Automotive

Is your Vehicle(s) leased, financed or cashed?

  • Last Updated:
  • Aug 12th, 2021 5:23 pm
Tags:

Poll: Lease or Finance

  • Total votes: 115. You have voted on this poll.
Lease (Business)
 
6
5%
Lease (Pleasure)
 
25
22%
Finance
 
28
24%
Cash is King
 
56
49%
[OP]
Deal Expert
User avatar
Jan 27, 2006
19285 posts
2983 upvotes
Woodbridge

Is your Vehicle(s) leased, financed or cashed?

It seems a lot are leasing more. A few friends say it's because they don't have to worry about out of warranty repairs, peace of mind. Others, have no clue, just like to show off. They figure it's just cheaper. I he en heard stories how some are clueless that they don't realize that they're in a Balloon payments. I didn't know dealerships still offered this but Hyundai does.

I'm sure most lease because of business purposes as they can write it off.

I always financed my vehicles, it's paid off in 4 to 5 years and usually keep it for that same period. I never really had any major problems. Knock*on*wood. Obviously, this pandemic changed my driving but I never had to worry about my kilometres and free to modify it.
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THE NEWSROOM (HBO)
19 replies
Deal Guru
Jun 24, 2006
12960 posts
7059 upvotes
We have always been cash is king for cars sort of couple, and always been successful in getting a better price that way, until last summer when we bought a 2020 Grand Cherokee, and for the first time EVER in my car buying experience, the finance option was cheaper, as there was no further cash discount off the negotiated price.
Deal Expert
User avatar
Jul 30, 2007
31870 posts
18851 upvotes
Toronto
always cash for me. No worry for the monthly payments, besides, if I were to finance it, the interest rate is stupid high, like 5-6%. For me to finance this kinds of rates, instead of paying cash, I would have to ensure my investments have a returns of like 15% per year (pre-tax) to make this worthwhile. In the end, it's my personal choice.
Deal Fanatic
Jan 17, 2003
8953 posts
1437 upvotes
mostly cash for me. But it depends on what i can earn with my money (i'm not talking about financial advisors blabbing about 5-10% returns etc. I'm talking about high interest savings accounts that are low risk) vs finance.

If there is a car loan at 0.99% and i know i can get 2%+ in a high interest account, i will take the finance option.

Also, i'm not sure if its true. Taking the finance options may also get you additional rebates.
Deal Fanatic
Jul 26, 2007
6677 posts
4242 upvotes
Toronto
Look for new car interest rate equal or lower then your mortgage. Then you won't feel bad paying few $ks in interest.

Most car sales rep will push for financing or lease anyway and tell you to pay it cash after 3 months later so they can make $100 in extra commission.
Deal Addict
User avatar
Apr 3, 2007
2203 posts
1253 upvotes
Vancouver
Own two vehicles both cashed mine a 2013 and wife's a 2015. Knock on wood haven't had to throw any extra money on those vehicles for unforeseen repairs other than regular maintenance and wear and tear items.

Benefit of paying cash on a big ticket item is you obviously have a set budget and very unlikely to stray whereas if your financing or leasing much greater chance of you stretching the budget.
Member
Dec 5, 2020
348 posts
234 upvotes
Doesn't really make sense to pay cash if finance rate is anywhere between 0 - 3%...unless you are looking to get a mortgage and want less monthly obligations on your books....
Sr. Member
Jul 18, 2020
753 posts
1217 upvotes
I always make sure I have the cash to cover my entire purchase, if for any reason I will get a better deal with financing, I will only finance a small portion of it and pay cash for the majority of it.
Deal Fanatic
Aug 29, 2011
8397 posts
5253 upvotes
Mississauga
Cash here. Last time I financed a car was 15 years ago.
Deal Addict
Jan 17, 2009
4099 posts
4297 upvotes
Toronto, Ontario
I'm not great at investing so there isn't any real opportunity cost lost for me, and one less bill to worry about. If I can't save up the cash for it then I probably don't really want it.

I'll tell you one thing it was a hell of a lot easier to save up the cash for my car when I was living at home with my parents. Now that I have a mortgage I might be more tempted to finance, but hopefully I don't need to buy a new car any time soon.
Deal Addict
Mar 28, 2011
1436 posts
1449 upvotes
Toronto
Good thing it’s a checkbox

I did all 3

Cash to take advantage of cash rebate, miss that car but got a good deal back on it

Multiple leases cause interest was pretty much 0.1% to 0.5% due to loyalty and I didn’t want to keep them and they had high residual so I ended up overpaying about $1000 vs finance and selling but I just wanted a hassle free ownership for these cars

Finance cause I’m using the rest of money for investments and don’t mind keeping it for a while
Deal Expert
User avatar
Jul 5, 2004
26693 posts
5817 upvotes
I used to finance, thinking I would pay off my vehicle and keep it. But I kept dumping them after a couple years and getting a new one, every time believing I would keep it.
Now I've just realized that I enjoy having a new vehicle every couple years, so I'm leasing. I'm ok with having a payment. I don't have any other debt except a mortgage and my income is high, so it's an expense I'm comfortable with.

When I come closer to retirement then I'll likely finance something and keep it long term as I won't want any debt, but for now, I enjoy getting a new truck every couple years.
Sr. Member
Feb 8, 2010
582 posts
475 upvotes
I have used all for different cars, cash, finance & lease.

If there is a huge incentive on cash purchase, use cash. I once got $5000 off on a $27k car (last model year inventory, but new). When there is not much incentive but lower rate, use finance.

If you have business income to write off, lease. Any car with expensive out of warranty repaired is not worth keeping, just lease.
Sr. Member
User avatar
Nov 7, 2013
558 posts
161 upvotes
the 604
cash, always. for new cars: the less i have to do with the dealer, the better. and for used: one and done.
Deal Addict
Oct 24, 2010
2540 posts
2487 upvotes
Ottawa
I generally buy vehicles in cash. I'm not financing a liability.

However...

We bought a used vehicle from a dealership this spring. We were ready to pay in cash, and then the finance person waved a 1 year loan @ 0% in our faces. All it cost was a $25 setup fee and a credit check. And, yes, I verified all the numbers before signing the financing arrangement.

So, we're technically financed until May 2022.
Deal Guru
User avatar
Jul 12, 2003
12352 posts
4858 upvotes
Toronto
I have paid cash for a 5k car as my first car, Financed, Sub-leased a car, leased a new car then buy back with cash.

it really depends on what kind of cars you are buying.

Like Bobblehead, his cars are usually 100k+, and those car's interest rate is always high, so it make financial sense to pay cash.
Some other cars are having a very low interest rate, like the Lexus we had with 0.4%, it make sense to lease/finance and used the cash for investment.

Cars under 10k....just pay cash. If you don't have 5-10k to buy a car, then you probably cannot afford one, just image the potential repairs and such, you need to have a cash flow.
Last edited by MP3_SKY on Aug 12th, 2021 4:20 pm, edited 1 time in total.
Retired Forum Moderator February 2009 - June 2015
Deal Fanatic
User avatar
Sep 7, 2004
7813 posts
4604 upvotes
West GTEH!
Paid by Cash always.
Don't have to worry about interest Rates, monthly payments, etc.
😎
Deal Expert
Jan 15, 2006
19105 posts
18950 upvotes
Richmond Hill
Depends. For buying brand new if interest is 2% or lower I'll finance. For my weekend toy it's always cash. I never lease.

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