Lease car vs buying car

[Suzie_Homemaker]

Do anyone lease their car and how you claim that as car expenses (the payment)?

We always owned our car. We thinking maybe change in next little while. I not drive my daycare children in my car so that not issue. I do claim day care running around for bank, groceries, as percentage of car expenses each year.

At moment, we work out the kms travelling for each day care errand, then add up at end year to find out what percent of total kms were business use. Then that percentage is applied to gas cost, car plates, car maintainings. We normally buy car with savings, so never had to claim loan repayment before.

We just trying see if buying and claiming part of loan repayment is best. Or if leasing and claiming part of lease payment is best.

Thank you.

[kindertime]

I'm sorry, I have no numbers to help you out, but I would imagine that after years of owning your vehicles outright, you won't be happy to lease. It's like renting - spending money and then having nothing to show for it in the end. But I'm old-fashioned that way. The new generation is the "sharing" generation and are moving away from owning anything.

You'll have to go to the dealership and get the numbers from them for the vehicle you want. When you look at the lease agreement, it should tell you the cost of the vehicle and the total amount you will have paid at the end of the term. There will be interest of course and other fees.

I don't claim car expenses at all. It is too much of a hassle for me, but since you already have that already figured out, it shouldn't be too hard to figure out the difference. You seem like a very savvy person.

When I bought my car, I waited until they had their 0% financing sale on in the summer. I had to get my mom to co-sign because I had no history with Ford-credit but it was worth it to me because I paid no interest and was able to pay off the balance early. If I had leased it, my monthly payments wouldn't have been nearly as much, but today, I still wouldn't own the car!

Good luck!

[playfelt]

What I was told to do since the only transportation I was claiming was for things like trips to get supplies and not outings was to record the distance there and back and then to use the private vehicle motor rate that Revenue Canada sets each year as so much per kilometer and to use that for my claim as there was no sense in keeping track of the vehicle expenses for the few kilometers used. That might be one thing to consider is to take what you did last year - ie once you figure out the distance to a certain store or mall then you just add up the number of trips to get a total then decide if the easier way might actually be to your advantage.

As far as the lease vs own I have heard a lot of horror stories from people who lease that when they go to trade in the vehicle the final report has a lot of way out in left field type damages on it etc and you end up losing big time. But or sure talk to some that have done it and what they found. It may be that certain dealers are better than others too.

[Van]

Leasing LOOKS a lot cheaper on paper per month but like Kindertime said you are left with nothing to show for it when the lease is up so I would suggest buying as it is better in the long run

[Meimei]

It really depends on how much money you have and how much you can afford right now. There's Pro's and Con's to Leasing/Financing/Buying it outright.

For example, I Lease because my Accountant tells me I can write off some of the interest costs from my taxes but at the same time I know I'm paying a little more for a newer vehicle every 4 years!

[Suzie_Homemaker]

We end up buying car. We got 2016 Accent last month. With 0% interest and 7 year warranty, that take me into retirement and it $35 fee if pay off debt early. We take loan over 7 year for small repayment of just under $90 bi-weekly and my husband set aside the extra it would cost, in saving account, so if we want pay up sooner, money there. He say with no interest it make sense to have longer loan period and we have interest on money set aside.

[5 Little Monkeys]

Congrats Suzie! I always enjoy getting a new vehicle....enjoy!!

[Suzie_Homemaker]

Congrats Suzie! I always enjoy getting a new vehicle....enjoy!!

Thank you. It nice. I really like the $18 to fill half tank.

[5 Little Monkeys]

Oohhh lucky you! I'd like that price too :)

[Van]

Good for you Suzie, $90 bi-weekly and 0%, it will not break the bank and I like your 7 year warranty , I love the SMELL of a new car :) ENJOY

[AlexPhilip]

Even if it's cheaper to lease a brand new car than to buy the same one, it's not cheaper than buying a 10 year old car that will last you for 2-4 years. You also won't be penalised for any dints or mishaps (they will happen on your first car) and you also won't be as bothered.

Shop around for insurance first though however, especially if you're under 25. The right car can make over £600 difference on insurance.

I had a 04 Micra as my first car whilst friends were getting brand new Fiestas and BMWs, then backing them into lampposts and driving into fences etc. I loved my Micra and would definitely recommend a cheaper car for your first on