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Mazda Vehicles Used Vehicles Service   
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FinanciaLinx LeasingSimply, leasing is paying for the use of a vehicle, instead of being stuck with the full cost of the vehicle. Instead of financing the full price plus taxes, you pay for the predetermined difference of the sale price minus the residual value (or option to purchase amount). When you lease, you get more vehicle for less money. The reality is most of us budget for a vehicle payment every month and leasing allows you to drive a vehicle without most of the long term maintenance costs associated with owning. Wouldn’t it be nice to have a new vehicle, with a manufacturer warranty every 24, 36, 48 or 60 months? You make the choice to serve your needs. Here’s how it works: Say you lease a $20,000 vehicle for three years. At the end of the lease, the vehicle will have depreciated (decreased in value) to $10,000. You’ve used up $10,000 of its value. Divide this $10,000 by 36 to determine the depreciated cost of the vehicle. When you lease, you also pay interest on the transaction. There are also tax and license fees. While all vehicles don’t depreciate evenly the basic concept of leasing is that you pay for the depreciation and interest for the use of the vehicle. Is leasing right for you? It really depends on your lifestyle and your preferences. We have summarized some of the key points in the sections that follow. Leasing Terms The following are terms commonly used in vehicle leases.
Acquisition Fee: A fee charged by the leasing company to cover the administrative costs of preparing, approving and administrating the lease. This fee may be paid upfront or included in the capitalized cost. Capitalized Cost: The negotiated selling price of a vehicle at lease inception after adding any additional products and subtracting any capitalized cost reductions, such as rebates, trade in allowances and cash reduction. Capitalized Cost Reduction: The total of any cash payment, trade in allowance or rebate used to reduce the negotiated selling price of a vehicle at lease inception. Closed End Lease or Walk Away Lease: FinanciaLinx leases allow the consumer to return the vehicle at end of lease term with no further financial obligation, provided the lessee has complied with all of the terms of the lease agreement. There may be additional charges according to the terms of the lease for any excess kilometres or excess wear and tear. The consumer will not be responsible for the difference between the residual value and the current market value of the vehicle upon completion of the lease. Depreciation: The value the vehicle declines over the term of the lease. Down Payment: Funds the lessee applies towards the lease reducing the capitalized cost and in turn the monthly lease payment, residual or both. See also capitalized cost reduction. Early Termination: Ending a lease before the scheduled termination date. The lessee may be required to pay an early termination charge as set forth in the lease agreement. Excess Kilometre Charge: A fee charged for each kilometre in excess of the predetermined kilometre allowance as set forth in the lease agreement at time of lease inception. The excess kilometre fee may vary depending upon the type of vehicle leased. Excess Wear and Tear Charge: An amount that may be collected at lease termination for excess wear and tear to the vehicle that is beyond the allowed terms of the lease. Kilometre Allowance: The total number of kilometres the vehicle may be driven over the term of the lease, without incurring additional costs as agreed at time of lease inception. Lease Term: The time period, normally measured in months, which the lease is initially set for. Lessor: The legal owner of the leased vehicle. Open-End Lease: A lease with a residual value guaranteed by the lessee. The lessee is responsible for either purchasing the vehicle at lease end or reimbursing the lessor for any deficiency upon the lessors disposal of the vehicle. A deficiency could occur if the vehicle market value is less than the residual value. Purchase Option: The lessee’s right to purchase the vehicle from the originating dealer either at the end of the lease or during the term. Residual Value: The outstanding book value remaining on the lease at the end of the initial term, as agreed and defined on the lease agreement at inception. Residual values on closed-end FinanciaLinx leases usually represent an estimate of the fair market value of the vehicle at the end of the initial term. This may also be referred to as the purchase option or lease end buyout. Security Deposit: A refundable deposit, usually equal to one monthly payment, which may be collected by the lessor at the beginning of the lease and held in a non-interest bearing account. Subvented Lease: A lease that is subsidized by the vehicle manufacturer, and usually reflects reduced interest rates. Tradeup: Upgrading your currently leased vehicle to a newer vehicle. Contact your originating dealer for further details. Wear and Tear Charges: Fees that may be charged to the lessee upon return of the vehicle to the lessor for excess wear and tear items that are deemed to be beyond normal usage of a vehicle. Specifics are communicated through brochures or letters prior to the end of lease. XS Wear: An inexpensive product provided by FinanciaLinx through the dealer that will protect the lessee for up to $3500 of excess wear and tear charges at end of lease. Ask your FinanciaLinx dealer for further details. |
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St. Catharines Mazda 161 Scott Street St. Catharines (Ontario) L2N 1H3 Tel.: 905 684-6318 Fax: 905 684-6310
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