• Preowned

AUTO ONE Leasing

8555 Cambie Street
Directions Vancouver, BC V6P 3J9

  • Sales: 1 (877) 350-7307

LEASE TERMS & FAQ's

Black Book Value: 

The amount identified as the clean value for that particular vehicle as determined by the "Canadian Black Book" published by Wm. Ward & Sons Ltd.  If there is excess mileage or any accidents (declarations) on the vehicle, it may be determined that the vehicle is not clean and falls in another category

 

Capitalized / Vehicle Cost: 
This is the selling price of the vehicle prior to any additional costs.

 

Declarations: 
Conditions that devalue a vehicle which include accidents, out of province and out of country registrations.


Down Payment: 
The pre-tax amount that the customer is reducing the Capitalized Cost against which the lease payment is based.


Due Upon Signing / Cash On Delivery (COD): 
All amounts due to be collected from the Lessee upon delivery of the vehicle and forwarded to AUTO | ONE . These include:

  • Down Payment
  • First or Pro-Rata Monthly Payment
  • AUTO | ONE Registration & PPSA Fees
  • Applicable Taxes on above
  • Security Deposit (no tax applied)

Extended Warranties: 
Warranties that the customer may purchases to have capitalized into the cost of the vehicle lease.


HST  / GST / PST: 
Sales tax which is a percentage of the lease cost and is dependent on the province.


Insurance:
Life and disability insurance that the customer may purchase to have capitalized.  This does not refer to or include the vehicle insurance.


MSRP (Manufacturer Retail Selling Price): 
The amount the manufacturer determines as the retail selling price of the vehicle.  This is applicable to new vehicles only.


Net  Capital / Vehicle Cost: 
The total capital cost of the vehicle consisting of selling price plus any additions less down payment and/or trade-in.


Pro Rata Rent: 
Amount calculated up front for a partial month payment based on a 30 day month. 


Rental / Lease Payment: 
The combination of monthly depreciation and the monthly interest charge. Applicable taxes are calculated on top of this amount. Total amount is the payment that the Lessee is liable to pay each month during the lease contract.

 

Residual Value: 
This is the value of the vehicle at the end of the lease term. This value is guaranteed by the Lessee.

 

Term: 
The intended length of time of the lease contract denoted in months.

 

Trade-in:  The equity resulting from a trade in of an AUTO | ONE vehicle.  This is the amount the Dealer is willing to allow for the vehicle minus the lien payout.


Vehicle Options: 
Items and accessories that have been added to the vehicle that were not stock or done at the factory.




What costs are there at the start of the lease?
There are a few payments to consider at the start of a lease:

  • Refundable Security Deposit:  Refundable at the end of the lease unless it is necessary to apply for any outstanding amounts owed.
  • First Lease Payment (or partial lease payment if not starting at the beginning of the month)
  • Leased Vehicle Capitalized Cost Reduction or down payment:  The lessee can lower the monthly payment by trading in a vehicle or paying an amount in cash up front.
  • Registration & PPSA Fees

Who pays for the insurance?
The lessee is responsible for insuring the vehicle with the amount of coverage required by the lessor.


Who pays for the license and registration?
Lease or buy, the lessee is responsible for licensing and registering the vehicle.

Who is responsible for maintaining and repairing the vehicle?
The lessee is responsible for repairs to the vehicle and having regular maintenance performed.  If  don't, you will erode your equity in the vehicle.

Can I lease a used vehicle or truck?
Absolutely!  We are one of a select number of lease companies that are capable of leasing used vehicles at competitive rates if this better suits your personal situation.  We do, however, need the specifications and costs to evaluate the vehicle or perhaps you have found one from our on-line used car inventory.

Is there a Kilometer allowance?
The lease agreement generally provides an allowance of 20,000 kilometers per year.  There is an additional cost you must pay for every kilometer above the allotment at lease end. If you know upfront that you will put on more than the allotted kilometers, you may choose to pay for the projected excess mileage ahead of time, usually at a reduced rate by lowering the residual.

How is the residual value determined and how does the residual value affect the payment?
The residual value or buyout is based on the historical data on the resale value of used vehicles and on the amount of kilometers that you will put on the vehicle during the lease term.  Residuals are based on the vehicle having normal wear and tear, regular maintenance, no body damage and 1,667 kilometers per month usage (20,000 km per year).  If you were going to put more kilometers on, then the vehicle will be worth less at the end so the residual value would have to be decreased and the payments would go up.