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FAQ'sQ: Who is responsible for insuring a leased vehicle? A: With a lease, the customer or lessee is responsible for obtaining and paying for insurance on the vehicle. The vehicle must have full insurance coverage, including a minimum of $1,000,000 personal liability coverage, and maximum of $250.00 deductible on collision and comprehensive coverage. Q: Who is responsible for maintenance and repairs on a leased vehicle? A: Just like a traditional finance, the customer is responsible for all necessary maintenance and repairs, including oil changes, filters, brakes, tires, and other items not covered by the manufacturer's warranty. If a leased vehicle does not have any manufacturer's warranty remaining, the customer would be responsible for any mechanical repairs. Extended warranties are available for a reasonable monthly premium on most leased vehicles to protect the customer from expensive repair bills. Q: Is it possible to lease a late-model used vehicle? A: Absolutely! Many people have the misconception that leasing applies to new vehicles only. Leasing may be a very feasible financing option on a used vehicle, enabling the customer to obtain low monthly payments. Keep in mind that interest rates on used vehicles tend to be higher than on new ones, and available financing terms are usually shorter. Q: Will I be stuck paying fees and repair bills at the end of a lease? A: If you choose to purchase the vehicle at the end of the lease term, there are no additional fees to be paid. However, if you turn the vehicle in, you could be faced with additional charges if you have exceeded the allowed mileage restrictions, if you have not performed required maintenance on the vehicle, or if you have not repaired any damage caused to the vehicle during the lease term. If you are within your mileage restrictions, have performed the required maintenance, and there is no damage to the vehicle, there would be no reason to expect any further charges. Q: When the lease term is completed, will I own the vehicle? A: No. In order to own the vehicle, you must pay the buyout or lease end value amount plus any applicable taxes. Q: How many kilometres does ABLE Leasing’s standard lease provide? A: 24,000 kilometres per year. Q: What if I drive more than 24,000km per year? A: You have the option of purchasing extra kilometres at a reduced rate up front. If you are not sure, you can buy extra kilometres at lease end at our standard rate. If you drive significantly more than the standard allowance, financing may be a better option for you. Q: What is a Closed-End Lease? A: Closed-end leases means that you make a set number of payments over the term of your lease and the leasing company guarantees the "price" or lease end value of your vehicle at the end of the term. Factors such as economic conditions, vehicle popularity, colour and equipment can all affect the value of a used vehicle and can result in the market value being lower than the lease end value at the end of your term. By guaranteeing the lease end value, ABLE Leasing assumes the risk of any loss on the used vehicle. So, if your car is worth less than the lease end value, you can simply return the vehicle to us. You are only responsible for charges at lease end that may result from excess wear and tear or exceeding the mileage limit set out in your lease contract. Q: What is an Open-End Lease? A: Open-end leases are considered to be unfriendly to the consumer and are, therefore, only offered on a case-by-case basis, upon consumer request. An open-end lease holds the customer responsible for the value of the used vehicle at the end of the lease. This can result in an unexpected cost for the consumer. Q: What is Wear and Tear? A: The customer is responsible for the vehicle's overall condition as detailed on the lease agreement (appearance, mechanical condition etc.). Charges will apply to mileage that exceeds the provisions in the lease. Q: What about trade-ins? A: No, we currently do not take trade-ins. However, through our strong network of affiliate dealerships, ABLE Leasing will do everything that we can to get your current vehicle appraised and sold at fair market value - in which, proceeds then can be applied to your new lease vehicle. Q: Can I get a car lease for my son/daughter? A: Yes, leasing to individuals is an integral part of our business, subject to acceptable credit rating. We have access to many lower priced used vehicles with full service history that can meet your needs. Q: What about early terminations? A: We can structure leases that allow for early termination options providing you with total flexibility, but, charges may apply. Q: What if we own our vehicles? A: ABLE Leasing will utilize all networks and resources to purchase your owned vehicles at market value and structure a lease that frees up your capital on a purchase and lease back program. Q: We are a small business with only 4 vehicles? A: ABLE Leasing will work with you on any fleet size amount. Whether you have 4 units - or 40 units, there are no customers that are too small, or too large, for our company. SUBSECTIONS: Types Of Leases |
Leasing Vs. Buying |
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