After being reckless and dumb about houses, we’re very adept at failing with cars. And, why not? Same challenges. Big-ticket cost. Rising financing charges. Too much emotion.
A report from CIBC Capital Markets says auto loan delinquencies in Canada have soared through pre-pandemic levels, “and are likely heading higher in 2023.”
It adds: “The average size of auto loan increased with higher prices, contributing to higher monthly payments for borrowers. Inflation, interest rate and economic pressures are making these higher payments harder for consumers to afford.” And the bank notes that new car prices jumped 30% since Covid hit, with used rides up 60% by the end of last year. Now, it seems, things are cooling.
In the States, this is already a huge problem. Negative equity has struck with a vengeance as people owe big wads of money on depreciated hunks of metal that are soon worth less than the debt they represent. Here’s an interesting snippet:
The build-up in negative equity — or the amount that debt exceeds a vehicle’s value — is rattling consumers and raising alarms within the industry. Though it’s not unusual for drivers to carry negative equity, some dealers say more people are arriving at their lots up to $10,000 underwater, or “upside down,” on their trade-ins. They’re buying at still-sky-high prices and rolling debt from one car to another and even onto a third. Loans are commonly stretching to seven years.
As cars become more expensive, dealers and lenders are compensating with longer and longer financing periods. Loan terms of 72 or 96 months are common, with buyers driving away after putting little or nothing down. The problem is that your nothing-down, fully-financed $42,000 Kia Sportage may be worth $19,000 thirty-six months later, when you still owe thirty grand. By the time month 96 comes around, it could be a planter.
Gone are those fleeting pandemic-era months when a used car could be sold for more than its original sticker prices, thanks to a busted supply chain and a new inventory crisis. Used car prices have come back down to earth – but the cost of auto loans has powered ahead up. Rates at the big banks current run between 7% and almost 12%, and many lenders only want to deal with a new unit.
Of course, the bankers can’t quit. Just as folks desperately trying to get into real estate they really can’t afford are prime bank clients, so are those who desire a sweet set of wheels when they should really be on a Vespa. Eight-year loans and nothing down? Bring it on…
Some people – including all the self-made mechanics and moist, manly men who strut and preen in the steerage section – espouse buying a beater and rebuilding it to last another million klicks. But most people couldn’t change the oil, swap a battery or even know how to replace a taillight bulb if their lives depended on it. They have the right attitude. A car is a tool. It’s no investment. It sheds worth the first day you drive off in it. A breakdown would be a crisis. And costs should be contained and transparent.
Which brings us to a simple life rule: buy what appreciates, rent what depreciates.
Leasing is good option, even when dickering and using cash may result in a lower initial sticker prices. There are valid reasons…
First, you don’t burn through thirty, fifty or eighty grand buying something with cash guaranteed to be worth less in a year. Better that the funds be rifled into your RRSP to grow tax-free and reduce your taxes. Or a TFSA or joint NR account with your squeeze. In a decade, when the car is toast, your capital could have doubled.
Second, leasing is simple, easy, low-stress and non-intimidating. You drive for three years, drop it off, have a beverage and get a fresh one. The car is new. Servicing is usually included in your lease rate. Never a disaster. Always a safe and reliable ride.
Third, let the dealer worry about depreciation – not you. Leasing sets the monthly rate and establishes in advance a future value for the car. You can buy it then for that price, or just walk.
Fourth, if you’re self-employed, have a business or need your car to earn a living, it’s easier and more beneficial to write off lease costs than claim expenses on an owned vehicle. The little meanies at the CRA love nothing better than to challenge auto claims, and lease payments are a good solution.
Fifth, you can get a better ride for the same bucks. More options. Upgraded. New every three years. And lease rates can be hugely lower than loan costs. Shop around.
Vehicles are machines. They’re not your alter-ego. Don’t buy emotionally – they say nothing about you. Unless, of course, you have a jacked-up pickup, especially with balls. Then we all know.
About the picture: “This is Quinton a seal point Siamese,” writes Gord in Regina, “who has taken ownership of this wheel in my daughter’s home of three cats. Funny how it seems kind of a territorial object. Garth, what I find refreshing is all the comments from your readers, who have embraced your investment strategy. My true pet peeve is all those many (not all) so-called financial planners hanging their clients with all the steam engine mutual funds. I refer to these financial planners, as their own financial planner, not their clients.”
190 comments ↓
Peloton expanding into animal products to boost revenue?
Bought on credit of course.
Will anyone ever take the credit punch bowl away?
Being willing and able to fix your own stuff is the closest thing to a modern-day superpower that we’ve got.
Saves a boatload of cash to boot.
I figured out last night that I actually live in a 15 minute walkable city. Or at least a 15 minute walkable suburb. More on that in a sec…
Look, follow the money. ALWAYS. If the 80 year old “car-centric suburb experiment” is coming to its end, who gains, and who loses? Figure it out – if you are reading Garth, you are smart enough to take time to peel back many of the layers. Dig, don’t just read tweets from probably corrupt “influencers”. “Economics, Real Estate, Money and the Road Ahead” is what Garths’ blog is about. Do your homework.
Ok – my 15 Minute Walkable Suburb. You probably live in one too if you live in an area once served by street-cars. Before the tracks were ripped out, and everybody was sherpherded into buying and maintaining cars, we had livable, walkable suburbs.
I do a lot of dog-walking; so easily within 15 minutes: community-managed ice rinks: 3, maybe 4. Schools: 4, and a couple more if I walk maybe 20 minutes. Coffee shops? At least 10, great for meeting friends at.
Public Library: check. Stores? “main-street” style, indoor shopping mall style, Canadian Tire, LCBO, Beer Store (yay!) bakeries, clothing, you get the idea. Oh, and an LRT stop fairly soon, and of course bus routes.
Alois mentioned condos with empty stores at street level. Q: Why are they empty? not in my area, but, in Ottawa, Richmond road west of Island park is an example of what Alois mentioned; no sun, wind-tunnel, cars, noisy, no place for sitting outside, but if you go a km or two along Richmond on either side, it’s people-friendly, and the traffic is slower. Someone made billions creating the desolate, expensive, devoid of social interaction wind-tunnel area… Would you open a store in an expensive, barren wasteland, or in a place that is eclectic and attracts people??
Follow the money. Listen to Garth (especially about cars in todays post).
The cost for insurance and maintenance is a lot too. Unless you have life experience like the host, or you are rich to drive a Lambo like Ryan, a car is a liability for you.
We have always seen a vehicle as transportation, not a status symbol. We are not interested in spending $40K & up for a vehicle, though when our current ride starts costing more in repairs than it is worth we might be facing that kind of price given how much more vehicles cost these days. We have done both lease & purchase; up to now we prefer purchase over lease. However, since prices have increased so much & we are not getting any younger we may choose to lease when we next need to replace our current ride.
I see a divorce in the future for the young, handsome, naive couple in the CIBC car loan ad.
Or buy a used but reliable car for a decent price and drive it until it rots. Invest the difference in cost between that and leasing (or heaven forbid, buying new with dealer financing).
Leasing makes sense if you live in a big city. With aging infrastructure that doesn’t keep up with population growth, and harsh Canadian climate you need a reliable ride. Cars don’t rack up huge repair bills in the first few years, just maintain correctly (unless it’s included) and drive up to date wheels.
When I grew up in Victoria, annual mileage was so low you had options – run a beater, or buy new and run it into the ground. So many beautifully maintained cars 15 + years old. Especially in retirement, my parents were driving 5000 kilometers a year. Great city for owning a classic car, if that’s your hobby.
My brother in law bought my Mom’s 1986 Volvo wagon. It has 260,000 km and it’s built like a tank. In Victoria you also have a couple of non dealer mechanics who specialize in Volvos, so you even get a bit of a break when you need service or repair.
The future will be a transportation supply arrangement – a vehicle as needed (why pay for something that sit 22 hours a day) access to public transit, uber style taxi services paying only for what you use.
134 Ponzie
“One Canadian called out the thrift store chain after they found a pair of used Chucks listed for $60.”
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Ponz, you dont understand.
The gold standard for basketball shoes 50 years ago.
https://www.youtube.com/watch?v=za53Px3eb_s
With the dearth of real estate transactions in my city, I am hoping my next car next lease (Dec 2023) is the take-over of a real estate agent’s Audi.
Any blog dogs have experience with Lease Busters? Anything to watch out for? Good deals to be had?
Used cars are still more expensive than they usually are even when adjusting for high inflation. If your car does not have major mechanical issues like the transmission or engine try to keep it for a few more years. I suspect prices will fall to a more normal level.
If you can’t wait do your research on the value of the car you are looking at and drive a hard bargain. Dealers are spending a lot more on interest to finance inventory and if they are sitting on a lot of cars it is costing them a lot.
Tax refund season is a big time for car dealers so if you can wait tell summer or fall you will probably get a better deal.
Ah ,cars ,the one assett where you know that no matter what you will get ripped off one way or the other.
I do agree that leasing is the way to go for a new car. I used to buy lease returns ( 1-3 years old) with 0% or 0.9% financing ,with a baloon payment and certifed preowned. Return in 3years ,rinse ,repeat. At current rates probably not an option anymore.
What is ridiculous is the car prices , even used ones. A few years ago you could buy a Beamer or a Benz brnad new for less or the same price of a Kia nowadays ,not even touching pick-up trucks here.
Genuinely curious how does leasing make more economical sense than buying when one is perpetually paying for the first three years of depreciation of a new car? Isn’t it better to buy/finance the car and use it for as long as possible?
Canadian bankruptcies up 37% in January. February ?
For many years I bought junkers and clunkers, and kept them on the road for many years- probably too long. Cracked knuckles, grease everywhere, never the right wrench, finding the battery behind a wheel well, mice eating ignition wires, experienced it all. However, during that time, pushed the saving into the portfolio. These days the last thing I want to worry about is the vehicle. The great news is the portfolio does the worrying and pays for the lease….
are hard for the dealers to move now … cost too much at these higher rates. Auto plants tapering as inventory is high. They are $$$$
Little meanies……I. Love. It. It sure does seem that way sometimes.
In Orlando on business until tonight. Everywhere I look, hotels full, parking lots full at 35/day with $$$ cars, restaurants charge 80 bucks for a steak……makes me wonder
CARS – almost as bad as boats …..almost
What happens at the end of a lease? Do you walk in, hand over the keys, shake their hand, and that’s that? Or are there residual costs and whatnot you have to pay to get off the treadmill?
Like, if I say, “I don’t want this vehicle anymore, and don’t want to lease another, and want to bike home” does the dealer just let me go? It can’t be that easy can it?
Take care of the car, mind then mileage and, yup, it’s that easy. – Garth
When you see me coming in my two tone 1980 — F 150 pickup truck that I purchased new, you would say, this fellow surely needs a raise, do not judge a book by its cover, it runs great and almost 400 K on it.
I have taken care of my Ford Pick-up since new and it lives indoors after every ride, I do not have a second vehicle and nothing is in the cards to even plan for another new vehicle. I have gotten plenty of offers over the years to sell it, but no chance, and no thanks, I will keep my funds into ETF’s, it will be a much better outcome then loading up on a new vehicle and watching my money go south to a dealership.
I am still in shape to do my own repairs and my baby will only ever see one specific lube shop and the same mechanic each time if needed, nobody and everybody keeps their hands off Papa’s truck, laughing as they may, for me, it is always payday.
A fool and their money soon part ways. My kids and grandkids alike have asked to borrow my Pick-up many times, they all get the same answer each time, “lender is the loser”, go buy your own, mine stays where it’s at, until I need it. Sometimes I know, they just ask for fun, to hear the same answer when they are bored, or prehpas would like to be the first one to brag, they drove my truck.
Quote of the day: Take care of your pick-up in the garage and your pick-up will take care of you on the road.
We have never bought a new car. The goal has been to purchase (roughly) a 3 year old car with low miles for cash, and then maintain it well over the next decade or more. Winning strategy in the past. However, with used car prices up drastically over the past few years, even that option is not so clear. I do hope that dealerships who have been gouging consumers over the 2+ years with spiking used car prices find that they have way too much inventory and can’t sell.
The US is having the same problem with car payment delinquencies. It has been in their news cycle for the last while.
As always, young people are smarter than they look:
https://www.economist.com/international/2023/02/16/throughout-the-rich-world-the-young-are-falling-out-of-love-with-cars
Hoping for a return to prepandemic used pricing.
As a car person, I’ve always enjoyed certain aspects of ownership.
But modern day costs have ballooned far beyond reasonable levels, that I don’t see myself getting rid of my old cars (yes,plural) anytime soon.
Jalopies forever!
“The problem is that your nothing-down, fully-financed $42,000 Kia Sportage may be worth $19,000 thirty-six months later”
That’s when I will buy it and drive it for a decade. Cars are reliable enough for 10-15 yrs if you remember to change the fluids and service it regularly. It’s not that hard to do. Even for a Kia.
Speaking of cars…
Tesla investor day live stream in 1/2 hour. Must-watch content!:
https://www.autoblog.com/2023/03/01/tesla-investor-day-2023-livestream-video/
These days I shop for an older vehicle that’s been treated like a Queen its whole life. I have two GMC 2500’s that I mined from Kijiji. These two trucks each have a good 300K+ left to give, and can still be worked on at home. Nothing major has gone wrong with either. Biggest expense was new tires for the ’03. Even if you don’t work on your own jalopies, you can still save huge if you can pick the right ones to buy.
#22 DON on 03.01.23 at 3:22 pm
The US is having the same problem with car payment delinquencies. It has been in their news cycle for the last while.
******
Oops first time I didn’t read the entire post. Havng seen this in the news cycle in the US I was wondering if this would hit Canada as well. One or two new cars in every other drive way. The trendy hot selling Jeep Cherokes etc.
Yikes! Add it to the pile.
I am glad airline tickets are coming down in price.
Some of my favourite memories are the hours hanging out with buddies, tools and beer working on cars. And building competence.
Knowledge is never wasted.
My uncle’s go-to phrase when absolutely anything stops working is, ‘Well, it can’t hurt to take a look.’
80% of the time it’s an easy fix, 19% of the time it’s a difficult or undiagnosable problem, and 1% of the time, you destroy everything by taking a look. Totally worth it!
Lease sounds great except it doesn’t suit the utility lifestyle we have where vehicles see abuse (with occasional mega road trips).
$6000 toyota matrix purchased in 2020. Comes to $215 /mo plus oil changes that I do myself. Plus, I can beat the sht out of it and not worry about turning it in at end of lease and getting hammered. May get a couple thou back when we upgrade.
Maybe lease next go around tho.
Its funny how a pick up is judged red neck by termites living in the hive of Big Smoke yet a new Porsche is just feminine enough to be acceptable.
#12 ElGatoNeroYVR on 03.01.23 at 2:55 pm
At current rates probably not an option anymore.
What is ridiculous is the car prices , even used ones. A few years ago you could buy a Beamer or a Benz brnad new for less or the same price of a Kia nowadays ,not even touching pick-up trucks here.
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If you can not afford a brand new BMW, you certainly cannot afford a used one.
There is a reason 3 year old BMW can cost as low as a new KIA.
I also follow the example of Toronto_CA, post #7 and buy a used car and drive it until it’s sufficiently worn out that it’s no longer worth fixing. An yes, I’m a grease monkey like Dave, post #2 and fix what I can myself. It’s done wonders for my portfolio.
As for these loan delinquencies, look on the bright side. many of these almost new cars may show up at retailers like Repo Depo for a half decent price.
This has always intrigued me and I’ve done the math:
It’s cheaper overall to purchase a reliable vehicle(Toyota, Honda, Mazda)….drive it for 12-14 years.
Be sure it’s paid off in 5 years. And then….it’s free driving (save for the repair costs that typically come in under 1500$ per year).
Then you’ve got 6-700$ a month for 8 or so years to invest.
I’ve done the calculations. It’s better than leasing by a long long shot.
As stated, it’s not just about the bucks. Lots of people want nothing to do with keeping a geriatric car on the road. Can’t blame them. Time is your most valuable asset. – Garth
Credit card debt all time high trend.
Home foreclosures on the rise.
Car loan delinquencies up.
Consumer confidence down.
Inflation/Recession.
This is just the beginning of a very painful journey.
I agree that leasing is worth it for average households that do average annual Kms. In my situation it doesn’t work. The family car does about 10k a year so buying a 2 year old car is a much better option since the depreciation is the most in the first 2-3 years and I drive the car for 7 years before switching out.
My Van is the opposite, high mileage 35-40k a year on it so leasing gets very costly. Again better to buy a 6-7 year old van and get as many Kms as I can until it blows up. Sometimes I win sometimes I lose but the costs are far lower.
I always would lease, slightly more expensive in the short term but in general, worry free.
Used to make my own Buy vs. Lease calculations in Excel. Easy enough when everything was Class 10 CCA (self-employed or employee needs a car for job).
Had a laugh just now researching recent CCA numbers.
Despite what Trudeau/Guilbeault want, Gov Canada Apparatchiks say ZEV’s won’t last very long …
“An enhanced first-year CCA deduction with the following phase-out period is available:
100% after March 18, 2019, and before 2024
75% after 2023 and before 2026
55% after 2025 and before 2028”
Ya. You read the right. 100% depreciation in UNO ONE 1 year vs. 30% for ICE.
————–
Just Kidding. It’s Gov Canada incentivizing ZEVs vs. ICE.
ZEV CCA’s Class 54 or 55 soon to return to ICE CCA’s of 30%.
Here is Gov Canada trying to “HELP YOU” on Lease vs. Buy from different points of view:
CRA Mile Long CCA stuff – after your scroll finger is about to give up, Eureka, a sample calc
https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/t4002/t4002-6.html#tocch4clss5455
Consumer Affairs, just buy the damn thing and here’s a calculator, you’re on your own *
https://ic.gc.ca/app/scr/oca-bc/ssc/vehicule.html
Civilian version by Reuters mucked up by Province (I liked their Push, Pull or Drag list price of $40K)
https://www.thomsonreuters.ca/en/dtprofessionalsuite/blog/buying-vs-leasing-a-car-tax-implications.html
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* They need to read the CRA CCA stuff which they completely ignore for Leasing in their calculator.
I think Consumer Affairs don’t care. Buy. Lease. Do something. GDP was negative & Retail trade very low in Dec. For the Love of God, just get out there and spend Canada.
@Joseph R, post #32:
Does anyone remember Mohamed Bouchama on the TV show Autoshop? He said the same thing you said about BMWs, short for break my wallet. He said if you buy one keep it for 5 years maximum, because the cost of repairs and maintenance becomes outrageous beyond then.
Further to the superiority of purchase/keep:
Another upside is if I decide I want to drive from Nova Scotia to Ontario a couple of times a year…no mileage restrictions.
Downside (there is always a downside): I don’t get a fancy brand new car with bells and whistles every three years ( I could care less).
But if we are talking pure finances….my suggestion wins.
#123 Quintilian on 03.01.23 at 10:21 am
Nonpulsed:
“They are going to keep voting for the Trudeau/Singh coalition, despite the trajectory towards socialism and tyranny.”
Your observation is interesting, and deserves deeper analysis.
Assuming that is the case, and I tend to agree, then the question becomes why are voters repulsed by the alternative, and gravitate toward what is perceived as the lesser evil?
The right, especially on this blog, seems to have difficulty garnering support, and often resorts to Fox News style buffoonery to bolster its position.
And that does not attract thinking people.
————————————————————
How do you define “thinking people”?
I certainly don’t put anyone who votes Lib/NDP in that category, except perhaps those who have their noses so deeply in the trough and don’t want the good times to end.
Most I consider as that portion of society that wants to be looked after, even at the cost of their own freedom and prosperity.
It’s a shame to see a great country become second rate, but if that’s what voters want, that’s what they get. It’s a big world out there and you don’t have to go down with the sinking ship.
Look after yourself and your family, don’t get emotional about the things you can’t control.
Oh, and love my Silverado 4 x 4. Leasing is for low mileage uses. If you’re planning to put 500km on it, like I did my last one, buy it.
I’ve done the math on this a number of times and leasing is more affordable than loans for newer vehicles, but buying a reliable used car is still the most cost-efficient option.
A hidden cost often overlooked is insurance. For an old beater you can take just the least amount of coverage and save some money, but with a leased car you will have to agree to more coverage, and newer vehicles may also cost more to insure because higher risk of theft.
Another hidden cost is the fact that with a newer car, you’re the beta tester. Were there any recalls? Nobody knows yet, it’s too new. Sure, they’ll repair any flaws under warranty, but it’s still time out of your day having to make those service appointments, and you will have to drive a loaner in the meantime. Yech!
The bottom line is you can buy a used Camry and not regret it, or roll the dice on a lease option and get soaked on incidental costs.
Brand new diesel 3/4 tons of high end trim are pretty much all over 100K now. They make a ton of torque, but they get none of the great fuel mileage the oldies got. Parts prices are insane, and everything is computer controlled. Blow an injector pump and get ready for a 10K repair bill.
That’s why a 30+ year old Ram with a mechanical 12V 6BT in good shape is 20K or more. They can do it all, tow lots and get 20 MPG on the highway, you can work on them yourself. Huge used and aftermarket parts market. Pretty much unbeatable.
Maybe I should start stockpiling these things…
#20 chalkie on 03.01.23 at 3:14 pm
When you see me coming in my two tone 1980 — F 150 pickup truck that I purchased new, you would say, this fellow surely needs a raise, do not judge a book by its cover, it runs great and almost 400 K on it.
*********
I inherited a 95 gmc sierra 4×4 that used to be my parents. The truck was not even driven on dirt roads and I was the only one that could borrow it but it had to come back with a full tank of fuel and clean. The truck was trated as a baby and I am still returning the favour. All the you tube videos out there mafe DIY a lot easier.
Buy a newer used vehicle from a retiree (who uses it ocassionally and keeps up with the maintenance schedule) and replace components when needed.
I askef my BIL if he was gping to replace his truck. Nope…if the egine goes..he will buy a brand new crate engine for $2500 + and keep the truck. He already replaced the transmission.
Bottm line…take care of the vehicle.
As stated, it’s not just about the bucks. Lots of people want nothing to do with keeping a geriatric car on the road. Can’t blame them. Time is your most valuable asset. – Garth
That’s a fair point. I’ve been doing this for 30 years and I’ve only “broken down” once…a battery needed boosting.
