10 Responses to “November 18, 2019”

1. skeptical says:

   November 18, 2019 at 11:32 pm

   The consumer appetite is almost insatiable in our country. I was shopping for an entry level luxury sedan/top end trim of mainstream mid size sedan. These things now start upwards of $40k and go on till $60k. A top end Toyota Camry is now $42k plus taxes. Same for Honda Accord. The German luxury entries are above $50k. Leases run anywhere from $550 for Camry to upto $750 for 3 series BMW/Audi etc. Plus taxes.
   This is entry level stuff. Imagine all the fancier cars out there and most are either financed or leased. and the vicious cycle (or virtuous cycle if you are bank/car dealer/auto maker) begins a few years later. We are living way beyond what we can really afford.
   Who wants to save or invest?
   Who wants to first save $100k so that they can invest that in some preferred shares and make their lease payment from the dividend stream? Not even 1 in 100. Too bad as I think it’s one of the finest ways of enjoying nice things but with a bit of delay.

2. malcolmm says:

   November 19, 2019 at 1:46 am

   I agree. For decades I always bought base model low end cars and generally lived below my means. My savings went into dividend paying stocks. It worked out well for me but most of my friends spent almost everything they earned.

3. mbarbon says:

   November 19, 2019 at 11:25 am

   I will continue to buy the 1-2 year old model that goes off-lease……

4. mbarbon says:

   November 19, 2019 at 11:29 am

   Last time I bought a Toyota, I popped into a couple of Toyota Delearships and told them I wanted on off-lease Toyota that was 100% maintained by Toyota.. Within two weeks I got a call of a 3yr Toyota manager off-lease. Complete with all toyota maintenance and repairs/warranty (only a small $80 part) records … SUV has behaved great…

5. BarleyandHops says:

   November 19, 2019 at 5:12 pm

   skeptical says:

   Leases run anywhere

   Also keep in mind that more than half of car leases in Canada are for 84 months. Yup 7 years to carry a depreciating asset. And month after month you pay tax on that payment

   @ mbarbon – I do the same, I will also look at “Demos” as well.

   I get the sense that Cdn. consumers are struggling and have been for the last 3-6 months. Case in point: Was at the barber last Thursday and the shops’ traffic is down 15% or so; and this was the first year in nine there was no back to school, back from vacay bump in revenue.

6. baffled says:

   November 20, 2019 at 8:45 am

   barley and hops , you say “And month after month you pay tax on that payment” , that is better than buying where you pay all the tax at once

7. BarleyandHops says:

   November 21, 2019 at 6:02 pm

   @ baffled

   Yup it works for some folks. In my universe, I prefer to have the costs up front and budget accordingly. Ongoing multi month/year fixed expenses dont allow to cushion for surprises like job loss, medical expenses or unanticipated home expenses.

8. mbarbon says:

   November 21, 2019 at 8:51 pm

   For tax reasons, sometimes leasing vehicles for self-employeed works better…

   But if small businesses are struggling, then you know that they will postpone a new lease……

   Or, if Preferreds were earning way more (or were deemed more valuable and thus have capital gains), one may be more inclined to spend your extra rewards on a new/semi-new vehicle….

9. jiHymas says:

   November 21, 2019 at 11:23 pm

   I don’t have a car – I don’t even have a license!

   It’s inconvenient at times, but cabs are plentiful – and not owning a car makes up for a multitude of lesser financial sins.

10. BarleyandHops says:

    November 26, 2019 at 6:28 pm

    @jim don’t have a car

    We sold our second vehicle almost a year ago. It did not make economic sense to keep it. Given insurance, upkeep, and yes for that we paid monthly paid parking in central GTA – net, we were able to rent a brand new spiffy car (cleaned, tidy spanking neg new Audi) three times per month w/ Discount and were still ahead.

    Just had the tires changed on the primary vehicle from Summer to Winter at Downtown Honda in the TO market. Final costs were just under $500 for the switcheroo. So in the Spring it will be another $500. We decided to part w/ out last vehicle. It dont make economic sense in an urban/expensive market.

    With rental companies opening offices in convenient places (ie not airport locations) it needs a second look for financial reasons.