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View Poll Results: Will you consider a lease for your next vehicle?

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Thread: Leasing attitudes : with poll

  1. #1
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    Default Leasing attitudes : with poll

    I've owned ~25 vehicles in my life, and I've never leased, I've never looked that closely at it, and I am not attracted to it as an option for future vehicles. I know it's incredibly common, I just feel like it's a perfect way to make sure you have a car payment for the rest of your life. I hate payments.

    So, will you consider a lease for your next vehicle?

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    If the lease and finance rates are the same then lease every damn time.

    Gives you the peace of mind to be able to walk away from your vehicle after your lease term if you've had big hail claim and being smacked around by a fucking school bus. A 4 year old vehicle with 2 huge claims on it is not worth fair market value compared to similar vehicle without those claims.

    Returned no questions asked at the end of the lease. Entire 1/4 panel was replaced (among other shit) to the tune of $6500 or something stupid.
    click for larger version
    » Click image for larger version

    In fact if the incentives are the same (or really close) and the finance rates are close then you should lease. Even if you plan on keeping the vehicle you have the ability to walk away if you want. You can even run the marth and see the cost difference to lease VS finance and determine if the extra costs are worth the 'insurance' to be able to walk away.

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    I will consider it absolutely.

    The biggest benefit I can see is it is a relatively cheap insurance policy against forced depreciation due to accidents or insurance claims. With everyone demanding huge discounts for claims and insurance companies unwilling to pay for depreciation a lease seems like a great way to transfer that risk to the manufacturer.
    Quote Originally Posted by Gestalt View Post
    Im the one with a learning disability....

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    If you are the type to buy new vehicles every few years anyways and the interest rates are right then why not.
    Originally posted by Thales of Miletus

    If you think I have been trying to present myself as intellectually superior, then you truly are a dimwit.
    Originally posted by Toma
    fact.

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    I owned my last car from new for 11 years and hope to own my current one just as long if not longer. I do less mods as I get older but still like the freedom to do so and, like ES, I hate monthly payments and saved up for years so I could pay cash for this one.

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    I am in the same boat as OP, I have always bought my vehicles with cash and never had car payments. Keep the vehicle for 1-2 years, sell and buy a different vehicle.
    For the first time ever I am considering leasing. I like the idea of have a brand new vehicle that is covered with warranty, especially now for hauling around 2 kids and a boat in the summer time I think it will give me great peace of mind. I also like the idea of not having a large chuck of change being invested in one thing, ie $20k in a car that could instead be sitting in the bank/savings/stocks etc.
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    Quote Originally Posted by Swank View Post
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    I owned my last car from new for 11 years and hope to own my current one just as long if not longer. I do less mods as I get older but still like the freedom to do so and, like ES, I hate monthly payments and saved up for years so I could pay cash for this one.
    If you found a 0% lease (or 0.9 or whatever almost zero rates they do sometimes) you'd actually be better off leasing it even if you own it long term. This is because if you ended up with a lemon with a ton of problems or it got badly damaged but not quite written off you can always dump it at the end of the lease. And if you like it then you just buy it out with cash and be in the same boat you are.

    Plus tossing the extra $ in a modest savings account will net more interest as well.
    Nolan

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    I have leased new cars in the past, even leased a used one. I have never purchased a brand new vehicle, always used. Leasing can be good and bad I found. When I leased my 2 year old Canyon, the residual was higher than what the vehicle was worth, but it was an open ended lease, so I had to pay to turn it in ($1000). I leased 2 other vehicles and had no real issues with them. One was taken over by my now ex-wife, so I couldn't care less about that one. The other we had to sell and sold it for what was left owing on it including the buyout.

    That being said, if the rate is close, I would consider it. It lowers the payment and you have the option of walking away at the end if you want something different. Of course, I'll probably buy used again when it's time, depending on what my wife wants.

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    I admit I have a very old fashioned attitude in regards to money. Some would say it's a "poor person's attitude". There's a real financial argument to be made for leasing in some situations, I can see the math of it.

    It's funny, leasing seems to appeal to two groups of people. Relatively wealthy people who have much higher than average financial literacy, and lower income people who are financially illiterate. Outside of beyond.ca, I think the second group is much larger than the first.

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    Quote Originally Posted by ExtraSlow View Post
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    I admit I have a very old fashioned attitude in regards to money. Some would say it's a "poor person's attitude". There's a real financial argument to be made for leasing in some situations, I can see the math of it.