I’ve got a good mechanic I trust as well I guess.
#13 ‘Alex’ – I think it depends on your actual lifestyle – how much you use a vehicle & where you live. Plenty of folks live without a vehicle, either by choice or because they can’t afford to own/operate one. So first, do you actually need to have a vehicle? If yes, why? Do you live in an area without regular or any public transit? Does the time it takes to use public transit preclude using it as it would simply take too much time out of your day? How much do you use your vehicle now? Does the amount of actual usage justify tying up so much $ in an asset that depreciates by $5-10K as soon as you drive it off the dealer lot? Which is really where the lease option makes sense. Having said that, if you are looking at leasing keep in mind a leased vehicle usually has an annual limit on kilometers driven, which if exceeded will trigger additional fees owing when/if the vehicle is turned into the dealer instead of buying out the lease at the end of term. Leases also tend to specify penalties may apply if the vehicle isn’t properly maintained. For some, having to comply with the terms of a lease may make the purchase option the better choice in the long run.
Great advice, G!
There’s also the option of no car at all (sorry, G. I know…we want people to spend…investment blog, after all…but, gotta be me!). Anyway, chose a place to live (there are many) where cars are not needed to get through your daily lives. If you are worried about not being perceived as successful as you think you are* (definitely here) then consider this an opportunity to connect with others – in order to lead one must first walk amongst, right?
Or would that take too much time?
*If you have not been to space or do not finance space exploration in some way you are not successful by definition of today’s standards. You follow. Like the rest of us losers.
Anywho, cars are depreciating pieces of junk. Although we are groomed to think they’ll make us better looking….I guess as long as you don’t get out of ’em!
Happy, week before vacation!
Og
https://www.wsj.com/articles/sec-alleges-healthcare-executive-made-illicit-stock-sales-through-prearranged-trades-b6347873
care coach …is that a real coach or synthetic with a script lol
“The Company integrated intervention platform uses AI, predictive analytics and digital interfaces combined with of care coach engagements to deliver member health, better healthcare system utilization, and durable outcomes and savings to healthcare payors.
Ontrak, Inc. is an artificial intelligence (AI)-powered and telehealth-enabled, virtualized healthcare company.
https://www.google.com/search?client=firefox-b-d&q=Ontrak+stock+
#37 Dolce Vita
That was for a Capital Lease for self-employed or car needed to generate income.
The Gov Canada – Consumer Affairs Vehicle Lease or Loan Calculator a good alternative for non Capital Leases – yet greatly wanting.
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I agree with Garth AND all these calculators fall flat on their heine on the one fact they COMPLETELY ignore:
Garth’s “First”
“Better that the funds be rifled into your RRSP to grow tax-free and reduce your taxes. Or a TFSA … your capital could have doubled.”
Money saved with a Lease put to better use.
—————-
People here commenting about Buying better, clearly do not have a CLUE about Opportunity Cost (or how to calculate it, if they did, they would not say buying better) and I don’t care if you buy 2 or 3 yrs old, loan or not, same Math in the end.
It’s a Cash Flow saved issue with a Lease. Invest that.
And ya, I would calculate that way back when there were no ZEVs to muck things up.
26 Sail Away: Tesla Investor Day may well be the tipping point moment for Earth’s transformation from carbon fuels to renewable energy. The vision and plans presented by Tesla could be the rallying blue print for the future.
Of course, Mr. Leasing Evangelist here’s wedding dress would not be white.
Before leaving for Italia, a few years before, bought a ZR1 Corvette and Supercharged it to 650 bhp. It was black in color; thus, aptly named “Black Death” (little did I know a few years later Covid would arrive). There were no ZEVs then.
Ryan can keep his “I have a bling bling Lambo”. Nothing like good old fashioned American Iron to get your corpuscles racing down their vein, artery raceways.
And at a fraction of the price of the effete Italian stuff + you can easily get in and out of a Corvette, Lamborghini needs you to be a contortionist.
Threw out my Lease vs. Buy Capital Lease Excel spreadsheet before buying Black Death.
Best non-economic Math decision I ever made.
I miss Black Death. I do. Sold her before leaving. No Corvette dealerships nearby here in Pordenone.
Now, I live vicariously via Frecciarossa Trains (360 kph) and visiting Lamborghini, Ferrari and Maserati factories after waiting list. Craftsmanship still alive here in Italia.
Think I had perfect timing buying my custom ordered F150 last year. Order to delivery took 4 months.
Dealer sold for $500 under sticker price. My trade in was worth what I paid for it 2 years earlier, and I financed about 35% of the purchase price at 0.99% for 6 years with Ford Financing.
Love my F150. Retiring this year and looking forward to using it to tow our trailer all over North America.
Cars!
After I’ve been talking for years about the money pits they are.
It’s not too late yet.
Ask yourselves:
F-150s, what are they good for?
i bought my last car 3 years ago for 1800 cash, no real repairs just some tires and a starter or something. have CAA and used it a few times, but the people who pay big money every month for a vehicle I have no idea.
this is a 25 year old vehicle and its perfectly ok. honestly i was getting a ride in my buddies f150 worth like 70k but i cant really or personally tell the difference between a nice vehicle and the crappy car i drive, all I know is i sit in the seat and turn on the radio and put in drive and go somewhere.
I dont appreciate anything that the vehicle offers, my piece of crap does have power windows and doors etc, but I never use them, i stick in a key and turn the lock.
I dont know.
#9 Dr V on 03.01.23 at 2:45 pm
134 Ponzie
“One Canadian called out the thrift store chain after they found a pair of used Chucks listed for $60.”
————————————————————
Ponz, you dont understand.
The gold standard for basketball shoes 50 years ago.
https://www.youtube.com/watch?v=za53Px3eb_s
—————-
I get it. Some of those are quite the collectors items.
Lots of people mugged and even killed for them.
I saw an ad for a basket ball sneakers store.
Had over 1,000 individual pairs in stock.
Capitalism at its best.
Didn’t you recently but a new car?? Oh well..
Grim Greta is pissed about windmills now… you will eat zee bugs
https://nationalpost.com/news/greta-thunberg-detained-by-norway-police-during-pro-sami-protest-2
Cars!!! Yaaayy! Garth hath heard my pleas. Thank you, oh bearded one.
With MSU complete, I have a question. As someone who began leasing because of this blog, the lease interest rates are sky high these days.
Does it factor in at all, or strictly rent what depreciates and shut up?
Beater, new lease whatever just down buy an EV. An EV will leave you on the side of the road more often than a beater car. This guy after a trans Atlantic flight had to search for chargers to get home.
https://www.youtube.com/watch?v=DKHtNqO2knc
Sigh. First rule is:
Buy less car.
People buy too much car/truck for the same reason they buy too much house – they are buying it to feel good about themselves.
You’ll get all kinds of rationalizations and stupid edge cases (“I need it to tow my RV 2 weeks a year.” That’s not a need, that’s a luxury.) People need to stop fooling themselves.
Unfortunately, the trend toward buying too much has got to the point that it’s pretty difficult to buy a cheap, good new car in this country – the manufacturers have just stopped selling them. Things like the Honda Fit are sold overseas but not here simply because people would rather buy too much.
I saw today Yellow Tractor Guy’s dream rig.
Ford F450 (not a typo) Super Duty, extended cab, Dually, 4×4. With a Power ‘Smoke’ diesel.
—————-
In Soviet Kanada they pretend to pay us and we pretend to work?
4-year Obedience Certs. are near worthless these days.
Your cab driver or barista probably has a Masters or PhD.
.Average hourly wages in Canada have barely budged in 40 years. Canadians are paid, on average, almost the same hourly rate as in the 1970s, even as an increasing number of people become increasingly educated. (globalnews.ca)
— Control over feeding. Always the bugz our Rulers want for us.
.https://nypost.com/2022/09/20/russia-proposes-alternative-meat-made-from-fly-larvae/
Russia proposes ‘alternative meat’ made out of fly larvae as country deals with sanctions September 20, 2022
–But why. Our elite ruling class folks. We are to be fed and farmed for profit.
https://www.cnbc.com/2018/03/23/bill-gates-and-richard-branson-bet-on-lab-grown-meat-startup.html
“Bill Gates and Richard Branson are betting lab-grown meat might be the food of the future
PUBLISHED FRI, MAR 23 2018”
Pitfalls of leasing:
– go over km limit…..extra .25 cents/km
– Don’t lease over 3 years….your tires will be bald by then
– any dings…you have to pay to have fixed
– buying out vehicle is expensive
So, don’t. But those are completely overstated. – Garth
I bought a car, for cash using a windfall I came into, back in 2012… dumb move. That said, I still drive the car today.
However, in 2020, wife and I opted to finally add a second car and we leased it… a real beauty! It was a demo model too, so people think I pay WAY more than I do.
I might buy it out when my lease expires in 12 months – if used car prices stay elevated, it’s almost a guaranteed $10K profit if I flip it (if not, I can keep it).
Agree with GT – rent what depreciates!
#10 – my friend swears by lease busters… if you keep your eyes open you’ll find that person who put down $10K and needs to get out of their lease.
There are deals to be had, but many listings are just dealers trying to lease the cars any way they can
What a magnificent creature is Quinton. Tail straight up. What an athlete!
I like working on cars, so the math is vastly different for me. Currently driving a 2016 Chevy Volt, bought in 2020. A few minor repairs mainly due to living out in the sticks. Anything out of warranty performed by me.
My problem with leasing is the total cost of ownership. Sure, you’re always driving new stuff, but even 20 year old cars are generally reliable at this point. I bought a 1998 Dodge Dakota (reg cab, short box, 4-banger engine) for $1200 and drove it to work for 5 years. The only time it left me stranded was when a literal stick went through the gas tank, which can happen on any car if the driver is dumb enough.
If I were a high roller (a real Garth Turner-type) I might lease or buy new but for me 3-5 year old used and drive them forever makes more sense. Carry a set of tools (recommend a Bluetooth code reader as well), keep your CAA paid up.
I was happy I didn’t have to turn my car in (or buy it out) in 2022!
#52 Ponzius Pilatus on 03.01.23 at 4:23 pm
Ask yourselves:
F-150s, what are they good for?
–‐——————-
In the country, lots. Hauling water, lumber, equipment parts, etc. I sold mine years ago but had to rent one for 4 days in December because roads were impassable to my car or my 1993 Dodge 2 wheel drive.
Doesn’t make sense to own a late model truck for commuting (to me, at least) but for farmers it doesn’t make sense to own anything else.
Above all else, do not fall for the BS called “EV Rebate” being foisted on the public by governments and dealerships. YOU DO NOT GET A REBATE. Administration of this scam was left to the dealerships who have simply raised their prices by an amount commensurate with the advertised “rebate”. The only ones who have been “incentivized” are the dealers and the manufacturers. Hyundai is a good example. List price for the Ionic5 when it arrived was $44,900 “after rebate”. Dealer wrote up a proposal at $66,500.00. Maybe he sold it to the greater fool in line behind me.
One thing we’ve learned about the readers of this blog via G’s polls is that many wealthy folks troll the waters here. Today, we are learning many of these same folks drive pickup trucks. Coincidence?
Garth, I think the question of pickup truck ownership would be a good one for the next poll.
Which brings us to a simple life rule: buy what appreciates, rent what depreciates.
——————————————
The oldest profession….
