A close friend of mine mentioned he was interested in having an affordable car he may need for only a few months. "Not a big deal, just something reliable that didn't cost much" as it was going to be just an occasional alternative vehicle. They already have one at home and need another one for a few months. This is a common situation, where I've been into also multiple times. It can be seen as a "short-term" lease or a "mid-term" rental. Either way, the lease takeover market has very lovely alternatives to it.
Manufacturers Don't Offer Those Cheap Alternatives
It is definitely not a "mainstream" thing. Probably, the cheapest car you could lease is the Nissan Micra (starting MSRP 10,488CAD), which starts right under the 180 CAD/month. Not bad from a pricing perspective, but not a very reliable car for the Canadian winter or even when it comes to everyday space. Ideal for places like Europe, South America or Asia, but not a very good alternative here.
So the real alternatives come to the "Used Car" market or simply into the Lease Takeover one.
Available Lease Takeover Deals under 250CAD/month
Lease takeover monthly prices depend on one single thing: the original deal. That's it. It is unmodifiable, fixed, and will remain the same until the end of the contract itself. If you want to learn more, I would suggest you to understand what a good deal is and how much it actually saves from your pocket.
LeaseCosts Canada has more than 1,300+ deals starting under the 150CAD/month mark.
At our marketplace, you can go from a 99CAD/month Subaru to a 2,500CAD/month Tesla. Just imagine how wide Canada is and how many different deals people can set up across more than 3,000 new car dealerships. It is vast as our country is.
Just imagine, if you would have right now 3,000CAD and need a car for the next 12 months: would you prefer to buy a 3K used car or to lease a 250CAD/month one for the next 12 months?
I'm not saying there is a definite answer to that question, but certainly, there are to very opposite approaches.
Cheap Used Car Pros & Cons
The good thing, you will own it at the end of the 12 months, but it will mean you have to run into a 3K cash payment right now. You will be liable for any mechanical problem, repairs, or issues. After the 12 months, you could sell it again, but the chances are that you won't recover much than what you had to spend on maintenance and repairs during that year.
Cheap Lease Takeover Pros & Cons
There are all kinds of lease takeovers, just like used cars. But of course, you would have to go after the ones that are actually covered by a Wear & Tear policy and the manufacturer warranty stills in place. You could spread the payment term among the 12 months, and it will eventually be better for your pocket. Overall, it sounds like a more "peace of mind" idea. Your highest risks would be that, after the 12 months, you will be without a car, looking for the next one.
Consider All Options
As I've always said, there is no right answer for this. I've seen 150,000km Toyotas to be more reliable than 30,000km "ZZZZ" models ;) But those are not quite easy to find. Just consider all the options out there:
