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Thinking about whether to buy a new vehicle or to lease it?

Whether you lease or take out a loan to purchase your next car or truck, there are advantages to both. But if you're not in a position to buy, then leasing might be the road to take. According to the Canadian Finance & Leasing Association (CFLA), some of the advantages of leasing are:

• a lower monthly payment than you would pay on a loan for the same vehicle
• you pay tax only on the monthly payment rather than up front on the full price of the vehicle
• the opportunity to drive a new vehicle more often
• the comfort of knowing you vehicle is under warranty for the full duration in the case of the short term (2-3 years) lease
• you have options at lease end
• you avoid tying up your money in a vehicle.

On the other side of the coin, there are also disadvantages:

• costs will be higher if you lease a vehicle longer than 48 months
• costs will be higher if you exceed the number of kilometers you expect to drive (10 cents per kilometre penalty is common)
• you don't own the vehicle

Before signing a lease, especially if it's your first time leasing, there are a number of primary factors to consider. As David Powell, President and CEO of the CFLA says, "The important thing is to inform yourself and understand your rights and obligations."

Ask yourself these questions first, says Powell:

• How am I planning to use the vehicle? You might need it mainly for business, especially if you make sales calls. Or you might want to lease a series of vehicles to accommodate children as they grow and family needs change.

• How long do I want to keep it and how many kilometres will I drive? Leases typically run between 24 and 48 months, with high-end vehicles such as BMW or Mercedes offering the shortest leases. When you lease a vehicle, you're limited to the number of kilometres driven because it is a determining factor of the resale value of the vehicle. Generally, that distance is between 80-100,000 kilometres.

• How much can I afford for monthly leasing payments? Among the factors that will determine affordability are downpayments and/or trade-ins, manufacturer incentives, lease terms, residual value, and financing rate. To help you calculate leasing and purchase costs, use this handy calculator from Industry Canada's Office of Consumer Affairs: http://tinyurl.com/235xf7v

Other things to know about leasing include:

• Be aware of the difference between a close-end lease and an open-end lease (most leases are close-end). Under a close-end lease, when you return the vehicle you are not required to make any additional payments unless it is damaged or you have exceeded the number of kilometres allowed. A close-end lease also lets you negotiate the number of kilometres you will need, although that will increase your monthly payments.

• Under an open-end lease you will be required to pay the difference between the actual value of the vehicle at the end of the lease and the residual value, that is, the percentage of the original retail price (less freight & PDI) that the vehicle is estimated to be worth at the end of the lease. Open-end leases have no cap on the number of kilometres that can be driven, but that can lower the value of the vehicle and increase your cost at the end of the lease.

• You can initially be charged a security deposit that will be returned at end of the lease if there are no outstanding costs. You may also be required to pay the first lease payment.

• Even though you're essentially renting a leased vehicle, you are still responsible for licensing and registration. You must also insure and maintain it.

• If the vehicle is involved in an accident where it is not possible to repair it, many leases include a provision for this. It covers the difference between what is owed on the remainder of the lease and the insurance settlement.

• Your lease may or may not allow you to end the contract early. If you return the vehicle before the agreed lease end date, you will incur a penalty equivalent to the remaining payments owing. With the permission of the lessor, you can transfer your lease to another person provided that person meets all the criteria set out by the contract. You may also buy the vehicle if the lease contains a buy-out option.

As the CFLA's David Powell reminds potential lease-holders, a lease is a legally binding contract, so it's important to read the fine print and make sure all leasing details are fully disclosed. If not, take your business elsewhere.

Distractions are all around us, but they can have particularly serious consequences when your attention is diverted while driving.

Research findings show that nearly 80% of all vehicle crashes and 65% of all near-crashes involve some form of distraction. What's more, these crashes usually happen within three seconds after a driver is distracted.

"When you're driving, your primary task is the safe and appropriate control of your vehicle," says Joanne Harbluk, a Human Factors Specialist with Transport Canada. "And anything you do that takes your eyes or mind off the road is a distraction."

According to a recent Distraction Summit sponsored by the U.S. Dept. of Transportation, driver distraction is a bad situation that is getting worse mainly as a result of increased use of technological devices.

"Lately, there's been a tremendous amount of electronic product going into vehicles," states Harbluk, who keeps a keen eye on such things in her study of in-vehicle technology. It's particularly troubling to her that the automobile has been heralded as the next 'electronic livingroom.'

But it's not just concern about the technologies themselves, like GPS navigation systems, smart phones, and cellphones. "There's been a huge change in how technology is being used," says Harbluk. "Original concerns were about cellphone use and some of the early legislation had to do with cellphones only. But texting has become a real problem."

For example, Newfoundland and Labrador passed a cellphone law in 2003 (the first to do so in Canada) but have recently updated it to also ban texting, reflecting growing use patterns in the same technology.

"It's still too early to look at how effective legislation across the country has been (on reducing accidents)," adds Harbluk. There is now provincial legislation in place banning the use of hand-held electronic devices by about 90% of Canadians. Such communication devices can still be legally used in the Northwest Territories and Nunavut, while New Brunswick and the Yukon have introduced legislation (current as of December, 2010) to ban them.

Provincial laws used to combat distracted driving are referred to as careless or imprudent driving. Being convicted of this charge does not result in a criminal record, but are subject to fines, demerit points and license suspensions. Some sentences can be very stiff, as in the case of Manitoba, where someone convicted of careless driving can be fined up to $5,000, and given a one-year licence suspension and eight demerit points.

In November, 2010, a national awareness campaign called Leave The Phone Alone (www.leavethephonealone.ca) was launched by road safety professionals. Its aim is to reduce deaths and injury among young drivers due to increasing use of hand-held and hands-free electronic devices. The campaign invites drivers to take a pledge on the website to stop using these devices and encourage others to do the
same.

Here are some sobering facts about the effect of cellphone use and texting while driving (sourced from the Canadian Multidisciplinary Road Safety Conference report published June, 2010 and Canadian Council of Motor Transport Administrators).

• Drivers talking on cellphones are in many cases just as impaired as drunk drivers.
• Controlled studies have shown that drivers using a cellphone are four times more likely to be involved in a serious crash.
• Study results have concluded that hands-free phones offered no advantage over hand-held phones.
• Texting drivers in a simulator study were found to spend 400% more time looking away from the road.
• Drivers who text have a crash rate 23% greater than when they're not texting.

One thing that is also certain, according to Joanne Harbluk, is that the safety culture will have to change in order to change driver behaviour. "With cellphones and texting, these are behaviours that people have before they even start driving – it's ingrained behaviour using technology – and I think it's going to take a lot of convincing (to change)," says Harbluk.

Here's what you can do to reduce driving distractions and stay safe.

• Focus on your driving.
• Use a navigation system responsibly. Attach the device securely where it is easy to see and does not block your view of the road. Do not change settings or input information while driving.
• Channel surf the radio or operate your CD player only when stopped.
• Avoid eating, grooming, or having intense conversations while driving.
• Read maps, and check traffic and exits before you leave.
• If you feel sleepy, find a safe place to pull over and rest.
• Pull over to care for children.
• Teach teens to limit distractions while driving.

Despite all the precautions you can take to handle distractions, Joanne Harbluk reminds drivers: "Even if you think you're a wonderful driver – and I think we all think we are – you just can't predict what all those other people using the road are going to do, so you have to be fully engaged when driving."

For more information about distracted driving, go to:
Transport Canada www.tc.gc.ca
Canadian Council of Motor Transport Administrators www.ccmta.ca
Canadian Wireless Telecommunications Assn. www.focusondriving.ca
Insurance Bureau of Canada www.ibc.ca

You're on your way to do some last-minute shopping and the mall parking lot is a zoo. With a lot of patience, you finally score a parking space not far from the mall entrance.

You can't believe your good luck and hurry to get out of the snow that's started to fall. You find everything on your list, but when you get back outside there's no sign of your vehicle. It's gone, baby, gone.

Then you remember: In all the excitement, you forgot to lock your car! It's a frequent scenerio, especially this time of year. And it's one that makes it all too easy for thieves who often troll public parking lots.

This is one instance where greater public awareness can help deter auto theft. A recent initiative with that purpose in mind is a new crime prevention program called Lock It or Lose It! The program is a partnership between the Insurance Bureau of Canada (IBC) and the Ontario Association of Chiefs of Police.

