Leasing a car

[Rob]

Hi-
I might return to either the States (I am American) or live in Canada for awhile with some friends. I have two questions:

1. If I am in Canada or the States, I will most likely only be there a year or 2 before returning overseas. What experiences have some of you had leasing a car? Is it worth it, and are there some deals you might recommend, either in Canada or the States?

2. If I bought a car instead, can I buy a car in Canada as an American with Canadian license plates and registration. What is the law on that?

Thanks for the answers to these questions.

Regards,
Rob

 

[poboy]

http://clarkhoward.com/

This might provide some help. I have found clark howard to be a valuable resource. Under Clark smarts, cars. I have never leased, so no firsthand experience.

 

[MasterBlaster]

Rob:

While leasing isn't usually a smart financial move it may make sense for someone like you. However if saving money is of interest to you I would suggest that you buy a 2-5 year old Japanese car and sell it when you leave.

Before we can answer your question more specifically may I ask a couple of questions ?

What kind of car did you have in mind ?

About how much would you like to pay per month ?

About how many miles per year do you intend to drive ?

 

[JustCurious]

Leasing is a terrible idea. It is never a good deal for anyone, under any circumstances.

 

[MasterBlaster]

Leasing is a terrible idea. It is never a good deal for anyone, under any circumstances.

I respectfully disagree with the certainty of your statement. I would phrase it more like...

Leasing is usually a poor financial choice. However in certain circumstances such as the OP indicates it just may be worth consideration.

It just depends on the situation.

Just for fun lets change the word leasing to financing. So should the OP finance a car (new or used) over the term that he intends to stay ?

 

[saluki9]

Leasing is a terrible idea. It is never a good deal for anyone, under any circumstances.

So I suppose that if you own a business it's a terrible idea to lease a car which would allow you to deduct 100% of the payments?

I suppose that if you don't drive very much and you like to have a recent model car that it's also a terrible idea?

In general, broad statements are terrible ideas.


My firm leases a car for me. The payment is reasonable considering the car (BMW). If you're going to lease a car, pick one with a very high residual. Also, break the lease out, don't negotiate based on monthly payments.

 

[73ss454]

After 35 years as a finance mgr in a car dealership I can tell you first hand. Don't lease cars, the math just doesn't work. Also my CPA tell's me that the write off is the same if you lease or buy.

If you have more money than sense go ahead and lease. If you have a brain, don't.

People use the excuse they like to have a new car every few years. The truth is in most cases they can't afford to buy the car they wan't to drive so they lease it. They never get done paying and keep throwing money in the garbage pale.

One option I like is to buy a 2 or 3 year old car and keep it. You can save a lot of money doing it this way. If your the person who says they have no warranty buying a 3 year old can that buy a warranty. Warranties are a lot less money than new cars.

 

[FinanceDude]

Warranties are a lot less money than new cars.

Maybe we need a new section on the forum for "car questions".........I nominate you as moderator, and will back you up if necessary.............

 

[saluki9]

After 35 years as a finance mgr in a car dealership I can tell you first hand. Don't lease cars, the math just doesn't work. Also my CPA tell's me that the write off is the same if you lease or buy.

If you have more money than sense go ahead and lease. If you have a brain, don't.

People use the excuse they like to have a new car every few years. The truth is in most cases they can't afford to buy the car they wan't to drive so they lease it. They never get done paying and keep throwing money in the garbage pale.

One option I like is to buy a 2 or 3 year old car and keep it. You can save a lot of money doing it this way. If your the person who says they have no warranty buying a 3 year old can that buy a warranty. Warranties are a lot less money than new cars.

Count me as one without a brain. You can tell your CPA that this CPA says it's not the same. The gap has been closed a little, but it certainly is not the same.

 

[Texas Proud]

Not all car decisions are so black and white... some of them are giving great lease deals which means the gap is different... but the difference is in the 'price'... if you can get it down cheap, then leasing is not as bad as it once was... However, it is not for me.

And if you want a Ferrari F40, you can only lease the car...

 

[Meadbh]

Hi-
I might return to either the States (I am American) or live in Canada for awhile with some friends. I have two questions:

1. If I am in Canada or the States, I will most likely only be there a year or 2 before returning overseas. What experiences have some of you had leasing a car? Is it worth it, and are there some deals you might recommend, either in Canada or the States?

2. If I bought a car instead, can I buy a car in Canada as an American with Canadian license plates and registration. What is the law on that?

Thanks for the answers to these questions.

Regards,
Rob

The Office of Consumer Affairs Website has a good lease versus buy calculator. It does not address the question of bringing the car across the border. However......I have done that with a car I owned, from the US to Canada, when I moved here. It had to be cleared by customs but there was no duty to pay. As an American in Canada, of course you can buy a car. You can buy anything, including a house......if you have the money. Obviously if you want a loan or a lease, you will have to show evidence that you don't need the money and can pay it back. A lending agency would assign you a higher risk than a permanent resident if you are not working in Canada. But on the other hand, I did get a car loan from GMAC Financing when I moved to the US as a medical trainee, without too much trouble. I had paid it off by the time I moved to Canada.

 

[chinaco]

MasterBlaster has it right! Buy a used car and sell it when you leave. If you run the number... this make the most sense. As far as japanese or american... You might actually get a better deal on an american car. They depreciate much faster. In other words... and this depends on your needs and biases, you can probably get a newer american car for the same money. The worth of the car when you sell it depends on a number of vairables.

Look at www.edmunds.com to compare prices and do what if calculations. You can get a pretty fair idea of depreciation by looking at the value of a car over different years. All of that said, you probably need to consider maintenance costs also. I am not sure if edmunds tracks that, but consumer reports does. For the cost of a magazine you can find out which used cars have had more problems and the annual maint cost. I think CR does a survey to collect the data.