Easily Affordable EXPENSIVE Cars in Canada - My Brother Leasing a Land Rover for Rs. 25,000 / Month - YouTube

What’s the main difference between buying and leasing a car? You don’t have the ownership of the car,

it belongs to the company. The main advantage is that

you can return the car anytime you want or put it on a sub lease if you want to get a new one.

Basically in India cars are purchased, but here you can rent/lease one.

Just like people rent or lease offices and homes in India.

He is my elder brother, this is the first time he is appearing fully in a video.

I insisted him to come because he recently got a Landrover. Which car is this?

Discovery Sport. He has subleased this car from someone who got it on a 4 year lease.

That person put this car on a sub lease after 1.5 years as we wanted to get another car.

In today’s video, we will learn about how lease and sub leasing works.

We will also learn the monthly associated costs for this car including the rental and insurance amount. Let’s get started.

You got the car. But the first question any Indian asks is.. what’s the mileage like? Exactly.

So what is the mileage? The average is okay, not that good. Okay. Could you speak a little louder,

you are quite soft spoken and the mike won’t catch your voice. Speak up.

The mileage is not that much. I didn’t ask you that, I want a number.

Even I know that this is a huge car so the average won’t be high.

This gives me around 100km of driving per 12 liters. I don’t understand this maths,

How much does it give per kilometer? 1.5 liter per kilometer. No sorry.

10 km per 1.5 liters. So around 7.5 km per liter? Yeah.

The mileage for this car is 7.5 km per liter and it’s a petrol car not diesel. On top of that

you have to fill it with premium petrol, which is costlier. The normal fuel costs around $1.10-$1.12.

Do take note that we are not talking about the American dollar which is about Rs. 70,

but Canadian dollars which is around Rs.52-Rs.54. People often get confused.

So the price for petrol here is $1.14 during the morning hours when the costs are higher due to the rush hour.

During nighttime, it’s about $1.10. Let’s see the price of premium petrol at this gas station.

Here the normal fuel costs around $1.14 per liter while the premium petrol costs $1.30. Additional 15 cents wasted.

But we came to this gas station for a cash wash since they have a dedicated area.

But first let’s ask him from where did he get the car and what was it’s cost.

So the car is basically new.. Aren’t you cold? Nope. Really? That’s odd, it’s 4 degrees outside and it’s freezing

while he is rocking a T-shirt, like a Canadian. Anyways.

I used to roam around the same way back in India as well. That’s true. He’s been this way since the start. So tell me,

when people lease a car, they get a brand new one from the showroom. So the showroom gives it to you on a lease of 2-3 years instead of selling it to you. Yeah.

You got it from someone else? Yeah, if you get a new one, you have to pay a high down payment upfront. Okay. What’s the value of this car?

It’s valued around 57. $57,000. So this car is valued at about Rs. 30 lakhs.

So that’s the market price for a new car, 2019 model. Is it the 2019 model. No this is 2018. Okay. So the guy you got it from, he brought this on a lease as well.

Yes. So he leased the car and paid the down payment? Yes. How much was it? I think around $7,000-$8,000 was his down payment for this car.

So about Rs. 4,00,000 (4 lakhs) down payment. And what about it’s rent? Back in India, we have installments while here there’s a rent/lease.

How much is that on a monthly basis?

It’s about $477 per month plus taxes. So $500 or Rs.25,000 plus taxes.

So about Rs. 26,000 is the monthly rent of this car.

It comes out to $540 per month. Okay. So the person you got the car from, how long did he have it?

Must be around a year since it’s a 2018 model. No, it was about 2 years. Okay.

While this is a 2018 model, the cars are released a bit ahead of time. Okay.

So he got the car in March 2018 on a lease and then you sub leased it from him in October 2019.

How long did he take the car on lease? 4 years. He leased it for 4 years and you got it on a sublease of 2.5 years.

So in a lease, the car company gives you the car with a restricted number of kilometers. They say that you can only drive X number of km in a given time period.

So the people who drive around a lot or travel further in cars, it makes more sense to buy a car than leasing.

But for the people who commute between home and work, leasing is a more pocket-friendly option.

Like in your case, you mostly use this car to commute to work. And you only go on trips once every 2-3 months.

So in that case, it makes more sense to lease a car and he did exactly this.

Someone else got this car on a 4 year lease and he got it on a sub lease at the person wanted to change his car.

