EP029 Buying vs. Leasing a Car

Convenience and safety are a few of the many reasons why people own or lease a car. While there are many decisions to make when choosing the car of choice regarding color, model, and make, leasing a car is now a popular option for those who do not want to buy one. Understanding your driving needs, your lifestyle, and your budget will give you a clear picture of whether car ownership is the right choice for you.  

In this episode, I’m sharing the cost of buying a car versus leasing one based on your expected car usage. I’m discussing the car buying process, the must-have safety features to look for when choosing a car, and the significant points to consider when weighing the pros and cons of buying versus leasing. 

“Instead of buying the same type of car that you’ve always driven, it may be wiser to list the attributes you are looking for, and then do some research. Really think about what you WANT versus what you NEED.” – Tracey Bissett 

• Will shopping around for a car hurt your credit score? 
• What negative equity is 
• Why choosing the lower monthly fee is not always your best option 
• Ways to reduce risk when auto financing 
• Financing a purchase versus leasing aka as a long term rental
• The process of leasing a car 
• When leasing is a good option 
• When car ownership is the right option 
• The dangers of a long term car loan (loan longer than 6 years) 
• Protection laws that apply to car buyers and leasees 

• Set a budget and stick to it. 
• Compare vehicles. You are not obliged to buy the first vehicle you check out. 
• Get a copy of your credit report and check it for any errors before you shop for cars. 
• Make sure to test drive the car and read through all the paperwork. 
• Make the biggest down payment that you can. 
• When leasing a car, you may have the option of buying it at the end of the lease based on the residual value. 

• Episode 7: How’s Your Financial Reputation aka Your Credit Score? 
• Episode 25: True Cost of Car Ownership 
• Consumer Reports 
• Financial Consumer Agency of Canada