Follow Us:

Share:

 

 

Tags

consumer protection (171)
OMVIC (171)
Ontario's Vehicle Sales Regulator (99)
ontario motor vehicle industry council (84)
Consumer Education (77)
buying a car in Ontario (76)
buying a car (65)
Buying A New Or Used Car (39)
buying a used car in Ontario (39)
Car Buyers (38)
curbsiders (36)
MVDA (36)
car-buying tips (34)
CPO (31)
car buying in ontario (30)
vehicles (30)
Curbsiding (27)
Motor Vehicle Dealers' Act (25)
All-In Price Advertising (19)
all-in pricing (18)
consumer protection ontario (18)
How to buy a car in Ontario (15)
car buying tips (11)
Car-Buying Rights (11)
Dealers (10)
Negative Equity (10)
Ontario (10)
Buying a car privately (9)
Ontario Car-Buyers (9)
All in Price Advertising (8)
Dealerships (8)
fraud prevention (8)
All-in price (7)
buying a new car in Ontario (7)
Investigations (7)
know your rights (7)
OMVIC-Registered Dealers (7)
Test Drive (7)
Buying a New Car (6)
Consumer Protection Act (6)
consumer tips (6)
financing (6)
Leasing (6)
Ontario Car Buyers (6)
Vehicle Purchase (6)
Car show (5)
consumer awareness (5)
curbsider (5)
Liens (5)
Motor Vehicle Dealers Act (5)
Used cars (5)
car-buying (4)
CarProof (4)
compensation fund (4)
Contract Cancellation (4)
Contracts (4)
Cooling Off Period (4)
COVID-19 (4)
CPO. consumer awareness (4)
Investigation (4)
loans (4)
Odometer Tampering (4)
Private Seller (4)
protections when buying a car (4)
Registered Dealers (4)
Trade-ins (4)
Used Vehicles (4)
UVIP (4)
#FPM2017 (3)
Auto Show (3)
Avoid Car Buying Scams (3)
buying a used car (3)
Buying a Vehicle (3)
Car (3)
compensation (3)
Conditions (3)
Consignment (3)
consumers (3)
CPA (3)
dont get ripped off (3)
fraud prevention month (3)
Georgian College (3)
Inspection (3)
Mandatory Disclosures (3)
Suspension (3)
vehicle sales (3)
What to look for when buying a used car (3)
Advertising (2)
all-in (2)
As Is (2)
As-Is (2)
back to school car buying (2)
Bill of Sale (2)
Black Friday (2)
Branding (2)
Buying a car from a dealership (2)
Buying a motorcycle (2)
Buying Privately (2)
Car shows (2)
car-buying in Ontario (2)
Carfax (2)
CIAS (2)
Compliance (2)
Consumer (2)
Consumer Warning (2)
COP (2)
credit applications (2)
dealer advertising (2)
Dealer Prices (2)
dealer pricing (2)
Dealership (2)
Drive Clean (2)
Education (2)
extended term loans (2)
Extended-Term Loans (2)
Fees (2)
Flood-Damaged Vehicles (2)
importfest (2)
John Carmichael (2)
lease (2)
Leasing a car in Ontario (2)
Leasing a new car in Ontario (2)
Mechanic (2)
Ministry of Transportation (2)
Monthly Payments (2)
Motorcycles (2)
OMVIC Academy (2)
OMVIC consumer protection (2)
price advertising (2)
Private Sales (2)
recission (2)
rental cars (2)
rolled-back odometers (2)
Sales Final (2)
salespersons (2)
seminar (2)
Taking Delivery (2)
Trade-in (2)
Trading in (2)
Unfit (2)
Used Vehicle (2)
Vehicle (2)
2017 Ottawa-Gatineau International Auto Show (1)
ABSC (1)
additional fees (1)
advertising tips (1)
all-in advertising (1)
All-in-Pricing (1)
APA (1)
Auto Financing (1)
Auto Shows (1)
AutoCheck (1)
Auto-Financing (1)
Automobile Industry (1)
Automobile Protection Association (1)
Automotive Business School of Canada (1)
Automotive Certification Course (1)
Automotive Education (1)
AutoShow (1)
avoid car scams (1)
avoid scams when buying a new or used car (1)
Back to School (1)
barrie (1)
Become a salesperson (1)
best time to buy a car (1)
Bikes (1)
black friday car shopping (1)
Boxing Day (1)
Business Practices (1)
buy a car (1)
Buyer Beware (1)
buying a car for a student (1)
buying a car from a dealership in Ontario (1)
Buying a Car Online (1)
Buying a Car Remotely (1)