He wanted a bigger car as his family has grown. Okay. But how did you find this guy?

I was searching for a car on Kijiji, Facebook marketplace and similar sites. So basically Kijiji is the biggest classified site here just like we have OLX back in India.

Here, they also have Facebook marketplace where you can find anything from furniture, clothes and more.

In fact, yesterday we went to check out used jackets. There was a guy who was selling his used jackets.

They weren’t in my size otherwise I would have bought it. So you can get anything ranging from cars and other stuff this way.

Just like you lease or sublease a home in India, you can get cars on lease here.

How much is the running life of this car? 15,000 km? Around 15,200-15,300.

So it’s close to new. Are there any special features in the car or?..

Yes. This is the best feature, the huge sun roof that can be fully opened. Nice.

This is a feature, basically, it’s a powerful and comfortable car.

If I want to go off-roading, this is one of the best car for that. This is an all-wheel drive? Yes.

So he got this car, I asked him about the associated costs. So tell me, how much insurance are you paying?

Insurance is quite steep here, you need to pay it on a monthly basis rather than yearly.

How much is the insurance cost? It’s about $1500 per year. So around $125-$150 monthly, or Rs.7,500-Rs.8,000.

This reason for this high cost is the strict rules here.

Whether it’s accidental insurance, all the regulations are quite strict.

Generally, insurance is a profit making business in Canada and not a loss making business.

So every person here gets insurance. It’s required by the law.

There are various kinds of insurance whether it’s tenant insurance, laptop insurance and more.

There’s insurance available on everything here. The insurance market is huge here.

A friend called yesterday and said that he sells insurance in India. He wanted to know what’s his scope for work in Canada,

I told him that you won’t have to go sell insurance, instead, people would come to you.

Because everything is so expensive here, people get insurance on everything.

It takes time to comprehend how all of this works. So I always suggest people who move here from India that

always start your journey with a cheap, second-hand car.

When he first came to Canada, he got a very good deal on a used Honda Accord. I got a used Sonata.

The reason being that people often need time to get used to driving on snow. Driving is done on the opposite side and the traffic rules are strict.

Always make sure buy a cheap car. Develop your insurance history, establish credibility so that your insurance premiums go down.

There are a ton of factors on which this depends. So only after 2-3 years, you should get a proper car, once you get accustomed.

We did the same. It’s not like you land here and get the best/ high-end car. Don’t do that.

The insurance premium for my first car was $220. He used to pay $220 for his Honda Accord which was a 2012 model.

You got it for $14,000 all inclusive that includes registration, etc.

So you bought that car in 2016? I got it in 2017. So he got a Honda Accord 2012 model in 2017 which was in a good condition.

It was 5 years old and had 75,000 kms on it. He used to pay $220 as insurance for such an old car.

It was so costly because it was his first insurance here.

He was new here and he got a new driving license.

Now over the years, the insurance cost has gone down from $220 to $120.

I got the car insurance on the same account on my name. Hence I got cheaper insurance on this new car. Yeah.

Otherwise the insurance for this car would be atleast $170-$180, but he is paying $150.

This was also because the second car’s insurance was also done from the same company, name and address.

So did you get your home insurance from the same company?

I got the home insurance from a different company because it was cheaper.

Even though there’s a lot of competition, it’s still quite expensive here.

How long did it take you to get accustomed to the right hand driving system?

A week. Just a week? I’d say even earlier. So how much would you have driven

to get in the habit of the steering wheel being on the other side? When you finally understood the whole system?

Took me about 3-4 days. The rules and regulations here are quite different.

Basically the driving side and steering wheel are on the opposite sides.

I used to drive this way in India as well. Keeping this hand on top. I do the same here. Okay.

My next query was about the bank details to lease a car. So, you need all the same documents that you require

to get a phone connection here, like SIN number, passport, driving license. Though the most important part is a good credit history.

So if a person is moving here from India, should they lease their first car? They would face problems in leasing as they don’t have a credit history,

getting a lease might be difficult. So it’s better to buy a second hand car. A cheap one.

It’s fall season here and there are leaves scattered everywhere you see.

Now we need to go to the car wash. Since I reached last night, we weren’t able to go.

We’ll try to go now. Do you have time? Yes, a little. Just a little? Let’s rush then.

