Why Lease

Why Lease?

The advantages of leasing, the alternate financing method.

When you lease, you get more vehicle for less money! Leasing is a very different and unique way of financing a vehicle compared to the traditional loan option. Leasing allows for the use of a vehicle over time at a lower cost per month, which frees up cash for other purchases.

Advantages of Leasing

• Lower down payment
• Affordable payments with shorter terms
• Driver a newer, better vehicle for less money each month
• Lower repair costs (with a three-year lease, the manufacturer warranty covers most repairs)
• No trade-in hassles at the end of the lease
• Only pay sales tax on the depreciated portion of the vehicle

Tax Savings With Lease Compared To Loans

With leasing, taxes are collected on the monthly lease payment throughout the term of the lease. With a loan, all taxes on the vehicle price are paid upfront. As a result, you end up paying interest on this tax amount. If you choose to purchase the vehicle upon expiry of the lease, you would then pay the tax on the residual valve.

For Example:

If an individual normally likes to drive a different vehicle every three years, a 36 month lease would allow them to pay only for the desired usage and then obtain a new vehicle. If the same individual financed a vehicle over a 72 month period on a loan, they would be left with the hassle of trying to sell the vehicle privately or potentially losing money by trading in the vehicle after 36 months.

Only Pay For What Your Use

With a traditional loan, the vehicle is written down to a zero balance which is typically over a 60 or 72 month term. In contrast, a lease is based on the anticipated use of a vehicle over a specific time period and places a value which reflects that expected usage. This period is measured in months and can range from 6 to 60.

Because you only pay for the portion of the depreciation used when leasing, lease payments can be much lower per month compared to loan payments. This allows you to drive a more expensive, better equipped car for the same payment as a traditional loan.

There Are Two Basic Types Of Lease

Closed-End Leases & Open-End Leases

Open-End Leases

Open-end leases, or 'no kilometer restriction's ' leases, allow you to lease a vehicle without any kilometer restriction, because you guarantee the residual or end value of the vehicle. If you are a high mileage driver, your Dueck GM Leasing Representative can work with you to determine a reasonable end-value based on your expected usage.

Closed-End Leases

Closed-end leases, or 'walk away' leases, enable you to walk away at the end of a lease with no further obligation (provided the car is not damaged, has not been subjected to excess wear and tear, and kilometer restrictions have not been exceeded). With a closed-end lease, the leasing company guarantees the residual or end value of the vehicle.

Excess Wear and Tear Includes:

• Glass which has been damaged, chipped, cracked, scratched or tinted
• Damaged body, fenders, metal work, trim or paint; any scratch through the paint in excess of 3/4 of an inch, and body dents in excess of 1/2 inch wide
• Missing equipment which was in or on the vehicle when delivered and has not been replaced with equipment equal equality and design
• Missing or unsafe wheels or tires (including the spare; snow tires are not acceptable)

• Any tire (including the spare) with less than 1/4 inch of tread remaining at the shallowest point
• Damage or stained dash, floor covers, seats, headliner, upholstery, interior work, or truck liners
• Any mechanical damage or other condition that causes the vehicle to operate in a noisy, rough, improper, unsafe, or unlawful manner
• Any other damage whether or not it is covered by insurance
• Missing wheel covers, jack or wheel wrench