When you are leasing a car there are general things that you need to figure out before you get to the Dealership. Things like how many kms per year will you drive, are you planning on putting any money down and another is the length or time or the car lease term that is going to work for you.

Typically the car lease terms are 24, 36, 48 and depending on the manufacturer there may be a 60 month option. Sit down with your Lease Manager and go through the various terms with them and they will let you know how the term affects the car lease payment.

Pay attention to the rates and residuals from one term to the next. A shorter term may have high residuals (the higher the residual means, in most cases, a lower payment).

The typical car lease terms are 36 and 48 months. I would not recommend going any longer than the 48 month term. The whole idea behind a lease payment is that it is lower than a finance payment because you are only paying for the amount of the car you are driving for a set period of time. If you go more than the 48 month lease term – to the 60 month term – you have almost paid for the whole car and you still don’t own it. Really think about the term and again, get the Lease Manager to do a compairson for you and to show you the differences so you are better informed and can make a better buying decision!

Car Leasing Center – Car Lease Terms This post via: Cars Canada For Sale The help you need when buying a new or used car in Canada!. Just Ask Ryder

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Car leasing has been around for a bit now and if you have leased a car (or a few) there are still questions that you should always ask. Things change over time, especially at the time when you turn in your leased car and knowing things ahead of times prepares you better for the duration of your lease and afterwards.

Here are some things to think about and structure your lease accordingly:

1. How many kms (or miles, as the case may be) do you drive on a regular basis? If your driving habits are about to change because your lifestyle has changed then you need to give some that to that and compensate for it. One of the biggest charges at the end of a lease is kms overages. You can lessen that expense in a couple of wasys:

a. you can determine the amount of kms at the onset. Many people really have no idea. There are typically two lease alternatives that deal with kms. You can opt for a 20,000 km/year lease or 24,000 km/year. If you know that you won’t do over 24,000 go for it. That way you are protected. If you do less that 24,000, no you won’t get the excess back, but you will be protected.

b. half way through your lease if you know that you are going to be over, call and buy excess kms. Costs vary from brand to brand as to how much per km. This way you are paying over the remaining term as opposed to paying the lump sum at the end.

Overage on your kms (or miles) is one aspect of leasing we give no thought to during the course of our term. Only at the end do we tend to suck back and reload and realise that we have a huge bill facing us. Take the time, look at your situation as you go and if need be buy extra kms on the fly!

Car Lease Information – Number One Expense People Forget About When Leasing a Car This post via: Cars Canada For Sale The help you need when buying a new or used car in Canada!. Just Ask Ryder

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Now if you have the money to layout then it is certainly to your advantage because now you don’t have to make 36 monthly payments, you’ve paid already and can forget about it. The other advantage to this form of car lease payment is that typically (but not in all cases so check with the dealership) your lease interest rate can be lower.

This is still a traditional lease in that you have the option of buying the vehicle out afterwards or giving back the keys. You also are on the hook for any damages to the vehicle when you return it, or you can purchase the worry free insurance that is offered (I strongly recommend it!).

KEEP IN MIND, that typically the lease payment they are providing you will be based on a low km lease – typically 20,000 kms/year. If you do more than that you can purchase excess kms from the get go. Also understand fully if there is anything over and above taxes due at signing. Bottomline READ THE FINE PRINT in the advertisements, they tell all!!

Is a one time lease payment worth it – for sure if you want to pay a lower interest rate, if you have the cash for a one time payment then of course you drive for the set term without having to worry about making a lease payment.

photo credit: Manik.

One Time Lease Payment – Is It Worth It? This post via: Cars Canada For Sale The help you need when buying a new or used car in Canada!. Just Ask Ryder

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There are many advantages to car leasing vs car buying and one of those is of course the car lease payment.

When you lease a car you are paying for the amount of car that you are driving over a set period of time. The GST/PST that you are paying is based on the payment only. Unlike when you are buying a car outright your finance payment is based on the full amount of the car, the full taxes and the interest.

Of course the bottomline is if leasing is for you in the first place. If it doesn’t feel comfortable for you then it doesn’t matter how much a car lease payment is. Do your research and KNOW EVERYTING there is to know about leasing vs buying a car so that you have all the information you need to make an informed car buying decision!

photo credit: dno1967

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Short term car leasing is certainly pretty helpful in situations where perhaps:

1.  You don’t necessarily know what type of vehicle you want to get into;

2.  You aren’t sure if you want to make a full committment to a longer term because your personal situation will change due to job, etc.

