|Potential advantages of leasing that you may not have considered|
More and more people are discovering the advantages of leasing. It’s certainly no mystery. Leasing can offer convenience and genuine financial benefits - because you pay only for the portion of the car’s value you use.
Lower Initial Costs:
Lower Monthly Payments:
Convenience And Control:
|Is leasing right for you?|
With all the advantages leasing provides, there’s no doubt that it’s an attractive alternative to the rising costs of vehicle ownership.
The important thing to remember when you consider leasing your next vehicle is that leasing is an excellent alternative to buying. Determine the needs of your lifestyle. You may want to take leasing into account if one of the following situations applies:
Leasing Fits Many Lifestyles:
Kilometers And Your Lease:
|Leasing is easy|
After you’ve picked out the vehicle that’s right for you, carefully review the lease terms and agreement with your dealer so that you understand all your leasing obligations. Here are some key points to consider:
It’s easy to see there s nothing mysterious about leasing. Once you understand the facts, it’s as straight-forward as traditional financing. In many cases, leasing can help you afford a more luxurious vehicle more often, with little or no down payment, and lower monthly payments than traditional financing. The financial advantages of leasing can be significant.
One of the reasons lease payments can be much lower than payments to purchase the same vehicle is that monthly lease payments are only for the use of the vehicle during the term of your lease. Lease payments do not include equity. When your lease ends, if you decide to lease again, you’ll owe only the initial cash outlay of your first month’s lease payment, applicable license and title fees, and a refundable security deposit. No equity is necessary.
With a lease, your initial cash outlay is usually less than the cash investment required to purchase a vehicle, and your monthly lease payment is also usually less than a conventional retail loan payment. A lease offers more affordable payments and leaves you with more disposable cash that you can put to work with other purchases or investment opportunities.
Yes. But terminating your lease early, that is, "trading in" your leased vehicle, has the same market risks as with a purchased vehicle. Before you lease, talk with your dealer about a lease term that will best match your driving habits and lifestyle needs. Careful planning can help you avoid the potential added expense of early lease termination.
A lease has the potential to put you into a vehicle with more luxurious options than you might be able to afford with a retail payment. It all depends on the monthly payment that’s right for you. Consult your dealer for details.
There can be tax advantages to leasing, depending on your individual circumstances. If you use your leased vehicle for business purposes, the lease payment, or a portion of it, may be deductible as a business expense. The potential tax benefits of leasing versus purchasing are so dependent on your individual circumstances that, if you’re concerned about tax benefits, consult your tax advisor before you make a vehicle leasing decision.
There are no hidden charges or surprises at the end of your lease. The disclosure laws for leasing in British Columbia are the most comprehensive in Canada and every attempt has been made to structure the lease in plain language. You know right from the start exactly how much your monthly payments are, and what types of fees will be assessed for excessive kilometers or unusual wear and tear. If you’ve maintained your vehicle properly throughout the term of your lease, you have three options:
In order to purchase your vehicle prior to lease end, you will have to negotiate an early termination with your dealer. The dealer will usually have to arrange to purchase the lease from the leasing company and sell the vehicle to you as a used car. You will be responsible for all fees and taxes associated with the transaction. Before you lease, talk with your dealer about a lease term that will best match your driving habits and lifestyle needs. Careful planning can help you avoid the potential added expense of early termination.
|The language of leasing|
Capitalized Cost Reduction
Excessive Kilometer Fee
Excessive Wear and Tear Charges
Guaranteed Future Value
Lease-End Value (Residual Value)
Manufacturer’s Suggested Retail Price (MSRP)
Purchase Option/Purchase Option Price
Residual Value (Lease-end Value)