When I do the math, I am finding that short term leases i.e 36 months might actually be cheaper than financing, even if you intend to buy out at the end of the lease. I dont drive a lot but need a car when I do need to commute, so the 20k km allowance is more than generous for me.
There are a number of 36 month leases out there, so wont lease anything more than 36 months and as little down payment as possible, in case I decide not to buy out the car. . The way I look at it, I get a new car under warranty for the period of the lease and in the meantime try to save to buy out in cash at the end of the lease. At least I would know at that time if the car is worth to buy out, if not I give it back.
However, there is no way I can afford the monthly payment for financing for 36 months and will probably have to finance for over 60 months to get same monthly payments and if the car is a dud I am stuck with it for 5 years and chances I will need to get rid of it at the end of the financing period for very little. However, if I were to lease a dud at least its only for 3 years and I would not have invested as much money in it.
Used cars are not an option for me, I know very little about cars, there is a huge chance that I will end up buying a lemon. I also dont want to deal with car maintenance after the warranty has expired. Dealt with enough shoddy car mechanics to last me a lifetime.
But with all this backlash against leasing just wondering if people are stuck with financial rules that they were told a long time ago and have not re-evaluated as time has gone by and lease terms have improved.
February 02, 2017 at 10:38AM
