Why Lease
All - Make Leasing
Dueck Richmond is proud to be one of the first automotive companies to provide leasing in Vancouver, BC. Our experienced in-house leasing team will suite your individual needs with a customized option designed for you. We offer competitive lease rates for new and used, and all makes and models.
We're proud to be the largest GM dealership in Western Canada. As a complete, all-in-one dealership - we take care of our car buyers with a well-equipped service, accessory, and finance departments so you can rely on Dueck for all of your automotive needs.
Why Lease?
The advantages of leasing, the alternate financing method.
When you lease, you get more vehicle for less money! Leasing is a very different and unique way of financing a vehicle compared to the traditional loan option. Leasing allows for the use of a vehicle over time at a lower cost per month, which frees up cash for other purchases.
Advantages of LeasingÂ
- Lower down payment
- Affordable payments with shorter terms
- Driver a newer, better vehicle for less money each month
- Lower repair costs (with a three-year lease, the manufacturer warranty covers most repairs)
- No trade-in hassles at the end of the lease
- Only pay sales tax on the depreciated portion of the vehicle
Tax Savings With Lease Compared To Loans
With leasing, taxes are collected on the monthly lease payment throughout the term of the lease. With a loan, all taxes on the vehicle price are paid upfront. As a result, you end up paying interest on this tax amount. If you choose to purchase the vehicle upon expiry of the lease, you would then pay the tax on the residual valve.
For Example:
If an individual normally likes to drive a different vehicle every three years, a 36 month lease would allow them to pay only for the desired usage and then obtain a new vehicle. If the same individual financed a vehicle over a 72 month period on a loan, they would be left with the hassle of trying to sell the vehicle privately or potentially losing money by trading in the vehicle after 36 months.
Only Pay For What Your Use
With a traditional loan, the vehicle is written down to a zero balance which is typically over a 60 or 72 month term. In contrast, a lease is based on the anticipated use of a vehicle over a specific time period and places a value which reflects that expected usage. This period is measured in months and can range from 6 to 60.
Because you only pay for the portion of the depreciation used when leasing, lease payments can be much lower per month compared to loan payments. This allows you to drive a more expensive, better equipped car for the same payment as a traditional loan.
There Are Two Basic Types Of Lease
Closed-End Leases & Open-End Leases
Open-End Leases
Open-end leases, or 'no kilometer restriction's ' leases, allow you to lease a vehicle without any kilometer restriction, because you guarantee the residual or end value of the vehicle. If you are a high mileage driver, your Dueck GM Leasing Representative can work with you to determine a reasonable end-value based on your expected usage.
Closed-End Leases
Closed-end leases, or 'walk away' leases, enable you to walk away at the end of a lease with no further obligation (provided the car is not damaged, has not been subjected to excess wear and tear, and kilometer restrictions have not been exceeded). With a closed-end lease, the leasing company guarantees the residual or end value of the vehicle.
Frequently Asked Questions
With a lease you are only paying for the use of the vehicle, which means you only pay for the amount of depreciation used. This is the difference between what the car is worth now and the projected value at the end of the lease term (plus interest and taxes).
For example: If a vehicle is worth $20,000 new and its projected value at the end of the lease is $15,000 than the amount of depreciation, and what you would pay, is $5,000 (plus interest and taxes).
Lease payments are almost always between 30-40% lower than conventional financing. Leasing is a greater way to not only defer taxes and spread out depreciation, but to also afford and drive a more expansive or newer with the factory warranty still intact.
While the total cost of leasing and financing can be very similar, leasing has the benefit of protecting you from future risks, such as costly repairs. By leasing, you have the potential to always drive a vehicle which has the full factory warranty intact.
Yes. A down payment is essentially one large lease payment, which reduces the purchase price of your leased vehicle. As a result, the balance of depreciation over the term is lower which means your payments will be lower. However, any down payment or capital cost reduction is taxable and will minimize the tax deferral benefit of leasing. A trade-in is different because there are tax credits available. This means you will benefit from lower payments as well as minimizing the tax payable. Alternatively, the trade-in equity could be paid back directly to be utilized as you wish.
Yes, Dueck GM will lease any make and model of both new and nearly vehicles. Our expect Lease Representatives have connections to a vast network of dealerships, as well as the experience and resources to find the vehicle that's right for you and your budget.
*It is important to note: At a certain point, older vehicles will lost the benefits of leasing due to the calculated depreciation and minimal warranty coverage.
Yes, you will be responsible for following the manufacturer's maintenance requirements. At the end of the lease, you must provide up-to-date service records as per the manufacturer's specifications. This question brings up one of the main advantages of leasing: With a lease on a new vehicle, the manufacturer's warranty is typically still intact. This means you have the potential to be from any unexpected and/or repair bills.
You will also be responsible for excess wear and tear should you return the leased vehicle to Dueck GM at the end of your lease term.
Excess Wear and Tear Includes:
- Glass which has been damaged, chipped, cracked, scratched or tinted
- Damaged body, fenders, metal work, trim or paint; any scratch through the paint in excess of 3/4 of an inch, and body dents in excess of 1/2 inch wide
- Missing equipment which was in or on the vehicle when delivered and has not been replaced with equipment equal equality and design
- Missing or unsafe wheels or tires (including the spare; snow tires are not acceptable)
- Any tire (including the spare) with less than 1/4 inch of tread remaining at the shallowest point
- Damage or stained dash, floor covers, seats, headliner, upholstery, interior work, or truck liners
- Any mechanical damage or other condition that causes the vehicle to operate in a noisy, rough, improper, unsafe, or unlawful manner
- Any other damage whether or not it is covered by insurance
- Missing wheel covers, jack or wheel wrench