It could be any number of reasons for not getting into a longer term car lease, but the option of a short term lease will certainly buy you some time to think things through.

Check and make sure what the shortest term lease is. Typically, manufacturer’s shortest term lease is 24 months. You can however check places like www.leasebusters.com and pick up a short term lease for a reasonable rate. Sometimes, depending on what you are after, there are incentives for assuming someone’s lease as well. You just have to look and read what people are offering.

Good Luck!

Short Term Car Lease What Is the Shortest Term? This post via: Cars Canada For Sale The help you need when buying a new or used car in Canada!. Just Ask Ryder

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When you take over a car lease what you are doing is taking over the responsibility for the lease payments for the amount of time the current customer has remaining.  Many people are actually going the take over a lease route because the lease payments have been typically lower in the past than they have been now, depending on the vehicle. It also buys you a little time if you are having a hard time deciding what to get into next.

It is certainly a very viable option and one that a lot of my customers have done!

photo credit: Ronald Lewis

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There are benefits to leasing a car and of course there are risks of leasing a car, which you should equally understand before you make the decision between car leasing vs buying. I have seen far too many people who either didn’t understand all there was to know about car leasing vs buying let alone what the risks were. By the time they found out, well it wasn’t too late, but it was costly.

Make sure you are aware of these risks of leasing a car and contemplate these risks as you make the car leasing vs buying decision …

1. Knowledge – now it would seem funny to have this as a risk of leasing a car but it is. From everything that I have seen that has come to my desk as a Leasing Manager, IF the sales rep did their job in explaining leasing and if the customer explained entirely their situation AND asked every possible question that came to their mind, I truly believe the risks of leasing a car wouldn’t be an issue.

Many sales reps do not explain the in’s and out’s of car leasing effectively. Customers don’t quite understand car leasing and then of course are attracted to the payment vs. financing and then that’s where everything comes to a halt. Before you know it you are in the business office signing the paperwork and sail off on your merry way until the time when you have some decisions to make about giving it back or keeping it. That’s when the fun starts and headaches.

KNOW what leasing is all about and make sure you understand fully ALL there is to know before you decide to lease vs buying a car.

2. Ownership – one of the risks of leasing a car is that you are not able to trade it or sell it because you don’t own it. For some people, ownership is an important aspect. They want something tangible at the end of a payment term, something that they can call their own and do with it what they will. Leasing is a liability, whereas financing a car makes it an asset in terms of who owns the vehicle.

3. Mileage – a huge risk of leasing a car is how many kms per year do you drive. I have seen a great many people come to me after their lease it up with 1000s of kms over what they were initially allowed (no kidding!!).

At the time of making the decision to lease over finance, your sales rep SHOULD BE having this talk with you. There are typically two km packages. One is referred to as a low km lease package and it is typically 20,400 kms per year. The other is based on 24,000 kms per year. You can also purchase kms over and above the 24,000 kms as well. First things first however and that is to sit down and think about how many kms you do per year and then work with your sales rep to see if leasing is viable or it is wiser to finance.

4. Damages – another area that costs people a lot of money is damages. You are allowed normal wear and tear (sorry but that scratch the is the length of your car is NOT normal wear and tear). The rule of thumb is typically nothing bigger than a credit card. You can purchase peace of mind insurance where most mfg will offer you the option of an additional insurance which will cover you for up to $3500 worth of damage.

Is this a cash grab? Hmmmm … no. I have seen cars with up to $2500 and over in damages and customers breath a sigh of relief when they remember they had it. Of course have seen other customers kick themselves for not taking it and having to pay for the damages out of their pocket.

These are the risks of leasing a car that you need to be aware of. KNOWLEDGE is the key … and by knowledge I don’t mean the knowledge of the sales rep, I mean your knowledge as well. If you are not sure if leasing if for you or if you want to know the in’s and outs as it relates to your situation, no worries. send me an email and I will be more than happy to help you out and give you some advice before you go into a dealership!