Leave realtors out of this. – Garth
The problem is obvious, vehicle’s cost too much. The result is too much debt relative to income. Same problem with real estate.
#60 Dave on 03.01.23 at 5:03 pm
Pitfalls of leasing:
– go over km limit…..extra .25 cents/km
– Don’t lease over 3 years….your tires will be bald by then
– any dings…you have to pay to have fixed
– buying out vehicle is expensive
So, don’t. But those are completely overstated. – Garth
—————————————————————–
In the past had a financed car, got hit and then fixed properly. After a while decided to trade it in for a new one (same dealer) they offered less due to being in an accident. So I said, ok lease me one. Got hit again but this time I was leasing and will not lose the value on trade in. Not my problem as it’s a lease. See the difference Dave ? Do what works for you.
So much for the idea of a Fed pivot, corporate bonds have reversed nearly all gains since the rate cut fantasy evaporated
Do the math. If leasing long term results in lower costs do that.
For me I have had good experiences with used cars. First car was a used clean Nissan hatchback bought with $1200 cash. Sold two years later for $500. Owning cost me $350 a year or about $30/month.
Next car was a used Mazda sedan bought for $3500. Sold a year later for $2500. Less than $100/month cost
Then I made the mistake of buying a VW Jetta brand new. It was a sweet car but cost a lot. Kept it for 16 years though before eventually donating it to the Canadian Guide Dogs. Cost me $30k or so or about $156/month.
Now my car is a used Audi A4. Bought it five years old for $18,800. Got it checked by an Audi mechanic for $200 bucks or so. $19k all in. Have had it for 5 years so far with not a problem at all with it. After five years my average cost is $317 a month. I will probably keep it at least another 5 years if not 10. If I keep it 5 more years my average monthly spend will be $158. If I keep it 10 more years my average monthly spend will be $106.
Do what makes sense for you. For me I like to buy used cars and keep them in good shape and enjoy the low cost.
It’s interesting how many times people need to be reminded that time is worth more than money. Oh well. You will learn. – Garth
DELTED
Garth, you owe me a coffee.
The ending made me laugh so hard that I spilled it.
Thank you for your posts.
I always buy used, have for 40 years.
I have a great mechanic so he fine combs over the vehicles.
Currently I have three vehicles on the road.
If I had bought them new I would of paid over 200k.
But I bought them all used -low mileage 1 owner for 61k$
The secret is to take your time, be patient and to have a good trustworthy mechanic.
One of my vehicles is a Lincoln Aviator that was owned by an elderly wealthy East Indian lady who just wanted a newer truck.
It was over 80$k new and had 40,000 kilometres on it.
I paid 14k$ and it’s been a beautiful truck.
The other an upgraded Subaru STI that l bought because the couple were having a baby and wanted a van.
Low mileage 20,000 kilometres for 20k$
The last being a Big Horn Ram with all the bells and whistles being sold by a wealthy Chinese fellow in West Van who just used when in Canada.
Again low mileage 30,000 kilometres for 27k$
I also have a rare older vehicle a Bronco that was a garage find of sorts that I picked up for 2/3 of its true value because the fellow had intended to sell it at Hemmings but couldn’t get across the border because of the pandemic rules.
So that’s my advice, and you can still write stuff off.
#49 4 out of 3 people find math hard on 03.01.23 at 4:13 pm
26 Sail Away: Tesla Investor Day may well be the tipping point moment for Earth’s transformation from carbon fuels to renewable energy. The vision and plans presented by Tesla could be the rallying blue print for the future.
———
Oh, the Tesla presentation is excellent. All meat. Feels similar to the Berkshire AGM, to be honest.
All goals and projections over many many years have either been achieved or are fully on track to completion. Truly amazing.
Dirt roads are for horses and dog teams.
56 Captain Uppa on 03.01.23 at 4:42 pm
____________________________
I am sorry Captain, to most of the readers here, the whole car cost is just a rounding error to their annual budgets, let alone the tiny differential in interest costs. Simply speaking, they don’t care.
My car is ten years old and it’s not toast. It may be good for another five years. I bought it new for $50,000. The lease info that I have looked at have max kms per year. I can’t meet that. I would end up paying more on top of the monthly lease pmt.
What is the interest paid on a lease? Just curious!
Bought my daily driver, 22 longhorn for 79k last May trading it later this month for 68k towards 23 TRX . I pay the difference and save the tax on the 68k. Can’t do that with a rental.
I think leasing makes sense when you can get a zero/low rate. At 8%, no thanks.
I would also say only lease a dependable car, especially if it’s your daily drive. That way if the car is in good shape and vehicle inflation has been high during the lease term – as it has been the last several years – you have the option to buy out a reliable car for a relatively cheap amount at lease end. Unless it’s a Tesla, which doesn’t let you buy the car at lease end.
If you’re buying a toy/flashy car, then yes I agree lease is the way to go. But you’ll pay through the nose for it.
Newer cars are ridiculously reliable. I buy used and pay a local guy to do my service, no one needs to change their own oil anymore then you need to cut your own hair.
Leasing is a great option for the kind of rich and slightly poor, middle class should buy those depreciated vehicles, put aside a few k for repairs, and off you go. Been doing this for ten years and have had no major issues, or really even any major bills. Summer car was 100k 10 years ago, paid 25 and have had no repairs past 2 years. Towing vehicle was 18k and our family whip was 19k cash. 50k kms with only wear and tear items.
Would never buy euro luxury used however, they can have catastrophic issues.
Never understood why everyone feels they need a new car. Buy something you can afford, maintain it, pay it off. A never ending lease payment is a drain on investing, but if you need a new car every three years then yes a good option.
Nah…
Buy a beater when you first start out with a car and save the lease payments every month.
Sell the beater the next year for the same price you paid for it and then get another beater plus the 12 months you saved.
Keep saving the monthly payments you would have made and then rinse and repeat. In a few years you will have a decent ride.
“Vehicles are machines. They’re not your alter-ego. Don’t buy emotionally – they say nothing about you. Unless, of course, you have a jacked-up pickup, especially with balls. Then we all know.” – GT+++
Garth really hates Alberta. Oh well. Preston Manning and history are what they are…
Jaguar purchased wheels some time ago over the phone. Had to fly on WestJet to pick it up due to singular specifications unavailable in my immediate area. Peeps often drop hints about taking it off my hands if I am so inclined. Maybe it’s the manual transmission in a smaller, immaculately maintained lovebug that draws their attention. I dunno… I try to walk most places, bike, or use public transit.
It’s true what Garth sez about depreciating assets and vehicles just being machines. It’s also true that some peeps love cars. They just do, and they love to bond with other car peeps. We all covet something, and while it’s an indulgence I cannot laugh at those whose passion or hobby is vehicles. Some things are about more than money.
I don’t think Jay Leno is in it for the money, but for the love of his collection.
#42 IHCTD9 on 03.01.23 at 3:53 pm
Brand new diesel 3/4 tons of high end trim are pretty much all over 100K now. They make a ton of torque, but they get none of the great fuel mileage the oldies got. Parts prices are insane, and everything is computer controlled. Blow an injector pump and get ready for a 10K repair bill.
That’s why a 30+ year old Ram with a mechanical 12V 6BT in good shape is 20K or more. They can do it all, tow lots and get 20 MPG on the highway, you can work on them yourself. Huge used and aftermarket parts market. Pretty much unbeatable.
Maybe I should start stockpiling these things…
———————
I tow with a 98 12v shorty, quad cab. With a 5sp consider the holy grail of cummins(mine is an auto). They only made in this config for 4 months, isn’t one for sale in Canada right now (that I can find, there would be a few of course).
Absolute tank, tranny needs work every 150k kms, front ends as required, but will go 800k km’s easy and can two a house. 24mpg highway, about 18 towing 8k pounds.
Doing work on the P Pump this summer, thousand pounds of torque he we come.
I can see the benefit of leasing if you’re in the city and not using it for much else, doesn’t fit our lifestyle though. Now why can’t say Ford build the 1993 F-150 new (or any old vehicle at that) exactly how it used to be and sell it new for say $25,000, now that’s something I’d be interested in. I don’t need all these modern day gizmos and gadgets (both under the hood and interior/exterior) to get me from point A to B.
@#23 Leftover
“As always, young people are smarter than they look:
https://www.economist.com/international/2023/02/16/throughout-the-rich-world-the-young-are-falling-out-of-love-with-cars”
+++
The article barely even touched on the #1 reason most young kids aren’t able to drive.
The cost of insurance.
#32 Joseph R on 03.01.23 at 3:37 pm.
If you can not afford a brand new BMW, you certainly cannot afford a used one.
There is a reason 3 year old BMW can cost as low as a new KIA.
==
Yup ,true that ,I did say certified pre-owned ! Had some good ones ,had some bad ones. Bougth the current one brand new with extended warranty so a total of 8 years at which point it will go to trade no matter the km’s or condition.
No german cars out of some sort of warranty , ever , not even ( or shall we say especially) the Mini-Cooper .
My point was more towards the fact that you can get a brand new BMW X1 for pretty much (call it 5K more or so) the same price of a Kia Sportage with similar options .
Aren’t you at a dealer’s mercy when you return the vehicle in 3 years though? I mean don’t they typically ding you on every scratch and rotting food that fell under the seat?
This is the rare time I agree with ….Faron.
Toyotas are gold.
I bought a 2014 Toyota Tacoma brand new
Half down , half financed on a Toyota Red Tag sale.
0.5% interest over 4 years.
Payments were $400/month.
At the end of four years I think I paid $400 total in interest.
And part of the monthly payments were a write off through my biz.
Still driving it….. only 90k on the odometer.
I’ll drive it for another 12 years.
My last Toyota Truck lasted me 20 years and I sold it to a kid who drove it for another 5.
In the middle of Covid I was offered MORE than what I paid for it….but Toyota had nothing on the lot.
Fugggeddaboutit.
I rarely by new vehicles ( second new Toyota in 40 years) and have owned jalopies in the intervening years …..so to lease vs buy…..
Maybe in 20 years when a new, basic , self driving Tesla E-vehicle is 100k …..I’ll pass and look at Uber to take me home from the pub……..
I bought my 2015 Mazda 3 in 2018 for $16,000. It had 26,000 km on it and was about $10,000 cheaper than a brand new one would’ve been. Had a set of nice RX-8 wheels on it, too.
In the last 5 years, it needed a couple of brake calipers and the touch screen replaced. Mazda did those repairs for free under good will. Go figure – I bought the car from a private party. Otherwise I did oil changes and a set of brakes and tires – things even a leased car may need.
It has about 80,000 km on it now, still looks and drives perfectly nicely, and at about $100/month in depreciation and falling, has cost a small fraction of what a leased car would have. Oh, and I own it. I don’t want everything in life to feel like a rented transaction. It’s why I don’t want to rent my furniture, either. I’m also not driving around in a $30k+ liability, like I would be in a leased new car, either.
Then there’s my summer car, a 24 year-old Miata. Ran it flat out at Circuit Mont Tremblant for 3 hours last summer and it didn’t miss a beat. Still looks nice, too. Still worth about the same as it was when I bought it in 2011.
If someone wants to lease new cars and is comfortable handwaving over the multiple hundred dollar difference in cost every month, have at it, but it’s not for me.
@#67 IHCTD9
“Garth, I think the question of pickup truck ownership would be a good one for the next poll.”