"I think public education through programs such as this is helping to reduce auto theft," says Rick Dubin, Vice-President, Investigations for the Insurance Bureau of Canada (www.ibc.ca). "But the fact that theft was down 15% in 2009 (latest figures from Statistics Canada) -- 108,172 vehicles were stolen in 2009 -- is very much due to electronic immobilizers."

In 2007, federal legislation was passed requiring all new vehicles to be equipped with an electronic immobilizer approved by Transport Canada. But that still leaves many pre-2007 vehicles unprotected or equipped with aftermarket alarm systems that may not be as effective.

In fact, eight out of ten vehicles that are stolen don't have an approved theft deterrent system, according to the IBC. And while random thefts for so-called joy riding are numerous, certain vehicles are specifically targetted by organized crime.

If you own a high-end, all-wheel-drive or four-wheel-drive vehicle, then you may have reason to be concerned. Check this year's list of top 10 stolen vehicles in Canada, released in December by the IBC.

1. 2000 Honda Civic SiR 2-door
2. 1999 Honda Civic SiR 2-door
3. 2002 Cadillac Escalade 4-door 4WD
4. 2004 Cadillac Escalade 4-door 4WD
5. 2005 Acura RSX Type S 2-door
6. 1997 Acura Integra 2-door
7. 2000 Audi S4 Quattro 4-door AWD
8. 2003 Hummer H2 4-door AWD
9. 2006 Acura RSX Type S 2-door
10.2004 Hummer H2 4-door AWD

"The good news is that auto theft is down nationally," says IBC's Dubin, "but the bad news is that, so far this year, 600 high-end stolen vehicles worth $18 millon were seized at the ports in Montreal and Toronto. What that tells us is that organized crime is still playing a considerable role when it comes to stealing high-end vehicles and attempting to export them out of the country."

While organized auto theft is growing in Western Canada, particularly Alberta, the high volume of such theft is in Ontario and Quebec. Dubin suspects that the majority of these cars are being shipped out of the country. They're also being sold to unsuspecting consumers or stolen and stripped of parts that are in short supply.

At the same time, transportation theft (also known as joy riding) is an ongoing trend. In most cases of joy riding vehicles are recovered, Dubin points out, but its greatest harm is that innocent members of the public are killed as a result (every year, approximately 40 people die and 65 are injured in Canada).

To combat the ongoing problem of auto theft, the federal government passed Bill S-9 in November, 2010. It effectively gives the Canadian Border Services Agency the power to seize stolen vehicles intended for export.

Bill S-9 also makes changes to the criminal code that now makes it an offence to alter or destroy a vehicle identification number (VIN); be in possession of property for the purpose of trafficking; and traffic property obtained by crime.

These tougher measures could put a greater dent in the approximately $1 billion total annual cost of auto theft each year in Canada. Besides the new law, here's how you can do your part, according to the Insurance Bureau of Canada.

- If you own an older vehicle, install an electronic immobilizer that meets the national standard.
- Roll up car windows, lock the doors and pocket the key.
- Keep vehicle registration and proof of insurance with you at all times, not stored in your glovebox.
- Never leave valuables or packages in full view in your car. Put them in the trunk.
- Never leave a vehicle running unattended when stopping for a coffee or warming up in your driveway. Approximately 20% of stolen cars have keys in them.
- Park your wheels sharply and always apply the emergency brake to prevent towing by thieves.
- Get your car parts marked to make your car less attractive to thieves who want to chop it up just for the parts.
- Always park in a well-lit and busy area.
- At home, park in a garage if available and lock the garage and car doors.

Winter's here again and that means it's time to adjust your driving habits for conditions typical of the season. Fortunately, most of the things you can do to cope with winter driving conditions are a matter of commonsense. Still, they bear repeating every year.

Jeff LeMoine, who's a PR Specialist for the South Central Ontario branch of the Canadian Automobile Association, offers these driving tips to help you safely get through the winter.

Finding a reliable auto repair shop isn't an easy thing to do. And once you do find one, how do you get the most satisfaction for your hard-earned repair dollars? Fortunately you can with a little advice and initiative.

"Referrals are the best way to find a decent shop," says Rudy Graf. "There's a lot of fly-by-night shops out there and unless you get a referral, you're taking chances."

Is your car making rumbling noises or mysteriously vibrating? Leaking essential fluids? Sending smoke signals? Are warning lights suddenly coming on?