Car Leasing Center – Risks of Leasing a Car This post via: Cars Canada For Sale The help you need when buying a new or used car in Canada!. Just Ask Ryder

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There are a few benefits of leasing a car which make it a more viable option as opposed to financing and owning the car outright, but like anything else, it is buyer beware. Make sure you understand all the benefits of leasing a car before you decide to sign on the dotted line!

Benefits of Leasing a Car …

1. The Payment – This is a HUGE benefit of leasing a car! The concept I love most about leasing is the fact that your payment is lower than it is if you were to finance the car. See, with a lease you are paying for the amount of the car that you are driving over a specified period of time. Yes you have to pay the GST/PST (as the case may be in your Province), however these two taxes are charged on the payment itself … NOT on the whole price of the car.

With a finance option you have to remember that you are paying on the whole price of the car, plus the interest, plus the taxes and because of that your payments are higher.

2. You have options -Benefits of leasing a car include options at the end of your lease which gives you two options, you can:

a. Give back the keys and get into a new vehicle. Let’s face it 3-4 years is a long time, needs change, your lifestyle changes, even your tastes change. With a lease you have the opportunity to roll with those changes and if there is a new vehicle that has caught your eye you have the flexibility of having it next.

b. You have the option of buying the car out. Now, keep in mind this option is viable only IF the car held value. What I mean by that is this. When you lease a car you are also provided with the buyout of that vehicle. Meaning what it is that you have to pay if you decided to keep the car. What you do is, when it comes time to make the decision as to what you are going to do, have the vehicle appraised. You know what the buyout is, what you have no idea is what is the current market value of that car. Again, remember 3-4 years is a long time, the climate changes, I mean look where we are now which is a perfect example. If the appraisal of your leased car is close to what your buyout is, then you certainly know that the buyout is worth it “in today’s market dollars.” If the car is worth less in “today’s market dollars” then the decision is easy. I mean why would you pay more for the car than what it is actually worth? Give it back and get into a new vehicle!!!

Make Sense???

3. Cycle in and out of a vehicle more often - Another benefit of leasing a car is that you can get into a new vehicle more often. As your needs, lifestyle and taste changes, as does to the auto industry. New vehicles come out, technology advances and of course leasing gives you that option to get into the “latest and greatest”

The benefits of leasing a car make it a very viable option over financing a vehicle, which is why more and more people made the switch. HOWEVER, keep in mind that leasing might not be as viable option for you. There are things like the amount of kms you drive per year that might make financing more of a benefit. My strong recommendation to you is before you sign anything concerning a lease (or finance for that matter) that you sit down with a sales rep and get ALL THE FACTS and then determine if the benefits of leasing a car will work to your advantage.

If you aren’t sure what to ask, or would rather not go in and be pressured, no worries, send me an email and I will be more than happy to help you out and give you some advice before you go into a dealership!

Car Leasing Center – Benefits of Leasing a Car This post via: Cars Canada For Sale The help you need when buying a new or used car in Canada!. Just Ask Ryder

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As it relates to Dodge, Chrysler and Jeep, with the financing rates being so much more aggressive, you are certainly better off to finance as oppose to lease any longer.

I know, I know … if you have been a leasee for a number of vehicles then you are not happy to hear that.

HOWEVER …

If you stop and think for a quick second, there are a few aspects to financing your next car rather than leasing that present some very valid advantages. These are really worth taking into consideration before jumping for the next car leasing opportunity!

Advantages to Financing vs Leasing Your Next Vehicle

1. KM Overage

With financing you are going to own this car so you don’t have to keep your eye on the odometer. Whereas with the lease you were capped at so many kms/year and anything over you are penalized at so much per km over.

2. Damage

Obviously it bites if you get dings on your car, however, with a finance again it’s your car so you can choose to have the vehicle repaired or not. With a lease unless you purchase the Worry Free XS Coverage (covers you for up to $3500.00 worth of damages) then those damages have to be paid for before the car goes back.

3. An Asset

If you finance a vehicle you own it. You have the freedom of trading it in when you are tired of it, keeping it it, selling it, gifting it. You name it, you have the option of doing whatever you want. With a lease you do not have ownership, you are essentially renting the car for a set period of time. At the end of course you have the option of owning by buying it out, but not until then.

There is leasing available through leasing companies, however, as it relates to Chrysler, Dodge, Jeep on the manufacturer level, they haven’t provided us with a lease option.

