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This video gives a breakdown of buying vs leasing a vehicle. It discusses things such as ownership, payments, early termination, and mileage. For instance, the video states that when buying a vehicle, the payments are higher because you are paying off the entire purchase price of the vehicle. Compared to a lease, you only pay for the vehicle depreciation. As well, buying results in ownership, whereas in a lease it is more expensive to buy out your lease at the end. Lastly, the video discusses early termination and mileage due to the fact when you buy a vehicle, you have full ownership to drive as much as you want and sell whenever. However, in a lease, there are mileage restrictions and early termination fees when trying to end the lease.

I chose this video cause of the clear comparison between the two and how informative it was. One thing I liked about the video was the structure of showing both sides and giving his personal opinion at the end.

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BUYING Vs. LEASING a CAR in CANADA/USA - Which one is BETTER? || Watch this video for HELPFUL TIPS

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Welcome! Here I will address the age-old question of whether to buy or lease. Throughout this wall, I'll examine the benefits and cons of each choice and public opinion from using a wide range of sources from the internet. Last but not least, I will offer my viewpoint as well. So, are you ready to get started?

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This video takes a deep dive into the comparison between leasing and buying a new vehicle. It discusses the pros and cons of both options and provides insights into the risks, benefits, and financial aspects. The key takeaway is that leasing allows for lower monthly payments and flexibility in driving newer cars, but there is a long-term cost to consider compared to buying.

I chose this website because of the heavy amount of informative and easy-to-digest content. For example, the writer chose to make a chart breakdown which made it simple for the reader to see the pros and cons of buying or leasing. One resourceful piece of information on this website is the comparison of the long-term costs that leasing can have. Often individuals tend to look at the present costs compared than realizing the significant impact small monthly costs can add up to. Overall, this website does an excellent job of showcasing insights regarding car financing options.

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More on Car Buying and Leasing

On the surface, leasing can be more appealing than buying. Monthly payments are usually lower because you're not paying back any principal. Instead, you're just borrowing and repaying the difference between the car's value when new and the car's residual-its expected value when the lease ends-plus finance charges.
The Major Advantages of Leasing

You drive the car during its most trouble-free years.

You're always driving a late-model vehicle that's usually covered by the manufacturer's new-car warranty.

The lease may even include free oil changes and other scheduled maintenance.

You can drive a higher-priced, better-equipped vehicle than you might otherwise be able to afford.

Your vehicle will have the latest active safety features.

You don't have to worry about fluctuations in the car's trade-in value or go through the hassle of selling it when it's time to move on.

There could be significant tax advantages for business owners.

At the end you just drop off the car at the dealer.

As attractive as a lease may appear, there are a number of disadvantages:

* In the end, leasing usually costs you more than an equivalent loan because you're paying for the car during the time when it is most rapidly depreciating.

* If you lease one car after another, monthly payments go on forever. By contrast, the longer you keep a vehicle after the loan is paid off, the more value you get out of it. Over the long term, the cheapest way to drive is to buy a car and keep it until it's uneconomical to repair.

* Lease contracts specify a limited number of miles. If you go over that limit, you'll have to pay an excess mileage penalty. That can range from 10 cents to as much as 50 cents for every additional mile. So be sure to calculate how much you plan to drive. You don't get a credit for unused miles.

* If you don't maintain the vehicle in good condition, you'll have to pay excess wear-and-tear charges when you turn it in. So if your kids are apt to go wild with markers or you're a magnet for parking lot dents and dings, be prepared to pay extra.

* If you decide that you don't like the car or if you can't afford the payments, it might cost you. You will probably be stuck with thousands of dollars in early termination fees and penalties if you get out of a lease early-and they'll all be due at once. Those charges could equal the amount of the lease for its entire term.

* With a few exceptions, such as professional window tinting, you need to bring the car back in "as it left the showroom" condition, minus usual wear and tear, and configured like it was when you leased it.

* You're still on the hook for expendable items such as tires, which can be more expensive to replace on a better-equipped vehicle with premium wheels.

* You may have to pay a fee when you turn in the vehicle at the end of the lease.

Some car buyers opt for longer-term car loans of six to eight years to get a lower monthly payment. But long loans can be risky, and these buyers might find leasing to be a better option.

