teachermike
New member
With interest rates on financing being as high as they are, what's the best option on the long run?
Leasing rates:
36 mo: 8.19%
48 mo: 8.49%
60 mo: 8.79%
Financing rates:
Up to 84 mo at 6.99%
To me, at least on the short term, I'm doubtful that something like S&P 500 will beat that. Am I better off cashing out some TFSA and paying cash? Or should I go long over 7 years, and hope that the markets will end up surpassing that rate of return on the long run?
I'm also really not understanding some advice I'm reading about how you're better off leasing than buying. How does that make sense? It seems like the opposite. I don't have a business to write off the expenses.
Even if I decide to trade cars after 4-5 years, am I not better off buying then selling vs leasing and returning it?
I know it's a bit vague, but any help is appreciated here.
EDIT:
I wrote a follow-up where I did the math:
Leasing rates:
36 mo: 8.19%
48 mo: 8.49%
60 mo: 8.79%
Financing rates:
Up to 84 mo at 6.99%
To me, at least on the short term, I'm doubtful that something like S&P 500 will beat that. Am I better off cashing out some TFSA and paying cash? Or should I go long over 7 years, and hope that the markets will end up surpassing that rate of return on the long run?
I'm also really not understanding some advice I'm reading about how you're better off leasing than buying. How does that make sense? It seems like the opposite. I don't have a business to write off the expenses.
Even if I decide to trade cars after 4-5 years, am I not better off buying then selling vs leasing and returning it?
I know it's a bit vague, but any help is appreciated here.
EDIT:
I wrote a follow-up where I did the math: