Lease FAQ

At Derrick Dodge in Edmonton, Alberta, customer satisfaction and transparency are our top priorities. We understand that vehicle leasing can be a complex and sometimes confusing process, which is why we are committed to addressing your most frequently asked questions about vehicle leasing.

Common Questions about Leases

What is a Car Lease?

A car lease enables you to drive a brand-new vehicle for an agreed-upon period at a fixed monthly rate. Unlike conventional financing plans, leasing doesn’t necessitate car loan approval or a substantial upfront payment. At the end of the lease period (typically between 2 to 4 years), you must either return the car or purchase it at its market value.

What are the Benefits of Leasing a Car?

Leasing is a great option because it has lower payments. Leases usually last 2 to 4 years. After the lease ends, you can get a new car with the latest features.

• Lower Payments: Paying for depreciation results in lower monthly costs.
• New Cars: Enjoy brand-new models by switching after the lease ends.
• Warranty Coverage: Most leases come with warranty protection.
• Avoiding Depreciation: Skip the depreciation expenses.
• Latest Features: Heated seats, advanced cameras, GPS systems.
• Affordability: Lower monthly payments compared to purchasing.
• Flexibility: Trade in, sell, pay off, or return the car.

What are Car Leasing Options?

In Canada, there are various leasing options:

1. Standard Rental Leases: Drive new vehicles with a small down payment.
2. Lease to Own: Purchase the vehicle after the lease term.
3. Lease Takeovers: Assume someone else’s lease with lower upfront costs.
4. Leasing a Used Car: Possible through lease-to-own agreements.

What Happens if I Move to Another Province?

Not all leasing companies operate in other provinces. You may need to return your lease and settle it or have someone take it over.

Can Someone Else Drive My Leased Car?

Temporary drivers are covered by your insurance with your permission. If someone drives regularly, add them as a secondary driver.

Questions About Cost

Is Leasing Cheaper Than Financing?

Leasing is typically more cost-effective. You pay for depreciation during the lease period, not the entire selling price.

Does My Credit Score Matter When Leasing?

Yes. A score above 700 offers the best chances of approval. Request your free annual credit reports before applying.

Do I Need a Down Payment?

Down payments are not always required, but a larger one can lower monthly payments. You can also use a trade-in as a down payment.

Questions About End of Lease

What are My End-of-Lease Options?

At the end of your lease you have several choices:

1. Lease or finance a new vehicle.
2. Purchase the current vehicle.
3. Continue to refinance the same vehicle.
4. Return the vehicle.

What Happens if I Exceed my Mileage?

You’ll need to cover the extra cost at lease end. Consider purchasing additional kilometres upfront.

Can I End My Lease Early?

Terminating early comes with risks:

• Impact on Credit: Defaulting negatively affects your credit score.
• Early Termination Fees: Lenders may impose penalties.

How Do I Get Out of My Lease Early?

Options for early termination:

1. Car Buyout
2. Transfer Your Lease
3. Lease Rollover
4. Lease Buyout
5. Seek Help from Your Car Lease Company

Questions About Used Vehicles

Can I Lease a Used Car?

While most leases apply to new cars, leasing used is possible through lease-to-own agreements and takeovers. Be aware of potential maintenance issues.

Where Can I Find the Trade-in Value of My Car?

We pay top dollar. In 2 steps and 10 seconds you can skip the research. Learn More

Questions About Warranty & Maintenance

What is the New Vehicle Warranty?

Chrysler, Dodge, Jeep, Ram and FIAT vehicles are backed by a 5-year or 100,000-km fully transferable Powertrain Warranty with $0 deductible, plus 24-hour roadside assistance.

Basic Warranty is 3 years or 60,000 km. Rust-through coverage is 5 years or 160,000 km. Pacifica Hybrid battery is covered for 10 years or 160,000 km.

Why Lease Your Next New Car at Derrick Dodge?

At Derrick Dodge, we redefine the car leasing experience. Our extensive selection of quality Used & New vehicles, coupled with transparent leasing plans, ensures you find the perfect match. Call us at 877-701-2841 or Book your Appointment today!