More Canadian consumers are opting to lease when acquiring new and used cars.
Leasing fell to a low of seven per cent in 2009 but has since increased in popularity to the point where almost 20 percent of cars in Canada were leased in 2014. This is well below the 45 per cent peak in 2005 (a percentage greatly reduced when car manufacturers got out of leasing in 2008 during the global financial crisis and when credit markets seized) but leasing is an option more Canadian consumers are seeking out for new and used vehicles.
According to George Iny, president of the consumer group Automobile Protection Association (APA), leasing has the advantage of reducing monthly payments because consumers pay mainly for the time they have the car and the kilometres they put on it.
Speaking to The Canadian Press in June 2014, Iny went on to explain that leasing is attractive because there’s little maintenance while cars are under warranty and no worry about reselling at the end of the lease.
There are also other benefits, including:
• A monthly payment that is lower than purchasing a similar new vehicle.
• Low down payments.
• Taxes are calculated on the monthly installments instead of up front on the total purchase price.
Combined, many consumers find that they can afford a more expensive model if they choose to lease rather than buy.
If you are looking for the lowest possible monthly payments, or the best possible tax write-off, VPA LEASING will work with you to build the lease that fits your needs and budget.
VPA Leasing can help you source the vehicle you are looking for and arrange favourable leasing terms. Or, if you have found what you are looking for at another dealer – or even through a private seller - VPA LEASING can help you lease the vehicle.
VPA LEASING provides lease funding for new and used vehicles and equipment for individual contractors as well as small and large business owners.