondering if he should splurge on that new BMW/BENZ or something.
Toyota. . . Boring... But fiscally responsible.

I drive a toyota... Well... My wife does. I like to live life in the edge. My nissan has a cvt.

Spending money to reduce tax on something non income generating will be forever lost on me.

Leasing also happens to be the most widely misunderstood financing charge when it comes to cars that it's almost worthless debating, but for anyone wondering leasing is on average more expensive. Outliers remain for low residuals, etc.

OP, if you were into cars and were getting something that would truly make you happy then I'd say it's worth exploring, with the two shortlisted cars I'll take that high mileage infiniti (hopefully yours is rwd).

Thanks for honest your opinion.
I decided to keep my car.
You guys are right.

120k yeah but I am frugal and this lead me early retirement and luckily I had this discipline since I was young. I am in my 20s and built good portfolio with investment including my couple properties and other investment.
I love saving and so as you guys. Thats why we are here.
This is first job title I can write off some of my expense.
I didn't know what to do.

My dad is retired but he used to make over 200k when he was working in finance but he kept his hyundai for 15years since brand new and spent it on investment instead.

Car is something big decision and you guys opinion helps a lot.

Most likely I might get a used Honda civic 2017 or something. Those I can pick up at good price.

As someone who recently sold their Infiniti G37S and has a gross about 120K a year approximately as well, without a lease supplement from work l, get rid of that Infiniti if yours. I went from spending $260 to $350 a month in premium gas to about $120 a month.

No longer spending $1300 for a set of tires is nice as well. Parts for Infiniti always seem to be expensive too.

The car I bought was a 2019 Civic gently used.

With the cheaper gas and insurance the car is paying for itself!