    It's funny, leasing seems to appeal to two groups of people. Relatively wealthy people who have much higher than average financial literacy, and lower income people who are financially illiterate. Outside of beyond.ca, I think the second group is much larger than the first.
    Yeah, leases are valuable if you plan things out. They are terrible if you blindly just see its a lower payment than financing.

    Especially the last few years with the stock market being insane, it's way better returns to invest $ and have a lease than to pay cash for a vehicle. I tried explaining to my dad my investments are at a 20% return this year when his mentality is you should only ever buy 3% GICs and nothing else.
    Nolan

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    Ive owned thirty some vehicles now and two have been leased. The only reason I leased those two was because they had extremely low payments with $0 down, otherwise I wouldn’t have even been in the market for them. I am not seeing any deals remotely close these days unfortunately.

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    Quote Originally Posted by Twin_Cam_Turbo View Post
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    I am not seeing any deals remotely close these days unfortunately.
    Yea the recession lease deals are mostly gone. We ended up financing the RDX (after giving back the TLX).

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    I feel like we have had lots of threads on this but I am a fan of leasing.

    Not a universal list that applies to everyone, but this is my take:

    Pros:
    - Always have a warranty
    - Always have a new car (safe, reliable, efficient, etc.)
    - Minor damage is not an issue (most lease agreements are surprisingly generous in terms of dents, rock chips, etc.)
    - Ideal for people with kids - your kids can do their thing with the interior and you can just hand the vehicle back to the dealer at the end with no stress during ownership about spills, stains, etc.
    - And probably the biggest perk, if your car is almost written off, in a serious accident, hail damaged, etc. you are not affected by the massive depreciation that comes along with those events. You basically get free depreciation insurance.
    - You still have the option to buy the car out at the end for what is likely a very similar total overall cost as if you financed it, but you of course get all of the above protections for the 4-year term of whatever lease you sign.
    - Much lower monthly payments than an equivalent finance
    - Virtually all the stress of vehicle ownership stress is gone. You don't have to wash it, wax it, care for it, worry about rocks, worry about road salt, worry about where you park it, how you drive it, cold starts, etc. You can just do whatever you want and enjoy the vehicle stress-free.
    - Repairs, such as a cracked windshield, are often cheaper when you return the vehicle than getting it done yourself (eg. if I return my windshield cracked, Honda charges $500. It's almost $1000 to get a new windshield on my own).
    - Life happens, so if you run into financial trouble or unexpected tragedy, it's often easy to terminate leases early with little or no penalty (or a credit, depending on the duration and vehicle) rather than having to fire-sale the car because you own it.
    - Often times before your lease is over, you will have an opportunity to take advantage of better deals at no cost to you. For example, it's not unusual for a dealership to offer you some cash to trade in your lease for a new model and keep the monthly payment the same on the new lease.


    Cons
    - Always have a car payment (however, many people don't keep their cars more than 5-7 years or so, so those people tend to always have car payments too - the only real difference in that case is the payments are just higher and the cars are older and off warranty before replacement with no depreciation protection)
    - You never own anything, but that is more often than not a good thing when it comes to vehicles
    - Typically does not work well for high mileage drivers (somewhere around 25k km/year is probably around the maximum)
    - Typically you need to return the car with more than 50% tires remaining and a clean windshield, or you are charged extra
    - Mods generally aren't allowed if you want to keep you warranty (for the applicable parts affected by said mod)
    - It's easy for dealerships to manipulate leases and just present you with a payment - they are more confusing to most people. Make sure you understand every last detail of your lease, generally it's a bad idea to put money down on a lease, and always negotiate the price of the vehicle from dealership cost up, without telling them if you want to lease or finance until the price is settled. The worst thing you can do is just tell a dealership the payment you want, it gives them a black box for pricing.

    Financing/purchasing in my opinion has pretty much only cons. You are on the hook for all out of warranty maintenance/repairs, accidents or hail damage can destroy your resale value, your payments are always going to be higher all else equal (unless you pay cash), far more effort is required to keep the car in good condition (if that's important to you) and at the end of the day you probably haven't paid significantly more/less than someone who leased and bought out, but with none of the optionality or perks. If you outright purchase the vehicle, that is a big chunk of money that could potentially be invested while only paying a fraction of that amount per month to lease. Total cost of ownership can potentially increase dramatically with off-warranty repairs as well, but it's hard to predict those things when evaluating both options.


    If you are someone who likes changing cars all the time, leasing is usually a no-brainer.

    If you know before hand that you are buying a car to drive it into the ground for 15-20 years, I would still lease first to get ~4 years of protection and keep every option available to me in case something bad happened, then just buy it out at the end if it still made sense to do so at that time - the difference in cost, if any, is basically an insurance policy against most of the bad things that can happen or if you simply change your mind or need to adapt to a different lifestyle after a few years.

