Finance or Leasing?

ive only had experience with financing vehicles. Come to an option to lease or finance. what do you guys like and prefer? i have no experience with leasing, i know there is a cetain of KM's allowed over your leasing term, and your left with no equity, an option to buy out or hand it back in. dont know what i should do

[Rackmastr]

Really depends on your needs and wants....I personally cant lease because I put way too many KM's on a year.....

Main thing is dont buy a minivan........lol...ouch....

Main thing is dont buy a minivan........lol...ouch....

After having a mini van as a company vehicle for two months,I came to the same conclusion.

With many manufacturers offering 0% or super low interest rates on financing, buying is the way to go if you can afford the monthly payments. Payments on a lease are lower because you are only paying on a portion of the principal but typically you are money ahead with a low interest loan. If you are putting loads of miles on then the answer is pretty simple too.

[roger]

ive always felt that a lease program is best suited to those folks who can legitimately use it a business and therefore...a deduction.
otherwise, its really is like paying rent for it.
on the plus side, it has often warranties, service plans and initiatives that are quite comforting for those who like to be cared for, and if you buy a lease a Tiberon and realize after a couple of hunting seasons it doesnt quite haul a moose...you can walk away from it at terms end, no quesions asked..other than what is all the blood and hair from???

[Cordur]

Well you can finance a truck for maybe as little as $600 a month or you can buy an older classic truck for say $3500 and put $600 a month into it for 5 years. Tell me what kind of a truck will you have at the end of 5 years after you pour $36,000 into over 5 years?

[Blackwolf]

I have never leased a vehicle and besides one disaster have never bought a vehicle on time. I've even had a fleet, when I was in business for myself. Your warrenty is as good as the underwriter and you can buy a decent warenty for about $400 -$800 depending on what you want.New vehicles are nice and carry a prestige to them, and you'd worry if you scratched it in the bush. But I can buy a truck that was worth $60,000, 2 years ago for around $25,000 and not care whether it was scratched. Thats a lot of depreciation!!!

But you have to weigh the cost and the worth, none of us can make that final decision for you

[cujo1969]

Just went thru same thing buy or lease and new or used. The lease was atractive payment wise and for the farm could be wrote off but my treatment and milage ruled that option out to rough on vehicles. Bought a used D-max for $27000 with 2 yr power train warranty so far so good. The 0% financing was tempting but the depreciation would be to high for me as truck will get abused on farm.

i think im gonna take a step back and re think things, work figures out and such.

I think because i feel im gonna get hosed on something. getting the heavy pressure to get it done by the dealership, stuff like, This promotion is only good till tonight, then , we can hold off another day if you need for $100 to hold the vehicle, to yet another day where its, tomorrow is the last chance, which past and its still available at the promotions.

something doesnt feel right on either end, lease or finance, wish i had more vehicle buying experience, but the wifey says i should trust the gut feelings.

dealing with SouthTown, anyone had good/bad experiences with them? recommend any others, other than a Ford dealership

[Duk Dog]

Good luck NDN. I can relate with you as I am not a real fan of the whole vehicle purchase/lease process. With my current truck I did my first ever vehicle lease on a gamble as I put high miles on it, but am hoping come buy out time that being a Toyota it might still be worth the buy out amount or even slightly more. Time will tell.

[Rackmastr]

NDN,
Vehicle stuff is a big deal, a lot of money, and one that you're going to probably end up loosing some money on in the end....(unless you bought a Toyota...grin) but the main thing is dont feel pressured. There are always new deals coming along....trust me. Dont rush into something that doesnt feel good.

My suggestion, as blunt as it gets.....look into the US.....you could take a personal loan at the bank or a line of credit, and talk to some dealers in Montana. The amount of savings on a new vehicle (or slightly used) are worth the drive down......right now there are probably around 100 vehicles/day coming into Alberta.....I would say 99% of people are saving a few thousand dollars. I was looking at quads the other day and could save $2800-3500 on a quad.....pretty crazy.

Just a thought.....but ya...go with your gut and make sure you feel right before signing on the line...

Once you're ready to make the step up to Ford, I can hook you up with the most honest...low pressure lease manager you'll ever meet. He'll help you figure out what works best for you with no pressure and you will save money.

[Suka]

In the 80's we used to lease our co. trucks. Then it was a great deal; nothing down, pmt's around 300/mo on a 2 yr lease. At the end of the lease you returned the vehicle to the dealership, tossed them the keys, and picked out a new one. Couldn't beat it.
Like everything else leasing has become popular, and now it is in my opinion not a good deal. You're putting money down, and making big payments while gaining 0 equity.
If you can write it all off, and are in a postion to need the tax benefits, fine.
Personally a few yrs ago we got a 2 yr contract for which we'd need an additional work van. First idea was to lease one for 2 yrs. It was cheaper to buy a brand new one than to lease it.
My advice is read and re-read the contract, and closely compare the actual costs, including depreciation and resale value of the vehicle after 2 yrs and 5 yrs. If you do I suspect you'll be buying.
I hate anything to do with shopping for a vehicle. It always feels like I'm flushing hard earned money down the toilet. It's just such a waste of money, but you need them, so you're screwed.
I always figured I should just walk backwards and bent over into a dealership with my chequebook on my back.
Good luck.

[Duk Dog]

The USA thing might be worth looking into. I know someone that recently brought a Titan up from the States and saved a bundle.

