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Should I Lease or Finance My New Car?

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Is it better to lease or finance a new car? There isn’t a clear-cut answer, because
each scenario has its own set of pros and cons and honestly, it really comes
down to your lifestyle and how you prefer to pay for things. Let’s compare
leasing with financing in a little more detail:

OWNERSHIP
Lease – The vehicle is titled in GM’s name, and at the end of term, you have the
option to purchase the vehicle or turn it in and lease a new one.
Finance – The vehicle is titled in your name, and you own the vehicle free and
clear after the terms of your purchase finance agreement are fulfilled.
DOWN PAYMENT
Lease – The down payment amount required for leasing varies based on the
lease transaction structure and monthly payment you desire, but in general,
is often lower than financing.
Finance – In some cases, the down payment amount needed for buying may be
higher when compared to leasing.
KILOMETER LIMITS
Lease – Kilometer limits (typically 20,000 or 24,000 yearly) apply as per your
lease agreement, and charges may be applied if these limits are exceeded.
Finance – No contractual limits on kilometers apply, however vehicle resale
values generally decrease as more kilometers are added.
MAINTENANCE/WEAR
Lease – You are required to service the vehicle as per GM’s maintenance
schedule and cannot make any changes to the vehicle’s appearance.
Finance – You can change the appearance of the vehicle, and select which
repairs to make, subject to the terms of the purchase finance agreement.
MONTHLY PAYMENTS
Lease – Monthly payments may be lower than financing the same vehicle, since
you only pay for the value of the vehicle during the term of the lease.
Finance – Monthly payments may be higher than leasing the same vehicle, as
the full value of the vehicle is paid over the term of the contract.
TAX SAVINGS FOR BUSINESS OWNERS
We have seen more and more businesses leasing vehicles to enjoy tax savings.
We recommend you speak to your accountant to see how you could benefit
from leasing your next vehicle.
In a nutshell, leasing makes it easier to get more car for less money, as you only
pay for the use of the vehicle for two or three years, instead of paying for the
vehicle itself. Financing, on the other hand, frees you from the restrictions
involved in leasing, such as mileage caps, and the vehicle is yours to do with as
you wish.
Have you ever wondered if you get more money by selling your car privately or
from trading it in at the dealership? Stay tuned for our next article.

Learn more about Kipp Scott.

Kipp Scott GMC Cadillac Buick is a family-owned business that has proudly served Red Deer, and all of Alberta, for over 50 Years since first opening our doors in 1968. Treating our customers with respect has always been our number-one priority, and we believe when it comes to selling vehicles, honesty is the best policy. Rest assured we’ll do everything we can to make sure you leave our dealership 100% satisfied.

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Balanced budget within reach—if Ottawa restrains spending

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From the Fraser Institute

By Jake Fuss and Grady Munro

This level of debt-financed spending has contributed to an estimated $941.9 billion increase in gross federal debt from 2014/15 to 2023/24. In other words, partly due to its spending habits, nearly one in every two dollars of debt currently held by the federal government has been accumulated under Prime Minister Trudeau.

The Trudeau government will table its next budget on April 16. Federal finances have deteriorated in recent years due to the Trudeau government’s string of budget deficits, and high spending has led to a significant amount of debt accumulation, which imposes costs on current and future generations. Yet if the government presents a plan in Budget 2024 to rein in spending growth, it could balance the budget in two years.

Far from its promise to balance the budget by 2019, the Trudeau government has instead run nine consecutive deficits during its time in office. And it doesn’t intend to stop, with annual deficits exceeding $18 billion planned for the next five years.

The root cause of these deficits is the government’s inability to restrain spending. Since 2014/15, annual program spending (total spending minus debt interest) has increased $193.6 billion—or 75.5 per cent. If we control for population growth and inflation, this represents an extra $2,330 per person.

This level of debt-financed spending has contributed to an estimated $941.9 billion increase in gross federal debt from 2014/15 to 2023/24. In other words, partly due to its spending habits, nearly one in every two dollars of debt currently held by the federal government has been accumulated under Prime Minister Trudeau. Debt accumulation will only continue barring a change in course, as the federal government is expected to add another $476.9 billion in gross debt over the next five years.

Simply put, the Trudeau government’s approach towards federal finances has been characterized by high spending, large deficits and significant debt accumulation.

This approach to fiscal policy is concerning. Growing government debt leads to higher debt interest costs, all else equal, which eat up taxpayer dollars that could otherwise have provided services or tax relief for Canadians. And these costs are not trivial. For example, in 2023/24 the federal government is expected to spend more to service its debt ($46.5 billion) than on child-care benefits ($31.2 billion).

Accumulating debt today also increases the tax burden on future generations of Canadians—who are ultimately responsible for paying off this debt. Research suggests this effect could be disproportionate, with future generations needing to pay back a dollar borrowed today with more than one dollar in future taxes.

Although the Trudeau government promises more of the same for the coming years, this need not be the case. Instead, a recent study shows the federal government could balance the budget in two years if it slows spending growth starting in 2024/25. The following figures highlight this approach. The first chart below displays currently planned federal program spending from 2023/24 to 2026/27, compared with the spending path that will balance the budget, while the second chart shows the resulting budgetary balances.

