LEASING

Leasing may fit better than you think.

If you like driving a newer vehicle every few years, put fairly predictable kilometres on your vehicle, or simply want to compare a lease payment with financing, leasing is worth a serious look. I’ll help you understand how it works, what the agreement means and whether it fits the way you actually drive.

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WHY LEASE?

There are some real reasons people choose leasing.

Leasing isn’t automatically the better deal, but it can be a strong fit when the structure matches how you use your vehicle and how often you like to change it.

Potentially lower payments

The Financial Consumer Agency of Canada notes that lease payments are generally lower than car-loan payments with the same term. That can make leasing worth comparing when you want to keep the monthly payment manageable while looking at a newer vehicle.

A newer vehicle every few years

Vehicle leases typically run three to five years, according to the Financial Consumer Agency of Canada. If you like changing vehicles more often instead of keeping one long term, that shorter cycle can be part of the appeal.

Options when the term ends

Depending on the agreement, you may be able to return the vehicle, buy it, or move into another lease when the term ends. The exact options and costs are set out in the specific lease agreement.

Source: Financial Consumer Agency of Canada — Car financing options.

IS LEASING A FIT?

Start with the way you actually drive.

You don’t need to know the answer before you reach out. These are the things I’d look at with you first.

Leasing may be worth a closer look if you…

  • Like driving a newer vehicle every few years
  • Drive a fairly predictable number of kilometres each year
  • Usually change vehicles instead of keeping them long term
  • Want to compare a lease payment with financing the same vehicle
  • Are comfortable staying within kilometre and vehicle-condition terms
  • Like having defined options to consider at the end of the term

Buying may fit better if you…

  • Drive a lot or your annual kilometres are hard to predict
  • Usually keep vehicles for many years
  • Want unrestricted ownership once the vehicle is paid for
  • Plan to make significant modifications
  • Would rather not manage end-of-lease kilometre or wear conditions
  • Want to keep the vehicle’s remaining value once it’s fully paid for

STRAIGHT TALK

A good lease is one you understand before you sign it.

This is the part I don’t want you surprised by later. In BC, the agreement should spell out the important financial obligations and conditions. I want you to know what you’re agreeing to before you decide.

Kilometres and wear

Your agreement sets the kilometre allowance and the standards for vehicle condition. Extra kilometres or wear beyond the agreement can mean additional charges at the end, so we should compare those limits with the way you actually drive.

Look at the whole obligation

The monthly payment matters, but so do the amount due up front, taxes, fees, the number of payments, any buyout or residual amount, and possible end-of-term costs. I’ll help you know what numbers to look for.

Know the exit before you enter

Ending a lease early can be expensive, and end-of-term obligations vary by agreement. If there’s a chance your driving, work or family needs could change, it’s worth understanding those terms before you sign.

Source: Vehicle Sales Authority of BC — Financing and Leasing.

COMMON QUESTIONS

Leasing questions I hear all the time.

It depends on the vehicle and the provider’s offer. I’ll help you compare monthly payments, upfront costs, fees and the total cost over the term, along with what happens at the end. A lower monthly payment doesn’t necessarily mean a lower overall cost.
Your lease sets an annual or total kilometre allowance and may charge for going over it. If your driving is fairly predictable, tell me roughly what you do in a year and I’ll help you compare that with the specific lease before you decide.
Depending on the agreement, you may be able to return the vehicle, buy it, or move into another lease. Before you sign, I’ll help you understand the buyout or residual amount, wear standards, extra-kilometre charges and any other end-of-term obligations.
Sometimes, but it can be costly. Early-termination rules and costs come from the provider and your specific agreement. If there’s a chance your situation could change, it’s worth understanding those terms before you sign.
Not necessarily. The amount due at signing varies by vehicle, offer and provider. I’ll help you compare what’s due up front with the monthly payment and the total obligation instead of focusing on one number.
If you like newer vehicles, drive fairly predictable kilometres and don’t normally keep a vehicle for many years, leasing may be worth a serious look. If you drive a lot, want to make major modifications or plan to keep the vehicle long term, buying may fit better. We can compare it around the way you actually drive.
A trade-in can still be part of the conversation, but how its value is applied depends on the provider and agreement. Tell me what you’re driving now and I’ll help you understand how it could fit into the lease.
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HOW I HELP

You don’t have to figure leasing out on your own.

Tell me what you’re driving now, roughly how many kilometres you put on in a year, what you’re considering and what matters most to you. I’ll help you compare the lease against financing and make sure you know what questions to ask before you sign. Approval, rates and final terms come from the applicable provider.

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READY WHEN YOU ARE

Think leasing might fit?

Send me the vehicle you’re looking at — or just tell me what you need. We’ll start with your driving, budget and how often you like to change vehicles, then see whether leasing makes sense.

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Leasing availability, approval, rates, payments, kilometre allowances, fees, wear standards, buyout options and other terms vary by vehicle and provider. Kootenay Truck Girl is not a lender or leasing company. Always review the provider’s disclosure and lease agreement before signing.