Frequently Asked Questions

Leasing vs. Financing?

Leasing offers a lower monthly payment because when you lease you are only paying for the portion of the vehicle that you are using during the term of your lease, not the whole vehicle. Leasing offers greater flexibility. You pick your lease term ranging from 12 to 60 months. Traditionally, people choose terms of 36 or 48 months but you are not limited. Would 27 or 42 months suit your particular needs? And when your lease is over, it is easy to replace your vehicle with a brand new one. Some people consider their lease to be a long term test drive where they decide at the end if this is a vehicle to replace, keep a little while longer, or to own outright.

Leasing vs. Buying?

Do you enjoy shopping for a new car? Will you have to do a lot of research and visit a lot of dealerships to find the vehicle and the deal that is right for you? Would you prefer to deal with one experienced, impartial person from the comfort of your home or office? Experience the convenience of leasing from a company that is not affiliated with any particular brand or type of vehicle. Halton Autolease knows them all. We are constantly in touch with the market, staying current with all manufacturers' offerings. We are large enough to access the best pricing and fleet incentives. You can enjoy the convenience of one stop shopping while we shop the market and secure the best prices for you.

When a vehicle is for business purposes, leasing is often preferred when preservation of capital is important because it doesn't tie-up lines of credit and other financing resources that may be needed for other aspects of operations.

What are the Tax Considerations?

When an automobile is used for business purposes, from an income tax perspective it is most beneficial if the vehicle is used 50% or more for business and has a cost not exceeding $30,000. When you lease, the deduction in respect of lease payments is restricted to parallel a similar dollar limit if the car were purchased. The limit on deductible leasing costs is $800.00 per month plus applicable federal and provincial sales taxes for leases entered into after 2000. A separate restriction prorates deductible lease costs where the value of the vehicle exceeds the aforementioned capital cost ceiling. If you are making personal use of a vehicle acquired for business purposes the taxable benefit relating to this personal portion is $.22 per kilometer. The government reviews rates and limits annually, and announces any changes prior to the end of the calendar year.

It is not uncommon to make an up-front, lump-sum payment under the lease to lower the monthly payments, end of term buy-out, or both. Revenue Canada will normally consider such payment to be part of the normal lease charge in the year paid and therefore may be subject to a limited expense write-off.

Can I buy my lease out early?

Yes, your sales representative can provide you with a current buyout value of your lease at any time. We always recommend, though, that you pick a lease term that meets your actual requirements.

Does my leased vehicle have warranty?

There is no coverage provided by the lessor. Any existing factory warranty or extended warranty that you have purchased will apply.

Can I source my own vehicle to lease?

Halton has a wide variety of used vehicles for you to choose from but you are free to source your own vehicle.

Who owns my leased vehicle?

The leasing company owns the vehicle until such time as it is paid out. You own your license plates.

What's the difference between a closed and open ended lease?

In any type of lease the largest part of the monthly payment is usually for the depreciation that occurs through the lessee's use of the vehicle. In a closed end lease, the residual value is established by the lessor and the lessee may have the option of purchasing at the end. Any damage or over mileage is the responsibility of the lessee. An open end lease is less restrictive because of the options at the end of the lease and the residual value can be tailored to the lessee's needs. At the end of an open end lease the lessee may purchase the vehicle for the established residual or possibly extend it. If the vehicle is returned to the lessor, the lessee is responsible for any difference between the value of the vehicle returned and the residual value.

Are there mileage penalties?

Not on an open end lease, but if you go over the mileage anticipated at the start of the lease, it will affect the vehicle value. Depending on the overall condition of the vehicle and market conditions, higher than expected distance travelled may cause the vehicle to be worth less than the established residual value and the lessee is responsible for this difference. On a closed end lease there is a pre-established penalty for going over the mileage limit.

What is APR?

This is the yearly interest rate which is applied to the lease including any monthly fees.

What does it take to qualify for credit?

Each situation is different. Fill out and send our online credit application or contact us by phone at 1-877-837-5674. A representative will be in contact with you within one business day.

What are my maintenance obligations?

You are responsible for maintaining the vehicle to the manufacturer's recommendations as well as repairing any damage and replacing worn out components like tires and brakes.

What are my insurance obligations?

You must maintain full insurance coverage for the entire duration of the lease.

What is required if I want to buyout the vehicle at the end of the lease?

We require notification from you 30 days before your lease expires and a bill of sale will be prepared. You will need to provide us a provincial safety certificate, E test, and the plate portion of your ownership so that we can complete the transfer of ownership.

Can I extend my lease?

If your lease is in good standing, you can extend your lease up to 36 months depending on the year and mileage of the vehicle.

Can I sell my vehicle to a third party?

Only the lessor has the right to sell the vehicle, but Halton Autolease will sell the vehicle directly to the third party of your choosing.

What the difference between leasing and buying?

For most lessees, the main advantage of lease financing is the establishment of the residual value. Because you are only paying for the portion of the vehicle you are using, this will lower your monthly payment. In business use there are often tax advantages and cash flow advantages.

What is the benefit of leasing?

You can get a newer vehicle for a smaller monthly payment, and may be able to write it off for business use.

Inventory Search

Lease or Buy?

At Halton AutoLease we always carry a healthy inventory of cars, minivans, vans, trucks and SUVs. We can offer a lease or purchase for any of these vehicles, either personal or commercial. And if you are looking at a new or used vehicle somewhere else, we can help you lease that too!

Leasing Information