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Welcome to our wall to you, the reader. The content in this padlet will contain various videos, websites, images, and a reflection post. All regarding the subject matter at hand, Buying vs Leasing a vehicle. There will be various tools to help you make your decision included within the padlet. Thanks

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As a summary for the following website, one of the main differences between leasing and financing comes ownership. With a lease you have to eventually return the car to the dealer, all your paying for is to basically rent the car and pay for the value of the cars worth that it loses over time. You arent as free to use the car with it being a lease, due to the amount of mileage that you drive on it. You can not go over a specified amount of km's per year of ownership, or else you will get a large fee once you give it back to the dealer. You do have the option to pay to continue to own the car after the leasing period is done, but this will be a larger sum. Leasing is usually preferred by people who want new cars every few years, and to stay within warranty. Buying is for people who want to keep their cars for longer periods of time, have a sense of ownership, and have the freedom to drive as much as they want with it, and maybe modify it as they'd like.
We chose this website because it had a ton of very handy information, more than someone could ask for. We found the whole thing particularly useful but primarily how it is an unbiased approach to the situation at hand, and shows the pros and cons for both.

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The Easiest Way to Buy or Sell a Car

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The Easiest Way to Buy or Sell a Car | Canada Drives

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Canada Drives is the easiest way to buy or sell a car. Get pre-approved for your next purchase or get an instant quote to sell your vehicle directly to Canada Drives.

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Here we can see a real life example of someone who prefers to lease his car. So he can relate to someone better and offer hands on experience with leasing. He talks about what his lease contract offers, and has a large amount of information provided for buying vs leasing. He used to sell cars as well he mentions, so he has good experience and information for both sides of the argument. He talks about depreciation and provides multiple real world examples, such as how his personal car has a very low resale value, because of it being in the rental car market, so its over saturated and theres tons of them on the market for purchase.

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Buying VS leasing a car - Which is the better option ? ( Don't get ripped off)

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this is an argumentative video over buying vs leasing a vehicle. In this video, Dave thinks that leasing is not a good idea because of the deprecation value is not worth how much time you had with the car and how much you paid for the car. The cost of capital will be a lot when leasing a car. He thinks that it is a rip off because the dealer makes so much off the driver after a period of time that it isn't worth it anymore. With interest, the capital and how much you're paying to buy out the vehicle at the end of the term is A LOT more than when buying a car straight up. It may not be as much at the start but everything racks up over time including the value of the car itself. He believes money could be spent in other areas better which i agree with.

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Leasing vs. Buying a Car - Dave Ramsey Rant

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In this video, we are taught about the dealings with leasing and buying. Sim is pro leasing. In this video he talks about how it is better to lease for some people (such as himself) because he couldn't afford putting a down payment or paying the entire car off over the period with the position he was in. Which is a fair assessment for someone of our age, as a car is a very risky and expensive investment. When it comes to leasing you can save a lot on money if you're self incorporated. So this is good for small businesses alike. Another thing that i found interesting was when he talks about his amount of kilometers her can drive per month.
I know that a lot (if not all) leases, give you a kilometer limit that you can not exceed without paying an extra fee, but this could be a major deal breaker for a lot of people as, some people travel far for work and they could easily calculate it to, see if its possible to not exceed the limit. As someone that drives very far for work, this would be a huge hindrance to me as i don't want to add on any more additional fees that i already have when leasing a car. The risk of trying to not succeed your limit is not worth the reward int he long run as you'd end up paying a lot more for the car if you kept exceeding your limit over the term period.

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In this video, the couple have just bought a certified pre-owned car from a dealership and they  wanted to give some insight on their experience about how its different here in Canada. one of the factors they brought up, was that in Canada their are so many mechanics and they're all expensive. So they believe it is best to stick with a certified dealer, it may be a little more expensive but at least you know the quality of work your getting done is next to none. i also had some input on this matter because i worked at Toyota in the shop working on other peoples cars, and over the years i noticed that 3rd party parts just weren't the same quality as factory issues parts. They would often break or become a problem in the vehicle after just a few years or even months, ready to get replaced.
I will always go to a certified dealer to get car, because you know that you're getting the quality of the manufacturer, not the company. If you ever decide to buy a vehicle, i would shop around at certified dealers, if the price is to good to be true, theirs a reason.

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Buying a Car in Canada || Lease vs Financing a car

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This picture here shows a very simplified view on buying vs leasing. The picture doesn't have as much information about certain key terms, that you would gain from reading the information off of a website. But if you are already familiar with the meaning of the key terms. This simplified view can help you out and tells you some of the more general points about buying vs leasing.

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Here's a flow chart i found online, to help with fast and approachable information about buying and leasing. It breaks down each situation into simple questions and feeds out the outcome that would be best suited for the reading in their situation. It asks you certain things like, are you using it for practicality or for luxury? do you do your own minor repairs on your cars or bring it into the dealer to get fixed? Do you want the latest technology or can you live without all the bells and whistles? These are all small but huge things that can impact your opinion on whether you buy or lease a vehicle.