    I also understand that there is a certain comfort for some people just knowing that they own the vehicle and it's theirs but to me that does not outweigh the advantages. At the end of the day it's just a spreadsheet comparing the financing deal to the lease deal, but it's harder to account for all the "what ifs" that leasing protects you from, and there is just so much more flexibility that you have when leasing that you don't when financing/cash purchasing.

    Anyway just my $0.02, I know it won't apply to everyone.

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    Lease depreciating assets, own appreciating ones.

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    In my 12th year of ownership with one of my vehicles, 7th with the other one, gonna drive them into the ground before I even consider taking on a new car payment.

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    Given the fact that I cant stand most new vehicles (too much cumbersome tech, engines too complex/unreliable, questionable styling, lack of manual) - leasing is just something that will never happen for us.

    Regarding the 'no worries' attitude, I have a winter 'beater' (in decent shape) vehicle and nice summer vehicles. If the beater gets damaged (cosmetically), its not a big deal. Winter tires stay on and the vehicle gets parked in the summer with a cover.

    Leasing makes no FINANCIAL sense for the average low/middle income earners though. Having no car payments = huge savings.
    Last edited by revelations; 12-05-2019 at 11:36 AM.

  17. #17
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    I have leased my last 3 vehicles and probably will lease going forward. Most of the reasons already discussed are why I lease.

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    Quote Originally Posted by dirtsniffer View Post
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    I will consider it absolutely.

    The biggest benefit I can see is it is a relatively cheap insurance policy against forced depreciation due to accidents or insurance claims. With everyone demanding huge discounts for claims and insurance companies unwilling to pay for depreciation a lease seems like a great way to transfer that risk to the manufacturer.

    This X 1000! If you know you're going to rotate through your vehicles ever 2-4 years anyway leasing absolutely adds another layer of protection against diminished value due to a claim or two on the car. If you're the type to keep your vehicles for a decade though I don't know that it provides as much value. The marth that I wonder about isn't focused on finance vs. lease rates, it's more about cash incentives. If a $60,000 vehicle has cash incentives of say $5,000 (making the vehicle only $55,000 to buy outright) does it really matter if lease or finance "rates" are 0%? No, because they're not 0% since you have to pay $5,000 more for the car to get access to that plan. On the other hand the lost opportunity cost of tying up $55,000 in capital in a depreciating item has to be consider as well. In four years this heap of shit's only going to be worth $30,000 (if you're lucky) any way so essentially you've forfieted potential investment growth on at the very least $30,000 in capital over four years. At a modest rate of return of 5% that's $6,600 gone, but that's also potenitally taxable whereas saving the $5,000 cash off the original purchase price is guaranteed money in your pocket. Change that rate to 7% and now it's $9,600, we're starting to see a difference here.



    Quote Originally Posted by ExtraSlow View Post
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    I admit I have a very old fashioned attitude in regards to money. Some would say it's a "poor person's attitude". There's a real financial argument to be made for leasing in some situations, I can see the math of it.

    It's funny, leasing seems to appeal to two groups of people. Relatively wealthy people who have much higher than average financial literacy, and lower income people who are financially illiterate. Outside of beyond.ca, I think the second group is much larger than the first.
    As someone who sees a broad spectrum of client's vehicle purchasing habits I can tell you that the majority is firmly with the latter group. And they're not taking the excess / available capital and investing it, unless you consider beer & smokes investments.


    So after all that analysis I can prove just how dumb most people are. I'm pretty sure the mathmatical answer is to lease assuming you watch the numbers on the agreement and you don't sign a bad deal, but a loathe paying interest & fees of any kind on anything...ever...so I'm inclined to pay cash for the simplicity of knowing I don't have a bank sticking their fingers in my account each month.
    Last edited by Masked Bandit; 12-05-2019 at 12:21 PM.
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    Leasing (for the first time) my next car.
    96 Ram 1500-Sold
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    15 Victory Highball-Current
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    18 Husky 701SM-Current

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    ^ its bizarre how financially illiterate many people are.

    I tried to explain to one person the cost of ownership of my winter beater (15 y/o civic) and they vehemently claimed it was WAY more to maintain than leasing/buying a newer vehicle. Plus it would DEFINITELY break down more.

    For eg. 500$ month lease/finance rate - compared to 500$/year in maintenance (high estimate for a mere civic) and no payments , apparently this is financial rocket science.

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