WHY LEASE?

Lease payments are always lower than finance payments when comparing the same vehicle, same price, and same term. Lease payments are often lower even when compared to longer finance terms.

Typically, lease terms are 36 or 48 months which means you can move up to the latest model usually within the manufacturers warranty period. All you have to look after are the regular maintenance visits.

For business or self-employed lessees there may be expense, right off or tax advantages to leasing. You should get advice from your accountant as to what advantages may apply to your circumstances.

You only pay tax on a lease when you make a payment and not on the full price of the vehicle.

There is often no requirement for money down at the start of a lease apart from making the first payment. You choose how much to put down if you prefer a lower payment.

At the end of a closed-end lease as long as the agreed km have not been exceeded and you have not incurred excess wear and tear you can simply return the vehicle and lease a new one even if the current value of the vehicle being returned is less than the option to purchase. The lease company has taken the risk on the depreciation not you.

At the end of a closed-end lease (with an option to purchase) you can buy out your vehicle at a pre-determined price plus the applicable taxes at that time. If the vehicle has been a good one, the buy out is in line with market conditions and you prefer to keep it then you can take up the option to purchase

Depending on your circumstances you may choose to customize your lease. Lease terms range from 12-60 months; you may wish to put money down to reduce your payment; you may have particular high or low km requirements; you may want to elect to have a lower than usual option to purchase.

Yes. Your lease can be customized to accommodate high or low km usage. The payment will be a little higher if you drive more but the option to buy will be less to reflect the km at lease end.

The only potential additional costs at the end of a lease occur if you return the vehicle. If you drive more than the agreed km or return the vehicle with wear and tear over and above what would normally be expected this could result in lease end charges.

The vehicle must be maintained according to the manufacturers recommendations. On return of the vehicle any insurable damage should have been repaired; all exterior and interior damage should be repaired; tires and glass should be in acceptable condition; all equipment covered by the lease should be on the vehicle when returned. Basically, the vehicle should be maintained and cared for as if it were your own.

Yes. A lease is no different from a finance contract in that the vehicle has a value and the lease has a balance owing. You can pay the difference, pay the remaining lease payments or even roll the balance into your next lease depending on your circumstances.

Yes. Vehicles up to three years old can be leased, older for low km luxury vehicles.

Each application is assessed on its individual merit. It costs nothing to put in a credit application to find out if you qualify. For local business owners and self-employed customers leasing often proves to be the most convenient way to drive the vehicle or vehicles that best suit their needs without having to tie up borrowing potential.