Leasing FAQ

Leasing - Frequently Asked Questions

What does it mean to lease a car?
Leasing a car means you're paying to use it for a fixed period. You do not own the vehicle. At the end of the lease, you either return it or buy it.
The benefits of leasing are endless! So we came up with our top 10 reasons to lease:
  • NEW CAR, NEW CAR, NEW CAR! If you love cars and driving, this is a big perk. Leasing a car means you get to keep changing cars as your lease is over or even if you want to end your contract early! You will never get bored, and you can enjoy that new car smell!
  • Don't worry about the upkeep. Most car leases are under warranty for a majority of its term.
  • Tax deductible for businesses. You can write off your lease if you're self-employed, own a business, or even work commissioned sales.
  • Cars depreciate. A car starts to lose it's value as soon as it leaves the dealership. By leasing you really only pay for the miles/ the depreciation of the car.
  • Up to date features! You get to experience all the newest in-car gadgets as you switch out of your lease. Who wouldn't want heated seats for the cold winter, built in front and back cameras for the tricky parking spots, and a built-in GPS system!
  • Lower monthly payment. One of the most appealing features of leasing a car is the low monthly payments compared to financing a vehicle.
  • "Afford" a cooler car. Banks don't like to loan out more than $30,000 for a car loan but by leasing the car you can have a more beautiful car, and the monthly payment will be lower than if you bought the car.
  • Invest your money! With the money you save from leasing, you can pay your debts, mortgage, or RRSP to increase your net worth. A car's value only depreciates. So lease the car, pay for the usage, and then decide if you want to buyout or replace the vehicle.
  • Flexibility.Life is unpredictable to the last drop. Leasing will give you more flexibility compared to financing. You can trade it in, sell the car, pay off the residual value/refinance the vehicle, or turn it in.
  • Career keeps you moving. Your career life keeps you running around the country and overseas quite often. You're not sure where you're going to be living. Leasing offers you the flexibility of not having to sell the car potentially. You can turn it back into the dealership, settle your lease, or have someone take over your contract.

If you prefer changing cars every 4-5 years and want to keep up with the latest models, leasing is the right choice for you. However, consider how much you're driving. If you constantly go for road trips or travel city to city, the leasing mileage may not be enough. However, you can purchase extra miles for your lease.

If you want to end your lease early or swap cars, you can either pay out your current contract or trade in your lease. The payout would be the amount that you owe on your current lease. If the vehicle is worth more than what you owe, you can put that equity towards the next car and if it is worth less, you can either pay the amount or add it to your next lease.

At the end of the lease, you can choose to lease or finance a new vehicle, purchase the current vehicle, continue to refinance the same vehicle or return the vehicle.

When you go over your mileage, you have to make up the cost at the end of the lease. However, you can purchase extra miles upfront for less.

Leasing is normally cheaper than financing. When you're leasing a car, you only pay for a fraction of the selling price. The depreciation of the vehicle during the time of the lease. As for finance, you're paying for the entire value of the car.

You will need your government issued driver's license, a current pay-stub, and a void cheque. Other items may be requested; it's best to ask your sales representative for further detail.

When applying for a loan, lease, or credit, your credit score will be one of the main factors. If you know your credit score before you apply, you will have a better idea of knowing if you will get approved or not. Free annual credit reports can be requested from any major credit reporting agency. If your score is above 700, you will have the best chances of getting approved.

No, down payments are not necessary but the more money/value you can put towards your lease the better. We do recommend putting down more down payment to lower your monthly payments. Without a down payment, your monthly fee and rate will be higher. Trade-in vehicles can also act as a down payment. The car will be appraised, and the cash value will go towards the lease.

Leasing a car is a big decision. The best advice would be to do your research. Start by looking at specific brands and styles that appeal to you. Then figure out your needs/wants. Do you want an all-wheel drive to help you get around in those winter storms, heated seats to keep you nice and warm, GPS to help you get around, or did you want the car to be eco-friendly? Once you narrowed down the list of potential vehicles, head to the dealerships and ask questions! Our dealerships are very welcoming and would be delighted to inform or answer any questions you have. Once you are better informed, talk to any of the salespeople and they can help you get started.

Not all leasing companies are licensed to do business in other provinces. So you may need to either return your lease and settle your lease or have someone take over your lease.

Your insurance will cover a temporary driver that has the lessee's permission. If someone is driving the vehicle regularly you may need to add them to the insurance as a secondary driver.