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This is the stuff you millionaires in the making need to know to kick start or propel you on your financial fitness journey. Tracey Bissett, Founder of Bissett Financial Fitness and award winning Financial Literacy Champion, gives you the straight goods each week to set yourself up for financial success. As a former executive at TD Bank, one of Canada's Big 5 Banks, Tracey has worked with and in support of thousands of individuals and entrepreneurs to secure the financing they needed.  This hands on experience combined with her formal financial education, Masters of Business Administration and Chartered Financial Analyst designation, position Tracey uniquely to coach all things money. Tracey goes behind-the-scenes of all the money matters with need-to-know tips, money-making demystified, and special power-player interviews. Join us weekly for Financial Fitness Training that will turn even a Cash Couch Potato into a Marathon Money Maker.

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  2. EP029 Buying vs. Leasing a Car

EP029 Buying vs. Leasing a Car

Apr 24, 2018

Convenience and safety are a few of the many reasons why people own or lease a car. While there are many decisions to make when choosing the car of choice regarding color, model, and make, leasing a car is now a popular option for those who do not want to buy one. Understanding your driving needs, your lifestyle, and your budget will give you a clear picture of whether car ownership is the right choice for you.  

In this episode, I’m sharing the cost of buying a car versus leasing one based on your expected car usage. I’m discussing the car buying process, the must-have safety features to look for when choosing a car, and the significant points to consider when weighing the pros and cons of buying versus leasing. 

 

“Instead of buying the same type of car that you’ve always driven, it may be wiser to list the attributes you are looking for, and then do some research. Really think about what you WANT versus what you NEED.” - Tracey Bissett 

 

This Week on Young Money: 

  • Will shopping around for a car hurt your credit score? 
  • What negative equity is 
  • Why choosing the lower monthly fee is not always your best option 
  • Ways to reduce risk when auto financing 
  • Financing a purchase versus leasing aka as a long term rental
  • The process of leasing a car 
  • When leasing is a good option 
  • When car ownership is the right option 
  • The dangers of a long term car loan (loan longer than 6 years) 
  • Protection laws that apply to car buyers and leasees 
 

 

Key Takeaways: 

  • Set a budget and stick to it. 
  • Compare vehicles. You are not obliged to buy the first vehicle you check out. 
  • Get a copy of your credit report and check it for any errors before you shop for cars. 
  • Make sure to test drive the car and read through all the paperwork. 
  • Make the biggest down payment that you can. 
  • When leasing a car, you may have the option of buying it at the end of the lease based on the residual value. 
 

 

Resources Mentioned: 

 
 

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