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1. What did you learn about your topic that surprised you the most?

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1. What did you learn about your topic that surprised you the most?

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When reviewing film on Youtube for my video section. i noticed the about of people that are so one sided, but its not one sided as in all of them are one sided. a lot of people prefer to buy a vehicle because they can call it their own, but when i was researching on Youtube i noticed a large amount of videos that were heavily in favor of leasing a vehicle. I guess i am so bias to buying my own vehicle, i was blind to a lot of the good sides of leasing a vehicle. The sheer amount of people that are for leasing was extremely surprising and i learned a lot from those videos alone.

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2. Provide a real-life example of how this topic is relevant or interesting for you.

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2. Provide a real-life example of how this topic is relevant or interesting for you.

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We both have a strong interest on cars and drive almost every single day, and figured this would suit us well. Dylan used to have a modified dodge charger that he absolutely loved but had to trade it in because of insurance policies changing, and making his cost to own it unreasonable. Josh currently drives a modified scion frs, he is financing it and since its an open loan he can put additional money into it when he wants. Josh wanted to buy it because he wanted the sense of ownership, wanted to have it for a long time, and wanted to modify it. Josh's parents both also really love cars and have had quite a few over time. Josh's Dad had recently gotten out of a leased truck because of how expensive the cost was per month, and because he didn't feel like it was his, he felt as if he was driving someone else's car.

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3. If you could pass on your knowledge to a family member or friend, what do you think is the most important thing to pass on?

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3. If you could pass on your knowledge to a family member or friend, what do you think is the most important thing to pass on?

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Do your homework. Do not just go out one day and buy a vehicle because it will bite you in the long run. If you make decisions to fast you're going to regret it. What if you go out and sign a contract that you cant afford to pay in 6 months? that knowledge to know when you're ready to go out a purchase a vehicle is mandatory. Choose what path is better for you down the road, not right now. If you lose your job how are you going to pay for a lease that you a required to cough up 500 dollars a month on. I would love to pass along the knowledge of being prepared.

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Here we can see a simplified view comparing different aspects of Buying vs Leasing side by side. Such as "Future Value" the center column for buying a vehicle, mentions that the vehicle depreciates but the cash value is still yours. On the right Column it mentions about leasing a vehicle doesn't actually give you any equity. Yes you miss out on losing the money from depreciation. But at the end of your term you end up without a vehicle and without your money. We chose this website because consumer reports is widely accepted around the board for various forms of technology, and have been apart of the vehicle market for years and years. They've released many articles and magazines for people that will help them make purchasing decisions with vehicles, and mention reliability and many other statistics. There wasn't one specific point of information that was found to be useful but the whole website because of the two tables that it consists of.

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Leasing vs. Buying a New Car - Consumer Reports

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Consumer Reports examines the basic differences between leasing and buying a new car. To start, buying involves higher monthly costs than leasing.

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This is a tool that can help you make your decision with buying vs leasing. It shows the net cost to buy comparing the net cost to lease, and you enter in your own information about the vehicle. It has a section for "Purchase price", "down payment", tax percentage, and the investment rate of return. It also shows the monthly rate cost. Further down the page you see the website explains in a clear manner for the average reader to understand different terms used. This allows you to fill in the required sections with the proper information.

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Should you lease or buy your car? Use this calculator to find out! We calculate your monthly payments and your total net cost. By comparing these amounts, you can determine which is the better value for you. Javascript is required for this calculator.

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This website i found to be a great tool for buying/leasing. It comes down to many factors when buying or leasing and some of them are not as obvious as they seem. for example, when people are looking for a new car, they are excited and ready to buy, but the problem is you have to usually get rid of your current vehicle first. Some people like to just settle with the dealership, the dealer takes your car and gives you a down payment on a car or a little extra money off the top, but that's not always the case. In a lot of cases people like to sell privately and this can be a major factor when considering a new vehicle. As you want to get the most bang for your buck, this website shows how to do that while also having room to be teach you on the pros and cons of leasing. I found this interesting because as we are talking about leasing/buying, your used car does get factored into the equation a some point and some websites don't reveal that. It teaches you to have an inspection on your car, to help adjusters find the correct value for your car. Things like condition, mileage. The way it sounds and feels. All of this could be extremely beneficial to you when trying to get rid of our used car for a sparkly new one from the dealership. I found this website to be informative and straight to the point.

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Buying a car can be exciting - sometimes too exciting.

With all the distractions and offers that the salesperson throws at you, it can be easy to lose track of the very basics of the transaction.

You have so many options - buying vs leasing vs financing, new vs used, trading in your old car or trying to sell it online ...And each of these means a lot of money is on the line.

