Simply put, leasing is an alternative form of financing your vehicle purchase. It isn’t necessarily better or cheaper than financing, but it does offer some pretty significant advantages for most people. We’d like to offer you our opinion:
We think leasing makes sense for most people, given the vehicles we sell. As a general rule of thumb, it probably makes more sense to lease vehicles of this calibre than less expensive vehicles (under $25,000 for instance). Here’s why:
You don’t pay the sales tax upfront. In BC, this is often as much as 15% of the purchase price. Instead, your monthly payment and any down payment is subject to sales tax. Further, if you never exercise the purchase option at lease end, you’ll never pay the sales tax on that portion either — often 40% of the original value of the car. That’s a massive advantage.
You don’t incur finance costs (interest) on the sales tax portion of your purchase. This is a significant advantage for two reasons: you save interest costs on up to 15% of your purchase price, and; your loan value starts 15% lower. Meaning — should you want to change your car sooner than the end of term, you have a 15% advantage with leasing versus financing. Think about it — that’s a giant difference.
Sales taxes aside, we think leasing makes more sense than buying. You’ve heard it before: buy what appreciates, and lease what depreciates. In practical terms, here’s an example that we find people can relate to more easily: you wouldn’t buy a house for $2,000,000 to live in if you knew it would be worth $1,250,000 in 3 years; you would choose to rent. So why buy a car for $200,000 that’s generally going to be worth $125,000 in 3 years? It just doesn’t make any sense.
There are many other reasons we like leasing better than financing. Generally speaking, our lease underwriters don’t report your lease to the credit bureau, meaning it won’t affect your debt service ratio, allowing you to borrow more when you need it for other things in your life, like buying a house or investing.
Some of our customers have access to a line of credit at a lower interest rate than our lease providers offer. The low rate however is often offset by how the interest is calculated (often compounded daily), and how repayment terms are made. Often, a low rate line of credit can actually cost significantly more in total interest paid than a lease at a higher rate.
Get more car for your money! Lower payments! We have no doubt you’ve heard that before. But what does it actually mean? If you were to buy a car and finance it on the same term as a lease, your payment will ALWAYS be lower on the lease. If you were to stretch the finance term in order to match the lease payment, you will ALWAYS pay more interest (assuming the same rate) than the lease. That’s just the simple truth in the math; leases offer better cashflow than financing, plain and simple.
Get a new car more often! We’re sure you’ve seen that argument for leasing before, too. While it is true that lease terms are inherently shorter than car loans, the choice is ultimately yours: buy the car at lease end, return it to us, or lease something new. You don’t have that flexibility with a car loan — you’re subject to market fluctuations, going to the dealer to get your trade in value, or selling the car yourself. The lease essentially guarantees your trade-in value. Not bad, in our opinion. We think you’ll agree.
We’ve given you our opinion on leasing, but you’re still not convinced it’s the right option for you. Fair enough.
We also offer financing programs so you can take advantage of the best rate available on your vehicle purchase through one of Canada’s leading banks or Credit Unions.
No having to call your banker, set up an appointment, or having to navigate a cumbersome online process or any other hassles usually associated with securing a car loan – we do it all.
We offer loans from our preferred partners: RBC Royal Bank, TD Bank, Scotiabank, and National Bank, amongst others. Much like a mortgage broker, we shop for the best combination of rate and term on your behalf, secure an approval, and complete all the paperwork right here in the dealership, saving you both time and money.
With fixed or variable options, competitive rates and terms from 12-96 months, we can arrange financing on almost every vehicle we have in stock, regardless of whether you want to lease or finance, on terms that work for you and your life.
Out of Town Purchasers
We have customers across Canada, the US, and through parts of Western Europe. As much as we want to sell cars in British Columbia, we recognize that our brand and business has earned its reputation internationally.
In Canada, every province has different taxation rules and we can accommodate them all. We can help you secure worry free shipping to your door, and assist you with vehicle registration once your car arrives.
You have a number of choices available to you:
The first step is to contact us. We always have our professional photographs, our inspection reports, lien checks, service records, CarProof, and CarFax Reports available to you. We’re happy to refer you to previous out of town customers so you can get a reliable third party account of their experience with us, to give you peace of mind when purchasing a car sight-unseen.
Should you prefer to see, touch, and drive your vehicle prior to purchase, we will pick you up at Vancouver International Airport (YVR). From there, you can choose safe, insured door to door delivery in enclosed transporters that guarantee the arrival of your purchase in the same condition that it left our showroom.
Or, should you opt for an exceptional drive home, we will happily pay up to $250 toward your overnight stay en route.
Please contact us if you have questions or need further information on out of province or international purchases, shipping, and/or sales tax exemptions.
ALBERTA SERVICE FOR LOTUS VEHICLES
As the authorized dealer for Lotus Cars, we are committed to ensuring your ownership experience is trouble free. Every spring we conduct our Service Tour of Alberta with dates in Edmonton and Calgary. A team of factory certified Lotus mechanics set up in a pre-determined location and offer service appointments.
If the rare occasion presents itself in which a more complex repair must be undertaken, your car will be shipped to our factory authorized service centre in Vancouver. If the job is under your warranty, shipping is included.
Service questions? – contact service here, or call us at 604.738.3911
1757 West 2nd Avenue
Vancouver, B.C. Canada
HOURS OF OPERATION
Mon-Fri 8:30-5:30 PST
Sat 10:00-5:00 PST (sales only)
Closed on long weekends