+++
How many vehicles/people in household ?
( A friend has him/wife/ two kids and seven vehicles…all paid for)
Truck Make & model (how many are 4WD?).
How many blogdogs drive SUV’s?
How many own EV’s?
How many don’t have vehicles?
I just read that Ford has patented a new feature for their upcoming self-driving cars: auto-repossession. Yep, that’s right. Fall behind on your payments and the car will drive itself back to the dealer.
Why not, I suppose? Repossessing a car can be dangerous. People have gotten shot just enforcing the law. They have to sneak in at night with their quick-pick tow trucks and hope they get the car out of there before they are noticed. And then people keep them locked in the garage or anything else they can think of.
Makes me wonder about the future a little bit. Is that what lies ahead for us? A bunch of basically lawless animals divorced from reality and changing our gender on a whim, yet unable to actually do anything harmful because the machine control our every action? Will the machines implement socialism or capitalism? Will those words still have any meaning? Will your credit card automatically limit your expenses for climate reasons? Maybe even health reasons? Will it matter how much money you make if you can’t spend it because your carbon footprint is too high? Will voter ID even matter once they implement facial recognition? Maybe AI will take over the government too? And of course propaganda is already so powerful that almost nobody has an original thought, all opinions are assigned to you by the various powers that be. That also will only get worse until it is irresistible. Then add in a bit more virtual reality backed by AI and you may not even interact with actual people. All your friends on Facebook will be AI bots. But damn if they aren’t all super hot and really like you.
Maybe Elon Musk is right again; Mars is the only way out. To bad there’s nothing there.
“ Unless, of course, you have a jacked-up pickup, especially with balls. Then we all know.”
Do THEY know we all know? I’ve always wondered..
It’s interesting how many times people need to be reminded that time is worth more than money. Oh well. You will learn. – Garth
Yes, time is worth money that will be income taxed if you work for pay with that time. Therefore the hour invested in your own endeavor is worth 80 or 90 minutes of work time.
The biggest reason for shot engines is….following manufacturers suggested oil change guidelines.
Just because BMW recommends 15,000 Km, doesn’t mean 5000 Km change intervals won’t make the engine last at least twice as long!
I pulled a head off of a 260,000km car with 5000km changes last month and there was zero wear on the cylinder bores and absolutely zero guck or sludge anywhere in there. The valve guides were as tight as new too!
It was an ’02 GM 3.1 with the every 85,000 Km intake gasket failure issue, if you wonder why I was in there….
It’s cheaper to keep her, we are down to $91/mo capital expenditure on that creampuff 252 months in.
Gone are the days when fixing your car was bragging rights. For me buying a used car and then investing in the tools to fix it proved more financially viable. My last van lasted over 300k (200k was my doing) and 7 years. I only paid $3400 in 2010 for a 2004 Ford Freestar. Drove it till the bottom fell out, literally. Maybe about $1500 in maintenance and repairs. I took care of the van and in the end it paid me. It lasted through a dozen house purchases (I buy properties to convert and rent) and I never once did I have to rent a truck (dump, hauling of tools and materials, trailer pulling) all free. All that extra money I saved I bought the ETF PFF and a bunch of Enbridge shares. I am laughing all the way to the bank. My next vehicle will be a truck but will be paid for by dividends from the money I invested for not having a car payment. I see young people on the job site with a new F150 and have to think, they are hating that $800 month car note, plus insurance. My van, just liability insurance ($75 a month) if I trashed it, so what. Dozens more out there
Love your Blog Garth, but your advice on leasing needs a tune up. Leasing encourages people to get cars they can’t afford and traps them into the monthly payment cycle that’s hard to break. Lots of good low mileage reliable cars out there, find a good mechanic (there are lots), and don’t care what your broke neighbour thinks of your car. Doesn’t require much extra time/effort and saves precious dollars that can be invested. Besides no monthly payments, lower insurance costs too.
Never owned a vehicle from this century, never thought about leasing a vehicle until recently, even though Garth talks about it on here twice a year, normally when Trump is behaving himself.
Middle of last year when my elderly Father in law went to the doctors office, got diagnosed with dementia, and had his license rescinded, I asked him what he wanted me to do with his car.
He originally told me it was lease to own, and a heap of other stuff that I had not much clue about what he was talking about.
I dug out the paperwork, apparently he signed a 5 year lease back in 2018, before things went nutso.
Said he pays $220 a month, I asked him if he wanted to take it back early, but he said that I should just drive it occasionally when they need to go somewhere or when it’s scheduled to snow heavy, since my vehicle doesn’t like the white stuff.
I think it is a 2018 Rav 4, the lease expires in July this year, and yeah he dodgem car parked it a few times and put some minor dents and scratches in it, so we’ll probably have to bring an envelope.
I feel safer in my Mirror Filler, from the late 80s, even though it doesn’t have airbags, unless you want to count your elbows, or much other safety stuff, the higher seating helps me see the road clearer.
The leased Rav 4, I like the reliability, fuel efficiency and handling, I think the same lease now would probably be 4 hundred and something, dunno too scared to look.
It’s also a lot quieter than my 7.5L 460 engine, so to make me feel comfortable I make motorboat noises as I putter along…
M48BC
Got a 2000 Mazda Protege. Almost no gas, 150K on clock, easy to fix, roll down windows, key entry, and no one will ever steal it. Love the little guy!!!!
This blog is the only place Mrs Flop allows me to be a delinquent…
M48BC
——————————————————-
“Canadian Credit Delinquencies Are Rising For Everything But Mortgages”
“Canadians Are Falling Behind On Other Segments of Debt.
Inflation and rising interest rates might be pushing borrowers to their limits. Delinquency rates showed huge annual growth for installment loans (+49.0%), auto loans (+23.8%), lines of credit (+21.9%), and credit cards (+17.1%). Such a fast rise in rates doesn’t exactly scream, “everything is fine.”
https://betterdwelling.com/canadian-credit-delinquencies-are-rising-for-everything-but-mortgages/
Every car I ever bought I paid cash because you get a better price when you pay cash.
Garth continues to be wrong on this. Perhaps he was burned by a used vehicle long ago and has made up his mind that it sucks. Leaving aside the DIY crowd (which I count myself a part of), your best bang for your buck is to find that 2 to 4 year old vehicle with low km. Drive it until it’s just south of 100km and sell yourself. You can often save 10 to 30% (and tax if you find a private sale). It’s barely broken in and will have only been serviced at the dealer. Not much serious maintenance before 100km. Still easy resale market at that point. Don’t aim to make money on the sale and it will go quickly. Undercut what the car would sell at a dealership for and someone (that DIY guy/gal) will happily snap it up. Repeat.
Leasing might be easier, but as long as you don’t mind thinking a bit, buying quality lightly used vehicles will save you money.
To Hell with self driving electric cars.
I want an EVTOL from Doroni
https://www.doroni.io/our-story-page
Waddup with BNS and ENB, solid dividends but battered lately due to high interest rates and writedowns? Further to drop?
Re. Cars, the future in urban centers will be a bit like the common use bicycle services in many world cities. You pick up a clunker when u need it and drop it off at acollectipn point…..otherwise use ride-sharing such as Uber….
@#93 Westsider
“Got a 2000 Mazda Protege. Almost no gas, 150K on clock, easy to fix, roll down windows, key entry, and no one will ever steal it. Love the little guy!!!!”
+++
I had a Protege for a few years.
Awesome used car.
VERY easy on fuel and a great runabout.
Barely any maintenance.
I’d buy one again in an instant if I needed a second vehicle.
Garth has forgotten about the urgent need for Paleo Boomers to get a Harley……can you even hope to lease those?
#86 Mattl on 03.01.23 at 6:55 pm
I tow with a 98 12v shorty, quad cab. With a 5sp consider the holy grail of cummins(mine is an auto). They only made in this config for 4 months, isn’t one for sale in Canada right now (that I can find, there would be a few of course).
Absolute tank, tranny needs work every 150k kms, front ends as required, but will go 800k km’s easy and can two a house. 24mpg highway, about 18 towing 8k pounds.
Doing work on the P Pump this summer, thousand pounds of torque he we come.
———————
1998, the end of the line for the good stuff. At one point, I was seriously considering swapping a 12V into a GMT800 2500HD RCLB (I can’t stand Dodge truck quality). The ultimate chassis paired with the ultimate engine. I’d put an NV4500 behind it. Big buck parts, but guys would pay top dollar for a rig like that when sell time comes.
In the end, I ran into a deal for a ‘91 C2500 with a 6.2/700R4/3.73 SF 14 bolt that I couldn’t pass up. So, no towing power for me ever; but with a few tweaks, an NV3500 swap, and some gentle driving, I think it could get nearly 30 mpg at 110 km/hr, and still tow a couple ATV’s provided the hills aren’t too steep…
1) Carcostcanada.com will save you more money at buying/leasing a new vehicle than most of the arguments above around owning/maintaining.
2) Time is valuable…if you like the work because it’s a hobby, fill your boots. Build my decks but pay someone to stain them. I fix motorcycles, but hate fixing cars…own bikes, lease cars.
I’m sure it works well for some people, but I like having no car payments too much to lease.
People are mistaken by thinking don’t list if they can’t sell for the price they want. The price they want is often impossible in a declining market. Too many will realize too late that there is a massive amount of rental coming in BC and across Canada. Once it hits demand drops very fast in the condo and starter markets. We always walk away from them when we know they are dropping. Buy and sell enough times and you will learn to protect your equity so you don’t lose 50k per month year after year.
#102 Tony on 03.01.23 at 8:36 pm
Every car I ever bought I paid cash because you get a better price when you pay cash.
That is not quite true. The dealer misses out on the commission (kickback) from the lender when you pay cash. So a cash price is more often larger than a dealer financed price. However they have multiple methods to show you that you are getting the lowest price regardless of how you finance or pay. Honest.
As auto loans are not mortgages (yet) the way to do it is finance via the dealer’s preferred lender, pay the loan for 3-4 months so the dealer gets his cut and then pay the loan off at whichever lender you are with.
Just makes certain the lower price is able to justify the couple of months interest. And let the dealer’s finance guy know what and why you are doing it this way, she will maybe throw in some free floor mats or maybe a full tank of gas.
Source: two adult sons who both work in the automotive dealership arena. One as Assistant GM for the moment, the other in management at the automotive dealership group office, overseeing 7 dealerships, 2 RV lots and a detailing/window tinting, vehicle wrapping outfit with three locations.
So…sort of a subject matter expert.
BTW, they love, love, love it when you lease. They also love, love, love it when they make money. Put those two statements together when you are deciding if you should lease or not.
#99 Flop… on 03.01.23 at 8:09 pm
It’s also a lot quieter than my 7.5L 460 engine, so to make me feel comfortable I make motorboat noises as I putter along…
—————
I had no idea you were a fellow big block V8 freedom fighter Flop. If you ever get down to Southern Ontario, stop in for a beer. We can talk about stump pulling torque and hit the gas station. Just keep in mind we’re all GM fans down here.
Parsing the Trudeau-Tiff rate balk and as expected inflation soars and the Loon crashed. Everything imported, like your food just got more expensive. I talked to a meat-guy in a Super-Dooper Store who pulled a hammy trying to chase down a steak thief last week who had a get-a-way car revving in the parking lot. I’m thinking smash and grab Food Bank robberies by year end. We’re careening into chaos.
