At Derrick Dodge in Edmonton, Alberta, customer satisfaction and transparency are our top priorities. We understand that vehicle leasing can be a complex and sometimes confusing process, which is why we are committed to addressing your most frequently asked questions about vehicle leasing.
Common Questions about Leases:
What is a Car Lease?
A car lease enables you to drive a brand-new vehicle for an agreed-upon period at a fixed monthly rate. Unlike conventional financing plans, leasing doesn't necessitate car loan approval or a substantial upfront payment. However, the monthly lease payments cover the use of the vehicle, not the ownership. In essence, it's akin to a long-term rental. At the end of the lease period (typically between 2 to 4 years), you must either return the car to the leasing company or purchase it at its market value. Leasing a car involves a down payment and monthly payments comprising rental charges, interest, taxes, and the vehicle's depreciation over time.
What are the Benefits of Leasing a Car?
Leasing is a great option because it has lower payments. Instead of paying the full price of the car, you only pay for how much it loses in value over time. This makes it affordable. Leasing is good if you're not sure about the kind of car you want. Leases usually last 2 to 4 years, covering the trouble-free period of the car. After the lease ends, you can get a new or different car with the latest features. Just stick to the mileage limit and take care of the car to avoid extra charges.
Lower Payments: Leasing means paying for the car's depreciation, resulting in lower monthly costs.
New Cars: Enjoy driving brand-new models by switching to a new one after the lease ends.
Warranty Coverage: Most leases come with warranty protection, reducing worries about maintenance expenses.
Avoiding Depreciation Costs: Since cars lose value, leasing lets you skip the depreciation expenses.
Latest Features: Experience up-to-date car features like heated seats, advanced cameras, and GPS systems.
Affordability: Leasing offers lower monthly payments compared to purchasing, enabling access to more stylish cars.
Flexibility: Leasing provides various options, such as trading in, selling, paying off the balance, or returning the car, offering flexibility in decision-making.
What are Car Leasing Options?
In Canada, there are various leasing options tailored to individual needs:
1. Standard Rental Leases: These allow you to drive new vehicles with a small down payment and monthly payments. You return the car at the lease end.
2. Lease to Own: This option lets you purchase the vehicle after the lease term expires. Regular payments build equity, making it suitable for those with bad credit.
3. Lease Takeovers: You can assume someone else's lease, benefiting from lower upfront costs. However, inspect lease terms to avoid surprises.
4. Leasing a Used Car: Possible in lease-to-own agreements or by taking over someone else's payments. Be cautious of potential maintenance costs as warranties expire.
What Happens if I Move to Another Province?
Not all leasing companies operate in other provinces. You may need to return your lease and settle it or have someone take it over.
Can Someone Else Drive My Leased Car?
Temporary drivers are covered by your insurance with your permission. If someone drives the vehicle regularly, consider adding them as a secondary driver on your insurance.
Questions About Cost:
Is Leasing Cheaper Than Financing?
Leasing is typically more cost-effective than financing. When leasing, you pay for the vehicle's depreciation during the lease period, not the entire selling price. In contrast, financing covers the entire car's value.
Does My Credit Score Matter When Leasing?
Yes, your credit score plays a significant role when applying for a lease. A score above 700 offers the best chances of approval. Request your free annual credit reports from major credit reporting agencies before applying.
Do I Need a Down Payment?
Down payments are not always required, but a larger down payment can lower your monthly payments. Without a down payment, expect higher monthly fees and rates. You can also use a trade-in vehicle as a down payment.
Questions About End of Lease:
What are My End-of-Lease Options?
At the end of your lease, you have several choices:
1. Lease or finance a new vehicle.
2. Purchase the current vehicle.
3. Continue to refinance the same vehicle.
4. Return the vehicle.
What Happens if I Exceed my Mileage?
If you go over your allotted mileage, you'll need to cover the extra cost at the lease's end. However, consider purchasing additional kilometres upfront for a more cost-effective solution.
Can I End My Lease Early?
Terminating your lease early comes with certain risks:
- Impact on Credit: Defaulting on lease payments negatively affects your credit score and can lead to vehicle repossession.
- Early Termination Fees: Lenders may impose penalties to recover their lost interest income.
How Do I Get Out of My Lease Early?
There are a few options for early lease termination:
1. Car Buyout
2. Transfer Your Lease
3. Lease Rollover
4. Lease Buyout
5. Seek Help from Your Car Lease Company
Questions About Used Vehicles:
Can I Lease a Used Car?
While most standard lease agreements apply to new cars, leasing a used car is possible, often through lease-to-own agreements and lease takeovers. Consult an automotive expert and inspect the vehicle. Be aware of potential maintenance and reliability issues with aging used cars.
Where Can I Find the Trade-in Value of My Car?
See the market for your car today. We pay top dollar and want you to look at the same data we do to determine what your car may be worth. In 2 steps and 10 seconds you can skip the tireless research process and guesswork. Learn More
Questions About Warranty & Maintenance:
What is the New Vehicle Warranty?
Chrysler, Dodge, Jeep®, Ram and FIAT® vehicles are backed by a 5-year or 100,000-kilometres (whichever comes first) fully transferable Powertrain Warranty with $0 deductible, plus 24-hour roadside assistance.
Basic Warranty coverage is for 3 years or 60,000 kilometres (Whichever comes first). Rust-through coverage on all body sheet metal is for 5 years or 160,000 kilometres*. The Cummins® Turbo Diesel engine is protected by a separate Limited Warranty, covering the engine for 5 years or 160,000 kilometres.
The Pacifica Hybrid high voltage battery is covered for 10 years or 160,000 kilometres (whichever comes first).
Why Lease Your Next New Car at Derrick Dodge?
At Derrick Dodge, we redefine the car leasing experience, putting your needs and satisfaction at the forefront. Our extensive selection of quality Used & New vehicles, coupled with transparent and flexible leasing plans, ensures you find the perfect match for your lifestyle without hidden fees or surprises. What sets us apart is our unwavering commitment to open communication and honest dealings. Our dedicated staff is not just here to sell you a car; we're here to guide you through every step, making sure you understand the leasing terms and benefits. When you lease with us, you're not just getting a vehicle; you're gaining peace of mind, enjoying the latest automotive technologies, excellent warranty coverage, and the freedom to easily upgrade to a new model at the end of your lease. Derrick Dodge isn’t just a dealership; it’s a promise of exceptional customer service, reliability, and the joy of driving a new car without the long-term commitment of ownership. Join our automotive family, where your satisfaction drives our passion for excellence. Call us at 877-701-2841 or Book your Appointment easily online today!