Longer loans make it easy to get " upside down "-when you owe more than the vehicle is worth-and stay that way for a long time. If you need to get rid of the car early on or if it's destroyed or stolen, the trade-in, resale, or insurance value is likely to be less than you still owe.

Buying a car with a loan isn't the way to go if you want to drive a new car every couple of years. Taking out long-term loans and trading in early will leave you paying so much in finance charges compared with principal that you'd be better off leasing. If you can't pay off the difference on an upside-down loan, you can often roll the amount you still owe into a new loan. But then you end up financing both the new car and the remainder of your old car.

If your goal is to have low monthly payments and drive a new vehicle every few years with little hassle, then leasing may be worth the additional cost. Be sure, however, that you can live with all of the limitations on mileage, wear and tear, and the like.

It's difficult to make a fair head-to-head comparison between, say, a six-year loan and the standard three-year lease. At the point the lease ends, the bank borrower still has three years of payments to go, but the lessee has to look for another car-or perhaps take the lease's buyout offer.

A lease can also be subsidized, or "subvented." The automaker either takes money off the top with an extra rebate just for lease deals, or it can raise the residual, or both.

An automaker may also kick in extra rebates on a lease deal, ones not available to a loan customer. In addition, the "money factor" (interest rate) on a lease may be different from the interest rate offered on a loan, making an apples-to-apples comparison almost impossible.

In general, two back-to-back three-year leases will cost thousands more compared with buying a car (with a loan or with cash) and owning it over that same six-year period. And the savings increase for car buyers if they continue to hold on to the car, say, for another three years for nine years total, even factoring expected maintenance and repairs.

If a lease's limitations put you off, consider buying a less-expensive new car or a well-maintained used car, such as a certified pre-owned vehicle from a franchised dealer, or getting a longer loan term. Whether you get your new car with cash, a loan, or a lease, you can save by choosing one that holds its value well, stays reliable, and gets good fuel economy.

For savings up front and over the long haul, buy used. And pay cash.

Many people assume that the monthly payment printed in a leasing ad is etched in stone. But that figure may be based on the manufacturer's suggested retail price, which can be negotiated downward just as if you were buying the vehicle.

Be aware, though, that the best lease deals are available only to those with superb credit, and that they may only be cheap because the automaker is trying to clear the decks of slow-selling cars.

Below are some of the major differences between buying and leasing.

Jon Linkov

I owe my career to two fateful events: my father buying a 1965 Corvette and my purchase of an Audi A4 rather than a Chevy Tahoe. The Corvette jump-started my love of cars, and the Audi led me to automotive journalism, track days, and amateur car repair. In my free time I cycle as much as possible, no matter the season.

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Leasing vs. Buying a New Car - Consumer Reports

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More on Car Buying and Leasing On the surface, leasing can be more appealing than buying. Monthly payments are usually lower because you're not paying back any principal. Instead, you're just borrowing and repaying the difference between the car's value when new and the car's residual-its expected value when the lease ends-plus finance charges.

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This image gives a clear representation of buying vs leasing a car. For example, leasing a car includes millage limits, well owning allows you to drive as much as you want. As well, leasing doesn't allow you to customize your car which can be a very important factor for some car lovers. A benefit of leasing is, that you don't have to worry about car maintenance since it is covered under warranty. As well, it's cheaper if you like to switch cars in a few years and want a new one at the end of the lease. However, if you decide to keep a vehicle long-term and don't want monthly payments once the vehicle is paid off, owning is the best option.

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This Scotiabank article shows an in-depth analysis of buying or leasing a new vehicle. Similar to website #1, it lists the pros and cons of each choice and has insights into both options. This website takes a deeper dive into the considerations and factors individuals should reflect on before making a decision.

I picked this website as it is heavily detailed and can help people make an informed decision. A valuable piece of information listed is the significance of emotional benefits that can occur when leasing. This is a result of the lower monthly payments and the luxury of getting a newer vehicle model. This is a factor that isn't mentioned on other resources which is quite important to many individuals including myself!

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To lease or to own? That's the question facing every driver in the market for a new car. The issue is surprisingly divisive, with die-hard supporters on each side.