BUT …

Don’t let that stop you from taking advantage of the lower interest rates for financing and the excellent incentives that are on the go. There are amazing deals out there that certainly make the switch worthwhile!

If you have ANY questions concerning your lease, contact me for more Info

I will be more than happy to work with you!

If your lease is up and you aren’t sure what things you need to know … skip over to Car Leasing Center – My Car Lease Is Up … Do I Have Options?

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Ah, the $64,000 question and of course the question that I hear a number of times throughout the day!

The short answer is … of course you have options!

Your Options Are …

1. Give the vehicle back. Your car lease is a “walk away” meaning you can give it back and walk away from it. You are free to get into another vehicle within the same brand or you can choose a different brand altogether, the choice is yours. There are a couple of things to consider and I will certainly give you the low down on those in just a second.

2. Give the vehicle back and get into a new one. If your car lease is about to expire you “may” be offered some form of Lease Loyalty Program as an enticement to keep you in the family and back into another new vehicle from the manufacturer.

I say “may” because it isn’t a given and of course not all manufacturer’s offer it. It just so happens that Chrysler, Dodge and Jeep do offer Lease Loyalty Programs from time to time. If you are leasing something other than Chrysler, Dodge or Jeep check with the dealership you purchased your vehicle from. If you are in a Dodge, Chrysler or Jeep Contact Me, with your lease details, I’ll be more than happy to work with you!

3. Buyout your current leased vehicle.You have driven this car since new so you know how it has been driven. The one thing you MUST understand is that the residual (buyout) is NOT negotiable. The buyout is what it is, plus there is an admin fee, gst/pst plus you also have to get a safety and e-test done and finally the registration transfer. (Note: safety and e-test is a requirement for Ontario, check and see what the requirement is for your province).

Before you consider this route however, take the 20 minutes go into your dealership and have the car appraised. You already know that the buyout is what it is … but do you know what the car is worth in today’s market dollars … typically no. Having the vehicle appraised will help you make an informed buying decision. If the car isn’t worth the buyout then my question to you is …

Why are you paying more for this car than what it is worth?

It doesn’t make sense! In that case give the car back. That’s the beauty of leasing, you have the choice of giving it back or keeping it, if it held value of course!

In a nutshell those are your three options. Now, typically what comes across my desk are people who don’t want to buy their lease out but are way over on their kms and/or have damages and they can’t afford to pay for them. They feel the best way to avoid it is to just grin and bear it and buy the car out.

When people come to me that are usually over kms (sometimes by a lot) and they may have damages. If you find you are over on your kms, then you will be charged .12 – .15 cents/km overage plus tax. It’s pretty straight forward.

Book a lease pre-inspection appointment where the Lease Manager will inspect your vehicle and let you know what you are responsible for in terms of repairing damages and/or km overage. They will provide you with an estimate for the damages and the actual for the kms. With that information in hand, when you shop for the next new car, use this as a bargining tool. What I mean is, tell them that you have a lease car, let them know the details in terms of how many payments you have remaining, how much you are going to owe in km overage and/or damages. You’re on the hook for the kms and overage so see what the new Dealership is prepared to do for you to earn your business.

If you decide to stick with the same brand, AGAIN, it is in the dealerships best interest to help you with the km overage and/or any damages you might have. They want to keep you in the family and will certainly work at helping you out to do so!

KEEP IN MIND … I said help, not assume all. Depending on your situation there is a possibility that they will cover it for you. However, if your situation is extensive, don’t expect them to foot the whole bill.

So do you have options?

You betcha!

If after reading this you still have questions, not to worry. You can either call your dealership, who I am sure is standing by to help you. Or, put it in a form of a comment below and I will certainly respond. If that isn’t working for you Contact Me, explain your situation and I will be more than happy to help you!!
 

If your lease is up and you think you might want a quality used car this time around instead … skip over to Used Cars for Sale Canada

Car Leasing Center – My Car Lease Is Up … Do I Have Options? This post via: Cars Canada For Sale The help you need when buying a new or used car in Canada!. Just Ask Ryder

I know … I know … how rare is that!!

MY CREDO is simple

NO TRICKS … NO GIMMICKS … NO GAMES
Just Straight Information On New or Used Car Buying in Canada

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