The only way to win financially in the ‘car game’ is to buy 1-3 yrs old…Dont pay for the high depreciation in the first few years. Especially if your going for a honda/toyota that last forever…the 1st few years are not going to have much wear and tear on the longetivity of the car.

I only buy used (but only 1-3 yrs old…so it look and drives pretty new to me)..b/c at the end of the day…they are not assets (in my def’n anyway) b/c they depreciate and take money out of my pocket monthly (maintenance,etc).

Although, if you are looking at the utility (or statisfaction) instead of finanically wise…then I can understand the notion of leasing a ‘brand new’ car. And thats fine as long as you recognize financially its not the greatest move.

The only trick to do this is to find the least painful way. It’s interesting that the RAV4 got chosen as the example here!

My wife and I leased a 2008 RAV4 in December 2008 (at the very tail end of the model year) and the lease rate was 1.9% for 3 years. Our sales rep also informed us about the Multiple Security Deposits program. When everything is said and done, our lease rate went down to 0.1% – essentially an interest free
loan!

We will buy out our RAV4 at the end of the term.

Of course, since we’re planning to buy it out, we’re not too concerned about going over the kms (not a chance anyhow) or that little scratch on the bumper!

For example, you’ve never owned a convertible and aren’t sure if the romance will quickly wear off – especially in the winter. With a lease you can decide to walk away and not have the hassle of finding another buyer. On the other hand, if you truly enjoy your vehicle the buyout option is usually better for you than just walking away.

Another example would be if you weren’t sure whether you were going to start a family. A coupe is not practical with small children and the leasing arrangement can make it easier for you to either walk away or even work with the dealer on rearranging a lease for a more suitable form of transportation.

Till then,

Jean

I don’t think I’ll lease again.

I walked into my local Toyota and Subaru dealers today and both of them were trying to talk me into a no down payment, no cash at signing lease. The nothing down portion scares me for some unknown reason, beyond just higher monthly payments

From what I can gather, some dealerships don’t even offer lease arrangements anymore so some of these opportunities are dying out. Personally, I would not want to enter a lease arrangement with a big ticket item, such as a heavy duty pick-up truck where you have payments of over $600/month. Our Chevy Optra runs us $279 bones a month and we have less than 10,000km clocked in 3 years. That way, when the four year lease is up this upcoming summer, we can opt to buy it out fully and then resell it at a better price, or simply keep it given the shape its in. I also find that if you’re buying a lemon, you will find out in the first year or so what you bought.

Depending on one’s location, time estimated for use of the vehicle, monthly amount to be paid, and time constraints in general, a lease arrangement may be advantageous. Otherwise, simply buying it out could be an option. Derek Foster offers a loan option whereby one can borrow funds to buy a vehicle and the dividends accumulated pay for the expenses. I guess its a real possibility, but that avenue may not always be realistic or comfortable for some.

Cheers.