Do you know what a car lease is? Briefly, leasing is a method of paying to use a car for a certain period of time. During the period of the lease, you have obligations as the other part does. However, with a lease you’re never the owner of the car. You’re paying to use the car, do whatever you want to do – but, once the lease contract finishes, you don’t owe the car. If you want, of course you will have to pay.
Usually, when you lease a car the amount of money that you have to pay is lower than if you’re financing a car – for example. That’s why a lot of people opt out for leasing instead of financing. As I said before, you have to think before you start a lease. Always check the footprint, what are your obligations as a “owner” of the car during the period you’re using the vehicle.
In Canada it is not common to find a leasing company. Usually you get a lease from the car’s manufacturer. But this could be the end. As of August 1st, General Motors will not lease any cars in Canada. I don’t know if this will better or not, they will finance their cars with 0% interest if you get one up to 6 years.
Sure other companies will follow GM’s attitude. The winner is the consumer that have another option to think about. If you’re planning to buy or lease a vehicle in Canada, educate yourself and take a look at this PDF file (opens a new window) from the Canada’s Office of Consumer Affairs before buying or leasing a vehicle in Canada.