Buyout |
This term indicates the amount a client has to pay in order to terminate a lease in advance of the expiration date. |
Book Value |
The accounting value of the vehicle. This does not necessarily represent its market value. |
Closed-End Lease |
Also known as a “Walk Away” lease where you are only responsible for excess kilometers, body damage and worn out tires at the end of the lease. |
Capitalized Cost |
The net amount after the down payment that the lease is calculated on. |
Down Payment |
Also known as a Non-Refundable Deposit, this amount is paid up front to lower your monthly payments or make a more expensive vehicle affordable. |
Early Termination |
The ending of a lease before the scheduled termination date. Charges may apply if the vehicle is worth less than the book value. |
Equity |
The amount by which the market value of your vehicle exceeds the book value or loan balance. |
Independent Leasing Company |
A company like Parade that can offer any make of vehicle. Most importantly we are direct lenders not brokers. |
Kilometer Allowance |
The distance you are able to drive without incurring additional charges. Since the Residual Value is based on your estimated driving, it is best to structure a lease in consideration of your driving habits. |
Lease |
A contract between a lessor and a lessee for the use of a vehicle or other equipment, subject to stated terms and conditions, for a specified period and at a specified payment. |
Lease Term |
The number of months a lease will run. |
Lease Extension |
Or Lease Renewal. When you want to keep your vehicle past the termination date and a new lease is negotiated. |
Luxury Tax |
The Provincial tax for license plates that is calculated at 1% on the value of the vehicle over $40,000. |
Open-End Lease |
A contract in which the lessee guarantees that the leasing company will realize the residual value at the end of the lease. |
Option to Purchase |
The amount you can pay to purchase a leased vehicle at the end of the lease term (Taxes excluded). |
Payout |
The balance owed on a lease prior to the termination date. |
Pre-Authorized Payment |
The most popular method of payment whereby your fixed monthly payment is debited directly from your bank account. |
Refundable Security Deposit |
An amount paid up front that is held by the leasing company to cover any unpaid bills, mileage fees or repairs at the end of the lease term. |
Residual Value |
Also known as the Base Price, this is the book value to which a vehicle is depreciated during the term of the lease. |
Used-Vehicle Leasing |
Leasing of off-lease or previously owned vehicles. |
We offer custom designed leases to suit your needs. Since we do not represent any one manufacturer, we can offer advice and prices on all makes and models. You deal directly with us and not a 3rd party finance company. We offer service for your vehicle at a wide range of garages and body shops. This has saved our clients hundreds of dollars.
We take trades and normally pay more because we have customers for all makes of used cars. We will either re-lease your vehicle or offer it to our wholesale dealer network.
We have clients across Canada that are fully serviced through our national dealer network. We also use this network to find good deals for our clients in Quebec.
Many of our clients prefer to lease used cars. We can source any type of used car or commercial vehicle and save you money. We also lease vehicles that our clients have found, including exotic sports cars. If your lease is expiring at another leasing company we can buy it and write a new lease with you.
A new lease is a multi year commitment. Putting down some money up front can substantially lower your payments and make things easier along the way. If the dream vehicle seems beyond your budget, a down payment helps you get more car without increasing your monthly payments.
We normally accept clients with a credit Beacon score of 600 or higher. If you have experienced a rough period we can probably structure a lease for you. Contact us to see what we can do.
The easiest and most common payment method is Pre-Authorized withdrawals from your checking account. We can also accept a series of post-dated checks.
For warranty work and regular inspections you can go to any dealer in Canada or the United States. We have established valued relationships with many dealers and our service manager can help our clients receive VIP treatment. We can also recommend other garages for non-warranty repairs.
Anytime before the end of the lease you can buy out your vehicle. Changing or just returning it will depend on our book value compared to the market value. We discourage high residual values because they make it difficult to get out of leases.
Depending on what kind of lease you have you can pay to purchase the vehicle or return it. Of course we can find you a new car or if you are happy with the one you have we can extend the lease for a longer period. We can also re-lease your vehicle to another family member, friend or colleague at work.
Others will be charged for amounts that remain outstanding from the lease, along with a charge for kilometers in excess of what was agreed to. We also charge for worn out or mismatched tires and for abnormal body or mechanical repairs.
Upon the return of a vehicle we do a visual and mechanical inspection. The following is not a complete list but represents what can be charged back to a lessee.
The best way to avoid extra charges at the end of a lease is to keep your vehicle well maintained and have it inspected before returning it.