Buying a motor home (1)
Buying a motorcycle in Ontario (1)
buying a new motorcycle in Ontario (1)
buying a new or used car in Ontario (1)
Buying a rental car (1)
Buying a trailer (1)
buying a used motorcycle in Ontario (1)
Buying a used trailer (1)
Buying an RV (1)
buying in Ontartio (1)
C.A.L.E. (1)
Canadian International AutoShow 2016 (1)
cancelling a contract (1)
car ads (1)
car buying advice (1)
car buying rights (1)
car buying scams (1)
Car Dealers (1)
Car Help Canada (1)
car pricing (1)
Car-Buying Guide (1)
carbuying in Canada (1)
car-buying scams (1)
carfax.ca (1)
Changes to Drive Clean (1)
Code of Ethics (1)
Comp Fund (1)
Complaints (1)
Complaints Process (1)
Conservation and Parks (1)
consignment sale (1)
Consumer Complaints (1)
Consumer Protection Notice (1)
cooling-off period (1)
curbsiders; buying a car privately; private sellers; OMVIC (1)
dealer advertisements (1)
dealer fees (1)
dealership advertisements (1)
Debt (1)
Depreciation (1)
EHVIP (1)
Electric Vehicles (1)
EV Rebate (1)
extended term financing (1)
fake ad (1)
filing a complaint (1)
Financing a car (1)
Financing Tips (1)
First time car buyers (1)
Flood Damage (1)
Floods (1)
Fraud (1)
Fraud Protection (1)
georgian college auto show (1)
Glossary of Terms (1)
Graduation (1)
help with buying a car (1)
Holiday car shopping (1)
Honda Indy2016 (1)
How to Buy a Car (1)
Hurricanes (1)
Illegal Sales (1)
Immediate Suspension (1)
Innovation (1)
Inspecting a Care Before Buying (1)
Interest (1)
Irreparable (1)
Kijiji (1)
LAT (1)
Leaders (1)
Leasing a car (1)
Lien (1)
Long-term loans (1)
manufacturer advertisements (1)
Mileage (1)
ministry of government and consumer services (1)
Ministry of the Environment (1)
Modified cars (1)
Motor Vehicle Compensation Fund (1)
Motor Vehicle Dealer's Act (1)
Motor Vehicle Dealers Compensation Fund (1)
Motor Vehicle Purchase (1)
MTO (1)
MVDA legislation (1)
Mystery Shopping (1)
National Women's Show (1)
Natural Disasters (1)
new car advertising (1)
New Cars (1)
New Vehicles (1)
News Release (1)
No Hidden Fees or Surprise Costs (1)
None (1)
North Bay (1)
odometer (1)
Odometer Fraud (1)
odometer-tampering (1)
OMVIC Certification (1)
omvic UVIP (1)
OMVIC-Registered Dealer (1)
Online (1)
Online Learning (1)
Online Scams (1)
Ontario cars (1)
Ontario Motor Vehicle Industry Council Odometer Tampering (1)
Ontario Motor Vehicle Sales Regulator (1)
Ontario Vehicle Sales Regulator (1)
Ontario's Drive Clean Program (1)
Ontario's Motor Vehicle Sales Regulator (1)
Orillia (1)
Ottawa (1)
Ottawa Gatineau International Auto Show (1)
phony online car ads (1)
Presentation (1)
Presentations (1)
Private Sellers (1)
Purchase Agreement (1)
Purchasing a Vehicle (1)
Quiz (1)
Rebuilt (1)
Recalls (1)
Recreational Vehicles (1)
Registered Dealer (1)
Registrants (1)
reviewing car ads (1)
Risk (1)
RV (1)
Safety Standards Certificate (1)
Salespeople (1)
Salvaged (1)
scammers (1)
Sell Privately (1)
selling cars (1)
selling your car (1)
Seminars (1)
shopping for a car (1)
Shopping for a used car (1)
Shopping for a used vehicle (1)
Signing a Contract (1)
SSC (1)
summer tires (1)
Take a Picture (1)
Test driving (1)
the safer way to buy (1)
Trade in (1)
Trading in a vehicle (1)
trading in my car (1)
trading-in my car (1)
unlicensed dealers (1)
Unregistered Salespersons (1)
upside down (1)
used car advertising (1)
vehicle advertising (1)
vehicle delivery (1)
Vehicle History (1)
vehicle prices (1)
Vehicle Purchasing Tips (1)
Vehicle Shopping (1)
VIN (1)
Warning to Consumers (1)
Water Damage (1)
What is "AS IS" (1)
Wholesale (1)
Windsor (1)
winter tires (1)
you're protected (1)

