Blog

Some do not believe leasing is a good idea. This is often due to friends or family having a previous negative experience. We asked some customers why they did not think leasing was a good idea.  While listening to the concerns we realized that most customers did not understand on what leasing entails. Depending on your driving habits and financial situation leasing could be a great option for you.
 
Leasing is like renting a vehicle for a set duration, often ranging from between 36 and 60 months. Unlike renting a vehicle, where return it after the agreed upon time frame, when you lease you have a lot more options available 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 less than if you had chosen to finance that same vehicle. This is because when you are leasing a vehicle you are paying for the percentage that was agreed upon and the remaining amount (called the residual value) is what remains. The residual value is the guaranteed amount that the vehicle is worth after the lease. Please note that if you are considering buying out the vehicle after the lease, then HST and other fees will occur. This might include a Ministry of Safety Inspection, emission test, etc. If the intent is to return the vehicle after the lease 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. For example, someone who purchased a Mazda before the introduction of Mazda’s SKYACTIV suit of technologies misses out on the innovations and fuel efficiency those technologies bring. One who leased a vehicle could take advantage of these technologies by leasing the latest version of the vehicle upon completion of their current lease. This allows you to stay up to date while also paying a lower rate than someone financing 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 less resale value in the future. This is true 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. This is still the case 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. This means no need to worry about negotiating or being short-changed. That’s one less thing to worry about so you can focus on enjoying the drive.
 
As one can see there are many advantages to leasing a vehicle. Be sure to have a chat with the Sales Team to get a sense of all the vehicle purchasing options available to you. Together we can determine what is the best fit for your needs and budget.

Happy driving!!