Short Track Racer
Join Date: Jan 2004
Location: Kitchener, Ontario
Leasing: Pros and Cons
When I graduated from university I leased my first new car, a Sunfire. I did it because the payments were cheap and I knew that I wouldn't be keeping it. I just needed something I could afford until I had saved for something better. Here's my biggest problem with leases though. A typical lease allows 20,000 kms per year. That works out to being able to drive about 56 kms a day. After 2.5 years of having the Sunfire, I was already at 70,000 kms. If I wanted to give the car back at the end of the lease, I would have had to pay 12 cents for every kilometer I was over 80,000. It would have been a lot to pay out at the end of 4 years, just to give the car back. Also, it was out of warranty, and I'd had nothing but problems with it.
So I ended up paying out a bit now, and rolling the rest into my lease for my 3. The only reason I leased again was I couldn't roll money from the Sunfire lease into a purchase of my 3. I'll probably still end up being over the 80,000 allowed kilometers at the end, but I'm more likely to keep this car.