So before you go in and let a salesperson talk you into something that you don't really know much about (yet!), do your research ahead of time.

There are 3 huge decisions you'll have to make before you even start thinking about what kind of car you want:

Buying a car vs leasing vs financing

When I was looking for a car a few months ago, I was surprised at how pushy some of the dealers were about leasing, even if I made it clear I wanted to own my car.

Toyota was especially adamant about it - the salesman told me more than 80% of people who leave with a car are leasing it. I'm not sure if this is a real statistic, but his insistence on leasing made me think that maybe there's something a bit fishy about it...

The pros and cons of leasing vs buying

So here are some pros and cons of leasing a car vs buying it (either through finance or cash).

Pros of leasing a car

You're always driving a recent model car.

You can upgrade your car each time your lease is up.

You can usually afford a higher-price car than you would financing it.

Your warranty never runs out.

Lower monthly payments.

Cons of leasing a car

You'll never own the car (unless you buy it outright at the end).

Monthly payments could virtually go on forever.

Always have to worry about mileage and the condition of your car, since you agreed to specific terms in the leasing contract.

Can't customize the car in any way.

End up paying more money long term.

Get nothing out of it once your lease is up - you haven't made any progress towards paying it off, just have to start over with a new car.

Pros of buying a car

You own the car.

You can modify your car as you please.

You can put as many miles on it without getting hit with a fee (keeping in mind your warranty).

You save money over the long term.

You can sell the car or use it as a trade-in the next time you buy.

Cons of buying a car

Have to deal with the hassle of deciding when it's time for a new one.

And then the hassle of trading it in or selling it.

Limited warranty that can run out before you're done with it.

Pay the full price of the car, so can only get what you can afford.

Higher monthly payments.

How buying a car works

If you choose to buy your car, you basically have 2 options: paying with cash or financing it. If you choose to finance, you have 2 more options: financing through the dealership or taking out a personal loan.

Let's look at both main options individually.

Paying with cash

It's as simple as it sounds: you pay for your car in one lump-sum payment straight to your dealer.

When you pay in cash, you bypass all interest payments, which can save you thousands of dollars. Suddenly making a couple hundred dollar investments every month into your TFSA or high-interest saving account doesn't sound so bad, eh?

Sometimes the dealer will even offer you a cash discount on the car.

Financing the car

If you don't have enough money saved up yet (don't worry - I didn't either), then your other option is to pay for your car through financing.

This can happen directly through your dealer at an interest rate that you negotiate, or through a personal loan from your bank.

Sometimes the interest rate can be better at your bank, so it's always a good idea to shop around for loans before committing to any one dealer.

And watch out for the 0% financing deals ...it's not always what it seems and might end up costing you more money in the long run.

How leasing a car works

Leasing a car means you're renting it for a set amount of time. In the contract they'll list how much it would be to buy the car at the end of the lease, but if you don't want to buy it, you'll have to give it back to the dealer.

There are many factors that go into determining how much your lease will be, the 2 biggest numbers being:

The capitalized cost: The value of the car that you and the dealer agreed on, negotiated down from the MSRP (Manufacturer's Suggested Retail Price).

The residual value: The estimated value of the car at the end of the leasing period, minus the depreciated value.

Basically, you and the dealer decide how much the car is worth today and at the end of the loan. You then sign an agreement to pay for the difference over the course of your lease:

Car's value today - car's value at end of lease = your cost

Both of these values can be negotiated down, so try not to agree to the first number the dealer pitches to you.

The interest on leased cars

You then have to add interest to this cost. But be careful - the interest rate is sometimes expressed as a fraction, known as the money factor.

For example, if they give you a money factor of 0.002, don't assume this means 2% interest. To get the true interest rate, you actually have to times it by 2,400. So a money factor of 0.002 is actually an interest rate of 4.8%:

0.002 x 2,400 = 4.8

Keep this in mind throughout the negotiation so you don't get confused and think you're getting a better deal than you are. That 2.8% difference can mean hundreds of dollars extra by the time your lease is done.

Used car leasing

So what about leasing a used car? Is it still worth it?

You still get most of the same pros and cons as new car leasing, except you don't get to be driving a brand new car and your warranty might not cover the course of your loan.

3 examples of buying vs leasing: Honda Civic vs. Toyota Rav4 vs. Honda Odyssey

Let's look at examples of one of the top sedans, SUVs, and minivans in Canada: a Honda Civic, Toyota RAV4, and Honda Odyssey.

Keep in mind these are using the un-negotiated prices. You're likely to get different numbers at the dealership.

On the surface, it can seem like the leasing option is best since it's the smallest number in each option. But it's important to remember that you won't own the car once you've paid this amount.

