Most leases require you to pay a security deposit. The Security deposit will be refunded at the end of your lease, unless it is used to pay for any remaining amounts that you owe.
First Lease Payment:
You may be required to pay the first lease payment.
Down Payment:
You can lower your monthly payment by trading in a vehicle or paying an amount in cash. This is similar to a down payment on a loan. A down payment "requirement" depends on your credit history and/or ability to meet your monthly payments.
License and Registration Fees:
You may be required to pay vehicle license and registration fees at the time the vehicle is delivered to you.
There may be an Acquisition Fee:
If your lease contains an Acquisition Fee it increases the carrying costs of the lease and must be included in the Total Lease Charges.
Your lease may contain GAP Protection:
If the vehicle is in an accident and is damaged beyond repair, GAP protection will cover the difference (the gap), after you pay the deductible, between what you owe on the remainder of your lease and the amount of your insurance settlement. Many leases may include GAP protection where traditional vehicle loans usually do not.
You may not be allowed to remove the vehicle from Canada without the prior written permission of the Leasing Institution:
Most leases state that you must obtain permission from the Leasing Institution to take the vehicle out of Country for an extended period of time.
Your lease can be tailored to suit your driving needs:
With Closed-End Leases:
You can negotiate the number of kilometres that you will need at the time you enter into your lease agreement. If you require additional kilometres it will increase your monthly payment and lessen the vehicle's residual value. If you drive more kilometres than you have agreed to, you will be required to pay an Excess Kilometer Charge.
You can usually "purchase" additional kilometres at the time you sign your lease at a lower cost than at the end of your lease term. Any unused portion of these extra kilometres at lease termination would be subject to a full refund if you decided not to exercise your option to buy-out the vehicle. If you do buy out the vehicle at lease termination, any unused extra kilometres purchased at the beginning would not be subject to a refund because that money was used to lower the vehicle's residual value and thus you will receive credit that way.
With Open-End Leases:
Open-end Leases normally have no kilometre restriction since you are legally responsible for the vehicle's residual value. However, the number of kilometres you drive will lower the market value of the vehicle at the end of the lease, thus increasing your costs at that time.
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