Posted on: 27-11-04 18:59:22
Hi
Can someone educate me which is better between the two. Conventinal wisdom says that purchase is better, but while going thru the Toyota site I felt that both are same. In fact Leasing could be a bit better.
Any catch in this. ?
Quote:Sure, lots of catches in this
Orginally posted by Val
I felt that both are same. In fact Leasing could be a bit better.
Any catch in this. ?
First of all, it depends on *why* and for how long you want to keep the vehicle.
If you are in Canada for a short period of time (like student or work permit), then you can lease.
If you buy a car in this case, you will have to eat a lot of depreciation (esp. if you buy new).
Lease is better in this case.
Also, if you are the kind of person who wants to drive around town in a new car every 2 years, then you should lease.
However, if you plan to live here for some time, then there is hardly any advantantage in leasing.
1. If you lease, you will never own anything.
You will end up paying almost the entire value of the car in your payments, but at the end of the lease term, you will have to return the car and have nothing.
2. The leasing company will make you pay through the nose even if there are minor damages to the vehicle.
3. There is usually a mileage restriction - if you exceed those, you will pay heavy fees.
If you want to be in Canada for some time, your best bet is to buy.
Whether to buy used or new is another question though
-----------------------------------------------------------------
"Mah deah, there is much more money to be made in the destruction of civilization than in building it up."
-- Rhett Butler in "Gone with the Wind"
