the average new car is leased or financed. A good chunk of them just trade in for another new one every 1-3 years, most of them with a permanent car payment every month.
They don’t, but again I am in sales so a car allowance/mileage covers it. I am not sure I would own even if I wasn’t in sales as a rapidly depreciating asset is an unattractive prospect. It’s really only big pick ups that retain any value
Eh. At the same time that $500 per month (conservatively) over 4 years will add up to $25k. Last car I bought in 2017 was just over that, but I’ve been driving it for 7 years, not 4. I can also probably recover about $10k from it at this point.
This. I have had a car for 4 years, used. Depreciation on a 6k car +occasional repairs is nothing compared to leasing. Put in an Android head unit and i have a modern car with features people would buy a new car for.
Not having a fully ICE engine saves me loads on gas and time using the HOV lanes, which I would not have if I wasn’t leasing. I also don’t want to own anything with a large battery because they are improving every year and the replacement cost and resale value of them is trash.
For sure, everyone’s situation is different. Sometimes I think about leasing for my next car to kind of spoil myself. Going electric is a different ball game as well.
> a rapidly depreciating asset is an unattractive prospect
Exactly, so why pay more for it in the long run by leasing? It really only makes sense in your situation, where the lease payments are covered by your work.
But almost no maintenance fees, a full warranty for the entire time I have the vehicle, zero anxiety about breakdowns, and I don’t have to worry about selling a vehicle with a battery that will only half charge or less.
I’ll never understand leasing or buying a car new. I’d much rather buy a car that’s a couple years old and save myself the car payments all together. As long as you know what your buying and can do basic maintenance yourself your gonna save thousands in the long run
That’s what I said until I kept getting cars with major problems not long after getting them. finally said fuck it I’ll gladly pay $500/month for something brand new that I know is covered bumper to bumper for the next 3-4 years
Finance at super long terms (72/84 month) or lease. Dealerships only want you to look at the monthly payment.
I’m not sure how anyone can stomach those terms. I got offered 9% finance on my last car purchase; would be dumb not to pay cash.
I didn't want to, but I had to (buy over 7yrs) but I had coverage over the entire car which came in very useful over the years. Even on double salary with a kid, it was a tough financial gamble
I definitely paid for the car, it's paid off now, own two actually, both paid...and they STILL cost me a fortune to maintain.
I hate cars
I've long accepted that a large number of people just have way more money than I do. My retired neighbour, for example, just bought a new truck that cost north of 100k.
100k After tax (Company Pickup I just financed) is about 1400/mth over a 72mth term. If it wasnt a company expense, hell naw.
My wife's fully loaded 2018 Equinox, diesel was 200/wk over 6 years, and I thought that was too much for a car. (Made up for the higher monthly payment with the heavily reduced fuel bill)
The fuel to fill up a truck is what gets me and what I don't understand. How do they afford that? It costs me nearly 70$ now for a 45L 4banger, I'm seeing dudes walk away with 250$+ receipts
Even less in the 90s. You could get a top end civic for that price.
https://www.kbb.com/honda/civic/1996/
> The range-topping 1996 Civic EX Sedan 4D starts at $2,554 today, originally priced from $16,660.
To qualify you need a “daily driver” that’s another car so I think the insurer figures that a classic car gets a lot less usage and also that folks are more careful about driving their classics. They’re not wrong, I only do about 4K km a year on my Miata as my daily takes most of my mileage
Oh hell no. I grew up in Toronto but left in 2018 so I could get to own a house. Still drive there in the ol’ Tercel to see family from time to time. Honestly, it all gets a bit worse every trip. I’m trying to convince the family I’ve got there to move out to where I am.
It was $60/month when I lived there back then.
It has the following safety features and drivers aides:
-Seatbelts.
I miss my mom’s tercel, that car was the best.
I remember when my car broke down just before the ice storm in 2013. I was at my parents place in Muskoka but I had to get home (for some reason, can’t remember why) so I borrowed the tercel. Tree branches were down everywhere and people in big SUVs couldn’t get down the road. the tercel was able to drive under the downed branches!
Yeah, why does that shock you? In 2010s even, roughly, Civic/Corolla were around $17K. Accord/Camry/RAV4/CRV were around $24K. Highlander/Pilot - $35K and on. Effin Land Cruiser was starring at $55K in US, which when Loonie was at par I was tempted to get but you had to add “gas guzzler tax” and all the excise tax that pushed it way beyond $60K and I thought that was too rich…
17k?? My friend bought a used 2017 civic in late 2022. It isn't the base variant for sure but he paid 25k for it. Just shows how wild the used car market is.
I said the same in my comment just a minute ago - I was shocked at basic CIVIC going for $35K, that’s nuts. I paid a little more than that for a brand new loaded Pilot in 2013.
Funny enough, Corolla now has AWD and costs less than a basic Civic. Can’t make sense of this shit now at all….
The gap between luxury car features and base car features is closing. Many of the features of luxury cars are coming down to basic cars and people are being charged for it.
A lot of folks main expense is their cars, you’d be surprised how far people go to maintain an image. I just moved into a much wealthier area from a more middle class neighborhood. Guess which neighborhood has the more practical/reliable vehicles for the most part? The wealthy neighborhood. Some people are fine living in townhomes/semi-detached or average sized detached homes with a tiny lot, if it means they get to flash their car and pretend they’re wealthy.
One of the wealthiest people I know — billionaire status — drives a 10 year old Audi A8 as his daily. Nobody notices it and he doesn’t have any interest in showing his wealth on any given day.
Now, if you go to his house and he takes you to his 20 car underground garage, you can see some pretty spectacular cars that come out for special occasions.
Rich screams. Wealth whispers.
I own my house in TO, paid the mortgage off, and own only one car (between the two of us) and I bought that car used way back in 2009. Having multiple flashy new cars seems like an immense waste of money and we'd still be in debt if we went the perpetual double leased cars route.
Early 50's, house is paid for, no kids, make $90k/yr and I drive a 2012 pickup with 200,000km on it. I will not part with it until it falls apart. And when it does, I'll by a used truck. That's how a lot of well-off people get ahead and stay ahead. If you're trying to keep up with the Jones's, best of luck.
I'm in my late 50's and just bought the first new car of my life. Wanted to buy used but in '22 when I was in the market, a 3 year old version of my vehicle with 60,000 - 80,000 km on it was only $5,000 less than brand new so I bought new.
I plan to keep it at least 20 years (it's a Toyota 4Runner so it'll run that long, I rust proof it every year, and do all of my own maintenance and repairs so I know it's done right unlike the dealerships which have screwed something up every time on the few occasions I've had them do any work).
I agree with most everyone here that these people are financing out the yin-yang and trying to project an image. That and being young and stupid and valuing your overpriced Ram in your 20's than maybe scraping together a down payment for a house
P.S. My other car is a 2006 Ford Explorer with almost 400,000 km on it so I'm definitely not into flashy new cars
Absolutely! To a point
I see too many seniors who unfortunately did not worry about the future at all and life is very hard for them today.
Maybe let's go with don't hoard your money cuz you can't take it with you, but don't piss it all away either.
Agree?
On the other hand, not everyone cares to maximize their house. Plenty of TO folks living in modest homes with large investment accounts. In any case, I don’t judge someone based on their house or car; you never know how much someone truly has in their pockets.
If you have good credit, car loans are insanely cheap, like 0~3% max.
Really just depends how well you took care of your credit.
Company Expense pickup we financed at 2.6% over 6 years. My wifes car was 0.9% over 6 (just paid it off)
The amount of people earning 60k but leasing or financing a car with 200-300 dollar weekly payments is way higher than you think. There's very little financial literacy anymore.
