British Expats - Buying or leasing a car

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- - Buying or leasing a car (https://britishexpats.com/forum/canada-56/buying-leasing-car-310564/)

Re: Buying or leasing a car

Quote:

Originally Posted by Iginla

Pros and cons.

You talk as if the whole 8K is dead money. Say it depreciates 2K after 2 years. Works out at less than $100/month. What is an average lease?

Now, correct me if I'm wrong (I'm not fully up on leasing) but when you lease a car aren't you paying some sort of cost when you change for the depreciation of the original one? Isn't the car you're returning thorughly inspected and priced according to the condition. Aren't you tied to reselling that car to your dealer and their price? Or are you saying that after 2 years you can simply walk in and change your car with no hidden costs? Who pays for the depreciation in the original car? From conversations with friends they've told me that they've been charged ridiculous amounts for e.g. small paint chips.

Why do you think that a 6 year old properly cared for and maintained car would be unreliable, loud and fuel inefficient?

Most leases are "closed ended", that is, the residual value of the vehicle is decided at the time of the deal and written into the lease. The lease payment covers the depreciation and the leasing company's profit. The deal assumes that the vehicle will be returned in "average" condition and an addendum to the lease details that condition precisely (no more than one upholstery stain, no bigger than 3" diameter, that sort of thing). Since the "buy back" price of the vehicle is fixed, the lessee is theoretically protected from wild gouging at termination, if the dealer wants too much one can buy the car and sell it again. In practise the sales tax on buying the car out is sufficient to give the dealer plenty of leeway. What actually happens is that there's no charge if you lease another car of the same make and a couple of thousand dollars in trumped up bollocks if you don't. (This based on experience with Chrysler and Suzuki).

Re: Buying or leasing a car

FWIW, another option besides buying or selling ...

If anyone mainly walks, bikes and/or uses mass transit and just wants/needs a vehicle every once in a while there are a few areas and cities in Canada have car co-ops.

http://www.victoriacarshare.ca/pages/links.html

Re: Buying or leasing a car

Quote:

Originally Posted by hot wasabi peas

Yep, walk in the Winter, cycle in the Summer. (35 and 15 mins)

Car co-op from what I've heard from people who were in it is cr@p in Calgary. Something like 2-3 cars and very difficult to get one when you need it. I thinking of starting a chuckwagon co-op! :)

My wife on the other hand was in one in Quebec city years ago and said it was brillant.

Re: Buying or leasing a car

Quote:

Originally Posted by Iginla

Good idea! And when (or IF :D) the Flames have another run for the cup you could open a bandwagon side-line to the business. ;)