Buying a car

[imz]

Hi!

I just got accepted to med school and I need a car to drive myself to my uni (unfortunately cannot use public transport as it would take me 2hrs+ everyday).

I kinda wanted to know what are the advantages/disadvantages of buying/leasing/renting a car. I know nothing of life or cars so I'm not sure what I should do. Some people in my family have always leased their cars so they could change them to new ones all the time? Idk how that works but in my close family they've just invested in one car that they kept for like 17 years and after that finally got a new one.

Regardless of the choice tho I'll have to use a line of credit to pay for it 

The environment is important to me but also getting to school on time in the winter and not worrying about potholes and ice is important (I live in Quebec lol) so the two cars I've been looking at the 2022 Audi Q5 TFSI e PHEV or the 2022 Subaru Crosstrek Plug-in Hybrid 

Yeah I don't know what to get and whether to lease or buy

[frenchpress]

If you’ve never owned a car before I don’t know that I would recommend just buying something new and hoping you like it enough to want to keep it for 17 years.

This is a personal decision, but when I was in your shoes I started with a beater. Something cheap (although that’s hard given the cost of used cars these days) and reliable. Eventually when I knew what I wanted and I was a bit closer to residency, I bought myself a used (previously leased) car.

[robclem21]

You have listed two fairly expensive cars (>80K and >50K), so clearly money is not an issue. At that point you might as well do whatever you want. However if you are purchasing this on your LOC, perhaps you don't need such a luxurious car and something really cheap and reliable might be better.

Buying a car doesn't mean you need to keep it for 17 years, but it does certainly commit you a bit longer time frame in order to make the cost worth it. When you purchase a car, you outright own it (or the bank does until you are finished making your loan payments), and the monthly payments are cheaper than when leasing. However, the overall cost is higher since you are buying the car in its entirety. This asset will depreciate very quickly and not be worth nearly what you paid for it even before your monthly payments are finished. When you lease a car, you are essentially "renting" it from the dealership for a shorter (usually 3-5 year) period of time. Overall, the cost will be cheaper, but the monthly payments are generally more expensive and at the end of 3 years you do not own anything. You are usually restricted in the km you drive on it and are responsible for fixing any damage before the car is returned. The car is returned to the dealership when the lease is over and you can lease or buy something else.

You can also buy a used car for a fraction of the price and run that into the ground until you are in a better financial situation to buy/lease the car you want.

[MDee2B]

Just a thought: Have you considered simply moving apartments and living closer to school? If you reduce your commute, that could save you a lot of time and money, potentially eliminate the need for a car altogether and thus tackle the problem at its root.

[Dityxing]

I was in a similar boat when I started uni. Leasing sounded cool 'cause, hey, new car vibes every few years, right? But then, my grandpa shared his story. He'd kept his trusty Nissan Silvia for decades, and man, the memories in that car! It got me thinking about long-term value.
Considering your eco-conscious mindset and those Quebec winters, reliability and efficiency are key. The Audi Q5 sounds slick, but that Subaru Crosstrek? It's like the Swiss Army knife of cars—rugged for those snowy drives and eco-friendly too.
Now, about financing. Using a line of credit can be a smart move, but make sure you're comfortable with the repayment plan. My buddy once found a sweet deal on https://www.jdmbuysell.com/buying-guide/nissan-silvia/ —and it served him well throughout uni.