Halton Autolease Inc. is a family-owned and operated company. With over 30 years of experience, we specialize in commercial and personal leasing by providing consultation, custom solutions, and a high level of service for businesses and individuals. Our two key operating principles are ensuring customer satisfaction and customer loyalty. We provide value-added services for our clients and ensure we put in the time and effort to deliver results quickly. Our consultation and credit process is tailored to ensure your lease agreement is constructed in a way that meets your specific needs. Come join the Halton Autolease family and let us show you why so many businesses in the GTA trust us with all of their automotive and equipment needs.
Explore our flexible leasing solutions, tailored for both personal and commercial needs, designed to fit your lifestyle and business requirements.
Choose the Right Vehicle for Your Needs
Our professional Account Executives have a vast network for acquiring any make or model vehicle on your behalf throughout Canada and the United States. We have a wealth of current automotive experience that you can use to your advantage in choosing the right vehicle for your circumstances. Make a decision knowing that you have an experienced, unbiased team on your side.
Our leasing process is simple and quick to ensure you get on the road as soon as possible.
1. Credit analysis: Our credit experts will review your application and make sure our lease agreement fits your budget.
2. Vehicle selection: Our Account Executives will work with you to ensure you get the vehicle that you're looking for.
3. Structuring lease agreement: Halton Autolease works with you to ensure your lease agreement is tailored to your needs.
4. Signed, sealed and delivered: Enjoy your new leased vehicle.
Find the Perfect Vehicle for Your Business
Halton Autolease has been serving the truck and commercial vehicle leasing market place across Canada for over 30 years. When you partner with us, you are dealing with automotive professionals who understand commercial vehicles and the commercial vehicle market place. Let us help you source the right vehicle for your particular needs.
Vehicles
Equipment
Before you negotiate a personal or commercial auto lease, you should understand the common lease terms and clauses used in a lease agreement before and during discussions with the lessor. The information below will help you familiarize yourself with some of the common lease terms used in most agreements.
| Lease | A contract between a Lessor and a Lessee for the hire of a specific asset. The ownership or asset is retained by the Lessor, but the right to use the asset is given to the Lessee for an agreed period of time in return for a series of payments paid by the Lessee to the Lessor. |
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Lessee |
The party who uses the leased equipment, makes the payments, and may deduct the same as an expense in computing taxable income. |
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Lessor |
The party who is the owner of the leased equipment and receives the rental payments paid by the Lessee. |
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Open-End Lease |
This type of lease is called Open-End because it is the least restrictive kind of lease. The terms of the lease and the residual value amount are customized with the client based on the type of vehicle and usage. At the end of the lease, based on the Guaranteed Residual amount, there are options for the Lessee to exchange, return, or purchase the vehicle. An option to extend the lease at the end of term is usually available. The Open-End Lease also becomes an attractive form of freeing up cash through a financing option known as a Lease Back. |
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Guaranteed Residual |
For most Lessees, the main advantage of lease financing compared to loan financing is the establishment of the Residual Value, which results in a lower monthly payment. The residual is the non-depreciated amount remaining at the end of the lease. In a typical finance agreement, the vehicle or equipment has to be fully paid for during the term of the financial commitment. With a lease, it is recognized that the asset may well have value at the end of the financing term and this amount does not need to be amortized in the monthly payment. It is important to note that with a Guaranteed Residual, the Lessee shares risk with the Lessor. Once the residual is established, this amount has to be satisfied by the Lessee at end of the lease term either as a purchase of the leased asset or by returning the asset with a value equal to or greater than the residual. It is important, therefore, that the Residual Value that is set at the start of the lease is matched to market conditions and the expected use of the vehicle or equipment. There are definite advantages to this type of lease. A Residual Value lease has no wear and tear charges, damage penalties, or mileage penalties. If, at the end of the term, the leased asset is worth more than the Residual Value, the Lessee is entitled to this lease equity. And, because the Lessee shares at the end of term risk, the lease can be more flexible and the payment lower than a comparable Closed-End lease. |
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Closed-End Lease |
The Lessee is obligated to pay the lease payments and return the leased vehicle upon expiry in excellent condition (subject to "normal" vehicle wear and tear). Usually contains a penalty/payment obligation if certain predetermined usage "hurdles" is exceeded (i.e. mileage restrictions and condition). |
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PAP |
Represents Pre-Authorized Payment Plan and is a program whereby the Lessee authorizes the Lessor to debit its bank account for the required remittances on the lease contract. |
| Residual Value | The estimated value of the leased asset at the end of the lease term. For most Lessees, the main advantage of lease financing compared to loan financing is the establishment of the Residual Value, which results in a lower monthly payment. The residual is the non-depreciated amount remaining at the end of the lease. In a typical finance agreement, the vehicle or equipment has to be fully paid for during the term of the financial commitment. With a lease, it is recognized that the asset may well have value at the end of the financing term and this amount does not need to be amortized in the monthly payment. |
| Term | The period of time during which the Lessee is entitled to use the equipment. |
| Insurance | The Lessee is required to maintain, at their expense, the stipulated insurance coverage, whether the vehicle is used or not, during the lease term and until the vehicle is returned or purchased. |
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Taxes |
The taxes the Lessor must add to any payment or purchase, which may include federal excise taxes and fuel consumption tax. |
| Personal Property Security Act (P.P.S.A.) | Allows for a public record of an owner's or creditor's interest in an asset and establishes the priority of claims. The Lessor will register its interest in the leased asset with the government. The amount charged is the cost of registration, which varies with the length of the term. |
| Security Deposit | A non-interest bearing refundable amount of money that will be held by the Lessor to ensure the performance of all terms, conditions, and obligations under the lease agreement. The Lessor has the right to deduct from such security deposit any amounts owing under the lease that the Lessee has not paid to the Lessor. If any of the security deposit remains, the Lessor will refund those funds to the Lessee upon the termination of the lease. |
| Lease Back | This is a type of lease financing in which the Lessor purchases an asset that already belongs to the Lessee for the purpose of leasing it back to the original owner. This option is common for businesses and professionals wanting to free up cash without using existing bank lines or taking on additional bank financing. This option may also be used as a strategy for reducing taxes and should be discussed with your tax or accounting professional. |
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 whether this is a vehicle to replace, keep a little while longer, or to own outright.
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.
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 that does not exceed $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 kilometre. 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.
Yes, your sales representative can provide you with a current buy-out value of your lease at any time. We always recommend, though, that you pick a lease term that meets your actual requirements.
There is no coverage provided by the lessor. Any existing factory warranty or extended warranty that you have purchased will apply.
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.