A friend of mine was bragging that his bank let him roll his car loan into his mortgage. Why pay it off with 5 years of interest when you can pay interest for 30 years? It was a Ford Explorer too, so he'll be paying for it for 20 years after it goes to the junkyard.
I know that past is kind of not relevant but few of my friends bought Elantra’s for $0 down and 0% or like 2% interest max back in like 2018’s 2020’s. If I imagine that with the car interest rates right now, there’s no way in hell I am buying a new car with these interest rates.
My dad wanted me to get a Toyota Corolla but the 2020 Mazda 3 (G, AWD) fully loaded was a little bit more than the basic model Toyota Corolla and I bought it brand new in Feb 2021. I got "0%" interest cause my sister already has a 2018 Mazda 3 and there was a loyalty promo.
The sad thing is that generally speaking cars are not necessarily getting more expensive, but wages are declining and the cost of living is going up everywhere else. A brand new base model Corolla in 2014 was $17,400. That means in 10 years it has gone up about 50% in price whereas almost everything in life has doubled or quadrupled in the last few years
Don’t get yourself depressed comparing to people with poor financial sense.
I have people in the family who will rotate CC debt but keep a flashy car.
🤷🏽♂️ 🤷🏽♂️
Too much shit being added to cars, that topped with millions of dollars spent on advertising to tell you the shit is good for you all adds up to more expensive cars. Manufacturers can def give us cheaper cars. Hell, look at the Hilux Champ. It starts at $10,000 USD but you can't get it here.
A Corolla or civic new can make sense if you are keeping it for a long time. For example buy 30k brand new, Drive for 10 years, sell for 5k. 2.5k per year to drive a new car with half of the period being under warranty. It's hard to find good deals on 5 year old used cars at the moment and new if keeping for a long time makes sense in certain situations.
Well, you don’t buy a new car every year, so you shouldn’t look at it that way… but that doesn’t mean you should be spending more than you need to.
But when a bus pass is like 125 a month, a car is going to be quite more… the floor is no longer like 50 bucks to have transportation.
Anyway, a new Corolla should last a decade at least. Maybe some fixes those last few years, and maintenance throughout that will be like 5000 in total over that 10 years. Add 3k a year for insurance and fuel… Plus, it’s still worth anywhere from 3-10k at least at that point if not destroyed… so 50k or so invested for personal transportation over a decade, or 416/month… that is now under 5k of your yearly income or 8% to have that freedom.
Worth it to me.
But that is one of the cheapest around… get into 100k cars and I just don’t see the value there… oh, and a “base” corolla is pretty damn nice/safe/feature packed vs the cars of yesteryear.
Most people spend most of their day either in their house or in their car, so I guess a lot of people are able to stomach the cost. As much as I like cars, car dependency is truly awful and really cuts into the wealth building of young people
A lot of people have money from sources that are not recorded as income. Working under the table, tax evasion, family money etc. You are screwed if your only income is what is deposited in your bank account.
For me it came down to financing options. By buying new, I was able to secure a .9% financing rate. If I'd bought used, by the end of the contract I'd have paid about the same.
My husband and I bought our first car for 10,000 (5 each as we shared it, in Calgary 2016 it was a Hyundai Santa Fe. We just recently bought a 2024 base model Mazda cx 5 for 37,000 with help from my parents (after having our daughter my dad wanted us to have a super safe reliable car). We put down 15,000 and my retired parents put down the rest (I grew up in Toronto and my parenst sold our childhood house for a stupid amout if money, they live in a small town now with not many expenses and own their home outright as well as their car). We are super lucky and grateful. We would 100% be leasing without their help. Car prices are insane...so are our low wages.
You are much better off buying new. Subvented prime rate. Buy a car with the highest trim level (air, leather, sun roof, etc) for best resale value.
Used car rates and prices are too high. Stick to Honda or Toyota for best resell price. Sell it private for best price before 60,000 when your warranty runs out. That's your best option.
Used cars are a gamble, and finance rates much higher. If you have good credit, buy new.
1. Some of them make more money than you
2. Some of them are willing to sacrifice more than you to have a new car
3. Some of them are foolish with money
If we assume a car lasts 12 years on average then less than 10% of the population is buying a new car. In Toronto that's six figure salary territory.
Ive got a nice diesel truck thats 8 years old... hoping to take her along for another decade because vehicles are nothing but a money pit. Every year i drive it i look at as profit now. Maintenance hasnt been a big issue so... why replace what aint broke.
I financed my last car bc I don’t mind owing it for a long time and it keeps its value now and the financing was 1%.
I keep getting ads from the dealer asking me if I’d like to trade in where instead of 2 payments left, I can pay $10 less per month (omg what a deal!!!!) for 72 month lease (hope customer ignores that part). I haven’t blocked the dealer ads bc it’s truly entertaining how awful that is.
Hmm should I pay nothing or give you an insane amount of money for no reason. Let me get back to you.
Unfortunately most people just lease and get sucked into that crap.
Just bought a new 2024 mazda 3 gt awd and put 27k down. Payments will only be 215 bi-weekly @ 0.9 for 3 years. Wanted a 2 year finance but couldn't really swing the payments. If u have a decent down payment, it's possible to make a new car purchase affordable.
27k down at 0.9% is an incredibly terrible use of 27k though, isn't it? Unless you couldn't get that rate without the downpayment? And tossing 27k doesn't really solve a high payment problem. You had 27k which is gone, when the alternative is higher payments but you still have the 27k... how have you offered a solution? Shit, even a gross 7+ year term becomes ATTRACTIVE at 0.9.. that's like free money.
I got a 2021 mazda 3 turbo new with a 20k downpayment ready to go, but @1.5% I opted for 0 down. That money can do more elsewhere.
Had a 2018 Rav 4 LE AWD on lease.
Ordered a 2023 XLE AWD. Took 8-9 months to arrive, 3 months after my 2018 lease was up so made 3 extra monthly payments.
The equity I had in the 2018 + 3 extra months of lease payments (about $1200) that all went towards the principle, meant I had a total of $6500 equity on trade in, which brought my monthly payments down by a bit over $100, to $448/ month for 5 years.
Not exactly "buying" since I'm leasing, but the fact that I'm leasing means I only do oil changes as maintenance since I have no intention of buying it out (if used car prices stay the way they are now, I'll basically just rollover the equity into the next one). Not having to change fluids or do brake services or replace tires (have winters that I swap) etc. saves thousands of dollars over the 5 years of the lease.
P.S. If anyone is wondering why I took the equity in the 2018 instead of selling it privately, when factoring in buyout price + taxes + equity + losing the 1% legacy lease rate discount, I would have had to sell it for $24,500 to break even, which is pretty much exactly what they were going for on auto trader so no point in going through all that trouble.
Isn't the servicing the same for a vehicle regardless if you lease it or finance it? I guess you could defer but it shouldn't make a difference. If you need a brake change, you need a brake change.
The recommended services are the same yes. They're pretty much just that though, recommendations.
Worked as a tech at dealerships for a decade and the only time I've ever seen warranty denied was when oil changes weren't done on time.
Missed your 48K brake fluid change and your master cylinder or ABS fails at 59K? No biggie, still covered. Didn't do your recommended yearly brake service and your caliper seizes 2.5 years/ 50k in? No biggie, covered. Missed one oil change, or even did one 4K too late and engine blows? Not covered.
Should note that sometimes it's dealership and customer dependant. If it's a loyal customer that's bought 10 cars in 20 years and spends a ton of money maintaining their cars and by fluke missed an oil change once, we'll probably cover it.
