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Car Leasing: Down Low in Canada

Leasing has been in the car manufacturing community of Canada. It has shaped Canadian economy in ways that even the major car-manufacturing companies cannot define. With the worldwide trend of downgrading the leasing process due to the economic downturn in the whole of US and Canada, consumers and car buyers have yet to decide on what to do.

To give you a wider picture, 60% of Canadian sales for BMW is derived from leasing. Despite this, the company opted to focus more on financing, by providing more options for purchase. Ford also followed suit and had cut its leasing options. In this very tight leasing market, there are still a couple of car-manufacturing companies which have remained steadfast in their leasing options. The good old Mercedes Benz and Honda’s leasing incentives have remained unchanged.

As a result, most car users now have succumbed to buying used cars and looking for purchasing options with longer payment terms. But leasing is far from over; a lot of people are on the look out for better things to come in leasing.

Do you have any idea on how to make leasing better? Perhaps leasing hybrid cars or fuel efficient cars only will do the trick, given that the main control of this issue rests on the unstable oil industry. But then we have to wait for anything to come as a substitute for driving a luxury car in three years with relatively lower payment, which is true-blue leasing principle.

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The economic plunge has adverse effect on the car-buying populace, but there’s a way to go around this. When Chrysler declared that it has put an end to leasing, it created a domino effect on the other car-manufacturing companies; GM and Ford have expressed that they will be giving tighter restrictions for their leasing packages, and financial institutions like Wells Fargo and Chase Bank are headed to the same path.

Leasing as a financing type is appealing to the lessee and the leasing company and car manufacturer. For the car user, it is quite tempting to have a new car every two to three years. For the leasing company, it adds up to their earning that many car users are not quite informed about the leasing process. Car manufacturers used to love leasing since a lot of people tend to use their car models, even for luxury cars.

However, this time, forecasting the residual value of your car has proven to be a nightmare for these companies with the continuous increase in fuel. It is believed that usually leases can be paid off with 40% of the car’s value; right now, they cover only 28% of the car’s total value.

Many have raised concerns about whether leasing is on its last days. Leasing authorities believe that leasing has been around for some time already and has become a commoner in the competitive world of the car manufacturing industry. It is not going away for the reason of any economy downturn.

A car enthusiast who would like to lease should be able to equip one’s self by ensuring a strong credit background; leasing companies will be more scrutinizing this hard-up days. Other car companies will give you more reasons to buy rather than lease a car so you can take advantage of it.


Car Leasing Tool: Lease Kit

A lease guide is not enough; one needs to have the lease kit, which contains important car lease data, tools, and additional information. These are all necessary for transactions, including evaluation, for a car leasing deal.

The lease is very accessible. You can purchase it online and is ready to use anytime, anywhere; it’s 100% satisfaction guaranteed.

The lease kit can help a lessee in all stages of the leasing process from planning, consideration, being in the lease, to ending the lease already.

During the planning stage, the lease kit will help you identify which car is the worst and best to consider for leasing, how to calculate the residual value, how much is your monthly payment, what a contract looks like.

When you’re considering the lease already, the lease kit will be your guide in knowing the critical facts on your contract, whether your lease payments are fine compared to loan payments, what is the maximum lease term you will allow yourself for the car you are considering.

As you’re in the lease already, your lease kit will help you to evaluate your deal, whether it’s bad or good. It will also advise you whether you should buy out the car at the end of the lease or not. If ever you have further charges to face, the lease kit will give you advice on what steps to take to address these.

The lease kit is also helpful when your lease is about to end. It will show you the options you have when you want to terminate your lease or the options when your lease is about to end like selling, trading, or returning.


More Myths about Car Leasing

The leasing world has triumphs and defeats in its battle towards other forms of car ownership. But time and again, car leasing companies have to elbow in themselves in the crowd to assert the effectiveness of car leasing as an affordable and reliable form of car ownership.

We managed to come up with a set of the latest misconceptions that might be regarded as urban myths about leasing. It helps if you are well informed of what the majority thinks about car leasing in general.

The first myth is that leasing is always cheaper than buying a car. Relatively, leasing is quite cheaper since you only have to pay monthly for the depreciation value of the car as you use it through time. This is different when you decide to buy out the leased car at the end of the contract since if you’re going to sum up all the monthly payments and the buy-out price it will be much higher compared to a brand-new purchase.

