Why Lease?
When you lease, you pay only a portion of a vehicle's cost, which is the part that you "use up" during the time you're driving it. Leasing is a form of financing and is not the same as renting. You have the option of not making a down payment, you pay sales tax only on your monthly payments (in most provinces), and you pay a financial rate, called money factor, that is similar to the interest on a loan. You may also be required to pay fees and possibly a security deposit that you don't pay when you buy. You make your first payment at the time you sign your contract for the month ahead. At lease-end, you may either return the vehicle or purchase it for its depreciated resale value. You may be charged a lease-end disposition fee.
As an example, if you LEASE a $20,000 car that will have, say, an estimated resale value of $13,000 after 24 months, you only pay for the $7,000 difference (this is called depreciation), plus finance charges, plus possible fees. You return the car at lease-end or buy it to own it.
What are the benefits of leasing?
Leasing is like renting, you only pay for what you use. Payments are based on the difference between the lease end value and the vehicle cost plus lease finance charges. Taxes will be included in the monthly payment rather than the full cost of the vehicle.
- A New Car More Often: With lower monthly lease payments over a shorter period of time, you can drive a new vehicle more often.
- Flexible Terms
- Keep More Cash to Use or Invest
- Low Monthly Payments: Lease payments are traditionally lower than retail payments on the same vehicle.
If you are returning your vehicle at lease end, your vehicle will be inspected by an independent company to determine if there is any chargeable damage. Chargeable damage can include: dents, paint damage, missing equipment cracked or chipped glass, mechanical damage, holes, tears, or burns to upholstery. You are responsible for either repairing identified damage to acceptable standards prior to returning the vehicle or paying the amount indicated on the inspection report plus applicable taxes.
The yearly kilometre allowance with HFS is 24,000 or 20,000 if you decide to go with a low km option. At lease inception, you can purchase additional kilometres.
If your leased vehicle is involved in an accident, vandalized, or stolen, the vehicle may have to be written off. To insurance companies a « write off » means fair market value minus your deductible. Your insurance settlement may not always satisfy your monetary obligation. Our Future Value Lease offers you protection against these situations. The monetary GAP between your insurance settlement less your deductible and your lease obligation is covered automatically by our GAP. Some conditions may apply. See your local dealer for details.
The total cost of lease is the total monthly payments plus any amounts paid to reduce the cost of the vehicle i.e: cash down payment, vehicle trade-in plus applicable taxes, vehicle licensing, and registration fees.
Down payments are not required on a lease. In a lease situation, you may choose to make a down payment in order to reduce the monthly lease payments. Down payments on leases cannot exceed 30% of the Total Lease Price.
Gives you the transaction price and is also used to calculate your lease payment. While taxes are not included in this price, it does include all equipment, accessories, freight, and dealership fees.
You are responsible for insurance coverage. Required coverage typically is detailed in your lease agreement.
At the completion of the lease, you can choose to purchase the vehicle for a pre-determined price shown on your lease contract plus applicable taxes or return it without further obligation. If you decide to return your car, all you have to do is make sure you have not exceeded your kilometre limit, that any outstanding fines have been paid, and there is no excess wear and tear on the vehicle.
Most lease agreements require a first monthly payment on delivery of the vehicle, licensing, Tire Stewardship Fee & Air Conditioning Recovery Fee.