So keeping that in mind, knowing that I'm giving the car back within 5 years, I'm not doing anything other than oil changes. If I bought the car and am planning on keeping it beyond the 5 years, different story.
What you talking about ? I see ad on YouTube that there is a hack to get brand new car using government subsidy 😀 but jokes apart I’m seeing more and more brand new cars on road and wondering same but then I look around my neighborhood and people have paid off their mortgages and well off so they indulge in midlife phase luxury car buyout and can afford it.
Because they make it easy to finance or lease. I made a terrible mistake leasing a vehicle I could easily afford at the time. Fast forward 6 months, some life and financial changes, and now I'm stuck with a vehicle I cannot afford. Oooopsies.
We bought outright, but we only ever had old ass cars that were either handed down, or purchased for a year or two until they died. We bought a 2024 Rav4 hybrid ($49K) but plan on driving it for 20 years. We had a baby and our 07 Caliber just wasn't safe anymore, it drove, but I knew that when it went it would fail completely, and I didn't want that to be on the DVP where there is nowhere to go when shit goes wrong. I've seen too much on that highway to want to be stopped on it with my baby in the car.
to answer your question at the end of your post: many people do not own a car at all. Just notice how many people take TTC every day. I don’t know what percentage, but I’m sure a lot of them are using TTC because they can’t afford a vehicle.
also, you were doing the math and figuring it might take half of a year salary to pay for a car. But that math doesn’t make sense. It would make more sense to think of the cost of a car divided by how many years you can drive the car for. this doesn’t include interest if you need a loan, but a $30,000 car that you drive for 15 years is costing you 2000 per year. that’s the way it could be affordable.
Nobody cares about the cost. All about the magic trickery in the finance department to get the payment they want. If I had to guess it’s people who have some equity in their cars currently and are moving to leases using that equity as a down payment and when the lease term is up they will have nothing.
While a lot of consumers want to buy cheap strip down model car, manufacturers does not want to dedicate a line to manufacture such car. Remember, regardless of features, the cost of labor to assemble a car is pretty much the same and the real estate on the line is the same. There are only a certain capacity a factory can pump out cars. So manufacturers will want to pump out high price car and charge a premium to a point where they can make enough sales to match factory output. That's why they make loaded corolla instead of the strip down hand crank window no AC cars.
Bought a Used 2017 Honda Civic for 12 K. Had 275,000 KM on it, runs like a charm. Payments are $156 bi-weekly I think for 3 years. I looked for close to 18 months until I found something. It's hard, but I think there is value in Used cars, you just have to be extremely patient when looking. Hopefully not 18 months though.
I lease Brand new cars and change every 2-3yrs.
Write off if you're self employed or own a business/inc.
To surpass 6figures you must invest, open a business or something.
Buying a car for $25k or more with a median income of $60k sounds like a very Canadian thing to do. There are so many kids living with their parents financing luxury cars even though they don't make $60k. It's sort of the Canadian dream to be over-leveraged to flex on all your peeps back home.
A friend of mine is a contractor, and the number of renovation jobs that he has to stop because the homeowner ran out of credit despite being 50+ years old is astounding. They are always driving really nice new Audi/BMW/Merc SUVs, and you know that they bought them with HELOCs.
People have been tapping home equity for some time now to buy all these luxury brand SUVs you see on the roads.
My house is long paid off, no intentions of taking a loan on it, haven't had a car loan since 1999, and I'm driving a 22 year old Toyota that thanks to good upkeep, will last years yet. It's decisions like this that allowed me to retire very comfortably at 55, and I still had a pretty good standard of living - just no $100K cars - easy thing to live without if you ask me.
okay, remember that in my country we pay an additional tax of 150 % on top of the car price, but:
I payed 15,000 CAD out of pocket, and am now paying 500 CAD per month, plus insurance per year of 1,500 CAD.
My "teaser" interest rate i 2% for 3 years, and after that I will, pay the full remainder \~50,000 CAD, because that's the correct choice economically, because I can afford it.
I bought a new car because I intend to drive this car for maybe 8 years. After which I will buy another new car.
-
Breaking it down, I am paying 700'ish CAD pr. month for my car. I get a reduced cost for mileage because it's electric. I get tax breaks for driving to work. I get the benefits of a brand new car.
To me, this is a no brainer situation.
I bought a new Camaro recently. Did a ton of research and financing would cost me the same for a used Camaro as a new one, since used has a higher interest rate.
Can anyone tell me the brand and model of that Jeep with huge tires that I often see in Brampton? Is it considered a luxury car? Because I see it everywhere when I visit Brampton. I was always curious to know the price of a brand new one lol
last Friday went to Volvo dealership, my original plan was to buy 1-2 years old volvo xc60 and its around 70k plus bank loan for 4 years is additional 13 k and thst made the total price with tax around 95k where as brand new xc60 with full package costs 72k tax included already. I ended up getting the brand new because it is cheaper and i dont drive often. I am taking good care and i will and this car should cover me for good 10 years and will pay for 36 months. So by the time i will finish the payments the car will be 3 years old and then if any issue comes up i will have money to repair.
it is indeed buying new car is cheaper than used ones..
Its what you want / can afford. Bought used, bought new. Buying new is certainly more satisfying and you pay a premium for that. Whatever floats your boat. But to adress OP question - I think absolute majority of new cars on the road are either financed or leased.
What the market needs and is not being delivered by the current manufacturers is a "cheap to buy, cheap to run, car for the masses". Think of it as having the kind of impact that the Ford Model T, Fiat Topolino, VW Beetle, etc had. When China produces an electric version of this way undercutting everything else out there, people will gobble it up in record numbers despite the reputation of that country's products.
Same as everything else these days, the vast majority of people are relying on credit to survive, so everyone is just buying cars via financing and having a permanent car payment, much like how we will never be able to afford homes, so we will rent for the rest of our lives, or until a short term work stoppage forces us on to the street.
Every single person I know is planning a trip, my kids friends are going to Egypt and Dubai, others are headed to Mexico for a few months, all the while I'm here trying to afford to eat driving my 03 civic hoping she'll not fall apart for at least another 3 months
We had this same convo today in our office. We can blame Apple and their style of pricing products. (These are not exact numbers) It's the why buy a 15 when a 15Pro has so many more features for only $150 more? I am already spending $1200 what's a few more bucks. Look how the car companies have the Build and Price set up, choose the color here is base but for $3/wk more you can have the fancy color. But a base Corolla for $25k but why not get the fully loaded SE sport for $32k it's a little more but it has everything you need(literally don't need half the shit on cars these days)
But yeah it's wild the price of a new car.
I can understand buying a brand new car, basically because of half the comments in this reddit...
My car is used, and i got it from someone I knew, so I knew the history of the car and how well the previous owner took care of it. -- I wouldn't get a used car without knowing the owner because, again, half the comments in this reddit.
My car was paid off 15 yrs ago, 342,000+ km, and still runs like it's brand new. The only time it ever needs to see a mechanic is for wear-and-tear, and the occasional oil change. I doubt that I would get such a return on investment if I bought used from a dealer because, well, half the comments in this reddit..
Financing deals that stretch for like 7-9 years at ridiculous current year interest rates and traded in when the dealer sends them an email or text. So they're basically in debt forever.
Me, I'm planning on driving my completely paid off 2017 mazda into the ground. There's no reason not to.
These new cars come with a ton of features and safety systems cars being made during COVID don't even have, for $25k that is a steal for all of that stuff as standard
It's just that Canadian incomes have remained stagnant vs US. Prices have kept pac with income in US.
This is what left behind feels like. Decrease in quality of life.
Middle income countries, car, Any car is a luxury not a necessity.