Figure 1

Figure 2

As shown by the first chart, to balance the budget by 2026/27 the federal government must limit annual spending growth to 0.3 per cent for two years. As a result, annual nominal program spending would rise from $469.4 billion in 2024/25 to $472.3 billion in 2026/27. For comparison, the Trudeau government currently plans to increase annual spending up to $499.4 billion during that same period.

Should the government implement this level of spending restraint, the federal deficit would shrink to $21.8 billion in 2025/26 (as opposed to $38.3 billion), and the budget would be balanced by 2026/27 (as opposed to a $27.1 billion deficit). All told, by slowing spending growth to balance the budget, the federal government would avoid accumulating significant debt. Moreover, this also sets the government up to return to budget surpluses in the following years, which could be used to start chipping away at the mountain of federal debt already on the books.

Rather than continue its current approach to fiscal policy, and risk needing to employ more drastic cuts in the future, the Trudeau government should implement modest spending restraint now and balance the budget.

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Taxpayers

Police admit Canadian bribery scandal was nixed without talking to Trudeau, reviewing records

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From LifeSiteNews

By Anthony Murdoch

The Royal Canadian Mounted Police believed there was political pressure to dismiss a government bribery case against engineering firm SNC-Lavalin in 2019 but claimed there was insufficient evidence to proceed.

The Royal Canadian Mounted Police (RCMP) confirmed that it never talked with Prime Minister Justin Trudeau or was able to view secret cabinet records before dismissing charges in a bribery scandal involving the large engineering firm SNC-Lavalin.

The RCMP’s admission came after intense questioning before the House of Commons ethics committee late last month.

As per Blacklock’s ReporterRCMP commissioner Michael Duheme testified, “No one is above the law,” adding that there was “insufficient evidence to proceed” with the investigation.

In a 2021 memo titled RCMP Assessment Report: Obstruction of Justice SNC-Lavalin Affair obtained from Access to Information requests last October by Democracy Watch, the RCMP noted that it did not doubt there was indeed political pressure to stop criminal prosecution of SNC-Lavalin.

“However, for it to be an offence under the Criminal Code, there must be more than a technical violation,” the 2021 memo read.

During the House of Commons ethics committee meeting in February, Duheme said he had considered the SNC-Lavalin case routine, noting, “We approach every investigation in the same manner.”

Staff Sergeant Frédéric Pincince, who serves as a director of investigations, admitted that the RCMP never questioned Trudeau in the SNC-Lavalin case but gave no reason.

“He was not interviewed,” testified Pincince, to which Conservative MP Larry Brock asked, “Was there at least an attempt to interview Justin Trudeau?”

“No,” Pincince replied.

In October 2023, Canadian Liberal MPs on the ethics committee voted to stop the RCMP from testifying about the SNC-Lavalin bribery scandal.

In June 2023, LifeSiteNews reported that the RCMP denied it was looking into whether Trudeau and his cabinet committed obstruction of justice concerning the SNC-Lavalin bribery scandal.

SNC-Lavalin was faced with changes of corruption and fraud concerning about $48 million in payments made to Libyan government officials between 2001 and 2011. The company had hoped to be spared a trial and prosecution deferred prosecution agreement.

However, then-Attorney General Jody Wilson-Raybould did not go along with Trudeau’s plan, which would have allegedly appeared to help SNC-Lavalin. In 2019, she contended that both Trudeau and his top Liberal officials had inappropriately applied pressure on her for four months to directly intervene in the criminal prosecution of Montreal-based global engineering firm SNC-Lavalin relating to its scandal involving corruption and bribery charges connected to government contracts it once had in Libya.

Commissioner mum on whether there was ‘reluctance’ to charge a sitting PM

During the ethics committee meeting, Brock asked Duheme if there was an “overall general reluctance in charging a sitting Prime Minister?”

“I would say to that, we follow the evidence and if the evidence warrants charges, we charge,” Duheme replied.

Brock then asked if the RCMP obtained “all relevant documents to further the investigation?”

Duheme admitted that “we were limited with the information that we had access to.”

Brock pressed him, asking, “Is that a yes or no, sir?” to which Duheme replied, “I don’t know,” adding, “We didn’t know.”

“We don’t know, we still don’t know to this day all the information that is out there,” Duheme responded.

Brock then pressed Duheme, asking why the RCMP did not “exercise its absolute statutory right under the Criminal Code to obtain a production order or search warrant from a justice to obtain those cabinet documents?”

Duheme said the RCMP were not “able to obtain enough information or evidence.”

As for the initial investigation concerning SNC-Lavalin, Wilson-Raybould testified in early 2019 to Canada’s justice committee that she believed she was moved from her then-justice cabinet posting to veterans’ affairs due to the fact she did not grant a request from SNC-Lavalin for a deferred prosecution agreement rather than a criminal trial.

Of note is that a criminal conviction would have banned the company from landing any government contracts for 10 years.

Trudeau flat-out denied it was being investigated by the RCMP.

Less than four years ago, Trudeau was found to have broken the federal ethics laws, or Section 9 of the Conflict of Interest Act, for his role in pressuring Wilson-Raybould.

On February 12, 2019, Wilson-Raybould resigned from her veterans’ affairs post and Treasury Board president Jane Philpott quit in March 2019. They both cited a lack of confidence in the Liberal government’s handling of the scandal.

Then, in April 2019, Trudeau turfed Wilson-Raybould and Philpott from his caucus, meaning they were no longer part of the Liberal Party.

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