Common Lease Questions

Q: Who is responsible for the maintenance?
A:  You are, it is the same as owning and financing the vehicle.  You will need to do all the necessary oil changes, filters, brakes, tires and tune-ups (whatever is necessary for your type of vehicle).  Most vehicles on a lease have a manufactures warranty is cover defeats and repairs.

Q: Can you lease a used vehicle?
A: yes you can. These lease are usually with a higher interest with a lower buyout.  However, you should go over your lease in detail and find out exactly how much your paying.  You may find it cheaper to finance a used vehicle.

Q: Do I need special insurance?
A: Most leases require you carry a minimum liability and a deductible. They will also ask that you carry a $250 deductible for comprehensive.  Contact you local insurance office for more detail on insuring a vehicle that you wish to lease.

Q: What is a acquisition fee?
A: It is a fee that some leasing companies charge at the beginning of the lease. Because of the disclosure laws in B.C. this will be mention at the time of signing.  Its nice to know before hand how much the acquisition fee is. The fee can vary for zero to five hundred dollars.

Q: Will I own the vehicle at the end of the lease?
A: No, you will not own the vehicle at the end of the lease unless you buy it out and pay the applicable taxes.

Q: Will I have to pay fees or repairs at the end of the lease?
A: If you buy the vehicle out at the end of the lease there are no fees. If you turn the vehicle in you can be faced with certain fees and repairs. You could end up paying for access Km's or damage over the allowed amount. Vehicles need to be returned in a clean safe driving condition.

Q: What then are the main advantages of leasing?
A: Well you will have a lower payment than financing. You don't have to pay all the taxes up front.  You can switch to another vehicle if your needs change or just like to drive new every two - three years.  Plus, if you have a small business you can benefit from tax right offs.

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