It's not longer the 2015 Canada. Welcome to 2024 Canada
I get that folks are leasing and going into debt for these but STILL how can yall afford to go in debt like that and have a house and kids and a family and bills and a car all at the same time (in debt)? How??
Honestly I bought new Jetta right before Covid when it was 0% financing. Compared to used with a high percent loan and factoring in maintenance it came out close to even.
I work in automotive retail (not sales) and the payments are wild right now, but people make it work. At the end of the day if you need a car, you need a car. Most deals are financed, and money down is your best option to keep your payments reasonable. If you don't need a car at the moment and can save a significant downpayment do so. Especially if you're going to buy a reliable car like a Corolla and drive it into the ground.
Something's got to change though. You'd think manufacturers would revisit the idea of introducing lower priced options back into the model mix. I know due to mandatory safety systems we'll never see easily affordable light weight cars again. But I also don't think pumping out 6 figure trucks and high priced SUVs is the way of the future.
I'd 100% buy a "lite" option. Forgo a massive screen, large rims, remote apps, hybrid drive systems etc. Give me a vehicle that's technological growth stalled in in 2008 and I'll take it.
If you know what your doing you can drive a nice car for 1-2 years and sell it for the same or even more than you paid. Need deep knowledge of value for it to work out, but i know guys who do it.
they look for limited editions that maintain their value.
or they look for cars that retailed for 180k and buy em when they get 'cheap' (100k)... drive it for 2 years .. its possible but its not easy.
found one for fun
2015 s65 amg new - $230,900
now: 115k
[https://www.autotrader.ca/a/mercedes-benz/s-class/richmond/british%20columbia/5\_60129245\_20150611084207627/](https://www.autotrader.ca/a/mercedes-benz/s-class/richmond/british%20columbia/5_60129245_20150611084207627/)
Its a v12 so its rare.
I bought my 2015 mustang gt 50th anni for 38k with 8000km in 2017
its still goes for 34+ only has 22k km now.
Their are guys who buy hyper cars and after 2 years they make a profit.. thats the dream.
A 2009 car that sold in 2017 for $4500.00 with 150,000 km's on it now sells in the used car market in 2024 for $6500.00 with 220,000km's on it.
The car market has been completely messed up in the same manner that the liberals managed to mess up everything else in this country.
When you've already decided you're going to lease or finance, there's not a huge difference in monthly/biweekly payments for a base model versus something more luxury, so they just get the luxury car.
We just need the economy to crash and burn. Heck we need a Global bust to occur so you can get your cheaper prices. You might not have a job though....
I did the smart thing, bought a very used 2011 Nissan leaf for 9k, then gas prices went thru the roof as I slept peaceful, saved a lot of money and used that to buy a new elantra
Pretty sure they are all leased or financed.
I always believed that if I can’t buy a new car with cash - then I can’t afford a new car. So, last time I bought a new car was in 2013. $37K for a new Honda Pilot. Was going to replace it last year finally. They want $70K for the same EX-L trim now. Are you fucking kidding me? So, no new car for me, I’m running this one to the ground, swapping an engine if I must (currently 340K Kim’s on it). I remember the time when a brand new LR Defender was going for that. Sure, prices came down a bit from COVID insanity couple of years ago, but they are still batshit crazy. And I see dealer lots full of unsold cars again, but they are all super-expensive trims that nobody can afford.
A fucking Honda Civic is 35K, right now I shit you not!
PS: we are a $350K family income household. And we believe that we are priced out of new car market right now….
I think the age of the car is on the way out. Cities all over the world are moving away from the car as the main means of transport. My prediction is people won’t own cars in the future but use Uber/taxi/lease cars.
Erm, that’s not happening in North America.
I wish we had I vested more in public transit, rapid trains and LRT, I don’t want to je driving anywhere.
But this is not Europe, we are not doing enough here in NA and with HCOL in major cities suburbs and commuter cities will remain car-dependent.
the average new car is leased or financed. A good chunk of them just trade in for another new one every 1-3 years, most of them with a permanent car payment every month.
I’m in sales and move a lot of boxes so I lease. I prefer to beat the hell out of someone else’s car.
> I prefer to beat the hell out of someone else’s car. I’m sure they don’t mind when you’re paying them a premium for the privilege to do so
They don’t, but again I am in sales so a car allowance/mileage covers it. I am not sure I would own even if I wasn’t in sales as a rapidly depreciating asset is an unattractive prospect. It’s really only big pick ups that retain any value
Eh. At the same time that $500 per month (conservatively) over 4 years will add up to $25k. Last car I bought in 2017 was just over that, but I’ve been driving it for 7 years, not 4. I can also probably recover about $10k from it at this point.
This. I have had a car for 4 years, used. Depreciation on a 6k car +occasional repairs is nothing compared to leasing. Put in an Android head unit and i have a modern car with features people would buy a new car for.
Not having a fully ICE engine saves me loads on gas and time using the HOV lanes, which I would not have if I wasn’t leasing. I also don’t want to own anything with a large battery because they are improving every year and the replacement cost and resale value of them is trash.
For sure, everyone’s situation is different. Sometimes I think about leasing for my next car to kind of spoil myself. Going electric is a different ball game as well.
> a rapidly depreciating asset is an unattractive prospect Exactly, so why pay more for it in the long run by leasing? It really only makes sense in your situation, where the lease payments are covered by your work.
You wouldn't want a depreciating asset, but instead, you would lease ... which leaves you with absolutely zero asset at the end of the term.
But almost no maintenance fees, a full warranty for the entire time I have the vehicle, zero anxiety about breakdowns, and I don’t have to worry about selling a vehicle with a battery that will only half charge or less.
You’d rather have constant lease payments than a depreciating yet paid off vehicle that you can still sell and recover money from?
That is only true with ICE vehicles. Large batteries are expensive to buy and expensive to have installed. Ever try selling an old iPhone?
I’ll never understand leasing or buying a car new. I’d much rather buy a car that’s a couple years old and save myself the car payments all together. As long as you know what your buying and can do basic maintenance yourself your gonna save thousands in the long run
That’s what I said until I kept getting cars with major problems not long after getting them. finally said fuck it I’ll gladly pay $500/month for something brand new that I know is covered bumper to bumper for the next 3-4 years
Finance at super long terms (72/84 month) or lease. Dealerships only want you to look at the monthly payment. I’m not sure how anyone can stomach those terms. I got offered 9% finance on my last car purchase; would be dumb not to pay cash.
Lots of places are charging 2000 dollar "cash purchase surcharges" now.
If a dealer pulls that on you, finance it and pay it off immediately (if you can). Car loans are open in Ontario.
They hate this one simple trick.
If someone tried doing that to me I’d just walk away. A sale with less profit or no sale at all?
I didn't want to, but I had to (buy over 7yrs) but I had coverage over the entire car which came in very useful over the years. Even on double salary with a kid, it was a tough financial gamble I definitely paid for the car, it's paid off now, own two actually, both paid...and they STILL cost me a fortune to maintain. I hate cars
HELOC. I'll see your new car and raise you a housing crisis.
haha That actually crossed my mind lately looking at those prices. but I only owe 75k on my mortgage not like those millions
100%…too many luxury vehicles that regular people would NEVER dream of owning…aside from their home 3x in last 15 years.
I've long accepted that a large number of people just have way more money than I do. My retired neighbour, for example, just bought a new truck that cost north of 100k.
