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Advice on 4X4 lease and types.

Advice on 4X4 lease and types.

Old Apr 5th 2013, 1:43 pm
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Default Advice on 4X4 lease and types.

Okay I have done some research and homework on this myself, but I thought people who have been there and done it may be able to shed some light on this topic, and also offer some reasonable advice.

Having read through this forum I gather majority of posters have unequivocal and unreserved dislike for SUVs, so if you are one of them and have nothing meaningful to contribute please just don't post even if you are itching to.

I am moving to Canada in 6 weeks on a 3 years TWP. I currently own a 5 year old BMW X5 in the UK and have been looking at the X6. A few dealers in Canada are willing to offer me 0% lease on this, as I am willing to deposit 25%. I was wondering if anyone who have had similar experience (own an X6 or leased car/SUV on TWP/PR ) could shed some light on the following:


What are the implications of leasing a car/SUV? i.e. Am I always at a disadvantage? Am I better financing one or getting a car loan after few months?

What should I be wary of in the lease T & C, agreement etc?

Will the running cost be similar to UK?

Do you have problems with parking and car parks because of the size?

Any cheaper American make options that I may not know of? A 3 year old X6 is currently going for around $40k -$45k mark?


Thoughts would be appreciated.
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Old Apr 5th 2013, 1:54 pm
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Default Re: Advice on 4X4 lease and types.

Only thing i dont like about leasing is that you are tied into 3 years..they dont seem to do short term leases..id prefer to do a finance or loan with a balloon payment option then you can choose what kind of terms 12months upwards..dont like the fact BMWs are very expensive here though..i would stick with an AWD 3 series or maybe the X1.
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Old Apr 5th 2013, 1:57 pm
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Default Re: Advice on 4X4 lease and types.

This is more of a crossover vehicle than the SUV 3 or 5 type series.

Obvious questions where will you be living?
What will you be using the vehicle for?
Does it have to be a BMW as there are other similar style vehicles without the BMW price tag.
Chances are your insurance premium will be higher than the UK.
Gas (petrol) will be cheaper over here.
Current lease rate on BMW Canada website is 4.9%
Obviously if you can afford it and you love BMWs then go for it.
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Old Apr 5th 2013, 2:14 pm
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Default Re: Advice on 4X4 lease and types.

Originally Posted by Former Lancastrian View Post
This is more of a crossover vehicle than the SUV 3 or 5 type series.

Obvious questions where will you be living?
What will you be using the vehicle for?
Does it have to be a BMW as there are other similar style vehicles without the BMW price tag.
Chances are your insurance premium will be higher than the UK.
Gas (petrol) will be cheaper over here.
Current lease rate on BMW Canada website is 4.9%
Obviously if you can afford it and you love BMWs then go for it.
Saskatoon
Commuting to work and weekends away to Alberta and Manitoba
Similar style
A local dealer in Saskatchewan has offered me 0% lease
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Old Apr 5th 2013, 2:22 pm
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Default Re: Advice on 4X4 lease and types.

Don't worry about car park spaces. Many with much larger vehicles cope perfectly well.
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Old Apr 5th 2013, 2:27 pm
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Default Re: Advice on 4X4 lease and types.

Originally Posted by mohtechnix View Post
Saskatoon
Commuting to work and weekends away to Alberta and Manitoba
Similar style
A local dealer in Saskatchewan has offered me 0% lease
In Saskatchewan you must get SGI so no hunting around for companies with different rates as vehicle insurance is governed by the Province.
I suggest bringing a letter from companies you have been insured with that shows you have a good driving history.
Other than that the vehicle seems to fit your needs even though IMO BMWs are overpriced here.
http://www.sgi.sk.ca

Probably looking at about $1700 a year to insure it.

Last edited by Former Lancastrian; Apr 5th 2013 at 2:36 pm.
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Old Apr 5th 2013, 2:36 pm
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Default Re: Advice on 4X4 lease and types.

Received wisdom is that a personal lease is not a particularly financially efficient way of getting in a new vehicle here. If you run a business and can lease the car through the business, the tax efficiencies are more apparent. It may well be worth talking to the dealership about purchase finance options too.

Having said that, we leased when we first arrived a few years ago - similar situation to yours, on a TWP, significant downpayment and much better terms than the posted rate - to help build up Canadian credit history quickly. We then bought the car off-lease after some very, um, "interesting" negotiations over the end-of-lease valuation.

Different choice of vehicle, though... I still don't get what it is that an X6 does for you that isn't done better by any number of vehicles without the design compromises inherent in a large crossover, but as you say, this is not the thread for yet another of those discussions . If it doesn't have to be a Beemer, take a look at the Audi Q-series or stuff in the Infiniti (FX/JX) or Lexus (RX) ranges, which may offer you more for your money.

Last edited by Oakvillian; Apr 5th 2013 at 2:43 pm.
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Old Apr 5th 2013, 2:39 pm
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Default Re: Advice on 4X4 lease and types.

Originally Posted by Former Lancastrian View Post
In Saskatchewan you must get SGI so no hunting around for companies with different rates as vehicle insurance is governed by the Province.
I suggest bringing a letter from companies you have been insured with that shows you have a good driving history.
Other than that the vehicle seems to fit your needs even though IMO BMWs are overpriced here.
http://www.sgi.sk.ca

Thanks former Lancastrian. What do SGI do specifically? is this like a insurance or finance regulatory body?

Yes I will be getting that from my present insurer.

I know a lot of people have this feeling that BMW is just a tag, but I think ultimately you get the value for your money. I am open to other similar vehicles though, so suggestions are welcome. Thanks
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Old Apr 5th 2013, 2:46 pm
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Default Re: Advice on 4X4 lease and types.