Lease-lovers adore getting a brand new, shiny car with the latest technology every few years, while owner-advocates are willing to pay higher monthly payments now, for the promise of paying $0 in the future.

Leasing a car means you only pay for the portion of the car you use. You pay the dealership to drive the vehicle for a predetermined amount of time, usually around two to four years. The payments are a mix of principal, interest and taxes. It's usually cheaper than taking a loan out to own the car because you're only paying the depreciation costs of the vehicle over the period of time you are driving it.

In contrast, when you buy a car, you take out a loan for the entire sticker price of the vehicle plus taxes minus your down payment. Your monthly loan payments will be higher than if you were leasing the same car. But the difference is, at the end of the day, when you've repaid your debt, you have an asset. That asset is yours to keep, sell or pass on.

Scotiabank proudly finances vehicles for consumers for several car manufacturers across Canada, including on an exclusive basis, for Mazda, Jaguar Land Rover, Volvo and Polestar.

Whether to own or lease depends on your lifestyle, cash flow and preference.

Let's talk about the emotional factor of leasing first. One of the main perks of leasing is you're potentially able to get a shiny new car for much cheaper than it would cost to buy one over the same term. Only you can decide how important this is to you. If you really love cars and are excited by the latest technology and top-notch performance, these factors may be worth more to you than owning a car.

The second benefit to leasing a car is that it's cheaper in the short term. If you have a tight or uncertain cash flow, you may appreciate lower monthly payments. In order to get similar low monthly payments from an auto loan you may need to extend the loan period to the maximum, sometimes up to eight years - which isn't a great idea because of the added interest you'll need to pay or you will need a large down payment to bring the finance amount down.

The third advantage is flexibility. If you move a lot or aren't ready to commit to a vehicle then why not lease it for three years until you're prepared to commit?

Leaseholders also love that they can just hand the car back at the end of the term and walk away. If you don't want to deal with car maintenance over the long term or who do not want to haggle over trade-in values, leasing may be your best option.

Finally, most leases in the marketplace are typically referred to as 'walk-away' leases because the value at the end of your lease, known as the residual value, is guaranteed. Therefore, if you make your payments and return the car in good condition and within your kilometre allowance, you can drop the keys and walk away.

But leasing may also have disadvantages, like the fact that you will always have a monthly payment. When you own a car, at some point your loan will be paid off and your payments will cease. So while lease payments may be cheaper in the short term, they almost always are more expensive over time because they never stop as long as you keep getting a new vehicle every 2-4 years.

The second drawback is that you have to return your car in roughly the same condition you bought it in. Most lease options allow for normal wear and tear during the term of your lease but may require certain items to be repaired or replaced if there is excess wear and tear. Ask your dealership to clarify what constitutes excess wear and tear as many have brochures available to help distinguish normal from excessive.

The costs to fix it and the hassle of doing so can really add up. There are some products the dealership can sell you when you originally lease the vehicle which can cover for some damages prior to the end of lease term. Make sure to ask a lot of questions about the cost as well as what would be covered versus what is not.

And depending on your lifestyle and how often you drive, you may exceed the allowable kilometre limits; a standard lease allows for 24,000 kilometres per year while some manufacturers offer low or ultra low kilometres options, which are generally around 15 to 20,000 kilometres annually. Those doing inner city driving should be okay within those limits, but those who are visiting friends and family who live further away may be hard pressed to stick to them. If you think you may go over your allotted kilometre allowance, there are options to purchase additional kilometres upfront; if not, you will get charged per every kilometre you go over your allowable limit.

Some people just want to have a car and keep it for as long as possible until it starts needing costly repairs. If you simply need a reliable vehicle to get to work in and drive your kids around in, there's little point to owning a new car every few years. The best way to become payment free is to have a large down payment, find a low interest rate and choose the shortest financing period you can afford. You can check out our auto loan payment calculator to see the difference a shorter time period makes. If you don't have a large down payment or are new to the market your deal may have programs available to assist as well.

Let's say you buy a $25,000 vehicle with $5,000 down at 2.99%. If your loan lasts three years, you'll end up paying around $1,090 in interest. If you push it to the maximum eight years, you'll end up paying $2,920, or 168% more.

