As a first time car buyer or someone on a tight budget, a lease may get you more. It is all about the monthly payments. Spring and summer are coming and everybody wants to drive. I see people all the time trying to make ends meet. So if you could save money each month by leasing a car instead of purchasing one, wouldn’t it make sense.
All major cities like Ottawa, Toronto, Edmonton and Vancouver have car dealerships that offer leasing on almost every car on their lot. My advice is to sit down with the new or used car salesperson, then when you have the numbers, sit down with the leasing department. When leasing a car, you can take charge of your payment amount by communicating to the leasing rep how much you can afford each month. They can increase or decrease the end value, allowing your payment to some to an affordable level. After the vehicle lease, you have the option of purchasing the vehicle for the residual value (end value) or returning it.
It is important to understand any guarantees you make. For example if you guarantee the end value of your leased car will be $6000. Then if the dealership only can sell it for $4000, then they can come for you for the difference. Also, if you put extra milage than the allowed annual amounts, they can ask you for the cost times the extra kilometres. Personally, I have always purchased my leased vehicles, either keeping them, reselling them, or in one case, giving it to a friend or family member. I have used Ford Leasing many times and they have treated me well at the end of the lease no matter how my car needs had changed.
So if you are thing of buying your first car, a new or used car, then you should at least consider leasing.
