Interested in learning more about car leasing? Talk to the experts at EJ Klassen Motorcade.

Understand Your Credit, Part 5: Leases

MTYH: Price is different from a purchase to a lease. THE PRICE IS THE EXACT SAME

Leasing a vehicle is incredibly common in urban areas where the volume of kilometres you travel is limited and that likelihood that you will travel extremely long distances is remote. Look at what you are driving today and how long you have owned that vehicle. If the kilometres used are over 25,000 a year, leasing may not be for you.

When you lease a vehicle, your car becomes a monthly bill not unlike your cell phone or gym membership. Remember you do not own this vehicle. You are using a vehicle that you must return or buy out at the end of the term. There are conditions attached to returning the vehicle; scratches, rips and tears, damage or excessive kilometres all will cause you to incur costs when you return the vehicle.

Where you may finance a car over six years you can lease two in that time frame. Most comprehensive warranties that come from the manufacturers are most often a three-year or 60,000km term. As such, a three-year lease means you are using the vehicle over the period where it is the most protected.

When you are going to lease your new vehicle, make sure that you have any accessories you’re wanting installed added to your lease so they can be a part of the process. Don’t be afraid to say things like, “if you include floor mats I will sign today.” Go over all the details of the items on the lease and make sure they are accounted for.

Leasing is a form of credit. You will need to get a credit check done. Contacting Equifax or TransUnion in advance will help ensure that there are no surprises. Your score will determine your final rate.

When you have a lease, you will be paying in advance so your first payment, fees and taxes will be due that day along with getting your vehicle insured and plated. Make sure you have the funds ready to make those payments.

Before you take final delivery of your vehicle, make sure all of your accessories and listed equipment are installed. Check it over for blemishes and make note of the volume of kilometres. Make sure the kilometres match your lease documents and any protection programs you may purchase.

Remember, this is your credit, your money and your future. There are no silly questions. Read contracts, read pamphlets. Ask questions, ask for clarification if you do not understand something. Credit is potentially a long-term commitment; knowing what you are signing up for is important.

Feel free to come by anytime and we would be happy to look at your situation and see what we can do.

Comments are closed

Just Posted

North Island Seniors Housing Foundation takes the next step towards getting Trustee Road land

Seniors rejoice, Port Hardy council is very much in favour of helping… Continue reading

Port Hardy Volleyball club requests funding from Port Hardy council

The sport of Volleyball is alive and well in the North Island,… Continue reading

Should aquaculture programs be offered at North Island College in Port Hardy?

“I think it would be very timely to have an aquaculture program”

Island Health issues press release regarding Port Alice Health Centre service changes

Island Health will be hosting a community meeting in Port Alice Feb. 20 at 6 p.m. in the rec centre.

Vancouver Island Regional Library wants to team up with the Town of Port McNeill to build a new multi-use facility

“A new library for the town, as you know, will quickly become an exciting hub of literacy”

B.C. students win Great Waters Challenge video contest

Video, mural and song about saving the salmon claims the top prize

B.C. athlete takes home gold in freestyle aerials at Canada Games

Brayden Kuroda won the event with a combined score of 121.65.

Cabinet likely to extend deadline to reconsider Trans Mountain pipeline

The can’t decide the pipeline’s fate until a new round of consultations with Indigenous communities

B.C. government provides $75,000 towards salmon study

Study looks at abundance and health of Pacific salmon in Gulf of Alaska

Murdered and missing honoured at Stolen Sisters Memorial March in B.C.

‘We come together to make change within the systems in our society’

UBC researchers develop inexpensive tool to test drinking water

The tricoder can test for biological contamination in real-time

Disgraced ex-Congressman Anthony Weiner released from prison

He was convicted of having illicit online contact with a 15-year-old North Carolina girl in 2017

B.C. communities push back against climate change damages campaign

Activists copying California case that was tossed out of court

Most Read