For example, say you were looking at leasing the Honda Odyssey and they tell you that at the end of the 60-month lease, your van will be worth $20,000. If you were to buy the car at the end of your lease, this is how the numbers actually look:

If you have to finance the $20,000 purchase price, you're even further behind. And your van will be worth even less once you finish paying it off.

But if you had financed it for 5 years and decide to sell it or trade it in, this is how your numbers look:

You could also just lease another car, but doing this will make your payments go on virtually forever. Once someone who bought the car finished paying it off after 5 years, you'll still be paying. Indefinitely.

Buying a car new vs used

Most personal finance gurus seem to always recommend buying used. But why?

It's because of depreciating value. This is also what people are talking about when they say your car loses thousands of dollars in value as soon as you drive it off the lot.

What is depreciating value?

When buying any consumer item, it instantly loses value and continues to do so the older it gets (unless it's a collectible that you can make a profit on by re-selling in 20 years). This is because it's worth more new than it is used.

There are many different estimates of the rates at which cars lose value. According to this infographic, this is how much a car is worth over the first 5 years of ownership:

If you buy a used car that's 3 years old, you capitalize on the year with the highest loss of value, while also getting the car when its depreciation starts to slow down.

Pros and cons of used and new cars

So let's look at the pros and cons of buying a new car and buying one used.

Pros of buying a used car

Lower upfront cost.

Lower car insurance premiums.

You're the owner of the car.

When buying from a dealer, you usually get a free inspection.

Cons of buying a used car

The car is older, so it's more likely to need repairs.

If you don't buy from a dealer, you'll have to pay for an inspection.

Warranty may have worn out, or it will soon.

Pros of buying a new car

You're getting the newest model.

Car is less likely to need repairs for the first few years.

You're the owner of the car.

Can get a brand new warranty that you can use to its full extent.

Cons of buying a new car

It's much more expensive.

You need to pay for all the starting costs, like mats, freight fees, etc.

Loses value the moment you drive it off the lot.

Getting the most value out of a used car

It's no secret that a new car will be more expensive than a used one, so how can you make sure you get the most out of this extra investment?

There are many things you can do to help your car retain its quality over the years, including:

More on this here: How To Make Your New Car Last Forever

Getting the most value out of a used car

When you're looking at a used car, there are a few important things you'll want to look for.

Make sure there was an inspection done recently, or pay a qualified (and independent) mechanic to do one.

Ask for usage history, including any accidents it may have been in and any repairs or services it has undergone.

Check the odometer to verify how many miles the car has.

Test drive the car to make sure you like the way it drives and how everything works.

It's also helpful to get a value from a site like Carfax, which uses the price of sold cars of the same model in your area. Carfax can also tell you any accidents the car may have been in that the owner may be hiding or the dealer may not know about.

Trading in vs selling

If you have an old car that you're looking to upgrade for your new one, you basically have 2 options if you want to make some money off it - trading in to the dealer, or selling privately.

The pros and the cons

Here are a couple of pros and cons for each option:

Pros of trading in your car

It's generally a faster process.

Buy and sell at one location, in one transaction.

Get some tax savings because the value of the trade goes towards the cost of your car, reducing the amount taxed.

Cons of trading in your car

They're looking for profit, so the amount they offer you has a profit margin in mind.

Pros of selling your car privately

They're just looking for a car, profit isn't a factor.

You have a chance at getting a better price.

Cons of selling your car privately

Generally takes a while to sell unless you have a buyer set up already.

The profit doesn't go towards your new car's price, so you have to pay tax on the full purchase.

How to get the most value for your trade in

Make sure to check how much cars that are the same model and age as yours are selling for.

You can check estimates on sites like AutoTrader. Showing up to the dealership with your research done makes you look more knowledgeable so the dealer is less likely to undersell.

Shop around for different quotes from different dealerships. You can even go to different dealerships of the same car manufacturer in other towns (i.e. check Moncton Honda and Halifax Honda).

Make sure to bring the car in when you're asking for a trade-in estimate. If you ask for one over the phone, they're more likely to give you a higher number in order to get you into the dealership. They might then claim they found something upon inspection that made them reconsider their offered price.

Selling your car online

When you're selling your car privately, you still want to get as much research done as you can. This includes going to the dealership and asking for their quotes, even if you're not intending to go with them.

Use the same sites I mentioned in the previous subsection to check the price the model of your car is going for. You can also list your car on AutoTrader.

Price competitively. Get a mechanic to inspect the car first to save your buyer the trouble, instilling some trust in you.

What about you?

How was your last experience for buying or leasing a car?

Did you trade in? Or buy a used car?

Do you have any tips to share about your experiences?

Let us know in the comments!

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Buying A Car In Canada: The 3 Questions You Need To Answer | How To Save Money

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If you're thinking of buying a car in Canada, there are 3 main questions you should consider before you even think of what type of car you should get. Are you leaning towards actually buying a car or leasing it? Will it be a used car or brand new?