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-   -   Advice on 4X4 lease and types. (https://britishexpats.com/forum/canada-56/advice-4x4-lease-types-792999/)

cheeky_monkey Apr 5th 2013 3:29 pm

Re: Advice on 4X4 lease and types.
 

Originally Posted by mohtechnix (Post 10641920)
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.

Canadian depreciation is not a dramatic as it is in the UK..Correct me if im wrong in this?

haggis88 Apr 5th 2013 3:31 pm

Re: Advice on 4X4 lease and types.
 
was at the Calgary Auto Show a couple of weeks back and i preferred the X5 to the X6...the way the X6 slopes at the back leaves less headroom for rear passengers and looks to have far less luggage space!

Loved the Toyota Sequoia and the Nissan Armada though...but those are full sized 7-seaters, might be a little big for what you're after. Something tells me they were more expensive than the X5 aswell :lol:

ArthurBrit Apr 5th 2013 3:35 pm

Re: Advice on 4X4 lease and types.
 

Originally Posted by cheeky_monkey (Post 10641986)
Canadian depreciation is not a dramatic as it is in the UK..Correct me if im wrong in this?

It depends on the vehicle and the province.

Aviator Apr 5th 2013 3:35 pm

Re: Advice on 4X4 lease and types.
 

Originally Posted by mohtechnix (Post 10641979)
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

Depends on the interest rate you can get.

Low dealer interest or cash discount are on offer from time to time. Financing options would be low interest rate from the manufacturer (some are 0%) or get
a personal loan from the bank and take the cash discount. Outright cash purchase is the cheapest.

Which is best for you depends on your circumstances and what's on offer at the time you go to buy.

Even when I can afford to buy outright, I still finance if I am better off doing so, then I can earn interest on my money.

Leasing for individuals is good for the leasing company, not the individual. It is nothing more than a long term rental with mileage restrictions.

Depreciation on a domestic made vehicle is higher than an import manufacturer (in most cases, not all).

mohtechnix Apr 5th 2013 3:40 pm

Re: Advice on 4X4 lease and types.
 

Originally Posted by Aviator (Post 10642001)
Depends on the interest rate you can get.

Low dealer interest or cash discount are on offer from time to time. Financing options would be low interest rate from the manufacturer (some are 0%) or get
a personal loan from the bank and take the cash discount. Outright cash purchase is the cheapest.

Which is best for you depends on your circumstances and what's on offer at the time you go to buy.

Even when I can afford to buy outright, I still finance if I am better off doing so, then I can earn interest on my money.

Leasing for individuals is good for the leasing company, not the individual. It is nothing more than a long term rental with mileage restrictions.

Depreciation on a domestic made vehicle is higher than an import manufacturer (in most cases, not all).


How do you earn interest on your money from financing? educate me

Alan2005 Apr 5th 2013 3:41 pm

Re: Advice on 4X4 lease and types.
 

Originally Posted by R I C H (Post 10641926)
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.

For most people, leasing is just a way to get a car they can't really afford.

Oakvillian Apr 5th 2013 3:43 pm

Re: Advice on 4X4 lease and types.
 

Originally Posted by mohtechnix (Post 10642007)
How do you earn interest on your money from financing? educate me

Car costs $50k. I have $50k in the bank, earning 2% a year. I leave it there, take the dealer offer of 0% finance. A (diminishing) proportion of my $50k stays in the bank, earning interest, while I'm driving around in my $50k car for a few hundred $ per month. Simples.

R I C H Apr 5th 2013 3:45 pm

Re: Advice on 4X4 lease and types.
 

Originally Posted by mohtechnix (Post 10641979)
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

Putting in a large deposit on a lease makes no sense to me if you have no business to offset the costs against. Are you only planning on being here for the length of your TWP? I'd buy outright if possible, or finance (though that might be difficult or comparatively expensive without credit history initially), then at least you'll have some equity in the vehicle rather than throwing rent at one every month.

Alan2005 Apr 5th 2013 3:46 pm

Re: Advice on 4X4 lease and types.
 

