Feb 27th , 2017
On the odd occasion new customers have visited the dealership and have expressed that leasing is not a great option due to friends or family having a previous negative experience. They have often stated several reasons of concern! After listening to these concerns we came to the realisation that they all pointed to the idea that some customers are not entirely sure on what leasing actually entails, therefore we took the time to put together a bit of information to show the advantages of leasing. Depending on your driving habits and financial situation leasing could be a great option for you.
Leasing is essentially renting a vehicle for a set duration, often ranging from between 36 to 60 months. However, unlike renting a vehicle, where you simply return it after the agreed upon time frame, when you lease you have a lot more options available open to you. These include purchasing the vehicle, returning the vehicle or starting a fresh lease on a new vehicle.
There are several advantages to leasing that make it more favourable for some compared to buying a vehicle outright.
1. LOWER PAYMENTS
Often when leasing a vehicle, your payment is significantly less than if you had chosen to finance that same vehicle. This is because when you are leasing a vehicle you are simply paying for the percentage that was agreed upon and the remaining amount (called the residual value) is what is left over. The residual value is the guaranteed amount that the vehicle is worth after you have leased the vehicle. Please note that if you are considering buying out the vehicle after the lease is terminated then HST and other fees will occur, such as a Ministry of Safety Inspection, emission test etc. However if the intent is to return the vehicle after the lease is completed then Mazda Canada will co ordinate to have the vehicle inspected for anything out of the ordinary (fair wear and tear).
2. STAYING UP TO DATE
Another advantage of leasing a vehicle is that it allows you to upgrade vehicles more often without any long term commitments. After financing a vehicle, you do have ownership of it but it also means that you cannot take advantage of the new technologies included in later models of the vehicle. For example, someone who purchased a Mazda prior to the introduction of Mazda’s SKYACTIV suit of technologies misses out on the innovations and fuel efficiency those technologies brought to the brand’s fleet of vehicles. An individual who leased a vehicle could see the advantages these innovations could bring to the fuel economy and improved safety of the vehicle’s driving experience and could more easily make the switch to a newer model after having paid lower monthly payments than an individual who financed the same vehicle.
3. MORE OPTIONS
Due to the lower monthly payments associated with a lease you have more options in terms of which vehicle you lease and in what trim level. At times, you can lease a top trim vehicle for the same monthly payments as a financed vehicle of a lower trim. Cheaper payments also means you have more flexibility within your budget to include accessories or features that you would like your vehicle to have. And if for whatever reason a certain feature or accessory is not to your liking you have the added peace of mind that you will have the option of returning the vehicle at the end of your lease term. An important point to also consider is that leases have early termination options should you want out early for whatever reason.
4. TRADE-IN VALUE IS PREDETERMINED
Market conditions change and this can make a very high value vehicle have significantly less resale value in the future, even if the vehicle is in excellent condition. Fortunately, at the beginning of your lease the trade-in value (or residual value) of the vehicle is set and this does not change regardless of fluctuations in market conditions or even if you had an insurance claim through no fault of your own. This gives you the peace of mind that when you are returning your vehicle you know exactly what the buyout is with no need to worry about negotiating or being short changed. That’s one less thing to worry about so you can focus on simply enjoying the drive.
As one can see there are many advantages to leasing a vehicle. Be sure to have a chat with the salespeople at your dealership to get a sense of all the vehicle purchasing options available to you and what is the best fit for your needs and budget.