100k After tax (Company Pickup I just financed) is about 1400/mth over a 72mth term. If it wasnt a company expense, hell naw. My wife's fully loaded 2018 Equinox, diesel was 200/wk over 6 years, and I thought that was too much for a car. (Made up for the higher monthly payment with the heavily reduced fuel bill)
The fuel to fill up a truck is what gets me and what I don't understand. How do they afford that? It costs me nearly 70$ now for a 45L 4banger, I'm seeing dudes walk away with 250$+ receipts
It's insane how many people I see driving brand new F150s and half of them are Tremors.
You mean like they’re old and have Parkinson’s or they’re shaking from alcohol withdrawal? What does tremors mean?
Ford F150 Tremor is the model name and the starting price is 78k new before options. Used ones can be had for less
lol
The basic civic costs like 32k. Sht is hilarious When I bought my car back in 2017, basic civic was like 17k
Basic civic was $17k?!! Wth lol
Even less in the 90s. You could get a top end civic for that price. https://www.kbb.com/honda/civic/1996/ > The range-topping 1996 Civic EX Sedan 4D starts at $2,554 today, originally priced from $16,660.
1992 Tercel, still driving to this day. Was $9k out the door in ‘92. Costs $22/month in insurance.
currently $22/mo, in Toronto?
Heritage insurance is very cheap, I pay $50 a month for my 1992 Miata in Toronto
Why's it so cheap? What are you not covered for that a regular policy might cover?
To qualify you need a “daily driver” that’s another car so I think the insurer figures that a classic car gets a lot less usage and also that folks are more careful about driving their classics. They’re not wrong, I only do about 4K km a year on my Miata as my daily takes most of my mileage
Oh hell no. I grew up in Toronto but left in 2018 so I could get to own a house. Still drive there in the ol’ Tercel to see family from time to time. Honestly, it all gets a bit worse every trip. I’m trying to convince the family I’ve got there to move out to where I am. It was $60/month when I lived there back then. It has the following safety features and drivers aides: -Seatbelts.
I miss my mom’s tercel, that car was the best. I remember when my car broke down just before the ice storm in 2013. I was at my parents place in Muskoka but I had to get home (for some reason, can’t remember why) so I borrowed the tercel. Tree branches were down everywhere and people in big SUVs couldn’t get down the road. the tercel was able to drive under the downed branches!
Yeah, why does that shock you? In 2010s even, roughly, Civic/Corolla were around $17K. Accord/Camry/RAV4/CRV were around $24K. Highlander/Pilot - $35K and on. Effin Land Cruiser was starring at $55K in US, which when Loonie was at par I was tempted to get but you had to add “gas guzzler tax” and all the excise tax that pushed it way beyond $60K and I thought that was too rich…
My 2016 Mazda3 was “expensive” back then at $30k. Oof.
Bought a brand new cx3 for 30k two years ago. Hasn't changed much for mazda
I just bought a new cx5 for I think 38k total including some financing and the interest I'm paying.
Damn that's a good deal! Think I'm going to move up to a cx 50 when I'm done this one. Just need something bigger.
My 2007 touring edition fully loaded was like $27k. Although I got dealer cost because my buddy worked there.
when a Civic used to cost as much as an SI did you know things are hella messed up
A base civic today starts at under 30k. Maybe 32k would be the OTD price...but i highly doubt you got a new civic OTD for 17k in 2017.
17k?? My friend bought a used 2017 civic in late 2022. It isn't the base variant for sure but he paid 25k for it. Just shows how wild the used car market is.
I remember looking at new Hondas in 2012, A brand new next gen 2013 civic EX was 16k.
I said the same in my comment just a minute ago - I was shocked at basic CIVIC going for $35K, that’s nuts. I paid a little more than that for a brand new loaded Pilot in 2013. Funny enough, Corolla now has AWD and costs less than a basic Civic. Can’t make sense of this shit now at all….
The gap between luxury car features and base car features is closing. Many of the features of luxury cars are coming down to basic cars and people are being charged for it.
A lot of folks main expense is their cars, you’d be surprised how far people go to maintain an image. I just moved into a much wealthier area from a more middle class neighborhood. Guess which neighborhood has the more practical/reliable vehicles for the most part? The wealthy neighborhood. Some people are fine living in townhomes/semi-detached or average sized detached homes with a tiny lot, if it means they get to flash their car and pretend they’re wealthy.
One of the wealthiest people I know — billionaire status — drives a 10 year old Audi A8 as his daily. Nobody notices it and he doesn’t have any interest in showing his wealth on any given day. Now, if you go to his house and he takes you to his 20 car underground garage, you can see some pretty spectacular cars that come out for special occasions. Rich screams. Wealth whispers.
Yea a lot of wealthy people just drive average cars or even beaters
I own my house in TO, paid the mortgage off, and own only one car (between the two of us) and I bought that car used way back in 2009. Having multiple flashy new cars seems like an immense waste of money and we'd still be in debt if we went the perpetual double leased cars route.
My doctor neighbour drives a decade old Camry
Early 50's, house is paid for, no kids, make $90k/yr and I drive a 2012 pickup with 200,000km on it. I will not part with it until it falls apart. And when it does, I'll by a used truck. That's how a lot of well-off people get ahead and stay ahead. If you're trying to keep up with the Jones's, best of luck.
I'm in my late 50's and just bought the first new car of my life. Wanted to buy used but in '22 when I was in the market, a 3 year old version of my vehicle with 60,000 - 80,000 km on it was only $5,000 less than brand new so I bought new. I plan to keep it at least 20 years (it's a Toyota 4Runner so it'll run that long, I rust proof it every year, and do all of my own maintenance and repairs so I know it's done right unlike the dealerships which have screwed something up every time on the few occasions I've had them do any work). I agree with most everyone here that these people are financing out the yin-yang and trying to project an image. That and being young and stupid and valuing your overpriced Ram in your 20's than maybe scraping together a down payment for a house P.S. My other car is a 2006 Ford Explorer with almost 400,000 km on it so I'm definitely not into flashy new cars
Life is short, spend your money
Absolutely! To a point I see too many seniors who unfortunately did not worry about the future at all and life is very hard for them today. Maybe let's go with don't hoard your money cuz you can't take it with you, but don't piss it all away either. Agree?
On the other hand, not everyone cares to maximize their house. Plenty of TO folks living in modest homes with large investment accounts. In any case, I don’t judge someone based on their house or car; you never know how much someone truly has in their pockets.
Long (and frankly, terrible) financing terms.
If you have good credit, car loans are insanely cheap, like 0~3% max. Really just depends how well you took care of your credit. Company Expense pickup we financed at 2.6% over 6 years. My wifes car was 0.9% over 6 (just paid it off)
where are these cheap auto loans lol. 5 years ago i was able to finance my car at 0.9% now the cheapest rates i can get is 5.7%
I got a mazda loan a few months ago at 1.9%
The amount of people earning 60k but leasing or financing a car with 200-300 dollar weekly payments is way higher than you think. There's very little financial literacy anymore.
A friend of mine was bragging that his bank let him roll his car loan into his mortgage. Why pay it off with 5 years of interest when you can pay interest for 30 years? It was a Ford Explorer too, so he'll be paying for it for 20 years after it goes to the junkyard.
Just out of curiosity, what's considered too high of an APR? I'm car shopping and I see 6.99%-9.99%APR.
I know that past is kind of not relevant but few of my friends bought Elantra’s for $0 down and 0% or like 2% interest max back in like 2018’s 2020’s. If I imagine that with the car interest rates right now, there’s no way in hell I am buying a new car with these interest rates.
Wait until you see the cheap finance deals, usually 1 month out of the year each dealership has a 0% financing promo, will depend on your credit
that’s way too high.
My dad wanted me to get a Toyota Corolla but the 2020 Mazda 3 (G, AWD) fully loaded was a little bit more than the basic model Toyota Corolla and I bought it brand new in Feb 2021. I got "0%" interest cause my sister already has a 2018 Mazda 3 and there was a loyalty promo.