Originally Posted by mohtechnix (Post 10642007)
How do you earn interest on your money from financing? educate me

He means he can get a better return on the cash than the interest rate for the loan.

It's what I did. But then I got finance at 0% so it wasn't a difficult choice to make. I'm not sure if such deals are possible now though.

mohtechnix Apr 5th 2013 3:54 pm

Re: Advice on 4X4 lease and types.
 

Originally Posted by R I C H (Post 10642015)
Putting in a large deposit on a lease makes no sense to me if you have no business to offset the costs against. Are you only planning on being here for the length of your TWP? I'd buy outright if possible, or finance (though that might be difficult or comparatively expensive without credit history initially), then at least you'll have some equity in the vehicle rather than throwing rent at one every month.


Well the plan is to see my TWP out and maybe get a PR, depending if I am able to find a role in the BC or Calgary offices.

I have been told I will struggle to get a 0% finance without at least 6 months credit history. From your tips, I don't see myself leasing one now, but I am reluctant to invest all that cash on a car as Aviator has rightly pointed out in his earlier post.

R I C H Apr 5th 2013 3:59 pm

Re: Advice on 4X4 lease and types.
 

Originally Posted by mohtechnix (Post 10642036)
Well the plan is to see my TWP out and maybe get a PR, depending if I am able to find a role in the BC or Calgary offices.

I have been told I will struggle to get a 0% finance without at least 6 months credit history. From your tips, I don't see myself leasing one now, but I am reluctant to invest all that cash on a car as Aviator has rightly pointed out in his earlier post.

As a new immigrant you have to make compromises. Spend your lump sum on a vehicle that will see you through for a while until your credit history improves, or future prospects in the country are more certain.

cheeky_monkey Apr 5th 2013 4:10 pm

Re: Advice on 4X4 lease and types.
 

Originally Posted by haggis88 (Post 10641992)
was at the Calgary Auto Show a couple of weeks back and i preferred the X5 to the X6...the way the X6 slopes at the back leaves less headroom for rear passengers and looks to have far less luggage space!

Loved the Toyota Sequoia and the Nissan Armada though...but those are full sized 7-seaters, might be a little big for what you're after. Something tells me they were more expensive than the X5 aswell :lol:

Personally i would not touch an X5 or X3..compared to the 3 or 5 series they are a dogs dinner and definitely not worth the price tag:thumbdown:

Geordie Lass Apr 5th 2013 4:11 pm

Re: Advice on 4X4 lease and types.
 
We got a CX5 on finance after putting a big deposit down on it - about 40% within 2 weeks of landing.

We are also on a TWP and the dealer said if for whatever reason we had to hand it back (ie we didn't get PR) they would buy it back off us.

Hope that helps :)

mohtechnix Apr 5th 2013 4:23 pm

Re: Advice on 4X4 lease and types.
 

Originally Posted by Geordie Lass (Post 10642067)
We got a CX5 on finance after putting a big deposit down on it - about 40% within 2 weeks of landing.

We are also on a TWP and the dealer said if for whatever reason we had to hand it back (ie we didn't get PR) they would buy it back off us.

Hope that helps :)


Thanks. It helps, but would appreciate if you elaborate on:

What was the interest rate?

Was this from Mazda or an independent dealer?

Was 40% the minimum required due to your lack of credit history and if you don't mind what was the car worth at the time?

Thanks

haggis88 Apr 5th 2013 4:36 pm

Re: Advice on 4X4 lease and types.
 

Originally Posted by cheeky_monkey (Post 10642066)
Personally i would not touch an X5 or X3..compared to the 3 or 5 series they are a dogs dinner and definitely not worth the price tag:thumbdown:

i would certainly have an X5M, but it would have to be Estoril Blue with cream leather and look something like this:

http://blog.platinummotorsport.com/w...5M-2-of-22.jpg

otherwise i'd agree with you and stick to the sedan/coupe offerings such as the 3, 4 and 5-series :thumbup:


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