Originally Posted by Oakvillian View Post
Received wisdom is that a personal lease is not a particularly financially efficient way of getting in a new vehicle here. If you run a business and can lease the car through the business, the tax efficiencies are more apparent. It may well be worth talking to the dealership about purchase finance options too.

Having said that, we leased when we first arrived a few years ago - similar situation to yours, significant downpayment and much better terms than the posted rate - to help build up Canadian credit history quickly. We then bought the car off-lease after some very, um, "interesting" negotiations over the end-of-lease valuation.

Different choice of vehicle, though... I still don't get what it is that an X6 does for you that isn't done better by any number of vehicles without the design compromises inherent in a large crossover, but as you say, this is not the thread for yet another of those discussions . If it doesn't have to be a
Beemer, take a look at the Audi Q-series or stuff in the Infiniti/Lexus ranges, which may offer you more for your money.

Thanks Oakvillian. its great to hear from someone who has had similar experience. The Audi Q series is one I am also considering, but the price difference to a BMW equivalent in the UK is not that great. Are they much cheaper in Candada? I am not a fan of brand new cars due to their drastic value loss after 2 years, so I am looking for a 2 - 3yrs old car really.
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Old Apr 5th 2013, 2:54 pm
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Default Re: Advice on 4X4 lease and types.

Originally Posted by mohtechnix View Post
I am not a fan of brand new cars due to their drastic value loss after 2 years, so I am looking for a 2 - 3yrs old car really.
If you're leasing, the majority of your monthly payment is the cost of the vehicle's depreciation, so that aspect is moot. You're effectively just renting a car every month.
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Old Apr 5th 2013, 2:59 pm
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Default Re: Advice on 4X4 lease and types.

Originally Posted by mohtechnix View Post
Thanks former Lancastrian. What do SGI do specifically? is this like a insurance or finance regulatory body?

Yes I will be getting that from my present insurer.

I know a lot of people have this feeling that BMW is just a tag, but I think ultimately you get the value for your money. I am open to other similar vehicles though, so suggestions are welcome. Thanks
SGI is the Saskatchewan Government Agency that is responsible for the issuance of motor vehicle insurance. Unlike Ontario you cannot shop around for vehicle insurance by different companies/brokers.
Asking about vehicles is like asking someone to recommend a good red wine
The European imports such as BMW, Audi, Mercedes seem to carry a higher price tag in Canada than the UK or the USA. Why because they can and people will pay.
The big Japanese companies like Toyota, Mazda, Honda and Nissan have built up a strong reputation over here.
Ford, GM and Chrysler have struggled but still do ok.
The new Ford SUVs such as the Escape, Edge and Explorer are common and have improved from several years ago.
Hyundai and Kia are now producing decent quality vehicles.
Acura, Lexus and Infinity are the upmarket versions of Honda, Nissan and Toyota and their prices reflect this.
When you arrive hit all the dealers and take them for a test drive and then choose based on your needs. You might be both surprised or disappointed.
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Old Apr 5th 2013, 3:11 pm
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Default Re: Advice on 4X4 lease and types.

Originally Posted by mohtechnix View Post
Thanks Oakvillian. its great to hear from someone who has had similar experience. The Audi Q series is one I am also considering, but the price difference to a BMW equivalent in the UK is not that great. Are they much cheaper in Candada? I am not a fan of brand new cars due to their drastic value loss after 2 years, so I am looking for a 2 - 3yrs old car really.
You have a dealer willing to lease you a 2-3 year-old car at 0%? That sounds almost too good to be true. As R I C H implies, if the cost of the first couple of years' depreciation is taken out of the equation and you're putting down a chunk of deposit money, your monthly payments should be comparatively minuscule. But make sure you're not financing depreciation at the same rate as for a new car, though!
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Old Apr 5th 2013, 3:14 pm
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Default Re: Advice on 4X4 lease and types.

Originally Posted by Former Lancastrian View Post
The European imports such as BMW, Audi, Mercedes seem to carry a higher price tag in Canada than the UK or the USA. Why because they can and people will pay.
Many of what you call European imports are actually manufactured in North America. The comparative cost to purchase is dependent on whatever exchange rate you're using, which has little relevance - the cost to buy/lease in relation to your disposable income is more appropriate.

I purchased a European SUV a few years ago and at the exchange rates of the time it was considerably less expensive than the UK price.
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Old Apr 5th 2013, 3:25 pm
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Default Re: Advice on 4X4 lease and types.

Originally Posted by R I C H View Post
If you're leasing, the majority of your monthly payment is the cost of the vehicle's depreciation, so that aspect is moot. You're effectively just renting a car every month.

So, am I best getting a loan after a few months of building up my canadian credit history, and buy out rightly or just finance it? which one is more fianacially viable? thanks
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Old Apr 5th 2013, 3:28 pm
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Default Re: Advice on 4X4 lease and types.

Originally Posted by R I C H View Post
Many of what you call European imports are actually manufactured in North America. The comparative cost to purchase is dependent on whatever exchange rate you're using, which has little relevance - the cost to buy/lease in relation to your disposable income is more appropriate.

I purchased a European SUV a few years ago and at the exchange rates of the time it was considerably less expensive than the UK price.
Audi dont have a plant in the USA, Mercedes manufacture the M R & GL class in Alabama, BMW manufacture the X series in South Carolina and VW are in Tennessee.
So dependent on the type of vehicle you are looking at you may be able to get it from a US plant otherwise it will be imported.
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