Anthony Layton MBA, CIM

Chairman & CEO, Portfolio Manager

Peter Guay MBA, CFA

Portfolio Manager
  • T514.875.7566 x 224
  • 1.800.875.7566
  • F514.875.9611
  • Place Alexis Nihon
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    Suite 1501
  • Montreal, Quebec H3Z 3B8

Is It Better to Buy or Lease a Car part 1

January 9, 2018 - 1 comment

We all know that cars are not an investment, no matter how much horsepower they have or how slick they look. Carfax reports that cars lose 10 per cent of their value the moment you drive it off the lot, and on average, will lose another 10 per cent by the end of the first year. Not a great deal.

I’m often asked whether it’s better to lease or buy a car. The short answer? It depends. One of the cheapest ways to get a car is to buy a 1 or 2 year old car with low mileage, for cash, and drive it until you reach 100,000 km, then resell it. This way, you avoid that initial depreciation hit in the first year. However, If you’re the type to change cars every 3 to 4 years and that’s just the way it’s going to be, then leasing is potentially the cheaper option compared to buying.

Beware though, there is a ton of noise out there when it comes to getting a new car. There are dealer and manufacturer incentives, leasing and financing rates, down payments, trade-in values and residual values. There is a lot to consider. I’ll quickly explain what these are and what you need to focus on. 


By: Peter Guay with 1 comments.
  14/01/2018 8:21:15 AM
Art Gans
These bits— Tony’s as well- are very informative and well done. Bravo

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