Leasing

26 July 2014 Categories: Gerry's Corner

      I have leased motor vehicles for more than 25 years. Today leasing a vehicle is far more popular but there are some that still feel ownership is preferred. In my early days of starting my own business, I was like many struggling families and owned used or pre-owned vehicles. Some were 10-15 years old. I kept them for maybe 3-4 years and then bought another used vehicle. I had 2 problems that kept haunting me. First, there was the look of the old car when I would go to clients. I felt I was poor and begging for money. Not a good image for a budding Consultant. The second problem was the lack of reliability. I was faced with frequent breakdowns consequently missing or cancelling important meetings. The constant repairs and the price gouging of garages was more than I could afford at the time. Bear in mind I was also trying to provide for a family of 5. It seemed like every 2-3 months I needed new tires or a radiator or a muffler or a starter etc. etc. I seemed to be faced with a constant money drain. There was another embarrassing issue. I was never mechanically inclined. This was one of my Father’s disappointments in his eldest son. At an early age I was drawn to business and office work. I did try to have nice muscle cars from the time I received my driver’s license but I could never fix them. I relied on my kid brother and friends to keep my cars going.

     Many years ago a friend told me that you need a decent car for image purposes being a Consultant. Even though I had some embarrassing moments with my vehicles, my sense of practicality told me I needed a newer vehicle than I was used to and I needed it to be reliable with minimum unforeseen expenses. So I leased my 1st car. It was a demo and yes I now had a monthly payment but I hoped I would have fewer breakdowns and less expensive repairs. I never looked back after that day. I have always had at least one leased vehicle and at times two. I have leased cars, numerous family vans and numerous pickups which I am now addicted to. Recently my wife to be had a 12 year old vehicle which was starting to spend more time at the garage than on the road, so I persuaded her to lease a new car. She did not have to buy or finance a vehicle and it would be cheaper. Being that I take care of my vehicles and mainly use them for highway driving and usually have low mileage, leasing companies in the last 5 years have been calling me to get me out of my 4 year lease after 2 years and put me in a new vehicle without penalties and at a lower price than the previous lease. That is because of low interest rates and vehicle prices coming down. Bottom line is I have another new pickup on order and will be getting out of a 4 year lease after 2 years at a monthly payment of less than what I was paying 4 years ago on 2 previous pickups. Kind of a no brainer! My gains other than financial are, I have a new vehicle with reliability, road side assistance and virtually no expenses except minor maintenance till my next new vehicle. Makes sense to me.