Thanks Bassem. I honestly always looked at leasing as a dumb way of spending money as you end up with nothing but sometimes there are good offers! I also like the fact that I can include a maintenance contract to the monthly payment. Less headache. I think leasing is good for luxury cars and financing is better for regular cars. I am still very tempted by the difference in cashflow that lease allows.
Exactly, I think its good if you have the $$. Its less headache, but then at the end, you have to be comfortable with owning nothing. I leased my car initially, then purchased it at the end, since it technically was worth $10K more than the buy back value. Leasing is very tempting in terms of cash flow, its so much lower, from what I see, than financing.
When I was shopping for a car, I was finding that newer used cars were more expensive than brand new ones, simply because they were available, and the new cars had wait times.
Let’s not forget the mileage allowance with leasing. With commutes getting longer to facilitate more affordable housing the extra mileage charges at lease end could be shocking.
That's true, the BMW site I was on, it said $0.15 per KM if you go over the mileage. I do think you can get it waived. Or just buy the car at the end of the lease then sell it on your own?
I’m actually very interested to know how people use write offs when they buy a new car and use it for ride share, those cars will not be worth much after a few years so how does the math work out?
Well, its a reduction of their income, its a business expense. I don't think its the best idea to buy a car for ride share UNLESS you get an electric vehicle, you can completely skip the cost of gas, making each trip slightly more profitable, imo.
Hey Bassem! Long time no see! What about a corporation? Lease is what everyone says, but it seems we could utilize depreciation and sell the car to your personal use afterwards. What do you think of this?
Like if you have a personal corporation, lease it under the corp then sell it to yourself? If your corp has a car, you'll have to break down the business vs personal use, then you have to add the personal use to your T4 and pay tax etc etc.
@CanadianFinancePro my corp purchase a vehicle (cash or finance). write off the depreciation against revenue. Completely separate the vehicle use between personal vs work. (2 separate purpose vehicles) Then after 40% per year depreciation for a few years then sell the vehicle to yourself for personal use at a loss. I think it should be legit.
Full insurance is just a better safety net. Chances are, you'll never need it, however, if the 1% chance you need it, its better to be fully covered. 3rd party is just 'basic legal compliance'.
Thanks Bassem. I honestly always looked at leasing as a dumb way of spending money as you end up with nothing but sometimes there are good offers! I also like the fact that I can include a maintenance contract to the monthly payment. Less headache. I think leasing is good for luxury cars and financing is better for regular cars. I am still very tempted by the difference in cashflow that lease allows.
Exactly, I think its good if you have the $$. Its less headache, but then at the end, you have to be comfortable with owning nothing. I leased my car initially, then purchased it at the end, since it technically was worth $10K more than the buy back value.
Leasing is very tempting in terms of cash flow, its so much lower, from what I see, than financing.
I would love a business car video!
ok its added to the list
My Dad was leasing a car when he died....even death never voided the contract ...they wanted the monthly money until the end of the lease period.
Unreal, I didn't even know that was a thing?!? Sorry to hear ... how did you reconcile?
interesting. Debt doesn't transfer so...ignore them.
@@pjm3005 True, you should ignore.
Hey Bassem can you do a 2024 real estate video? Thoughts on investment properties?
Yeah I'm thinking of doing some commentary on the rate change.
When I was shopping for a car, I was finding that newer used cars were more expensive than brand new ones, simply because they were available, and the new cars had wait times.
Isn't that so frustrating ... I'm looking for another car, for fun, but the used ones are only 4-5% discounted from new ...
Let’s not forget the mileage allowance with leasing. With commutes getting longer to facilitate more affordable housing the extra mileage charges at lease end could be shocking.
That's true, the BMW site I was on, it said $0.15 per KM if you go over the mileage. I do think you can get it waived. Or just buy the car at the end of the lease then sell it on your own?
I’m actually very interested to know how people use write offs when they buy a new car and use it for ride share, those cars will not be worth much after a few years so how does the math work out?
Well, its a reduction of their income, its a business expense. I don't think its the best idea to buy a car for ride share UNLESS you get an electric vehicle, you can completely skip the cost of gas, making each trip slightly more profitable, imo.
Hey Bassem! Long time no see!
What about a corporation? Lease is what everyone says, but it seems we could utilize depreciation and sell the car to your personal use afterwards. What do you think of this?
Like if you have a personal corporation, lease it under the corp then sell it to yourself? If your corp has a car, you'll have to break down the business vs personal use, then you have to add the personal use to your T4 and pay tax etc etc.
@CanadianFinancePro my corp purchase a vehicle (cash or finance). write off the depreciation against revenue. Completely separate the vehicle use between personal vs work. (2 separate purpose vehicles) Then after 40% per year depreciation for a few years then sell the vehicle to yourself for personal use at a loss. I think it should be legit.
Alright, im sold. How much do you charge for mentorship. I definitely wouldn't be able to afford it.
Sorry I just saw this! Mentorship is free for you :p
why should anyone go full insurance and not just 3rd Party?
Full insurance is just a better safety net. Chances are, you'll never need it, however, if the 1% chance you need it, its better to be fully covered. 3rd party is just 'basic legal compliance'.
Huge!
Here I am looking just buy the car instead doing my research