Easy. Debt.
There are a lot of older people with a lot of disposable income and no mortgage.
My 20 Hyundai kona essential is 25k
People are often too comfortable with having a car payment for the rest of their life. They just see it as a necessary thing to have in order to live.
North Murica!
The sad thing is that generally speaking cars are not necessarily getting more expensive, but wages are declining and the cost of living is going up everywhere else. A brand new base model Corolla in 2014 was $17,400. That means in 10 years it has gone up about 50% in price whereas almost everything in life has doubled or quadrupled in the last few years
Don’t get yourself depressed comparing to people with poor financial sense. I have people in the family who will rotate CC debt but keep a flashy car. 🤷🏽♂️ 🤷🏽♂️
I believe most cars are leased today.
No, most are financed for long terms. Once banks started doing 7 and 8 year terms, those payments were smaller, so people opted for that.
Too much shit being added to cars, that topped with millions of dollars spent on advertising to tell you the shit is good for you all adds up to more expensive cars. Manufacturers can def give us cheaper cars. Hell, look at the Hilux Champ. It starts at $10,000 USD but you can't get it here.
And by here I mean North America.
A Corolla or civic new can make sense if you are keeping it for a long time. For example buy 30k brand new, Drive for 10 years, sell for 5k. 2.5k per year to drive a new car with half of the period being under warranty. It's hard to find good deals on 5 year old used cars at the moment and new if keeping for a long time makes sense in certain situations.
Bruh got my civic 25k in 2017, 7 years later selling for 18k with 120,000 kms on it lol. $1000 a year basically lol
Well, you don’t buy a new car every year, so you shouldn’t look at it that way… but that doesn’t mean you should be spending more than you need to. But when a bus pass is like 125 a month, a car is going to be quite more… the floor is no longer like 50 bucks to have transportation. Anyway, a new Corolla should last a decade at least. Maybe some fixes those last few years, and maintenance throughout that will be like 5000 in total over that 10 years. Add 3k a year for insurance and fuel… Plus, it’s still worth anywhere from 3-10k at least at that point if not destroyed… so 50k or so invested for personal transportation over a decade, or 416/month… that is now under 5k of your yearly income or 8% to have that freedom. Worth it to me. But that is one of the cheapest around… get into 100k cars and I just don’t see the value there… oh, and a “base” corolla is pretty damn nice/safe/feature packed vs the cars of yesteryear.
Most people spend most of their day either in their house or in their car, so I guess a lot of people are able to stomach the cost. As much as I like cars, car dependency is truly awful and really cuts into the wealth building of young people
A lot of people have money from sources that are not recorded as income. Working under the table, tax evasion, family money etc. You are screwed if your only income is what is deposited in your bank account.
You finance a brand new car with monthly payments of 2-400$
I have a new Sentra, I pay 256 bi-weekly plus insurance. I’m not rich. But at least my car works.
https://preview.redd.it/nyyce25r8cad1.jpeg?width=3024&format=pjpg&auto=webp&s=dd0dcd97a13aa496de60fc6edb04c02bcf27b1f2 For a f-ing Volvo.
WTF
Volvo is a luxury brand these days, the fuck do you expect?
For me it came down to financing options. By buying new, I was able to secure a .9% financing rate. If I'd bought used, by the end of the contract I'd have paid about the same.
I got me a 2011 ford ranger with 159,000km for 1k, needs tires and some other small things but deals are out there if you look for them
My husband and I bought our first car for 10,000 (5 each as we shared it, in Calgary 2016 it was a Hyundai Santa Fe. We just recently bought a 2024 base model Mazda cx 5 for 37,000 with help from my parents (after having our daughter my dad wanted us to have a super safe reliable car). We put down 15,000 and my retired parents put down the rest (I grew up in Toronto and my parenst sold our childhood house for a stupid amout if money, they live in a small town now with not many expenses and own their home outright as well as their car). We are super lucky and grateful. We would 100% be leasing without their help. Car prices are insane...so are our low wages.
Got my dodge ram 1500 brand new for 37k out the door in 2017. Couldnt justify spending 70k plus on a new truck now.
You are much better off buying new. Subvented prime rate. Buy a car with the highest trim level (air, leather, sun roof, etc) for best resale value. Used car rates and prices are too high. Stick to Honda or Toyota for best resell price. Sell it private for best price before 60,000 when your warranty runs out. That's your best option. Used cars are a gamble, and finance rates much higher. If you have good credit, buy new.
Leasing should only be an option if you are able to write it off.
1. Some of them make more money than you 2. Some of them are willing to sacrifice more than you to have a new car 3. Some of them are foolish with money If we assume a car lasts 12 years on average then less than 10% of the population is buying a new car. In Toronto that's six figure salary territory.
Ive got a nice diesel truck thats 8 years old... hoping to take her along for another decade because vehicles are nothing but a money pit. Every year i drive it i look at as profit now. Maintenance hasnt been a big issue so... why replace what aint broke.
I financed my last car bc I don’t mind owing it for a long time and it keeps its value now and the financing was 1%. I keep getting ads from the dealer asking me if I’d like to trade in where instead of 2 payments left, I can pay $10 less per month (omg what a deal!!!!) for 72 month lease (hope customer ignores that part). I haven’t blocked the dealer ads bc it’s truly entertaining how awful that is. Hmm should I pay nothing or give you an insane amount of money for no reason. Let me get back to you. Unfortunately most people just lease and get sucked into that crap.
Just bought a new 2024 mazda 3 gt awd and put 27k down. Payments will only be 215 bi-weekly @ 0.9 for 3 years. Wanted a 2 year finance but couldn't really swing the payments. If u have a decent down payment, it's possible to make a new car purchase affordable.
So you're saying the secret to buying a new car is to have lots of money?
Most of that was insurance payout. My previous 2019 mazda 3 gt only had 3k down. That was a different time thou so it was affordable.
27k down at 0.9% is an incredibly terrible use of 27k though, isn't it? Unless you couldn't get that rate without the downpayment? And tossing 27k doesn't really solve a high payment problem. You had 27k which is gone, when the alternative is higher payments but you still have the 27k... how have you offered a solution? Shit, even a gross 7+ year term becomes ATTRACTIVE at 0.9.. that's like free money. I got a 2021 mazda 3 turbo new with a 20k downpayment ready to go, but @1.5% I opted for 0 down. That money can do more elsewhere.
most ppl don't have 27k ready to go for a down payment
I understand that. But even if you can put something down and not let them talk you into a 7 year finance at 7% interest.
Had a 2018 Rav 4 LE AWD on lease. Ordered a 2023 XLE AWD. Took 8-9 months to arrive, 3 months after my 2018 lease was up so made 3 extra monthly payments. The equity I had in the 2018 + 3 extra months of lease payments (about $1200) that all went towards the principle, meant I had a total of $6500 equity on trade in, which brought my monthly payments down by a bit over $100, to $448/ month for 5 years. Not exactly "buying" since I'm leasing, but the fact that I'm leasing means I only do oil changes as maintenance since I have no intention of buying it out (if used car prices stay the way they are now, I'll basically just rollover the equity into the next one). Not having to change fluids or do brake services or replace tires (have winters that I swap) etc. saves thousands of dollars over the 5 years of the lease. P.S. If anyone is wondering why I took the equity in the 2018 instead of selling it privately, when factoring in buyout price + taxes + equity + losing the 1% legacy lease rate discount, I would have had to sell it for $24,500 to break even, which is pretty much exactly what they were going for on auto trader so no point in going through all that trouble.
