Frequently Asked Questions About Leasing
How does a lease work?
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 term is $15,000 then the amount of deprecation, 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 great way to not only defer taxes and spread out depreciation but to also afford and drive a more expensive or newer vehicle with the factory warranty still intact.
Is it more expensive to lease than to finance?
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 that has the full factory warranty intact.Â
Am I able to apply a down payment or trade-in my current vehicle?
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 to you directly to be utilized as you wish.
Am I able to lease any vehicle?
Yes, Dueck GM will lease any make and model of both new and nearly new vehicles. Our expert 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 lose the benefits of leasing due to the calculated depreciation and minimal warranty coverage.
Am I responsible for the repairs and maintenance of my leased vehicle?
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 or nearly new vehicle, the manufacturer's warranty is typically still intact. This means you have the potential to be protected from any unexpected and/or expensive 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.
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