Auto Leasing - How Leasing Works.
Simply put, auto leasing is a way of obtaining a vehicle for a defined period of time. Since the average Canadian trades cars every three to four years, the auto leasing alternative addresses many desires. Because the term of the average auto lease is shorter than that of the average loan, it allows you to move onto the next car more quickly, and lease payments tend to be more affordable than loan payments. Approximately 50% of new Canadian vehicles are leased.
Most of us finance our vehicles with a loan which means we're already in the habit of making monthly payments. To keep those payments as low as possible, we tend to take out a five-year loan to pay for our new purchases. The result? At the end of the five-year period we may well own the car, but chances are we really wanted to trade it in a year ago. One other point is that a car is a depreciating asset, that is, it loses value over time with some makes and models depreciating faster than others. So, the car we now own and don't really want isn't worth very much when we try to trade it in.
It is important to understand that the cost of the lease is really the difference in the purchase price at signing and the purchase price available to you at the end of the lease, plus some finance charges, divided by the number of months in the lease.
Top Reasons to Lease
One of the best parts to leasing is that you also have options at lease end. At the end of your lease, you may hand in the vehicle if it was well maintained, and not have to worry about negotiating its trade-in value, buy the vehicle, re-lease the vehicle, or use any equity as a trade-in:
If you love your vehicle and don't want to part with it, simply buy it for the guaranteed residual price (which is generally a wholesale price) or extend the lease.
If you decide you want a new vehicle just trade in the old one. If the trade value differs from the residual value, the difference is yours to apply to your new vehicle.
Keep the Profit
If you sell the vehicle yourself privately for more than the guaranteed residual price, the excess is yours to keep.
If market conditions change or if you just don't want to trade or sell it, then based on the lease term & condition of the returned vehicle, you may opt to return the vehicle to us.
Cars are getting more expensive. The average person can go into "budget shock" just doing the math before buying a new car. A substantial down payment and high monthly payments make owning a new vehicle difficult. Our lease plans provide all the benefits of automobile ownership and more. No big loans, you don't have to tie up a lot of cash or credit, enjoy lower monthly payments. Instead of paying the full price, you pay only for what you use.
Paying only for the usage means that your monthly payment goes a lot further, which translates to you affording a vehicle with more options or a more expensive model. Flexibility is another key benefit of a lease plan. Drive a new vehicle more often, every two years, three years . . . whatever you want. Plus, being an all makes lease company, we can supply you with any make or model vehicle to your specifications.
Start driving the easy way today! It's just like owning but with less risk. You don't have to worry about market value and resale. Our commitment to quality business practices guarantees our high standards. We offer experienced, knowledgeable and trustworthy professionals, unlimited selection, innovative programs and flexible payment plans.