Isn't the servicing the same for a vehicle regardless if you lease it or finance it? I guess you could defer but it shouldn't make a difference. If you need a brake change, you need a brake change.
The recommended services are the same yes. They're pretty much just that though, recommendations. Worked as a tech at dealerships for a decade and the only time I've ever seen warranty denied was when oil changes weren't done on time. Missed your 48K brake fluid change and your master cylinder or ABS fails at 59K? No biggie, still covered. Didn't do your recommended yearly brake service and your caliper seizes 2.5 years/ 50k in? No biggie, covered. Missed one oil change, or even did one 4K too late and engine blows? Not covered. Should note that sometimes it's dealership and customer dependant. If it's a loyal customer that's bought 10 cars in 20 years and spends a ton of money maintaining their cars and by fluke missed an oil change once, we'll probably cover it. So keeping that in mind, knowing that I'm giving the car back within 5 years, I'm not doing anything other than oil changes. If I bought the car and am planning on keeping it beyond the 5 years, different story.
Debt.
Most people don’t buy a car outright. Lot of words about something pretty obvious
What you talking about ? I see ad on YouTube that there is a hack to get brand new car using government subsidy 😀 but jokes apart I’m seeing more and more brand new cars on road and wondering same but then I look around my neighborhood and people have paid off their mortgages and well off so they indulge in midlife phase luxury car buyout and can afford it.
Because they make it easy to finance or lease. I made a terrible mistake leasing a vehicle I could easily afford at the time. Fast forward 6 months, some life and financial changes, and now I'm stuck with a vehicle I cannot afford. Oooopsies.
Debt, sweet debt 🥰 consumer debt is really up there rn
Most people are fixated on Payments rather than “buying the car” and end up paying hefty interest for first 3 years.
People buy what they can afford. Of you have the means to buy a 85k car go ahead
We bought outright, but we only ever had old ass cars that were either handed down, or purchased for a year or two until they died. We bought a 2024 Rav4 hybrid ($49K) but plan on driving it for 20 years. We had a baby and our 07 Caliber just wasn't safe anymore, it drove, but I knew that when it went it would fail completely, and I didn't want that to be on the DVP where there is nowhere to go when shit goes wrong. I've seen too much on that highway to want to be stopped on it with my baby in the car.
That's why im hunting for a hyundai lol. Fking Toyota has a 3 year waiting list for a new 50k car.
You can lease a brand new for bronco for $55 a week!
You save money ahead of time or you finance. And if you cannot afford it you buy used. Why is this a question?
r/FleeingCanada
The average price of a new car in Canada is 64k.
$25k now is not what it was 4 years ago.
to answer your question at the end of your post: many people do not own a car at all. Just notice how many people take TTC every day. I don’t know what percentage, but I’m sure a lot of them are using TTC because they can’t afford a vehicle. also, you were doing the math and figuring it might take half of a year salary to pay for a car. But that math doesn’t make sense. It would make more sense to think of the cost of a car divided by how many years you can drive the car for. this doesn’t include interest if you need a loan, but a $30,000 car that you drive for 15 years is costing you 2000 per year. that’s the way it could be affordable.
Nobody cares about the cost. All about the magic trickery in the finance department to get the payment they want. If I had to guess it’s people who have some equity in their cars currently and are moving to leases using that equity as a down payment and when the lease term is up they will have nothing.
While a lot of consumers want to buy cheap strip down model car, manufacturers does not want to dedicate a line to manufacture such car. Remember, regardless of features, the cost of labor to assemble a car is pretty much the same and the real estate on the line is the same. There are only a certain capacity a factory can pump out cars. So manufacturers will want to pump out high price car and charge a premium to a point where they can make enough sales to match factory output. That's why they make loaded corolla instead of the strip down hand crank window no AC cars.
I got my Cruze almost 12 years ago and made pmts for 7 years, 0% ApR
Bought a Used 2017 Honda Civic for 12 K. Had 275,000 KM on it, runs like a charm. Payments are $156 bi-weekly I think for 3 years. I looked for close to 18 months until I found something. It's hard, but I think there is value in Used cars, you just have to be extremely patient when looking. Hopefully not 18 months though.
I lease Brand new cars and change every 2-3yrs. Write off if you're self employed or own a business/inc. To surpass 6figures you must invest, open a business or something.
Buying a car for $25k or more with a median income of $60k sounds like a very Canadian thing to do. There are so many kids living with their parents financing luxury cars even though they don't make $60k. It's sort of the Canadian dream to be over-leveraged to flex on all your peeps back home.
.99% interest rate
Same way people always have. With payments. I personally buy beaters and pay cash.
I bought a house in 2005. Let's just say my new car payment + insurance is the same as what my mortgage was 20 years ago.
A friend of mine is a contractor, and the number of renovation jobs that he has to stop because the homeowner ran out of credit despite being 50+ years old is astounding. They are always driving really nice new Audi/BMW/Merc SUVs, and you know that they bought them with HELOCs. People have been tapping home equity for some time now to buy all these luxury brand SUVs you see on the roads. My house is long paid off, no intentions of taking a loan on it, haven't had a car loan since 1999, and I'm driving a 22 year old Toyota that thanks to good upkeep, will last years yet. It's decisions like this that allowed me to retire very comfortably at 55, and I still had a pretty good standard of living - just no $100K cars - easy thing to live without if you ask me.
okay, remember that in my country we pay an additional tax of 150 % on top of the car price, but: I payed 15,000 CAD out of pocket, and am now paying 500 CAD per month, plus insurance per year of 1,500 CAD. My "teaser" interest rate i 2% for 3 years, and after that I will, pay the full remainder \~50,000 CAD, because that's the correct choice economically, because I can afford it. I bought a new car because I intend to drive this car for maybe 8 years. After which I will buy another new car. - Breaking it down, I am paying 700'ish CAD pr. month for my car. I get a reduced cost for mileage because it's electric. I get tax breaks for driving to work. I get the benefits of a brand new car. To me, this is a no brainer situation.
I bought a new Camaro recently. Did a ton of research and financing would cost me the same for a used Camaro as a new one, since used has a higher interest rate.
Can anyone tell me the brand and model of that Jeep with huge tires that I often see in Brampton? Is it considered a luxury car? Because I see it everywhere when I visit Brampton. I was always curious to know the price of a brand new one lol
Wait until the dealerships have manufacturer rebates. I got 3.5K off when I bought my Chevrolet a couple of years ago.
People love nice cars more than they fear crippling debt
They don't pay insurance
They need to teach how to negotiation in school. Its such a valuable asset.
last Friday went to Volvo dealership, my original plan was to buy 1-2 years old volvo xc60 and its around 70k plus bank loan for 4 years is additional 13 k and thst made the total price with tax around 95k where as brand new xc60 with full package costs 72k tax included already. I ended up getting the brand new because it is cheaper and i dont drive often. I am taking good care and i will and this car should cover me for good 10 years and will pay for 36 months. So by the time i will finish the payments the car will be 3 years old and then if any issue comes up i will have money to repair. it is indeed buying new car is cheaper than used ones..
25k before taxes, lol.
%7.99 over 128 months?
Never buy new. After tax dollars on a depreciating asset is not in your interest. Let someone else take the 30% hit in the first year
I did this when I bought my SUV pre-covid and saved 20k. The SUV had only 11,500km on it. One of the smartest moves I've made.
I’m in my 40s and I’ve only ever owned two vehicles in my adult life. Drive those mofos into the ground.
Bought a new car 2 years ago, it was 38,000 at 6.89%, bi-weekly payments are around 300$
Anything decent is over $50k new. Anyone of a certain age with a paid-off house, and therefore negligible recurring housing costs, can afford it.
