What costs are there at the start of the lease?
There are a few payments to consider at the start of a lease:
- Refundable Security Deposit: Refundable at the end of the lease unless it is necessary to apply for any outstanding amounts owed.
- First Lease Payment (or partial lease payment if not starting at the beginning of the month).
- Leased Vehicle Capitalized Cost Reduction or down payment: The lessee can lower the monthly payment by trading in a vehicle or paying an amount in cash up front.
- Registration & PPSA Fees.
Who pays for the insurance?
The lessee is responsible for insuring the vehicle with the amount of coverage required by the lessor.
Who pays for the license and registration?
Lease or buy, the lessee is accountable for licensing and registering the vehicle.
Who is responsible for maintaining and repairing the vehicle?
The lessee is responsible for repairs to the vehicle and having regular maintenance performed. If don't, you will erode your equity in the vehicle.
Can I lease a used vehicle or truck?
Absolutely! We are one of a select number of lease companies that are capable of leasing used vehicles at competitive rates if this better suits your personal situation. We do, however, need the specifications and costs to evaluate the vehicle or perhaps you have found one from our on-line used car inventory.
Is there a Kilometer allowance?
The lease agreement generally provides an allowance of 20,000 kilometers per year. There is an additional cost you must pay for every km above the allotment at lease end. If you know up-front that you will put on more than the allotted km's, you may choose to pay for the projected excess mileage ahead of time, usually at a reduced rate by lowering the residual.
How is the residual value determined and how does the residual value affect the payment?
The residual value or buyout is based on the historical data on the resale value of used vehicles and on the amount of kilometers that you will put on the vehicle during the lease term. Residuals are based on the vehicle having normal wear and tear, regular maintenance, no body damage and 1667 kilometers per month usage (20,000 km's per year). If you were going to put more kilometers on, then the vehicle will be worth less at the end so the residual value would have to be decreased and the payments would go up.