Leasing Advice : Things you need to know ...

> Whether you lease or buy . . . you need to insure your vehicle.
In addition to insuring the vehicle, you must make sure that you have the amount of coverage required by your lease. This may be more than if you buy your vehicle.

> Whether you lease or buy . . . you are responsible for licensing and registering your vehicle.
You are responsible for paying the license and vehicle registration fees during the term of the lease, just as if you bought the vehicle.

> Whether you lease or buy . . . you are responsible for maintaining your vehicle.
Unless you have a lease that is a "full maintenance" lease, you are responsible for maintaining the vehicle according to the maintenance schedule set out in you Owner's Manual.

If you lease you should know

1. There are different kinds of leases
In a Closed-End Lease, you make a set number of lease payments during the term of your lease and return the vehicle to the leasing company at the end of the lease term. You are not required to make any additional payments unless there is physical damage to the vehicle, such as Excess Wear and Tear, or the number of kilometres you have driven is higher than the kilometre limit set out in the lease. At the end of the lease, your options are: ( Most manufacturer's leases are the close-end type.)

• return the vehicle
• buy the vehicle (if there is a purchase option)
• lease a new vehicle

2. There are payments required at the start of the lease

Refundable Security Deposit:

Most leases require you to pay a security deposit. The Security deposit will be refunded at the end of your lease, unless it is used to pay for any remaining amounts that you owe.

First Lease Payment:

You may be required to pay the first lease payment.

Leased Vehicle Amount Reduction (Down Payment):

ou can lower your monthly payment by trading in a vehicle or paying an amount in cash. This is similar to a down payment on a loan. On some leases, a significant down payment may be required.

3. You may not be allowed to remove the vehicle form the province or territory in which you leased it, without the prior permission of the leasing company.
Most leases state that you must obtain permission from the leasing company to take the vehicle out of your province or territory if you will be out of your province or territory for an extended period of time.

4. Your lease can be tailored to suit your driving needs.

With Closed-End Leases:

You can negotiate the number of kilometres that you will need at the time you enter into your lease agreement. If you require additional kilometres it will increase your monthly payment. If you drive more kilometres than you have agreed to, you will be required to pay an Excess Kilometer Charge. You can usually "purchase" additional kilometres at the time you sign your lease at a lower cost than at the end of your lease term.

With Open-End Leases:

Open-end Leases normally have no kilometre restriction, however, the number of kilometres you drive will lower the market value of the vehicle at the end of the lease, increasing your costs at lease end.