Another myth is that the new disclosure laws give auto owners the full protection. Due to a lot of complaints about hidden fees in lease contracts, a law has been passed that requires dealers and leasing companies to accomplish a form of disclosure, providing lease details, most specifically the hidden charges for wear and tear, gap insurance, excess mileage, and others. However protective the law may appear, it should be known that the interest rates are not required to be disclosed by these dealerships. The fool-proof way of protecting yourself is to stick to a well-reputed licensed dealer.

The dealers can’t charge you after you returned your car at the lease’s end. This is entirely farcical since a lot of lessees have already complained about being charged for a dozen fixes right after they returned their car to the dealers after the lease. To make sure that you won’t fall on this trap, make sure to read the end of term conditions, to make sure what fees you need to take care of. It’s also a good idea to hire a third party to check on the overall condition of the car at the end of the car lease and come up with a vehicle report for the dealer to based on.

The fourth myth is that only rich people go into leasing than buying. This might be brought about by the fact that car leasing is for luxury cars only, which is not the case. The real thing about leasing is that what matters most is a good credit background and not the purchasing power of a prospective buyer. According to the book The Millionaire Next Door, by Thomas J. Stanley and William Danko, 80% of millionaires buy cars and not lease. Car buyers who are not really into the millionaire status are in fact more credible for a dealer for as long as he has a good credit background.

The last myth is that leasing has tax advantages than buying. The truth is that leasing has a friendlier way of calculating its taxes, making it easier to find out how much it’s going to cost you, hence, easier to accomplish payment or fix a deal for a certain cost.


The Great Hybrid Car Structure

The mighty green car has so much in its mechanical structure that contributes to less fuel consumption and emission. Check on its parts and discover the efficiency and nature-friendly structure of the car

Electric motor: The sophisticated electric motor has advanced electronics to draw and return energy in car batteries.

Gasoline engine: The engine run with gasoline has technological innovation that reduces innovation and increase efficiency.<

Fuel tank: This is a specialized storage of the gasoline engine. The good thing is that gasoline has better energy density than batteries, making the car more efficient.

Batteries: They serve as the storage device for energy that activates the electric motor.

Generator: The generator’s main role is to produce electric power.

Transmission: Transmission on a hybrid car is the same as what’s found on conventional cars, only that you can make use of this in the different combination usage of the electric motor and the gasoline engine.

What are these two combinations? Just to make things clearer for you

Parallel hybrid: This means both the electric motor and the gasoline engine can turn the transmission which in turn can power up the wheels.

Series hybrid: The generator revved up by the gasoline engine has two options to power up the car: charging the batteries or pumping up the electric motor.

All these make the hybrid a good initiative to take for fuel efficiency and less emission and consequently, for a healthier environment and cost-efficient transportation means.

Mini Clubman: Now a Rickshaw?

Who says a well-defined, restrictive culture is not a good definitive factor in launching a new product?

We can talk about workaround ways to promote a new product in a very tight market where export and import laws are neck breaking.What is more difficult to perceive in terms of marketing a western car to newly modernized China?

The Mini Clubman has an answer. Create the imagery of need and cultural loyalty, hence the Mini Clubman rickshaw. Dubbed as “the other rickshaw,” the drivetrain started as a regular car but was sent to Hong Kong to have it converted to pedal power. A rickshaw is a national Chinese means of transportation that has created a cultural significance.

Beijing’s Mini Clubman has gained the local and international media attention despite the extensive coverage for the 2009 Olympic games.

Instead, according to China Car Times, the rickshaw-car was sent to China “to bring good luck to the Beijing Olympics.” It may be a little cumbersome to drive the Mini Clubman rickshaw, but it surely clicks with the natives and tourists alike. And more good news is, it’s zero emission.


What Our customers are saying

The lease rate I got by calling the dealer was $67 higher than the rate I got from Car Leasing Secrets. It’s all about the local competition. So happy with my Benz!
Cristoph Wiese
Athens, GA
This is probably the easiest way to get quotes and compare them. I got one from each dealer in my city. One of them was surprisingly low. The quotes are free. No worries there.
Kristen Fletcher
Albany, NY
What a great way to shop around! I wanted a Corolla. There’s only one Toyota dealership in my city but I got a quote for a Honda Civic and decided to go with that one because I got such a good offer.
Mark Dolan
Missoula, MT