Lease vs Finance for vehicles, school me.

[ercchry]

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I'm thinking of leasing my next fun car. Anyone know where people go for 3rd party leasing? Canadians don't have the equivalent of Penfed or similar in the US...sucks.

Pfaff offers this

[Mitsu3000gt]

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Wut? At the end of 5 years, or even 7 years, there should be some equity in the car if you financed. That should lower your payment on the next car if all things are equal. Not only that, but you can choose not to get a new car. With a lease, you have no choice if you don’t have the cash for the buyout.

The biggest morons are the ones that lease for 5 years. That’s basically renting a car beyond your means.

Nobody should be leasing if they can't afford the buyout at the end - that's just poor planning. That would typically mean they can't afford the car in the first place and are over extended. Just like putting a down payment on a lease is almost always a bad idea and usually means you can't afford it. 5 year leases are pretty rare but they can work depending on the exact circumstances. Most leases are 3-4 years though.

If you lease the right vehicle you will have significant equity in it as well after the lease (or even mid-lease) when comparing residual to market value. Just as one example, you can take that extra money, dump it into an investment, and lease something new for a much lower payment than an equivalent finance.

If I'm going to have a perpetual payment, I'd rather that payment be lower, have the protections of a lease, always have warranty, and have more money to invest to offset the costs.

[Aleks]

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So judgey and total lack of YOLO.

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Isn't Car2Go like 3rd party leasing?

haha, leasing is like guns, completely fine until it falls into the wrong hands.

[Buster]

ahhh nothing like a good leasing vs. financing discussion. Like putting on an old sweater.

[rage2]

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If you don't have the cash for a buyout at end of lease, you shouldn't be leasing in the first place.

I don't think this was an issue during the hey day of lease deals. But today, with the unpredictability of the used car market, absolutely.

[ExtraSlow]

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ahhh nothing like a good leasing vs. financing discussion. Like putting on an old sweater.

Agree. I'm happy I started this.

[The_Rural_Juror]

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Agree. I'm happy I started this.

It's almost time to start some shit in the winter tires thread.

[Buster]

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It's almost time to start some shit in the winter tires thread.

Fuck it, let's go HAM and start a mortgage vs RRSP thread.

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Agree. I'm happy I started this.

It's a worthwhile discussion actually, since the ground is always shifting in this area.

[The_Rural_Juror]

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Fuck it, let's go HAM and start a mortgage vs RRSP thread.
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Done. I put my smoking jacket on.

[benyl]

You guys are acting like most people are financially savvy and aren't just driven by payment amount. I know a few people that don't GAF about residuals or interest rates, but are simply driven by payment.

I'd suggest that the majority of people leasing right now can't afford the buyout.

[rage2]

We've all been there. My first couple of leases were like that. Didn't smarten up until I realized how much I was overpaying for those SLK's and C63 haha.

[90_Shelby]

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I'm thinking of leasing my next fun car. Anyone know where people go for 3rd party leasing? Canadians don't have the equivalent of Penfed or similar in the US...sucks.

https://kulumotorcar.com/cars/mclare...-mclaren-senna

Get off your wallet, this one's for you.

$9999/month + tax

24 Month In-House Lease

@ 4.99% APR

Serious Inquiries only
$1,525,000 + tax purchase price, $0 Fees
$525,000 + tax down payment
$852,450 Residual
Due at signing = down payment, first payment, taxes.
On Approved Credit

[Mitsu3000gt]

Don't halo cars like the Senna actually appreciate over time? It might end up being a good buy haha.

[ercchry]

km allowance??

[The_Rural_Juror]

I would but my neighbors like to take up the street parking spot in front of my house. I wouldn't park a vehicle of that caliber down the street.

[ExtraSlow]

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I'd suggest that the majority of people leasing right now can't afford the buyout.

All my non-beyond friends can be split into two clear groups. 1) those who lease and can't afford to and 2) those who buy outright and have more money.

Maybe my circle of friends is unique, but I kind of don't think so.

[The_Rural_Juror]

No car payments. Having friends. Man you humble bragging now.

[benyl]

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I've stopped leasing cars.

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I've also stopped leasing cars, reason because good interest rates and residuals on leases have been hard to come by. Been like that for a couple years now.

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All my non-beyond friends can be split into two clear groups. 1) those who lease and can't afford to and 2) those who buy outright and have more money.

Maybe my circle of friends is unique, but I kind of don't think so.

Your non-beyond friends and you beyond friends (are we friends?) are pointing you to the answer.

[ExtraSlow]

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... are we friends?.. .

We are buddy.

[The_Rural_Juror]

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We are buddy.