Question on car leases

[normisanas]

I wonder if anyone can give some advice on car leases?

Any traps to watch out for?

Can a car be leased again after the lease ends?

Is that an alternate way to finance a vehicle to eventually own it?

 

[bcneil]

I wonder if anyone can give some advice on car leases?

Any traps to watch out for?

Can a car be leased again after the lease ends?

Is that an alternate way to finance a vehicle to eventually own it?

Sure you can re-lease. Probably cheaper to buy in the first place, if you intend to own it.

 

[sevenofnine]

I think the biggest trap would be, what is the car worth at the end of the lease.
Then I guess milage if you are a high milage kind of guy, and your lease is based on say twenty a year and you double that,
there is a penalty for every kilometer over.

I think interest rate is the key, which is the lowest interest rate, and how long do you usually keep the car.

 

[badbadboy]

I think the biggest trap would be, what is the car worth at the end of the lease.
Then I guess milage if you are a high milage kind of guy, and your lease is based on say twenty a year and you double that,
there is a penalty for every kilometer over.

I think interest rate is the key, which is the lowest interest rate, and how long do you usually keep the car.

Equally important is to negotiate the price up front. That part of what your monthly payment is based upon.

If you are not confident doing it yourself, hire a broker and save a ton of $$

 

[PlayfulAlex]

I would only lease if you can write off 100% of the cost against your income. Like previous posters have stated, it is the most expensive way to purchase a car. However, if all you want to do is drive the newest car, and change it up frequently, this is the way. You may notice that very few car ads are about ownership; they're all about the (cheap) lease price. IE. car companies make WAY MORE on leases, than they do on purchase financing.

 

[tadolder]

The only way you can write off 100% now, is if you have another vehicle registered in your name. Anytime you write off more than 75% of the vehicle and associated expenses, CRA can and will request a very detailed daily mileage log. Up to 75% they may ask for a log, but you don't have to provide one. Please don't ask how I know, I am trying to not relive my experience lol.