Newcomers may also use auto loans to build their credit history - Scotiabank, for example, offers the StartRight Auto Finance program where you can qualify for a loan with no Canadian credit history.

Once your loan is paid off, and assuming you've chosen a well-made car that's built for the long term, you can easily drive it for years after the loan is paid in full. That's a long time without car payments and you can direct that cash flow elsewhere. Of course, you may get into an accident or need to make repairs, but the money to deal with that is almost always less than a car payment would be.

And since it's yours you don't have to fix anything on it that you don't want to and you can drive as many kilometres as you need. You also don't have to worry about keeping it pristine if you don't want, because it's yours.

Like anything you own, you're responsible for it. Many cars, unfortunately, are not built to last forever and the maintenance can get expensive once your warranty expires. You may find that the maintenance costs for some of the larger mechanical repairs can become truly astronomical and may want to consider purchasing an additional warranty to extend the manufacturer's warranty.

Another downside is the depreciation of your vehicle. Some cars have higher depreciation than others and this may affect whether you can trade in your vehicle or not, as you may have to pay off more of your loan to be in an equity position (your car is worth more than you owe). If you want to trade in or trade up, you might be surprised at how little value your car truly holds after a few years.

Ultimately, leases are good for those who want more flexibility. They want to drive the latest vehicle, pay a reasonable monthly rate and trade it in for the next hottest thing in three years. Buying a car is good for those who like to keep their cars for a longer period of time or drive lots of kilometres each year. They're in it for the long-term and have the cash flow and motivation to pay off their auto loan as soon as possible. Check with your dealer and ask lots of question to see what the best option is for you.

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Planning to get a car and thinking about whether to buy or lease? Here are some pros and cons to help you make the final decision.

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This article on Canada Drives explains the different steps when it comes to leasing vs buying a vehicle. More specifically it states the agreement forms and the risk factors for each choice. Readers must understand and reflect on this as it can cause long-term financial concerns. Additionally, the article briefly goes over the positive and negative factors of this decision.

I picked this article due to its knowledgeable content regarding the process of deciding on buying or leasing. The process can be complex to many, which is why I believe this website does a great job breaking it down. A piece of information that is very important to note is the penalties that can occur from both options. This includes heavy financial implications from any damages from a leased car as well as early termination. This article has crucial information that readers must understand before making a huge financial choice.

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Leasing vs. Buying: What Is Best for You?

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Leasing, like renting a car for a long period of time, means you only pay for the car’s value that you use. Unlike financing or owning a vehicle, you’re only required to pay for the depreciation costs of a leased car. Due to this factor, leasing a vehicle

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This informative website gives an overview of the key differences and factors to consider when buying vs leasing. The website states that the main difference in buying is the ownership factor, while leasing is equivalent to renting. Additionally, the website discusses how equity, mileage restrictions and lease terms work when it comes to both choices. Finally, it mentions the payment fees that can play the most impact in making this decision

I picked this website due to the informative information regarding specific questions and concerns that readers may have. It is clear and offers more valuable insights compared to most websites discussing the same dilemma. One important piece of information that stood out was the clear connection between readers' wants and needs to better help make an informative decision. Ensuring that the reader knows exactly what they expect with their money, allows for the best financial decision.

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With a standard lease, most of your monthly payment goes towards the amount that the vehicle depreciates over the lease term. You also pay a monthly fee to the lender for renting the vehicle.

Here are the steps commonly involved in calculating the monthly lease payment:

1. You and the leasing company negotiate the cost of the vehicle minus any trade-in, down payment, or rebate. For example, $20,000.

2. You decide on the lease term, typically two to four years. For example, three years is 36 months.

3. The leasing company determines what the vehicle will be worth at the end of the lease, known as the "residual value." For example, $8,000 is the residual value.

4. The amount of depreciation is calculated by subtracting the residual value. For example, $20,000-$8,000=$12,000 of depreciation.

5. The monthly payment is calculated by adding the estimated amount of depreciation during your term plus the rent charge, taxes and fees, and dividing that amount by the number of months in the lease term. For example, $12,000 divided by 36 months = $333.