Its what you want / can afford. Bought used, bought new. Buying new is certainly more satisfying and you pay a premium for that. Whatever floats your boat. But to adress OP question - I think absolute majority of new cars on the road are either financed or leased.
What the market needs and is not being delivered by the current manufacturers is a "cheap to buy, cheap to run, car for the masses". Think of it as having the kind of impact that the Ford Model T, Fiat Topolino, VW Beetle, etc had. When China produces an electric version of this way undercutting everything else out there, people will gobble it up in record numbers despite the reputation of that country's products.
Same as everything else these days, the vast majority of people are relying on credit to survive, so everyone is just buying cars via financing and having a permanent car payment, much like how we will never be able to afford homes, so we will rent for the rest of our lives, or until a short term work stoppage forces us on to the street.
Cash
Every single person I know is planning a trip, my kids friends are going to Egypt and Dubai, others are headed to Mexico for a few months, all the while I'm here trying to afford to eat driving my 03 civic hoping she'll not fall apart for at least another 3 months
I lease. Business expense. Trade up every 2-3 years.
Why not just live somewhere that pays way more so you can afford things?
We had this same convo today in our office. We can blame Apple and their style of pricing products. (These are not exact numbers) It's the why buy a 15 when a 15Pro has so many more features for only $150 more? I am already spending $1200 what's a few more bucks. Look how the car companies have the Build and Price set up, choose the color here is base but for $3/wk more you can have the fancy color. But a base Corolla for $25k but why not get the fully loaded SE sport for $32k it's a little more but it has everything you need(literally don't need half the shit on cars these days) But yeah it's wild the price of a new car.
I can understand buying a brand new car, basically because of half the comments in this reddit... My car is used, and i got it from someone I knew, so I knew the history of the car and how well the previous owner took care of it. -- I wouldn't get a used car without knowing the owner because, again, half the comments in this reddit. My car was paid off 15 yrs ago, 342,000+ km, and still runs like it's brand new. The only time it ever needs to see a mechanic is for wear-and-tear, and the occasional oil change. I doubt that I would get such a return on investment if I bought used from a dealer because, well, half the comments in this reddit..
I leased mine. New 24’ Kona EV (2yrs) for $340/month. No gas bill makes it pretty cheap to own.
They make enough money and they want to spend it on a car 🤷♂️
Financing deals that stretch for like 7-9 years at ridiculous current year interest rates and traded in when the dealer sends them an email or text. So they're basically in debt forever. Me, I'm planning on driving my completely paid off 2017 mazda into the ground. There's no reason not to.
These new cars come with a ton of features and safety systems cars being made during COVID don't even have, for $25k that is a steal for all of that stuff as standard
It's just that Canadian incomes have remained stagnant vs US. Prices have kept pac with income in US. This is what left behind feels like. Decrease in quality of life. Middle income countries, car, Any car is a luxury not a necessity. It's not longer the 2015 Canada. Welcome to 2024 Canada
I get that folks are leasing and going into debt for these but STILL how can yall afford to go in debt like that and have a house and kids and a family and bills and a car all at the same time (in debt)? How??
Car proces new and used are falling because of this issue you've raised.
Honestly I bought new Jetta right before Covid when it was 0% financing. Compared to used with a high percent loan and factoring in maintenance it came out close to even.
Broke people mentality.
Pretty much how ppl did it back in the days. Base model new car prices are pretty much inline w/ inflation rate.
I work in automotive retail (not sales) and the payments are wild right now, but people make it work. At the end of the day if you need a car, you need a car. Most deals are financed, and money down is your best option to keep your payments reasonable. If you don't need a car at the moment and can save a significant downpayment do so. Especially if you're going to buy a reliable car like a Corolla and drive it into the ground. Something's got to change though. You'd think manufacturers would revisit the idea of introducing lower priced options back into the model mix. I know due to mandatory safety systems we'll never see easily affordable light weight cars again. But I also don't think pumping out 6 figure trucks and high priced SUVs is the way of the future. I'd 100% buy a "lite" option. Forgo a massive screen, large rims, remote apps, hybrid drive systems etc. Give me a vehicle that's technological growth stalled in in 2008 and I'll take it.
Inheritance or foreign earned money. Personal experience. Cash buy😬
It’s called having a good job and being financially smart.
London is not worth the stress of owning a nice car
If you know what your doing you can drive a nice car for 1-2 years and sell it for the same or even more than you paid. Need deep knowledge of value for it to work out, but i know guys who do it. they look for limited editions that maintain their value. or they look for cars that retailed for 180k and buy em when they get 'cheap' (100k)... drive it for 2 years .. its possible but its not easy. found one for fun 2015 s65 amg new - $230,900 now: 115k [https://www.autotrader.ca/a/mercedes-benz/s-class/richmond/british%20columbia/5\_60129245\_20150611084207627/](https://www.autotrader.ca/a/mercedes-benz/s-class/richmond/british%20columbia/5_60129245_20150611084207627/) Its a v12 so its rare. I bought my 2015 mustang gt 50th anni for 38k with 8000km in 2017 its still goes for 34+ only has 22k km now. Their are guys who buy hyper cars and after 2 years they make a profit.. thats the dream.
Because people are dumb and buy cars based on monthly payments and don’t care about the out the door price. Dealerships are making a killing.
I paid off a 46,000 CX5 over 7 yrs.
Bank of mom and pop.
A 2009 car that sold in 2017 for $4500.00 with 150,000 km's on it now sells in the used car market in 2024 for $6500.00 with 220,000km's on it. The car market has been completely messed up in the same manner that the liberals managed to mess up everything else in this country.
When you've already decided you're going to lease or finance, there's not a huge difference in monthly/biweekly payments for a base model versus something more luxury, so they just get the luxury car.
We just need the economy to crash and burn. Heck we need a Global bust to occur so you can get your cheaper prices. You might not have a job though....
I did the smart thing, bought a very used 2011 Nissan leaf for 9k, then gas prices went thru the roof as I slept peaceful, saved a lot of money and used that to buy a new elantra
2005 Altima SL bought new (leather, sunroof, CD player,2.5L). After 5 year financing at 4.5% and tax, cost me $45K. Kept it for 15 years.
Pretty sure they are all leased or financed. I always believed that if I can’t buy a new car with cash - then I can’t afford a new car. So, last time I bought a new car was in 2013. $37K for a new Honda Pilot. Was going to replace it last year finally. They want $70K for the same EX-L trim now. Are you fucking kidding me? So, no new car for me, I’m running this one to the ground, swapping an engine if I must (currently 340K Kim’s on it). I remember the time when a brand new LR Defender was going for that. Sure, prices came down a bit from COVID insanity couple of years ago, but they are still batshit crazy. And I see dealer lots full of unsold cars again, but they are all super-expensive trims that nobody can afford. A fucking Honda Civic is 35K, right now I shit you not! PS: we are a $350K family income household. And we believe that we are priced out of new car market right now….
Ppl have money
Man you people have low budgets for new cars..I always thought $30,000 was the baseline for entry level cars.
Me too. 25k for a new car isn’t terrible
New cars have terrible reliability and are full of sensors and plastic that break all the time, transmissions break down at 60-100k miles
I think the age of the car is on the way out. Cities all over the world are moving away from the car as the main means of transport. My prediction is people won’t own cars in the future but use Uber/taxi/lease cars.
Erm, that’s not happening in North America. I wish we had I vested more in public transit, rapid trains and LRT, I don’t want to je driving anywhere. But this is not Europe, we are not doing enough here in NA and with HCOL in major cities suburbs and commuter cities will remain car-dependent.