 

OMVIC Blog: Car Buying Tips

Leasing a Car in Ontario: What is a Lease?

Jun 30

Written by: OMVIC Communications
Thursday, June 30, 2016  RssIcon

So you’ve chosen a car. You’ve selected the model, and even the colour you want! One of the next questions to consider is, do you want to purchase or lease?


What Is A Lease?

  • A lease is a long-term car rental
  • When you lease a vehicle you don't actually own it - the car dealership or leasing company owns it and you become the "lessee"
  • Lease agreements are for a specific duration (commonly 36, 48, or 60 months)
  • Leases often provide a lower monthly payment than financing a car (depending on the finance term)
Lease vs buy

 

Two Types of Leases

Closed-End Leases

  • A closed-end lease is the most common
  • If you're the lessee, you can either:
    • Return the vehicle at the end of the lease term; or,
    • Purchase the vehicle for a pre-determined amount (set out in the lease agreement)
  • Generally, you're not required to make additional payments unless:
    • There is physical damage to the vehicle;
    • The kilometers driven exceed what was agreed to in the lease agreement; or,
    • There is excessive wear and tear on the vehicle.
  • Most manufacturer leases are closed-ended
Open-Ended Leases

Also known as a residual obligation lease, this type of lease:

  • Requires that you make scheduled payments
  • Makes you responsible for covering any shortfall between the residual value (original estimated value to purchase the vehicle at the end of the lease) and the actual price the vehicle is sold for at lease-end;
  • Is not as common as closed-end leases;
  • May be potentially riskier for you as a consumer

Lease Payments and End of Term Costs lease keys

Monthly Payments

  • Payments are a condition of lease agreements
  • HST is charged on each payment
  • Generally speaking, the higher the down payment, the lower the bi-weekly or monthly payment

End-of-Lease Costs

At the end of a lease term, if you decide to return the vehicle, additional charges may apply for damage or excess wear and tear. Factors that can contribute to these additional charges include:

  • Rust, scratches, paint chips or stains to the vehicle exterior and interior;
  • Neglected maintenance - oil changes not up to date, check engine light on;
  • Wear on tires and wheels - tread depth;
  • Scratches or cracks to the windshield and lamp lenses;
  • Damaged electrical components;
  • Excess mileage

Important Considerations When Leasing a Car

In Ontario, there is no cooling-off period when purchasing a vehicle from an OMVIC-Registered dealer – all sales are final. Breaking a lease agreement can be very difficult, as well as expensive. So it’s important … before you sign the contract … do your research and determine if leasing is right for you.

For other helpful tips about leasing, check our site:

Don’t Become A Monthly Payment Junkie; Negative Equity

_____________________________________________________________________

About OMVIC

An educated and informed consumer is a protected consumer. Visit OMVIC’s website to learn more about your car-buying rights and when they apply, as well as additional tips on buying a car in Ontario.

visit omvic.ca.




Connect with OMVIC on social media!


facebook    Ontario Motor Vehicle Industry Council

twitter@omvic_consumers

instagram   @omvic_official


LinkedIn   Ontario Motor Vehicle Industry Council


omvic www.omvic.ca


cpo  www.ontario.ca/page/consumer-protection-ontaro



Copyright OMVIC ©2016

Print