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)

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

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