Is this what China has in mind for us, and does my vote matter anymore? More Canadians polled think my way, we’re getting scammed, so say the most recent polls.
Bonds got creamed, so what, nobody buys bonds anyway. Canadian banks , ex BNS , came through again. I love the shift into the US by the others. Don’t kid yourself , the markets set for a leg down, Tiff-Trudeau will hike again, they’re being dragged behind the US bus, but if you’re cashing up with monthly dividends the bottom will be sweat cream.
Things will look a lot worse in Canada before this is over. ‘24 might be the ‘generational recovery market’ that makes for a luxe retirement, on the dusty bones of the ones who won’t make it. And just in time for a ‘25 election where young people and the new poor are voting desperate for welfare.
Wow, the blog dogs hate leasing.
It’s a stigma that most can’t shake. My parents looked at
me funny when I leased my first car.
The current interest rates on leases is sky high though.
#76 Sail Away on 03.01.23 at 6:04 pm
#49 4 out of 3 people find math hard on 03.01.23 at 4:13 pm
All meat
—
LOL. fluffy pillow I and fluffy pillow II beg to differ. Meathy for a breathitarian I suppose.
BC Money Laundering saga continues
After BC police intercepted over 2 million calls, texts, emails from suspected money launderers.
They created over 42,000 documents following millions of dollars through BC casinos, real estate and businesses
The Attorney general’s office has decided,
“There’s not enough evidence to proceed with charges that will result in any convictions…..”
If anyone in the private sector spent that much staff time and company money on a failed investigation….. they would be fired….
Garth, you must have more money than us average Joe’s.
$800-$1000 a month on a 3 year lease these days!
$36000. No thanks
109 Joe Schmoe on 03.01.23 at 9:07 pm
1) Carcostcanada.com will save you more money at buying/leasing a new vehicle than most of the arguments above around owning/maintaining.
2) Time is valuable…if you like the work because it’s a hobby, fill your boots. Build my decks but pay someone to stain them. I fix motorcycles, but hate fixing cars…own bikes, lease cars.
————————-
Agree.
If you are a Doctor and you fix your own Mercedes.
You lose a ton of income.
And car maintenance tax deductions.
And you don’t wanna be called for an emergency.
When you just took the motor apart.
And pre-surgery scrub may take a while.
And you may lose the patient.
And get fired.
A rental is a long-term test drive. if after 3 or 4 years you like your vehicle, you buy it. It’s the best used vehicle you can buy and what’s more, the purchase price is very advantageous. otherwise, if you didn’t like it, you hand over the keys and shop for another rental.
I’ve never heard of a lease that includes any service except for the warranty (for which I’ve had to fight tooth and nail every time I had to deal with the dealers). As for time is money, that’s all good but I’ve never taken a day off to change oil or tires and , well, i actually enjoy it. Bought my truck 7 years ago and will probably keep it another 10-13 years. Just like the last one. How good is all that vehicle production to change something perfectly good every 3 years for the environment?
115 Captain Uppa on 03.01.23 at 9:34 pm
Wow, the blog dogs hate leasing.
It’s a stigma that most can’t shake. My parents looked at
me funny when I leased my first car.
The current interest rates on leases is sky high though.
—————-
So are finance cost.
#102 Tony on 03.01.23 at 8:36 pm
Every car I ever bought I paid cash because you get a better price when you pay cash.
————————
See #112 Ustabe for a counter.
And remember, paying with cash incurs opportunity cost.
Meaty
Although “meathy” sounds extra meaty. LOL.
#27 IHCTD9 on 03.01.23 at 3:31 pm
#42 IHCTD9 on 03.01.23 at 3:53 pm
#67 IHCTD9 on 03.01.23 at 5:29 pm
#108 IHCTD9 on 03.01.23 at 9:00 pm
#113 IHCTD9 on 03.01.23 at 9:29 pm
Someone’s truck nuts got a little shriveled by your cold dig, Garth.
Leasing is more available in the states but more limited in Canada. My favorite used car was a “2008 Ford Taurus” sedan (the weird design everybody hated) I bought at a curbside outfit deep down in Dundas, On for $3,200…the guy was nervous and shakey but I nailed my number. The lot was full of a lot of shabby inventory (Fords). I am a Ford adherent but I am not a fan of the F-150 or SUVs.
#119 Ponzius Pilatus on 03.01.23 at 9:57 pm
Agree.
If you are a Doctor and you fix your own Mercedes.
You lose a ton of income.
———-
When I do a brake job on one of our vehicles, I do it on my own time, not company time. Most folks don’t take a day off to do vehicle maintenance.
Shade tree mechanics do 40 hours, then save big $ on the weekends/evenings doing brake jobs and exhaust work. They don’t lose a dime of their income doing it. Same goes for shade tree roofers, plumbers, landscapers, and carpenters.
Hmmm…never thought of leasing…have to crunch the numbers.
Absolutely cringing at the thought of dropping 25G for a used vehicle.
Cant figure out how to keep the 25000 and have a reliable newish vehicle……. I really dont want any monthly payment.
Saved like mad…blood, sweat and tears to come up with the cash…ugh
Thank you…great post….just in time!
Not sure why Garth thinks buying and keeping a car involves more time than leasing a new car every three years. In either situation you would still need to change tires in the winter and spring, get oil changes (unless its an EV), and get the occasional car wash and clean up the interior. In fact keeping a car for a while saves you the time involved in lease shopping every three years. No extra time wasted by me for having owned cars for a long time.
I agree time is more valuable than money. Just don’t think owning a car takes more time than leasing one.
#101 Flop… on 03.01.23 at 8:23 pm
“Canadian Credit Delinquencies Are Rising For Everything But Mortgages”
“Canadians Are Falling Behind On Other Segments of Debt
Hello Uncle Flop,
Did you notice that BC is doing very well on that front, in fact delinquencies are down.
My theory is that its because of the NDP, and its proficient running of the economy.
But I know this blog is full of right wing curmudgeons and would probably attribute it some rounding off error in the statistical calculations, or something silly like the black market economy, heck some nutbars would probably speculate its attributable to money laundering.
We pay through the nose for the privilege of driving a new vehicle. Ford has been accused of gouging customers. They don’t make them like they used to. Of course, most of these cars aren’t technically owned, until they’re paid for. 7 year payment plans sound insane to me. Worst investment ever. Canadastan is deeply in debt, as are its citizens. Our sharing, caring p.m. will save us by creating some more helicopter money out of thin air, sprinkling it across our fair land while gasoline breaches $2.00 a litre and it costs $20.00 for a pack of smokes.
I am not sure that I get the leasing option. I have always bought three- to five-year-old used vehicles with reasonable low mileage for less than $20K cash. (Will likely need a bit more next time.) I keep them for 10 to 15 years and when it is time, I take them to the junk yard. I get them fix when they break. My Engineering Economy professor (by far my favourite course in university) provided an illustration showing that it is normally better to fix the car you have then to replace it. The opportunity cost of the cash payments and the yearly maintenance is less than any lease payment on a similar new vehicle would be. A vehicle needs to get me safely to my destination. It does not need to be new.
Why not bring in 50-year amortization to afford today’s current car prices and allow manufacturers to jack those prices up more just like house prices that move with easier financial conditions.
A F150 electric is 150k.
Joke.
And where is this awesome jobs market? I am getting the same response months after applying as a qualified person – thanks for your interest due to overwhelming demand we are taking longer to review resumes than usual.
Never experienced this in my entire career. Even after the financial crisis.
Seems like a lot of job seekers right now.
I buy 3 year old high end Japanese vehicles for around 1/2 price new, under 50k mileage, from the original owner (preferably an older richer woman), with no accidents and all the service records. In 2007 I bought a 2004 Acura TSX according to the aforementioned criteria. I still have it. No rust. Runs like new. Almost 20 years old. 350k. Minor maintenance (batteries, tires, fluid changes). No timing belt change cause Acura wisely uses a timing chain. I can’t kill the thing.
#127 IHCTD9 on 03.01.23 at 10:49 pm
#119 Ponzius Pilatus on 03.01.23 at 9:57 pm
Agree.
If you are a Doctor and you fix your own Mercedes.
You lose a ton of income.
———-
When I do a brake job on one of our vehicles, I do it on my own time, not company time. Most folks don’t take a day off to do vehicle maintenance.
Shade tree mechanics do 40 hours, then save big $ on the weekends/evenings doing brake jobs and exhaust work. They don’t lose a dime of their income doing it. Same goes for shade tree roofers, plumbers, landscapers, and carpenters.
*******
Save big dollars when a break job is going for $1200+ and still requires time to get quotes, book it in, drop it off, pick it up etc. Do what you can. Save when you can. Not having to rely on others is priceless. You tube videos galore. Besides a lot of people spend their monied time watching TV or sports. You don’t get charged shop fees under the shady tree!
And another successful SpaceX astronaut launch. So cool watching everything work perfectly and the rockets land for the next flight.
As astronaut Woody said, ‘An absolute miracle of engineering’
I declare this the least controversial topic in all of steerage-land.
Forthwith, all discussion shall be of cars so as to best preserve thr few remaining tatters of his own sanity Garth has reserved for the comments.
Never, ever take single stock tips on the Internet seriously. Never ever listen to folks who promote, over and over, a single company as if they were not in a cult.
https://gizmodo.com/elon-musk-tesla-mater-plan-3-ai-self-driving-evs-1850175848
Fact is Telsa stock fell around 5% after this master plan spectacle.
One man’s “meat” is another man’s toxic waste:
Elon Musk’s Tesla ‘Master Plan 3’ Presentation Was a Chaotic, Boring, Confusing Mess
Where’s the boeuf? Tesla’s disclaimer for today’s presentation. In short — we are probably lying.
Other than the presently stored new Civic and 35HP tractor/backhoe, our six other vehicles average in age at 40 years and have been with us for an average length of time of 29 years, with the originally purchased for $400,’73 off-road-only 4X4 being the longest hold at 42 years and counting.
Is there a prize, other than having the most knowledge?
We covered ermine in public elementary school too!
There; I just had to point that out.
DELETED
#46 ogdoad
I have lived in cities where I didn’t need a car. Amazing public transport and bike infrastructure. The money I saved was motivation enough to pursue a similar lifestyle wherever I went.
This isn’t a human induced climate change blog so I will spare you my other opinions.
I love our ride (Corolla). 20 years old in August and a total wealth builder. Easy and cheap to maintain. We´ll hang onto this marvel for at least another 5.
-30C and it fires up like a rocket.
#73 Faron on 02.28.23 at 7:21 pm
#62 Brian on 02.28.23 at 6:25 pm
Electric vehicle owners should only be allowed to charge their vehicles using wind and solar power, otherwise it’s just pretend!
—
Nope, charging a BEV off of a utility-scale grid, even one powered by coal, beats a small, cold engine handily.
—
Faron, you are spreading misinformation.
EVERYONE knows that using the global average power source mix the CO2 footprint benefit is above 100,000km distance driven, right about when you start looking at needing a new battery – thus pushing the break-even point out again.
This CO2 audit was conducted by manufacturers themselves.
