Well, selling my 2016 Tacoma (just hated it) and already pulled the trigger on a new 2018 (4 month order time) F-pace R-sport including blackout package, upgraded rims, nav package...$76,500 CAD ($57k US).

I've always previously financed, paying 80% of my vehicle off at time of purchase, BUT have always upgraded every 4 years (with amazing tacoma resale value), plus I never put on more then 24,000km/year...so leasing seemed to make more sense for me initially??

The lower down payment and lower monthly payment is appealing, but leasing makes me a bit nervous for some reason. Anyone have any thoughts which would make more sense? (all in Canadian currency).

Finance: $45,000 down, 1.9% rate, $588/month for 60 months
or
Least: $35,000 down, 2.9% rate, $388/month for 42 months ($30,500cad buy back, 20,000km/year)

Sorry for a finance question and being a bit vague, just thought if anyone could chime in without telling me what I've done wrong already, it would be a ton of help! lol.

Thanks!

 

Hi Littlechilds,
I almost always lease my cars (except the toys like my XKRS).
I change before the end of the lease before I get too much millage.
With the lease, you'll never pay the taxes on the residual value. If you want to keep your car for many years ( more then 6 years), it's probably better to buy. If your like me and want a new ride every 12 to 24 months, keep your $ in the market and lease it with 0$ cash down and let your dividends from your portfolio to pay your lease...
PLUS: if you love the car, you can always buy the car at the end of the lease. If you have troubles with the car, just return it and you don't have to care with the market value of the lemon.
If you are like me, my cars are always prestine, so I don't have to worry with the claim back when I return the car at the end of the lease.
Guy

 

I don't know if Canada rates are different but I got a 1.6% lease rate today in US. You might be able to negotiate that down. Is it JP Morgan Chase?

 

I do not recommend that you put so much money down on a lease. If the car is somehow totaled or stolen, you will lose all that money. Based on the mileage you drive and the fact you switch out of your cars often, you are a great candidate for leasing. All you pay for is the projected depreciation of the vehicle during a lease, at a lower interest rate than you would on a traditional purchase.


However, I do not recommend you put so much money down on a lease due to the fact that the car is not yours and all you'd be doing is protecting the bank by putting them in an equity position should that car be totaled or stolen. You obviously have disposable income at your favor, so a higher monthly payment should not be an issue for you.


You are correct that the Tacoma holds its value VERY well. That is not the case with 98% of vehicles, and the Jaguar will not hold as much value.


I've sold cars for many years and currently work at a Jaguar dealership in sales. Please note the interest on the 39 month lease program is MUCH lower than it is on the 42 month program; at least here in the US. With that said, I would not put more than $5,000 total on a lease even if the payment. On a 42 month lease, every $1,000 less you put down will affect your payment $23.81 + tax and interest.


Either way, you have to wait until the car arrives before you finalize the deal and the payments, but when the time comes, ask you salesman to show you 39 month options. It may make more financial sense to go 39 months instead.


Good luck.