An agreement where the monthly payment and buyout (residual) value are specified at the start of the lease. In the case of vehicle leases, there are no kilometer restrictions or wear and tear clauses in this type of lease. At the end of the lease the customer guarantees the value of the vehicle.
A set number of lease payments during the term of your lease, with the option to return the vehicle at the end of the lease term. You may be required to make additional penalties if there is physical damage to the vehicle, such as excessive wear and tear, or mileage overage set at the start of the lease.
Canadian Black Book Value:
The amount identified as the current market value or trade-in value for a vehicle as determined by the “Canadian Black Book” published by Wm. Ward & Sons Ltd.
The total value of the lease including:
- Selling Price – the price of the vehicle prior to any additional costs
- Options – items that have been added, such as modifications or protection products that were not installed or applied at the factory level
- Mechanical Breakdown Coverage
- Credit Insurance and/or Gap Insurance
- NOTE: this does not include Automotive Insurance
- Less – Down payments and trade-in values
Additional funds the customer is contributing to reduce the capitalized value against which lease payment will be based.
Cash Due Upon Signing:
All amounts due to be collected upon the delivery of the vehicle. These include:
- Down payment plus applicable taxes
- First monthly payment plus applicable taxes
- Security deposit (if applicable)
- Lease Service Fees plus applicable taxes (if not included capitalized into the lease)
The individual or business entering into the lease of the asset (you).
A finance company which advances funds to a borrower with the expectation of repayment and the legal owner of the asset for the duration of the lease (lender).
An amount the manufacturer determines as the maximum retail price of an asset. This is applicable to new assets only.
The total of the Monthly Lease Payment plus applicable taxes.
The predetermined value of the asset outstanding at the end of the lease.
Amount collected at delivery for security, usually one (1) monthly lease payment rounded up. The deposit is refunded at the end of the lease or applied against the lease buyout.
The length of the lease in months.
The equity resulting from a trade-in.