Basics of Leasing

Improve Cash flow

The greatest benefit of leasing is improved cash flow. With no down payment and lower monthly payments, the retention of cash in business or personal finances are improved.

Lower Monthly Payments

Because you only pay for the lease terms of the vehicle that you use, your monthly payments are lower than if you purchase the vehicle.

Tax Advantages

There can be some tax advantages for businesses to leasing. In certain circumstances, leasing may yield a more favorable tax result than a purchase.
We suggest you seek advice from your tax professional to determine whats best for you. There are also sales tax benefits to leasing. When you purchase a vehicle, sales tax is due immediately. However when you lease, sales tax is only payable on your capital cost reduction(down payment), and on the monthly payments.

More Vehicle For Your Money
  

Because your only paying for the lease term of the vehicle you use, and because your monthly payments are lower, you maybe able to afford a lease a more equipped vehicle than you could purchase.

New Vehicle More Often

Because of lower monthly payments and defined lease periods, you can get into a new vehicles more often.

Manufacturers Warranties

Many lease periods parallel the time frames for manufacturers warranties, allowing you to have warranty coverage for as long as you drive the vehichle.

Choice & Flexibility

Howard Carter Lease is a flexible leasing company. By looking at all your options, we can analyze your specific needs and give you practical, helpful recommendations and solutions. Based on this information, we can design a lease to your individual or fleet.

What Howard Carter Lease Offers
Not Every leasing company offers you what Howard carter Lease does. We are a independent leasing company owned and operated by the Carter Auto family. We provide customized leasing programs tailored to the needs of our clients. We offer the right lease for your applications.

Glossary

Lessee:  the customer who is leasing the vehicle (you)

Lessor: The company who owns the vehicle and is leasing it.

Open end Lease:
This is a agreement where the monthly
payment and residual (buy-out) are specified at the start of the lease.
There are no kilometre restrictions or wear-and-tear clauses in this type of lease, the lessee guarantees the value of the vehicle or purchases it.

Closed-end Lease (Purchase option Lease):
Unlike an open lease, the lessee does not guarantee a residual or buy-out value. The monthly payment is fixed at the outset of the lease.  In addition, the lessee agrees to the specific number of monthly payments and to the terms regarding the vehicle's condition and kilometres. At the end of the lease, the lessee returns the vehicle to the leasing company. This allows the lessee to fix costs over the term of the lease for budgetary purposes.

Term: The length of the lease in months

Kilometre Allowance: The total kilometre allowed  the lessee during the length of the lease. The lessee may pay a penalty per kilometre if the kilometre allowance exceeded, depending on the type of lease.

Residual:
Also known as fair market value or lease end value The value. The value specified in the lease, of the vehicle at the end of the lease. Occasionally, the lessor gives the lessee the option to purchase the vehicle for this amount at the end of the lease. This is not always the case. Check to see that the lease contract includes this clause.

Excess Wear- and-Tear:
Normal wear and tear is stress on a vehicle caused by normal use. At the end of the closed-end lease, the lessor holds the lessee responsible for wear- and- tear that is in excess of "normal". Typically, a clause in the lease agreement spells out excess
wear-and-tear in detail.

Security Deposit:
Money collected at delivery for security typically in the range of one monthly payment. The deposit is refunded, minus any lease-end charges for wear- and -tear or excess kilometre, after the lessee returns the vehicle and it is sold.