
LEASE
Leasing offers affordable payments with shorter terms. This lets you:
- Consider vehicles with more options
- Choose your desired trade cycle
- Have peace of mind since most terms are within the warranty period
You have options at the end of you lease:
If the vehicle is worth more than the residual value -
- Exercise your purchase option and keep it
- Exercise your purchase option and apply the equity to the next vehicle
If the vehicle is worth less than the residual value -
- Drop off the keys and walk away (subject to any excess kilometers or wear-and-tear charges)
FINANCE
Conventional loans typically require longer terms to achieve affordable payments.
This keeps you:
- From trading into a new vehicle sooner
- Driving the same vehicle longer even when you are ready to trade
Conventional loans have obligations when you trade:
- The owner must find a buyer
- The owner assumes all of the risk for unexpected depreciation
- The vehicle’s condition, mileage, and wear and tear will be a factor in assessing the total value of the vehicle
- The owner must satisfy the loan balance regardless of the vehicle value
Many customers think that choosing to lease is all about a lower monthly payment. Although that is true in some cases, even when the monthly payment is a little higher than financing, there are many benefits to leasing.

After 48 months, the lease customer can choose to:
- Return the vehicle with no negative equity
- Exercise the option to purchase the vehicle
- Lease a brand new vehicle with the up-to-date technology and safety features, and receive total loss protection
- Save on sales tax for only paying on the portion of the vehicle used
- Eliminate potential accident damage depreciation during the term of the lease

However, during the final 36 months of their contract, the finance customer may:
- Deal with potential negative equity. In Canada, the average amount is about
$6,700 - Have to pay more in maintenance costs and deal with the vehicle being past its warranty period
- Realize they should have been leasing in the first place if they are returning to the dealership within 36-48 months looking to trade in
- Be exposed to accident damage depreciation