Automotive Leasing in Toronto and Vancouver

Benefits of Leasing with AUTO|ONE

Why should you get a lease with AUTO|ONE? Well the answer is simple, it's because we are experts in the field of leasing and can help you get the best value. We can do this because at AUTO|ONE, we are the bank. This means that we don't rely on third party members or a bank to get you the leasing options you need, all of it comes straight from us. This allows us to offer many incredible deals such as many Custom In House leasing options to insure that we get you the best vehicle possible for your financial situation. We also offer Custom Vehicle Sourcing which means if we don't have the car of your dreams already with us, we can try to find it! All of these flexible options leave us in a situation where we can get you the perfect car, with the perfect lease, for the perfect price. 

What is Leasing?

Leasing, in the simplest sense of the term, is to own a car for a set amount of time, or term of the lease, and paying only for the "amount of the car" you use. Since the average Canadian trades cars every three to four years, the auto leasing alternative addresses many desires that people have, such as getting a new car to drive every so often. As far as new Canadian Vehicles, approximately 50% are leased. It is also important to understand that the cost of the lease is really the difference in the purchase price at signing and the purchase price available to you at the end of the lease, plus some finance charges, divided by the number of months in the lease. A real world example would be this. The car you want is priced at $30,000. If you buy it, you pay the whole price over the next four years and then own it when it's all over. The value of this car is now $15,000 and you can either keep it while the value depreciates further, or sell it for as close to $15,000 as you can get. However, leasing would be you starting with the same $30,000 car, but only paying $15,000 you use, and not losing money on a high interest rate from a bank as well as all the costly repairs that could come with it. So, at the end of the lease you have options. You can buy out the vehicle, trade up to a new one or extend the lease.

Leasing vs Financing (Why should you lease?)

There are many reason why leasing may be a better option for you than financing your new car. The first would be that over the time you're paying for your car, your cash flow is more freed up by a lease than by financing. Assuming the same car, you would be spending considerably less per month than you would be with a car you're financing, since you're not paying for the whole car, only the portion of the car you use, and you get to save the residual value of the car. Also, with the leasing option, is the tax breaks that you can get from leasing a car. Lease payments can reduce taxable income in a better manner than a depreciation expense. If you lease a car, you may be able to deduct the entire amount, up to CCRA's maximum (currently $800 plus taxes per month), while considering any tax restrictions relative to your employment, business-use, or a percentage attributed for personal use.  Your accountant will be able to advise you on your own situation. At AUTO|ONE, we can be flexible with your down payment amount since we are the bank. Lastly, you have many options at the end of your lease. You can keep the car by paying an agreed upon price between us, you can trade it in for a new car, re-lease the vehicles or sell the vehicle privately if you feel you can get a better price than we would pay for it, and then you keep the profits. All of these options show that a lease is the best option to fit in your ever changing life.

Common Leasing Concerns

Leasing is still a relatively new way to gain ownership of a car. Being such, many people rightly have some concerns. We hope to clear some of them up. Firstly, some people question what payments there are up front, and the answer is some you would expect with a car such as Registration and PPSA fees and a down payment, as well as some unique to leasing such as a Refundable security deposit and a First Lease Payment. These all add up to less than you would expect with a regular financing package for a car. As with upfront costs, any other payments that are handled by the owner of a car will be handled by the lessee. This includes insurance as well as the license and registration. Vehicle maintenance and repair is handled by the lessee as well, but we won't leave you stranded looking for a reputable one, we have one with us! The AUTO|ONE service department is fantastic at getting your vehicle in top shape. So, whether you want to get a warranty or not, our service shop will always be open to you. Many people want to know if they can lease a used truck or vehicle and the answer is, absolutely! We are one of the few places where you can get a used car for lease, and we would love to be able to set you up with one if that's the best option for your situation. However, we do need the specifications and cost to evaluate the vehicle or you could find it using our online directory. Also, there is a kilometer allowance of 20,000km every year. Most people don't find this to be too difficult to maintain but should you need more, you can talk to the sales rep about getting extra km/year added to the agreement for a reduced rate than if you had just gone over 20,000km by lowering the residual. Lastly, people often ask about how the residual value is determined at the end of the lease term. To be upfront about the whole process, it's done something like this. We look at the history of the car, look at the state of the car including mileage, body condition, regular wear and tear, and then determine the value of the car off that.  

Top Reasons to Lease a Car with AUTO|ONE Group in the Toronto/Vancouver Area

  • Lower monthly investment than what you would pay to service a loan for the same investment. Lease payments are generally lower than a loan payment with like term and interest rate. The result is you can have a lower payment or keep the payment the same and drive a nicer vehicle.
  • You only pay tax on the monthly payment, rather than up front on the full price of the vehicle. That adds up to big savings.
  • Down payment is flexible
  • Trade more often
  • Cash flow benefits as you avoid putting too much of your money in a vehicle
  • Drive more car for the money
  • Drive new for the price of used
  • Gratification of an affordable new vehicle more often (every 2-3 years).
  • Peace of mind of knowing your vehicle is under a new car warranty. Even better if you turn the vehicle in before the factory bumper-to-bumper warranty expires, and therefore you never have to deal with mechanical difficulties.
  • Leasing does not affect your ability to borrow for your business because a lease unlike a loan is neither an asset nor a liability.
  • If you lease a car, you may be able to deduct the entire amount, up to CCRA's maximum (currently $800 plus taxes per month), while considering any tax restrictions relative to your employment, business-use, or a percentage attributed for personal use.  Your accountant will be able to advise you on your own situation.
  • One of the best parts to leasing is that you also have options at lease end. At the end of your lease, you may hand in the vehicle if it was well maintained, and not have to worry about negotiating its trade-in value, buy the vehicle, re-lease the vehicle, or use any equity as a trade-in.