Coquitlam Lease and Wholesale offers many finance and lease options. We will help you examine these options and assist you in making the right choice for your situation.

LEASING
Leasing may be used to contract the use of real estate, construction equipment, or other fixed assets like vehicles. The owner is called the lessor and the renter is called the lessee.

Leasing may be more a convenient method of accounting for the monthly expense of a vehicle as the factors of interest and taxes are included in each monthly payment, which simplifies the accounting process for the lease in a tidy shell.

Automobile leases come in two varieties: closed-end and open-end. There's a big difference between the two types and you should understand that difference before you sign your lease contract.

Closed-end leases, sometimes called "walk-away" leases, are most common for consumer leases today. This type of lease allows you to simply return your vehicle at the end of the lease and have no other responsibilities other than possible payment of excessive damage or mileage charges.

Closed-end leases are based on the concept that the number of miles you drive annually is fairly predictable (20,000-24000 kilometers per year is typical), that the vehicle will not be driven in rough or abusive conditions, and that its value at the end of the lease (the residual) is therefore somewhat predictable.

At the time you lease, the leasing company estimates the vehicle's lease-end residual value based on the expected number of driven miles and, if the vehicle is actually worth less than the residual when you turn it in, the leasing company takes the financial hit, not you.

On the other hand, if the vehicle is worth more than the residual, and you have the option to purchase, you may want to buy the vehicle, then keep driving it or sell it and make a profit. This happens frequently.

Open-end leases are used primarily for commercial business leasing. In this case the lessee, not the leasing company, takes all the financial risks, which is not so much a problem for a business, since the cost can be expensed. Annual mileage on a business lease is usually much greater and less predictable than the average 20,000-24,000 kilometers-per-year of a non-business lease.

In open-end leases, you are responsible for paying any difference between the estimated lease-end value (the residual) and the actual market value at the end of the lease. This could amount to a significant sum of money if the market value of your vehicle has dropped or you drive many more miles than expected.

Often, the residual for an open-end lease is set much lower than closed-end lease, which reduces your lease-end risk, but increases your monthly payment amount.

FINANCING
We offer manufacturer rates as well as an in house program and very competitive rates through our lender group. These institutions compete for business, offering competitive rates and flexible plans. Through consistent high volume, we can consistently offer key account bank rates at a number of banks and finance institutions that work hard to compete for our business. These auto loan rates are not otherwise available to the general public.

The main advantage to financing is the ease of being able to trade-in your vehicle at any time during the finance period, or pay off the financed balance in lump sum payments, usually without any penalty.

If your not sure, you may want to consult your personal accountant to determine which method is best for you.

Coquitlam Lease & Wholesale is proud to offer quality vehicles for the lowest combination of price and payments, and we pride ourselves on providing this valuable information in our normal course of business.