#135 DON on 03.02.23 at 12:37 am
Save big dollars when a break job is going for $1200+ and still requires time to get quotes, book it in, drop it off, pick it up etc. Do what you can. Save when you can. Not having to rely on others is priceless. You tube videos galore. Besides a lot of people spend their monied time watching TV or sports. You don’t get charged shop fees under the shady tree!
_____________
That’s a good point too, setting it all up and figuring out the logistics – especially when both work full time.
Having a new set of brake pads appear on your front porch, plus a couple hours work after supper seems like less of a headache.
#137 Faron
“I declare this the leader controversial subject in steerage-land”.
————————————————————————————————-
LOL – I was just thinking the same thing.
Everybody loves to talk about cars – whether they love them or love to hate them.
Beaters, junkers, pickups, soccer mom vans, ricers, Beemers, Caddies, Lambos, utes, el Caminos, off-lease, new, used, salvaged, convertibles, buggies, JEEPS, EVs, guzzlers, lease, buy, finance, share, whatever – opinions about cars are like hemorrhoids – every ahole has one (including me).
I like buying and holding. Purely psychological. I dunno why. I just like it.
I LIKE IT!
*least
@#130 Quintillian’s Quantifiables
““Canadian Credit Delinquencies Are Rising For Everything But Mortgages”
“Canadians Are Falling Behind On Other Segments of Debt”
+++
You attribute BC “success” to the fiscal brilliance of the NDP??????
Lets see how they do in a slow down.
How about BC debtors just haven’t stopped making payments on the “toys” …….yet.
The boats, the Harleys, the cottages, the expensive vacations….
THEN the mortgages……
Give this historic interest rate rise another 6 months to really start to bite as people renew more loans, lines of credit, etc.
We’re just getting started.
I still drive the first car I bought out of university – 1987 Acura Legend – which I bought in 1989 from the Acura dealership’s owner for $19,000. 36 years old this May and still runs fine. I always think about how much money I have saved with no car payments for the past 34 years :-)
https://ca.yahoo.com/finance/why-canadians-buying-houses-without-001101409.html
Realtors are over paid. Commission should be only 1%.
https://www.reuters.com/world/us-regulators-rejected-elon-musks-bid-test-brain-chips-humans-citing-safety-2023-03-02/
One small step for man….one giant leap for Faron-kind.
#132 Don
Save big dollars when a break job is going for $1200+ and still requires time to get quotes, book it in, drop it off, pick it up etc. Do what you can. Save when you can. Not having to rely on others is priceless. You tube videos galore. Besides a lot of people spend their monied time watching TV or sports. You don’t get charged shop fees under the shady tree!
—————————-
Doing your own brake job? You tube?
I hope you’re not a Uber driver.
If you think making more money is the solution; this will give you a chuckle.
https://www.reddit.com/r/PersonalFinanceCanada/comments/11buhml/buried_in_debt_evaluating_options/?utm_source=share&utm_medium=ios_app&utm_name=iossmf
For me like I to pay cash for personal vehicles. Leasing makes more sense for company fleets, and for businesses.
It all comes down to cash flow.
Hmmmm…
From Teranet and National Bank:
“March 2, 2023
Further to the communication on February 17, the publication of January Teranet-National Bank House Price Index™ was postponed due to insufficient data from our British Columbia data providers. As we continue to experience this issue, we’ve made the decision to publish the data without the inclusion of index values for Vancouver, Victoria, Kelowna and Abbotsford-Mission. As a result of the exclusion of the British Columbia data we are unable to produce the Composite 11 at this time.
We are continuing to work with our data providers to obtain the required information and provide you with a complete index as soon as we can.
We appreciate your patience and understanding.
If you have any questions regarding the January data release, please contact us at [email protected] ”
Usually when the data disappears it’s because it’s coming out very bad and the data provider needs time to fudge it. Good news never disappears. Might have been a bit premature with the all clear call in real estate.
#138 Ustabe on 03.02.23 at 1:54 am
Never, ever take single stock tips on the Internet seriously.
—————
True. Nobody should act on internet stock tips.
Btw, this month’s free cash for us went right to Tesla at $186. Score!
Uppa uppa. Your hints was in March 2020 that new kando construction never was shut down.
https://www.theglobeandmail.com/canada/article-ontario-greenbelt-expansion-housing/
Ontario has enough land for two million new homes without touching Greenbelt:
— How’s that 2% inflation target. Life in a tax farm run by oligopolies.
The Financial Post reports in its Thursday edition that some Canadians will pay more to use their cellphones while travelling abroad beginning next week. A Canadian Press dispatch to the Post says that Telus and Bell are raising roaming rates, effective March 8 and 9, respectively. Telus said on its website that its customers will pay $14 daily to roam in the United States, up from $12, while those visiting other destinations will be charged $16, which marks a $1 increase. Bell users will face a daily $13 charge to roam in the U.S., up from $12, and $16 in other countries, up from $15.
© 2023 Canjex Publishing Ltd. All rights reserved.
— Every city, globally, on cue. 2020 was the test , many regions had ‘health zones’ with movements limits, for our health of course
https://www.edinburgh.gov.uk/future-council/need-20-minute-neighbourhoods
Our aim is to create places where people’s daily needs can be met within a 20-minute round trip.
— Posted here in Q2 2020 – from another blog. Yhy our cell phone movements were tracked 2020-2022 as admitted by governments. A test.
“‘“We’re in an experiment. We’re now getting a glimpse of what a high tech, low carbon, limited mobility civilization looks like. The technocrats must be loving this – they’re going to have so much data to analyze after the experiment is over. Other major interest groups will use this experiment to further their agendas …”””
I put air in the tires in the fall and let some out in the spring. That is the extent of my hands on maintenance.
I let the pros handle the rest.
Snippet for Felix (NP):
A pet cat has been lauded for leading rescuers to a man who had fallen off a waterfall at a private property in Pleasant Valley, Calif. The man, who was not identified, had fallen down nine metres from a seasonal waterfall back on Feb. 21, Capt. Jacob Poganski of the El Dorado County Fire Protection District told the Mountain Democrat. The family noticed the man had gone missing and were out searching for him. His wife then heard their outdoor cat making a noise. The cat led the wife and a neighbour to the location where the man had fallen. Firefighters responded and found the man below the waterfall in a shallow creek with only a few inches of water. He had sustained serious injuries from the fall. His current condition is not known.
#145. CO2 is not a pollutant.
#153 Ponzius Pilatus on 03.02.23 at 9:27 am
#132 Don
Save big dollars when a break job is going for $1200+ and still requires time to get quotes, book it in, drop it off, pick it up etc. Do what you can. Save when you can. Not having to rely on others is priceless. You tube videos galore. Besides a lot of people spend their monied time watching TV or sports. You don’t get charged shop fees under the shady tree!
—————————-
Doing your own brake job? You tube?
I hope you’re not a Uber driver.
**********
Skip the dishes is better than Uber, at least you get to eat…
You tube can be used as a guide for DIY. Breaks are one of the easiest things to do on a vehicle. You tube also has trained mechanics doing the videos not just the DIY folks. DIY videos come in handy when one is trying to diagnose engine problems. Keeps my over active mind occupied. When you tube wasn’t around DIY was a lot harder. Good information shall set you free. I bought a muscle car in my 20’s and all the older guys said…’you beyter learn how to fix it’. So I did. I leave the big, more complicated jobs for the professionals.
Musk Snippet (NP) : ( you can’t say the man doesn’t dream big…)-
MASTER PLAN PART TROIS
Musk has spent at least 11 months crafting his third Tesla manifesto. For his next promulgation, Musk will detail “the path to a fully sustainable energy future for Earth.”
Musk tweeted a year ago that his third master plan would include some details about two of his other companies, Space Exploration Technologies Corp. and The Boring Co.
#153 Ponzius Pilatus on 03.02.23 at 9:27 am
#132 Don
Save big dollars when a break job is going for $1200+ and still requires time to get quotes, book it in, drop it off, pick it up etc. Do what you can. Save when you can. Not having to rely on others is priceless. You tube videos galore. Besides a lot of people spend their monied time watching TV or sports. You don’t get charged shop fees under the shady tree!
—————————-
Doing your own brake job? You tube?
I hope you’re not a Uber driver.
_____________________________
Not a stretch at all. I do all of my own motorcycle maintenance, all learned via Youtube. Takes longer but saves a bundle, to the tune of $100+/hour at the shop.
#117 crowdedelevatorfartz on 03.01.23 at 9:43 pm
BC Money Laundering saga continues
After BC police intercepted over 2 million calls, texts, emails from suspected money launderers.
They created over 42,000 documents following millions of dollars through BC casinos, real estate and businesses
The Attorney general’s office has decided,
“There’s not enough evidence to proceed with charges that will result in any convictions…..”
If anyone in the private sector spent that much staff time and company money on a failed investigation….. they would be fired….
___________________________
Welcome to British Columbia, Canada!
EV owners….
The latest electro- shock therapy devices are designed to cover up lobotomy scars.
Changing topic, Feb stats for VI not incl Victoria.
http://www.vireb.com/assets/uploads/02feb_23_vireb_stats_package_64852.pdf
Interesting. All sales down from last Feb. Prices down too except Port Alberni. Prices mixed from Jan 23, but some up considerably.
Also notice the large difference between the average and median in Nanaimo, Parksville, Comox. Monied folks
picking up the high end properties?
#80 ‘Lisa’ – depends on the dealer & whether there are any deals/incentives at the time of lease. If you are trying to figure out whether leasing is more affordable than purchasing, see if the dealer website posts monthly lease vs. payments on your proposed vehicle of choice. The main ‘affordable’ factor in leasing is that once the initial time period is up, you can either buy out the remaining value of the vehicle or simply hand it back. That having been said, keep in mind that if your lease has penalties for exceeding the yearly kilometers driven or for not maintaining the vehicle the dealer may ding you a penalty you would have to pay to get out of the lease. So if you don’t get your vehicle maintained at/by the dealer, make sure you keep all your records of maintenance (invoices) handy to prove you did maintain your leased vehicle. Bottom line is, you are very likely not going to spend as much if you lease rather than purchase. Most lease terms run 3 or more years. These days a very common car loan purchase option is 84 months – 7 years! If you can’t afford to purchase a car in less time then lease, because you will pay one heck of a lot more if you sign up for a 7 year payback period.
#157 Sail Away on 03.02.23 at 10:24 am
#138 Ustabe on 03.02.23 at 1:54 am
Never, ever take single stock tips on the Internet seriously.
—————
True. Nobody should act on internet stock tips.
Btw, this month’s free cash for us went right to Tesla at $186. Score!
—————–
Throwing good money after bad.
#162 DON on 03.02.23 at 10:53 am
#153 Ponzius Pilatus on 03.02.23 at 9:27 am
#132 Don
Save big dollars when a break job is going for $1200+ and still requires time to get quotes, book it in, drop it off, pick it up etc. Do what you can. Save when you can. Not having to rely on others is priceless. You tube videos galore. Besides a lot of people spend their monied time watching TV or sports. You don’t get charged shop fees under the shady tree!
—————————-
Doing your own brake job? You tube?
I hope you’re not a Uber driver.