They're all signs that you could be headed for trouble, and if you're like most drivers, you could use some help diagnosing the source of such problems before they lead to breakdowns and expensive repairs.

First of all, get to know your car's personality – how it sounds and smells and moves – so that you'll know when something out of the ordinary occurs.

If your vehicle was made after 1995, consider investing in an on-board diagnostics (OBD) reader. An OBD detects faults in the operation of all engine sensors and systems, including catalytic converters. It provides a trouble code that will give you a clue to the nature of a problem.

And while it makes good sense to own a code reader, here's a handy checklist to also help you identify problems that affect most cars.

Automobile technology is changing and cars are performing better because of things like ABS brakes and traction control. Still, those features are only as good as the grip of the vehicle's tires, especially in winter.

"When choosing the right tire for the winter season, the best all-season tire doesn't compare to the worst winter tire," says John Morin, service manager for Canadian Tire's West Toronto store.

The fact is, the term 'all-season' is really a misnomer when it comes to tires. They're consistently out-performed by dedicated winter tires that increase control and decrease the average stopping distance at 80 km/h by as much as 20 metres. Snow tires are identified by a mountain/snowflake symbol branded on the sidewall.

If you've been thinking about making the switch to winter tires before the snow flies, here's a handy guide to answer some of your questions.

You spent the summer enjoying the sun on your face and wind in your hair behind the wheel of your ragtop. But now the days are growing shorter and colder. And that means it's time to store your pride and joy before the harsh winter weather descends.

What do the experts say when it comes to storing your car for the winter? Here's what Ken Wong, service shop foreman at Toronto Honda (www.torontohonda.com), advises:

If you've ever been nickle-and-dimed by costly repairs to your older car or truck, chances are that you invested in an extended warranty on your next vehicle purchase because you never wanted to repeat that wallet-draining experience.

That's the story Paul Timoteo heard constantly during his career in auto sales and as current president of Car Cost Canada. The automotive website (www.carcostcanada.ca) has been offering unbiased advice over the past 10 years.

"A lot of people just don't realize what a major repair can cost these days," Timoteo says. "Ten years ago, a transmission replacement might have cost up to $1,500. Today, it's $3,000 - $4,000 or more." All of which points to the potential worth of an extended warranty.

The majority of extended warranties in the marketplace are ones backed by the manufacturer that cover brand new vehicles. "I recommend them because they're the most hassle-free (for repair, price and components)," he says. "Of course, they're also the most expensive, too. But in the bigger scheme of what's out there, you generally get what you pay for."

With gasoline prices creeping steadily upward over the past several years, drivers have been really getting hit in the wallet.

You may have traded in your gas-guzzler for a more fuel-efficient vehicle, but that's only half the battle. What can you do to get the most mileage from it?

First ask yourself this question: What kind of driver am I?

Warm, sunny days and cool, crisp nights are just what it takes to produce the spectacular colours of autumn foliage.

And what better way to enjoy nature's show than by taking a road trip.

The following are a few choice destinations across the country where you can see fall colours from mid-September until late October.

Autumn is arriving in all its colourful glory, but before you know it, winter will be on our doorstep. For drivers across the country, winter means switching gears to adapt to more challenging driving conditions. Will you be ready when the first snow flies?

If you're like many other Canadians, "it usually takes several weeks or a couple of good snowfalls to get used to the idea of winter driving," says Angelo DiCicco, general manager of Young Drivers of Canada for the greater Toronto region.

So there's no better time than now to start thinking about winter. Your first step should be getting your vehicle mechanically prepared, including proper winter tires.

Had your eye on that Bimmer or 'Vette lately? Or maybe a green vehicle is a better fit? If you're a woman over the age of 50, you're not alone.

"Over the past few years, spending habits of women in that demographic group have changed quite a bit," according to Patricia Muir, a consultant in the automotive industry and Canadian regional manager for automotive advice website AskPatty.com.

In fact, more women than men now buy that vaunted pleasure machine, Chevrolet's Corvette, and 60 per cent of women say they're the decision-maker when it comes to purchasing and maintaining a vehicle.

It comes down to being better educated, consumer-savvy, and possessing large discretionary buying power. Women (especially in the 55-75-year-old age group) are part of an "extremely discerning" group that are more likely to purchase luxury items (like a high-end vehicle) and expect superior quality.