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Should I Lease or Finance My New Car?


3 minute read

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:

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.
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.
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.
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.
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.
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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Budget update proves Trudeau isn’t serious about federal finances

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From the Canadian Taxpayers Federation

Author: Franco Terrazzano

“when you pay the GST on a hockey stick, a tank of gas or bar of soap, every penny will go to interest charges on the federal debt. In fact, interest charges will surpass federal health-care transfers next year”

Taxpayers should brace for impact based on the finance minister’s latest projections.

Interest charges on the federal debt will go from $47 billion this year to $61 billion in 2028-29, according to the budget update.

But what does $61 billion mean to you?

Sixty-one billion is the same amount the government plans to collect with the GST in 2028-29.

So, in a few short years, when you pay the GST on a hockey stick, a tank of gas or bar of soap, every penny will go to interest charges on the federal debt.

In fact, interest charges will surpass federal health-care transfers next year.

Let the shock sink in just a little deeper: what could we do if it weren’t for the federal debt?

We could virtually double federal health spending.

Or we could completely eliminate the GST in a couple years.

Somehow the government is communicating these perplexing projections with considerable calmness.

Finance Minister Chrystia Freeland claims “the foundation of our Fall Economic Statement is our responsible fiscal plan.”

But last year the government spent $474 billion. And this year the feds plan on spending $489 billion. By 2029, the government will be spending $595 billion a year.

Pro-tip for Freeland: when you spend billions of dollars more every year, you’re saving money wrong.

And all that spending comes on top of an already ballooned base line. Even before the pandemic, the Trudeau government was spending all-time highs. And that’s after accounting for inflation and population differences.

Last year’s $35-billion deficit will increase to $40 billion this year. The feds have no plan to balance the budget. And that’s pushing up interest charges.

Again, brace yourself, because in 2028, federal debt interest charges will cost taxpayers $61 billion. For context, pre-pandemic interest charges were around $20 billion a year.

Meanwhile, if you’re hoping for meaningful tax relief from this government, you shouldn’t hold your breath.

“I absolutely understand that after three difficult years – with a global pandemic, global inflation, and global interest rate hikes – Canadians are worn out, frustrated, and feeling the squeeze,” Freeland said. “What Canadians deserve today is for us to address the very real pain that so many are feeling.”

The easiest and simplest way for Freeland to help Canadians is to stop taking so much money from taxpayers’ wallets in the first place.

But Freeland and Prime Minister Justin Trudeau aren’t even willing to provide the simplest forms of tax relief like ending the sales tax-on-tax at the gas pumps. The GST on the carbon tax alone will cost taxpayers $429 million this year.

The government isn’t willing to end the anti-democratic escalator that increases alcohol taxes every year without a single vote in Parliament. Next year’s hike will cost taxpayers about $100 million.

The government isn’t even willing to extend the same relief to all Canadians that it gave Atlantic Canadian families and remove the carbon tax from everyone’s home heating bills. The carbon tax on natural gas will cost the average family $300 this year.

The budget update is an admission that the government has a spending problem, but it still isn’t serious about managing our finances or providing real tax relief.

The solution for Trudeau and Freeland should be simple: put down the credit card and pick up some scissors.

This column was originally published in the Toronto Sun on Nov. 24, 2023.

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King’s coronation cost taxpayers $534,000 and counting

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From the Canadian Taxpayers Federation

Author: Franco Terrazzano

Trudeau’s troupe spent $305,188 on accommodations at the Edwardian Pastoria Hotels Ltd., a high-end luxury hotel chain in London. They also spent $45,760 at the Great Scotland Yard Hotel and $15,881 at the Southampton Row Hotel.

Prime Minister Justin Trudeau and the Canadian delegation to King Charles III’s coronation racked up $534,675 in expenses during the three-day trip.

Final costs are expected to rise even higher as expenses are still being processed, according to access-to-information records obtained by the Canadian Taxpayers Federation.

“The King’s coronation is a big event, but that doesn’t mean taxpayers should be paying half-a-million dollars so more than 100 people can travel to England,” said Franco Terrazzano, CTF Federal Director. “It seems like this government goes out of its way to bring along as many people as possible and to stay in the fanciest hotels.”

Canada’s delegation was 102 people strong – including 87 travelling with Trudeau and 15 travelling with Governor General Mary Simon. That means the cost per traveller was $5,241 for the three-day trip.

Trudeau’s troupe spent $305,188 on accommodations at the Edwardian Pastoria Hotels Ltd., a high-end luxury hotel chain in London. They also spent $45,760 at the Great Scotland Yard Hotel and $15,881 at the Southampton Row Hotel.

Simon and her entourage spent $155,283 on rooms at the London & Regional hotel.

Bureaucrats bought $300 worth of wine and beer for the flights to London, then spent $555 at “Majestic Wine London” upon arrival, according to the records.

“Did taxpayers really need to pay for 102 people to travel to England, and did they each need to rack up an average bill of $5,000?” Terrazzano said. “And if bureaucrats want to delete a couple cold ones, they’re paid more than enough money to pick up the tab themselves.”

King Charles III acceded to the throne Sept. 8, 2022, following the death of Queen Elizabeth II. His coronation was held at Westminster Abbey May 6, 2023.

In addition to Trudeau and Simon, the Canadian delegation included various bureaucrats, several Indigenous leaders, a handful of youth leaders and astronauts Jennifer Sidey-Gibbons and Jeremy Hanson, among others.

Canada also sent a sizeable delegation to Queen Elizabeth II’s state funeral in September 2022, racking up nearly $400,000 in hotel costs alone.

Included among those costs was a $6,000-per-night luxury suite at the Corinthia Hotel, which came with a marble bathroom and “complimentary butler service.”

After bureaucrats refused to disclose who had stayed in the River Suite, the CTF filed an access-to-information request. In response, the government released the records, but redacted the name.

The CTF then launched a legal challenge to force the government to disclose who stayed in the suite.

Trudeau finally admitted he stayed in the $6,000 per-night luxury suite during President Joe Biden’s visit to Canada in March 2023.

Documents obtained by the Toronto Sun in February revealed that federal bureaucrats were worried about the cost of hotels for the King’s coronation in the aftermath of the earlier scandal over the $6,000-per-night luxury suite.

Writing to a bureaucrat at Global Affairs Canada, Davon Singh, Director of the Executive Office & Head of Visits at Canada’s High Commission in London, wondered if the size of the Canadian delegation should be reduced to save on costs.

“Should we look into reduced numbers or stick with the amount you’ve currently sent us?” Singh wrote.

“I think we should keep our current numbers,” read the response from the Visits Coordinator for Global Affairs Canada.

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