In Canada, the pre-owned car market is booming, with tens of thousands of transactions taking place every week. In fact, even if the data is not complete, it is estimated that there are four to five times more transactions for pre-owned vehicles than for new cars.
In almost all cases, however, the pre-owned vehicles are purchased, not leased. Although legally it is possible in all Canadian provinces, and very popular among our southern neighbors, leasing a pre-owned vehicle is not always desirable.
“Leasing is often seen as a great way to reduce monthly payments, but when it comes to pre-owned vehicles, there are very few instances where leasing is the right way to go,” says a sales consultant at Fredericton Volkswagen.
That said, there are a few ways you can lease your next pre-owned vehicle. One way is to purchase the vehicle with an obligation to purchase the vehicle at the end for a given residual value. This, from a financial point of view, is often more interesting since ultimately, you are buying the vehicle, but with lower monthly payments. It should be noted however that you are obligated to purchase the vehicle at the end and you therefore need to be sure you will be able to save enough to do so.
Other leases are also available, but most of the time there are transferred. Your dealer can, for example, offer to take over the lease of a customer who wanted to make a hasty change before the end of his own lease contract. You will often have to pay a transfer fee, but you will have a virtually new vehicle, taking advantage of a manufacturer warranty, on the same terms as the original purchaser.
That said, there aren’t that many opportunities out there when it comes to taking over a lease, and you have to be lucky enough to find the exact vehicle you want with the equipment you desire.
Ultimately, if you want to lease, you are probably better off buying a new vehicle instead.