You don’t get people to come home for washing your car and if you decide to do it yourself, how frequently would that be possible?

But there’s almost zero dust here as you can see behind me. There’s no loose dust here. This too is a kind of sand but it doesn’t blow away.

There’s hardly any patch left empty by the government, so there’s hardly any dust.

Although during snow time, theres’ a lot of collected slush.

They spread salt on the roads by the tonnes. This is a special kind of sea salt.

This is done so that the roads don’t get coated with ice, which can cause cars to slip and lose control.

So when this slush gets on cars, they get really dirty.

You rarely need to get a car washed during the summers. I haven’t got my car washed in 2.5 years. When it rains, it gets cleaned automatically.

Will you look at this, how bad is his car’s condition. It’s not that bad. It’s mostly clean from the outside.

It’s worse than my car. Your car is really new. It’s even worse than my old car. That’s true.

So this is why there are dedicated car washes at the gas stations here. You drive your car inside.

They first hit it with water, then cleaning brushes, after that they coat it with a layer of soap. How much is the minimum cost for a car wash here?

$10? $10, so you pay about Rs.500 for a one-time car wash. This is because you don’t get a “Ramu” for Rs.200

who would come daily in the morning to wash your car. Anyways, let’s proceed.

My next question was that what are the advantages of leasing a car. For me, I realized that there’s no sense in buying a costly car.

Yeah. On top of that the added expenses are quite high too. Yeah. So I decided that leasing a car is much better.

Lease is better, you won’t be the one paying for the service. The overhead costs need not be borne by you. Plus you get a warranty on the car.

The car is in warranty, if you have any issues, everything is covered. Yeah. So if you are paying Rs.25,000

for the lease/rental for this car per month for 2.5-3 years,

how much is the cost of ownership for a year? Around 3 lakh for a year.

So basically you are spending about 10 lakh rupees as rent for 3 years. Yeah. So you pay 10 lakh rupees to use this car for 3 years.

Not 3, but around 2-2.25 years. So it comes out to be even cheaper than 10 lakh. But still for the sake of convenience,

we can say that you would pay 10 lakh rupees for using this car for 3 years.

Am I right? Yeah. Now in case you bought this car in India, which costs about 40-50 lakh rupees for a new car,

I think, but I’m not sure about the exact price. So if you use that car for 3 years,

And you decide to sell it after 3 years, it will go for around 10 lakhs. So you got it for 40 lakh rupees, you lost 30 lakh on it.

Well, once the car leaves the showroom, the depreciation starts, so this is the advantage of a lease.

And there’s quite a complicated system here when it comes to petrol. The prices keep on changing.

But still, it’s always cheaper than India. Last night we were getting it for $0.99 at Costco, which offers the cheapest prices.

So for one dollar, or around Rs.54 you get a liter of petrol. But the average cost of petrol is around $1.10-$1.20 or Rs.60.

Finally, it was time to get the car washed and the system here is fully automated. You have a Petro Canada card? Does this card have points?

Yeah. So we’ll get the car washed for free. Yes. How much does it cost usually around $10-$12? Yes.

We are in a rush, so we will try to get this process done quickly. I’ll go make the pre-payment.

Where’s my wallet. Why do you need your wallet? Okay, are you sure it’s free? Yes. Okay.

I got to know that if I use points, I can only get a premium car wash and how much does that cost?

And if I want to pay for it, then how much would it be? Oh $16. $16? uh okay, thank you.

So this is how washing is done, the car moves on an automated belt. It goes in, gets washed and comes out.

It was our turn next so we had to get the car on the belt.

It’s moving. Pull up your windows or the water will get inside.

It was either Final destination 4 or 5, I don’t remember but it was one of them.

There’s a scene where the sun roof opens up while the car is being washed and it does not close. Oh.

Why is the fan running? It’s a dryer. Okay.

This is the premium wash, it cost us $16 or around Rs.800. The whole process took just about 5 minutes.

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Okay. Done. Your equipment? Oh yeah.

My brother is driving the car and I’m sitting in the backseat to take his shots.

This is because I need to sit in the backseat to take b-roll footage and on top of that he was running low on time.

In fact, he just gave me half an hour to complete the whole process. He says that ask all your questions in this half hour.

So the video might not come out as amazing as I’d like as I just got half an hour to shoot.

But you can see what I can shoot in half an hour. Is this fine?

Time will tell. Okay.