When you lease a car, the fact of having "a rent" contract may sound really scary for people who are used to buy and actually own. Car leasing is an entirely different way of solving your transportation needs, as I've talked about in various articles, but the main benefit with leasing is that you can adapt your solution (in this case your vehicle) to your actual needs. This is why the Lease Takeover, is your wild card.
Why is the "Lease Takeover" the Major Benefit?
It is pretty simple: because of the flexibility, it gives to you.
When you finance a car, there are many other factors involved if you suddenly decide to sell it:
- Debt: The debt is longer, and you will still have to pay a big part of it.
- Vehicle Value: The value of the car has been reduced, and the new dealer won't overpay for it.
- Contract Term: Usually, for making payment terms more affordable, we use to sign 72 or 84 months finance agreements.
- Contract Termination: When the full vehicle is paid or when the vehicle is totaled and paid by the insurer (with depreciation cover)
On the case of leasing:
- Debt: The debt is shorter, and on a transfer, it is entirely moved to another person.
- Vehicle Value: The value of the car has also been reduced, but the dealer agreed with you since the day you signed (known as the residual value), how much it was going to be worth at the end of the lease.
- Contract Term: Shorter, usually half the time of a finance contract gets the same price on a lease. i.e. (36m lease 450CAD/month vs 72m finance 440CAD/month)
- Contract Termination: When the contract is paid, when the lease is transferred or when the vehicle is totaled and paid by the insurer (with depreciation cover)
And additionally, if you really want to own your vehicle, you can just purchase it at the end of the lease. That is your back door if you have a special feeling about the car you've been driving for a long time. Maybe it was where your kids grew up, maybe it has a special value of a memory, or just it is worth enough for you to want to keep it.
We all human beings have the right to dream and fall in love with things, and you can just keep it if you want at the end.
Today a Tiguan may solve your needs, but maybe in 2 years, you need a 7 seat.
Flexibility is the key difference. We don't know what the future may come up with and be prepared for the evolution of our needs is crucial. Mabe today, the Tiguan you drive is enough for moving around with your kids, but in 2 years, you may need to be with a whole hockey squad moving around :)
Transfering a Lease Isn't Rocket Science
The More You Learn, the Better You Will Do It
This is why we have dedicated so many hours to share our experiences, a point of view and tips. Car Leasing sounds weird, but the fact that it is so popular isn't just a strange coincidence. I strongly encourage you to keep on reading about it and enjoy this affordable, practical and effective way of solving your transportation needs:
- Lease Transfer: How much will it cost me?
- Car Leasing Made Simple: A Guide for Everyone
- Lease Transfer & Used Car Leasing Alternatives
- Lease Cars: Understand Why People Do it?
- Canada Car Lease Calculator & Explorer: How To Use It
- New Car Leasing Process Explained
- Is it a good idea to Lease a Car in Canada?
- Benefits of Leasing a Car