Leasing is an option which allows you to pay for   the portion of the vehicles value you expect to use over a period of   time, plus a borrowing charge and applicable taxes. The advantages over   traditional financing include: A lower monthly payment, driving a new   vehicle more often, or a better-equipped vehicle for a similar monthly   payment.

Want lower initial costs - A lease down payment can be lower that a finance down payment.

Want lower monthly payments - Monthly lease payments are based on the portion of the vehicle's value that you intend to use.

Want to drive a more luxurious vehicle - When you   lease, you can drive a new vehicle with more features and luxuries for   about the same monthly payment as a less-equipped financed vehicle.

Want to drive a new vehicle more often - Lease   terms are often shorter than finance terms, allowing you to get into a   new vehicle more often.

Want to drive a vehicle during its most   trouble-free years - Most manufacturers can tailor a warranty to fit   their lease program.

Want to avoid trade-in obligations - With a   closed-end lease, you can return your vehicle at the end of the lease   term and walk away; turn it in and lease another vehicle; or buy it.

Want to pay taxes only on your monthly payment -   Instead of financing the lump sum of taxes, you are taxed on the   individual payment you make each month.

Lease: An agreement under which   the vehicle owner (lessor) permits its use by a customer (lessee) for an   agreed-upon period of time (term).

Lessee: The user of the leased vehicle.

Lessor: The owner of the leased vehicle.

Term: A contractual period for which the lessee agrees to use and pay for the use of the vehicle.

Lease Rate: The interest rate used to compute the monthly lease payment.

Leased Vehicle Amount: This is   the amount agreed upon by the lessee and the lessor for the vehicle and   any other items, such as accessories, extra equipment, freight,   applicable taxes (e.g., federal air-conditioning tax) and pre-delivery   inspection. GST is not included.

Residual: The estimated value of the vehicle at the end of the lease term, used in the calculation of the monthly payment.

Depreciation: The difference between the leased vehicle amount and residual, or the amount assessed the lessee for vehicle use.

Administrative Fee: Administration costs that are a direct result of ownership of the   vehicle by the lessor (e.g., insurance follow-up, monthly handling of   GST, remarketing of returned vehicles and GAP protection).

If an accident, fire or theft results in the   total loss of the vehicle, auto insurance will cover its fair market   value, minus the deductible. Often this settlement is not enough to   cover the financial obligation for which the lessee is responsible. With   GAP protection, the lessee does not have to worry about a gap between   the lease contract obligation and the insurance settlement. All he or   she pays is the insurance deductible, provided that all of the   contractual agreements of the lease have been fulfilled prior to the   accident or theft.

Purchase Option: A lease   agreement provision allowing the lessee to purchase the vehicle at   either scheduled termination or early termination. The purchase option   at lease termination is a fixed dollar amount determined at the time of   lease signing.

Security Deposit: A refundable   dollar amount paid by the lessee to the lessor at the time of lease   signing. This amount can be used to pay all or part of the lessee's   excess kilometrage or excess uses charges, or other amounts owed at   lease end.

Excess Kilometrage: Kilometrage exceeding the allowed kilometrage as outlined in the lease agreement.

Excess Kilometrage Charge: A charge per kilometer that is assessed for kilometrage driven in excess of the contractual allowance.

Excess Wear and Tear Provisions: A section of the lease agreement that establishes the lessee as   responsible for the expense to repair or replace vehicle parts which are   worn or damaged beyond what the leasing company considers normal.

Annual Percentage Rate (APR): The rate used to compute the finance charge expressed as an annual   percentage. The APR is the annualized interest rate when interest is   paid at intervals other than annually.

Total Lease Charges: The total   lease charges are the total interest and non-interest charges the lessee   pays over the term of the lease. These charges are comparable to the   finance charges on an installment loan.

• Is the lease an open-end lease or a closed-end lease?
• If it is a closed-end lease, what is the guaranteed option to purchase price?
• Is there an administrative fee, and if so, how much?
• What are the allowable kilometers and what are the excess kilometer charges?
• What is the APR?
• What is the leased vehicle amount (selling price of the vehicle)?
• Is a down payment required?
• Is there a provision for early purchase?
• Can the lease be terminated early? If so how are the charges calculated?
• What is the total monthly payment?
• what is the security deposit?
• What is the total amount due at lease signing?
• What is the total obligation?
• What is the term of the lease?
• Can I obtain a copy of the lease contract to read before making my decision?
• What are the warranty term and kilometrage limitations?

• What will be the primary use of the vehicle?
• How many kilometers do I expect to drive per year for the next few years?
• Do I expect any lifestyle changes in the near future, such as a job change/transfer, a house purchase or children? If so, will a lease be adaptable to my needs?