Car leases in Canada work similarly to a car lease in anyother country. A car lease is analternative way of getting a car to use, one that is temporary unless you choose otherwise. Leasing a car might not be the right choice for everyone but it definitely has its advantages for some. Here are the basics of leasing a car in Canada.


Borrowing, Not Buying

When you lease a car you are paying for the use of said carfor a certain amount of time. A typical lease can be found in 2, 3, and 5 year terms. During this time you are paying for the cost of using the vehicle,similar to renting a car for a long period of time.


While you are leasing the car you make monthly payments thatare less than the cost of financing the car. Payments run a wide variety of amounts, and this is what can set one company ahead of another when it comes to leasing. Additionally, almost all leased cars carry an interest charge. These also vary quite a lot. Make sure to shop around to get the right prices.

Lease Terms




Because you are essentially borrowing a car and not buyingit a lease has more terms and conditions than financing does. These terms and conditions may be a deal breaker for many people. It is imperative that you understand the terms and conditions of a lease before signing.

Mileage

Most leases come with a mileage clause. This means that you cannot drive your leased car more than a certain number of miles. Most companies enforce this at the end of the leasing period. If you drive over a certain amount of miles that are allowed in your lease you will end up paying fees by the mile. Almost always these fees are extremely high. This makes it unrealistic for someone who drives a lot to lease a car.


Buyback

Buyback is the term for the option to buy your car after the lease has ended. Because the value of the car has gone down do to use it often isn’t worth what is being asked. Make sure that you investigate the buy back options for your vehicle when you are leasing.


Maintenance

Vehicle maintenance can be costly and when you own a car thecost falls on you. Depending on your lease the cost of maintenance might or might not fall on you. The best leases offer a warranty or maintenance plan that helps protect the car. If a lease doesn’t include a maintenance price it is time to think about the actually value of leasing.


Negotiation


Like with any kind of car buying venture you can negotiate a car lease/

lease takeover. Dealers have quite a bit of room in what can and can’t happen in a lease. If you go in prepared to negotiate you will stand a better chance of getting favorable lease terms. Research lease strategies and car prices ahead of time to give yourself a step up.