**********
Skip the dishes is better than Uber, at least you get to eat…
You tube can be used as a guide for DIY. Breaks are one of the easiest things to do on a vehicle. You tube also has trained mechanics doing the videos not just the DIY folks. DIY videos come in handy when one is trying to diagnose engine problems. Keeps my over active mind occupied. When you tube wasn’t around DIY was a lot harder. Good information shall set you free. I bought a muscle car in my 20’s and all the older guys said…’you beyter learn how to fix it’. So I did. I leave the big, more complicated jobs for the professionals.
————-
Well, good for you.
But not for me and probably not for about 90% of car owners.
I let the mechanics at BC Transit do the work.
Re leasing…
One main reason we leased was our bucket- list life style focus…we first leased in 2018….now on our 3rd(Nissan Rogue)
We have my elderly 85 year old Mother In Law in tow..we don’t want any hassles like breakdowns etc.
We went on long road trips… first one was in 2018 from BC down west coast to San Diego and back up through Arizona..Nevada , Utah etc.
Another trip with 2nd Rogue was up Vancouver Island,to Bella Coola…and back through Williams Lake etc.
Last year..with 3rd Rogue went to from BC to Winnipeg and back.
Lots of other long trips as well.
First (2 ) Rogues the lease rate was cheap…say 1% rate..this one is higher..in 5% range.
“Value” to us was reliability and avoiding being locked in with depreciating asset. We “may” have paid a bit more…but will likely lease again.
Garth’s article is BANG ON from what I am gathering re: the auto market. It is tanking badly and EV owners will get hit hard.
#164 TheDood on 03.02.23 at 11:15 am
Not a stretch at all. I do all of my own motorcycle maintenance, all learned via Youtube. Takes longer but saves a bundle, to the tune of $100+/hour at the shop.
______
YouTube is da bomb for DIY. A while back I soldered a new pot on the circuit board that runs my Pellet stove (pot was 2.00, new board 450.00). Put a new A/C duct flapper actuator for the climate control in my truck. Had to take the dash apart, labour would have been nasty. Did a fan motor speed control and a window regulator too. Many appliance repairs effected as well. All figured out mostly via YT vids.
Just about every oddball repair job you can think of is on there with a full tutorial, most of them of excellent quality.
The vast majority of people do not have the time, tools, background or technical skills (or confidence) to ape this activity. Why brag? – Garth
#171 Alois on 03.02.23 at 12:21 pm
Another trip with 2nd Rogue was up Vancouver Island,to Bella Coola…and back through Williams Lake etc.
——-
Great trip! Although the overnight ferry can get rolly :-)
Lots of grizzlies around Bella Coola and Chilko Lake. Wild country. Stop in at our Chilcotin plateau tipi camp for some mid-trip glamping next time.
Which brings us to a simple life rule: buy what appreciates, rent what depreciates.-GT
Check. 2002 Mazda Miata
Picked it up in September for $10,000.
101,000km. Great condition.
It’s done depreciating.
#10 Devil Anse on 03.01.23 at 2:45 pm
With the dearth of real estate transactions in my city, I am hoping my next car next lease (Dec 2023) is the take-over of a real estate agent’s Audi.
Any blog dogs have experience with Lease Busters? Anything to watch out for? Good deals to be had?
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Lease Busters used to be great but now it is almost all dealer stuff posted. No more deals to be had. Keep your eye on Kijiji though.
I was in the business for 24 years, I know what I speak of.
Declining prices AND volume Stateside. Case Schiller.
https://twitter.com/RyanDetrick/status/1631328816852344853
#146 IHCTD9 on 03.02.23 at 8:13 am
#135 DON on 03.02.23 at 12:37 am
Save big dollars when a break job is going for $1200+ and still requires time to get quotes, book it in, drop it off, pick it up etc. Do what you can. Save when you can. Not having to rely on others is priceless. You tube videos galore. Besides a lot of people spend their monied time watching TV or sports. You don’t get charged shop fees under the shady tree!
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That’s a good point too, setting it all up and figuring out the logistics – especially when both work full time.
Having a new set of brake pads appear on your front porch, plus a couple hours work after supper seems like less of a headache.
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Just went through the logistics recently. Couldn’t get a shop appt for two weeks. Car was still running but had a rad leak. So I asked for a quote on replacing the drive belt, idler pulley, water pump and tensioner as they were nearing end of life on my wife’s vehicle, a bit of preventative maintenance. I got the qote back and my jaw dropped. So we went through the quote. Labour had increased from $150 to $175 since October. They were also charging a mark up on each part they got Delivered from the auto parts store. I said really? ‘We gotta make money”. Of course you do, hence the labour and shop fees and my return business.
So i bought the parts myself and they put them in. I saved $150 by driving 2 miles to pick them up. The nice lady providing the quote gave me the October rate for labour. I could have replaced the rad myself but no time at the moment.
Save when you can, pay when you have to. The tot bill was $1561.00
76 Sail Away: I was a bit dissapointed in the presentation because it lacked specific information about Master Plan Three. On whole ,the information that was presented I think would give pause to other OEMs, because they would truely understand how far they were behind. Similar to “Battery Day”, the engineers in the audience could understand the progress, but because it was presented to engineers by engineers, the markets panned it. Elon seemed distracted and his contribution truncaded to what was “teased ” via Twitter comments. I then realized that from Elon’s point of view, his time at this whole presentation was not a priority, perhaps a libility. Space X’s launch of the astronaughts was originally scheduled for Monday night, but was postponed to Wednesday night, the same time as the Tesla presentation. I believe Elon was originally prepared for a much larger “Investor Day” role, but it was no longer any priority to him, the crew launch was.
Cars can appreciate. If you bought a Honda S2000 in decent shape 5 years ago or more, it would have doubled in value.
#173 Sail Away on 03.02.23 at 12:40 pm
Great trip! Although the overnight ferry can get rolly :-)
Lots of grizzlies around Bella Coola and Chilko Lake. Wild country. Stop in at our Chilcotin plateau tipi camp for some mid-trip glamping next time.
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We were a bit early to see Grizzlies …didn’t see any…just before Salmon runs…though a guy showed me a photo of Grizzly swimming.
Local hardware store sells “caskets”…hmm…
The road out of Bella Coola was “interesting”..had heard about it….not sure I would do it again…winding gravel road high up with sheer drop offs.
Creepy….
Cariboo plateau was interesting…very different ecosytem…trees very small…drove through a recent forest fire.
Stayed 3 nites in Bella Coola…..overnighted at Tatla Lake..then onto Williams Lake…then back through Lilloet…Pemberton…back to Lower Mainland.
Glad we did the trip…Covid had us do a lot of Staycations.
OMG, I just learned that Elon promised electric rockets last night. JFC his acolytes are inexcusably stupid.
Needing a female flared nut for a hydraulic line on one of my custom projects, I went to NAPA this morning, and had to show the long time staff there, where the $2.00 item was in the stock room.
It a very tarnished brass fitting, probably been there since forever. So I bought the last two.
This is what you get, for driving unicorns!
YouTube is da bomb for DIY. A while back I soldered a new pot on the circuit board that runs my Pellet stove (pot was 2.00, new board 450.00). Put a new A/C duct flapper actuator for the climate control in my truck. Had to take the dash apart, labour would have been nasty. Did a fan motor speed control and a window regulator too. Many appliance repairs effected as well. All figured out mostly via YT vids.
Just about every oddball repair job you can think of is on there with a full tutorial, most of them of excellent quality.
The vast majority of people do not have the time, tools, background or technical skills (or confidence) to ape this activity. Why brag? – Garth
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Not bragging G, just highlighting some off the wall repairs that I had never done before (or anything even close), that were accomplished pretty much 100% due to the existence of YT. I would not have even bothered trying pre-internet.
I realize most folks aren’t into this stuff, but for those who are, YouTube is probably the best thing that’s ever happened.
#183 IHCTD9 on 03.02.23 at 2:05 pm
YouTube is da bomb for DIY. A while back I soldered a new pot on the circuit board that runs my Pellet stove (pot was 2.00, new board 450.00). Put a new A/C duct flapper actuator for the climate control in my truck. Had to take the dash apart, labour would have been nasty. Did a fan motor speed control and a window regulator too. Many appliance repairs effected as well. All figured out mostly via YT vids.
Just about every oddball repair job you can think of is on there with a full tutorial, most of them of excellent quality.
The vast majority of people do not have the time, tools, background or technical skills (or confidence) to ape this activity. Why brag? – Garth
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Not bragging G, just highlighting some off the wall repairs that I had never done before (or anything even close), that were accomplished pretty much 100% due to the existence of YT. I would not have even bothered trying pre-internet.
I realize most folks aren’t into this stuff, but for those who are, YouTube is probably the best thing that’s ever happened.
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Last post with a MSU…
Greaterfool is basically our version of you tube for all things finanical, political, life lessons, etc.
Blog has been ultra valuable…without it…chaos.
#184 DON on 03.02.23 at 2:49 pm
Last post with a MSU…
Greaterfool is basically our version of you tube for all things finanical, political, life lessons, etc.
Blog has been ultra valuable…without it…chaos.
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Aye. Pre-internet my consumption of financial and RE information would have been NIL. Compared to YouTube though, this blog convinced me to *NOT* DIY with my investing lol! Better to leave this one to the Pros who live and breath it (at least as much as I do with domestic repairs).
#164 TheDood on 03.02.23 at 11:15 am
Not a stretch at all. I do all of my own motorcycle maintenance, all learned via Youtube. Takes longer but saves a bundle, to the tune of $100+/hour at the shop.
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YouTube is da bomb for DIY. A while back I soldered a new pot on the circuit board that runs my Pellet stove (pot was 2.00, new board 450.00). Put a new A/C duct flapper actuator for the climate control in my truck. Had to take the dash apart, labour would have been nasty. Did a fan motor speed control and a window regulator too. Many appliance repairs effected as well. All figured out mostly via YT vids.
Just about every oddball repair job you can think of is on there with a full tutorial, most of them of excellent quality.
The vast majority of people do not have the time, tools, background or technical skills (or confidence) to ape this activity. Why brag? – Garth
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LOL! Garth, he’s not bragging. I don’t have a whole lot of spare time and am more likely to hurt myself with tools, but here I am, the weekend warrior motorcycle mechanic, all thanks to YT. It’s quite unbelievable the DIYs you can find there.
US home prices could plunge 20% amid risk of ‘deep’ housing slide, Fed economist warns
US housing market faces affordability crunch, threat of ‘deep’ price slide
Canadian rumours in high circles are whispering about increasing banks capital requirements on account of the perceived risk from overleveraged Canadians. Auto loans, credit card and mortgage defaults are becoming noticeably riskier for the Canadian banks. Wasit mean? it means liquidity will be reduced and it will be more difficult for Canadians to get credit.
A slow-moving economic crisis is the biggest financial risk to Canada Mortgage and Housing Corp.’s mortgage insurance business not to mention the Canadian banks.
This is the only thing I disagree on with the mighty Garth. I bought a 4 year old Toyota Camry in 2019 for a great deal, low kms almost brand new, and it’s been serving me well ever since, with just regular oil changes. Somehow, the market value after all these years is almost the same as when I bought it (madness). Like others, planning to drive this car for another 5 years, and use the savings to invest. I don’t mind riding an older reliable car, I think his holiness Garth overstates the maintenance and time costs. Appreciate his perspective nonetheless.
It is quite a sight. But it’s quite clear leasing makes time/financial sense for few, no grease monkey or cheapness or vehicular unreliability required. However the difference is a non issue for the wealthy.