You should question how accurate the residual value estimate is because that value is used to determine the monthly payment and also the amount you pay if you decide to purchase the vehicle at the end of the lease.
Learn how to calculate a monthly payment when purchasing a vehicle

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What should I know about leasing versus buying a car? | Consumer Financial Protection Bureau

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Buying a car means that you own it once the loan has been paid. A lease is an agreement to use a vehicle for a specific number of months and miles.

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This chart shows the breakdown of a vehicle when buying or leasing. For example, it shows the lease payments are made on the use of the vehicle and not the total cost, which can make your monthly payments lower and save sales tax.

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This was a great video and answered many common questions people have about buying and leasing. This video covered similarities, misconceptions, car accidents, and pros. Some of the information mentioned was that leasing allows you to know the value of your vehicle once the lease is over, whereas with purchasing there is no way to know how much it will depreciate. As well, the video covered car accidents when it comes to both options. For instance, getting into a car accident with a lease doesn't matter as long as the damages get fixed since you don't own the vehicle. However, when you buy and own the vehicle, now that has to be reported on the car fax and can be a problem when you try to sell depending on the circumstances.

I chose this video because it is covered by professionals from the BMW dealership. This allows for any confusion and questions to be answered by professionals with the right answer. As well, it also allowed for a non-biased opinion, since the dealership benefits from both options.

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Lease VS Financing a BMW | Commonly Asked Questions | BMW Northwest

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This short clip debates two individuals with completely different opinions. For example, the man leases the and the woman likes to buy out her cars. The argument is that the man wants a brand new car every 3-4 years and doesn't want to worry about the upkeep and just drive a new car. However, the woman argues that it's a waste of money to lease the car when it can be driven for much longer than 3-4 years without reaching its full potential.

I chose this video because it showed the benefits and opinions of both sides in just a short clip. Overall, at the end of the day, people have their opinions on how they like to manage their money and it was just interesting to see the perspectives of both sides.

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Personal finance expert Suze Orman tells CNN's Chris Wallace why she thinks buying a car is better than leasing. #SuzeOrman #ChrisWallace #PersonalFinance #Car #CNN #News

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@cnn
Personal finance expert Suze Orman tells CNN's Chris Wallace why she thinks buying a car is better than leasing. #SuzeOrman #ChrisWallace #PersonalFinance #Car #CNN #News
♬ original sound - CNN

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This video explained whether a customer should lease or buy depending on their situation. For example, he explained how he leased a car during COVID-19 and sold it for 5000 more than it was worth. As well, he explained if you're the type of person who doesn't want payments long-term, then owing is better. Due to the fact, that trying to switch out of your lease or buy out your lease can get very expensive, so it's better to just try to buy a car if you plan on keeping it long-term. However, he explained if you just want new cars every couple of years, then leasing is better.

I chose this video since he didn't favour a side of the argument. For instance, he provided examples of both sides in different circumstances. This shows that he is explaining that neither choice is bad, it just varies depending on the person. This is amazing because it helps people who are confused about what decision is the right one since he shows there isn't only one right answer.

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Replying to @andrew  Lease or Finance? #carsales #carbuyingtips #carsalesman #cars 

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@russflipswhips
Replying to @andrew Lease or Finance? #carsales #carbuyingtips #carsalesman #cars
♬ original sound - RussFlipsWhips

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After researching the topic of buying vs leasing, I learned informative and helpful information regarding each option. For instance, there isn't one answer as it varies depending on each person and how they want to manage their money. For individuals who would find the idea of getting a new car every couple of years and having maintenance covered under warranty appealing, leasing would be the ideal choice. However, some prefer vehicle ownership, are comfortable with paying maintenance fees, and prefer to avoid consistent monthly payments, making buying the preferred choice. This was something that surprised me the most because going into this assessment, I had the intention of finding one right answer.

This topic provided me with lots of knowledge for when I buy a car in the future. For example, now I know the difference between each topic and which one suits me the most. As of right now, leasing seems the best option for me. Due to the fact, that when I open my electrical business, I can get tax benefits and have a low monthly payment. However, this can change over time and especially when it comes time to get a car, I will keep both options in mind.

If I could pass any information on to a family member, it would be to evaluate which option is best for you. The reason is, that there are pros and cons to each option, so knowing what's best for your lifestyle is crucial. All in all, I would say not to rush any decision or feel any pressure to pick buying or leasing, as it's so individualized.