Additional Financing Details Section: How to "Buy" the Car

Car leases can be "terminated" anytime just by paying the remaining value of the contract. That is one of the typical four ways of terminating a lease agreement. This actually means that you buy the car and it is entirely yours. Now, if we are talking about a 40,000 vehicle, chances that you pay that amount in cash are not too common. Most Canadians just go either with a bank loan or with a line of credit to purchase the vehicle this way.

Basically, it is the exact same way of buying a used car. Before continue reading this article, you must understand what the Residual Value is on a car lease contract.

"Additional Financing" Tools

In our Lease Takeover Marketplace, we have created a tool that allows all our buyers to have an idea of how much would it cost them to acquire the vehicle by paying the remaining debt. We went with the most popular loan term (4 years/48 months) and the regular interest rates offered by most Canadian banks: 2.9, 4.9 and 5.9%.

Now, there are two possible scenarios where you can actually buy the vehicle:

  • TODAY: which means that you pay all the remaining lease term payments + the Residual Value. The lease contract is immediately over, and the car becomes your property, instead of an asset for the current lessor.
  • At the END of the LEASE: You will continue leasing the vehicle until the end of the lease contract, and then, you will buy it for the guaranteed price (Residual Value). 

For both scenarios, we calculate the costs of taking a loan with each specific interest rate mentioned above. Voila! The following screen capture shows how it is displayed in each particular listing:

Additional Financing Details: How to Buy

The "Additional Financing Details" section is enabled for all customers who provide the Residual Value (which is critical for the calculation) and activate their listings. 

Other Available Tools

We have lots of features in our Lease Transfer Marketplace. Here you can find more information about these:

About the author

Jorge Diaz is a passionate car lover, winter driver & Software Engineer. For the last 10 years, he has built Online Solutions used by more than 5,000 companies across the globe. He founded LeaseCosts in 2016 with the purpose of simplifying and helping people to better understand the complex market of new vehicles in Québec and Canada. You can connect with Jorge in LinkedIn or send him a direct message.