[winged1]

If you need a newer vehicle on an ongoing bases, then leasing has it's pro. Sales and service fleets are typical. If you are going to consume the vehicle, I'd go purchase. Either way, negotiate.

As far as the tax implications go, both can be written down for the portions used to generate taxable income.

I always figured I should just walk backwards and bent over into a dealership with my chequebook on my back.

Har! That's classic.

I knew there's a reason I always buy used...

Stinky

after talking with my works financial consultant and giving him all the numbers, he advised me to walk away from the deal on th table, and pay off the CRV for a bit more and go somewhere else and take him with me next time whether i go directly to the bank or a dealership. Sounds like a plan, thanks for all the advice guys, and tips, definately gonna look into that line of credit thing and Montana. Good reason to have a road trip.

[Coldhill]

I think you should Lease,

It will save you a bunch of trouble trying to find someone to buy your things after.

[grizzler]

Just wondering who you deal with Sheep?. I'm in the market for a new truck.

[FisherPotch]

Hey bigbore maybe a good idea to ask your financial adviser about the USA thing. From my understanding the nubers just don't add up when you compair the exchange rate and the manufacture recomended sales price. Ive been saving alot on my recent golf club purchases on ebay. Like 50% even after paying the shipping!! If your looking for something that is in high demand here, the supply there often makes it worth looking into.

[bearbait]

i always buy...we put alot of kms on the trucks...leaseing is a rip as far as im concerned...i leased a dakota years ago and got scewed in the end...ill never do it again!!imo

[sdeviation]

I leased a our mini van for the wife ,,She got a great deal, sticker waz 37 grand and change she got it for 24 and change and my buy out in 4 years is 4 grand,,wich isnt bad at all. Dealer ships r makein 15 to 20 thou on trucks up here
if u r goin to the states for a truck make sure its new cause chances r its from the alberta oil patch. Fleet vehicles only need 6 months or 12,000km before u can sell them,,,,How do u think we generate quality used vehicles ,,,lol....

it`s a tough call and a lot of monie ,,in the end its just a matter if ya got a lemon or a good one

[bignose]

I've only bought three vehicles in Alberta, last two (truck and van) were from an auto broker, used (I can't face the depreciation with new vehicles, and don't have to buy new for business purposes).

It worked like this, they buy - usually - from the off-lease auctions, usually slightly high-ish milers but usually good service history. That's ok for me, as my miles are low per year, and it only takes a year to two to turn a highish miler into a low miler.

I go to them and say, I'm looking for a such an such, here's the spec, etc. They buy a few likely vehicles, if I like it I buy, if not they sell it on via their other business. Usually get the vehicle at or below book price. Also, they work with a mechanic who does a good check over before buying. Sometimes you can get an independent check.

Saves dealing with sales people in the dealerships, I can't stand all that high pressure nonsense.

But sounds like you've made a good decision to hold off for a while. If your current vehicle works, why change?

Also, found the Lemon-Aid guide very (very) helpful in choosing a vehicle. Anyone else used this method, or guide?

B

[Duk Dog]

Lemon Aid book is a great investment when vehicle shopping for sure. I've bought one everytime I was looking for a used vehicle.

[Roadhunter]

We are on our third lease now and love it. It's great if you don't put a lot of miles on. We were only over about 4000kms on the last one and it came out to $320.00. Nothing down and go with what is called a smart lease. It gives you around $3500 worth of damage or wear and tear items. We tried the purchase thing when we bought a one year old Dodge Durango. Paid around $35,000 with $10,000 down and financed the rest. After about 5 years of $500/mo payments it was time for a new vehicle. We sold it for around $10,000 so basically we back at square one. Leased for 3 years with no maintenance issues and get to drive a new vehicle every 3 years and no big capital outlay. Don't buy any protection plan(waste of money) or add too many extras unless you can unbolt them when you return it.
Again, not for everyone but it's worked for us and will do it again.

[Kanonfodder]

BE very careful with buyn vehicles in the US there are still a ton of flood damages new and used vehicles on the market from Katrina etc. Just a warning...

[Bang Drop]

Originally Posted by Rackmastr

My suggestion, as blunt as it gets.....look into the US.....you could take a personal loan at the bank or a line of credit, and talk to some dealers in Montana. The amount of savings on a new vehicle (or slightly used) are worth the drive down......right now there are probably around 100 vehicles/day coming into Alberta.....I would say 99% of people are saving a few thousand dollars. I was looking at quads the other day and could save $2800-3500 on a quad.....pretty crazy.

Just a thought.....but ya...go with your gut and make sure you feel right before signing on the line...

Buddy of mine just bought a new Nissan Armada in Montana and brought it back across the border. Canada customs said the same thing, about 100 vehicles a day coming into Alberta right now. He was able to get the fully loaded Armada for $40k Canadian (paid the US dealer in Canadian funds), had the warrantee transferred to a dealer here in Alberta, and then paid the GST at the border. The same vehicle here was listed at $75k, he literally saved about $30k by the time he was done.

If you are going to get a new vehicle look down there. Also look for a 2007 model, that's where the deals are since the 2008's are hitting the lots now and dealers want to get rid of the 07's.

[vancouvercanuck]

If you purchase your vehicle and you use it for work, you can also write it off.

30% off the purchase price 1st year.
50% of the balance each year after.