Although it has not spread around the U.S just yet., there is a very popular trend in our northern neighbor: taking over car lease contracts. Could you imagine someone who leases a coupe Honda for the next five years, with warranty coverage, winter tires(mandatory in most of Canada) lots of options and suddenly knows that his wife is expecting twins?! Well, you need a bigger car, and then, your deal suddenly becomes an opportunity for someone else.
There are multiple websites that take care of helping people with this kind of situations: list their car, find someone in a short period and then finalize the paperwork for completing the contract at the dealership. One of the most originals I’ve seen is the LeaseCosts Canada transfer marketplace. They simplify all the math related to the auto leasing process and have hundreds of completed transfer. The process is popularly known as lease takeover and is not difficult to do at all. There are people who love to take over leases every 2 or 3 years by just jumping into contracts that are valid for that period of time.
It is a very popular option also among international students, temporary workers and people who come to Canada for a short period of time and find this niche as a good opportunity to save money and drive a new vehicle, with all possible coverages.
Img source: SmallBusiness.co.uk
I’ll just give you an example: let’s say you go to a dealer and lease a brand new Honda Civic Coupe. It will cost you about 350 Canadian Dollars per month for the next 4 years. On the other hand, if you want it for only 2 years, prices skyrocket to 580. Now, in two years, that same vehicle (now with 2 years paid) will still cost you 350 every month.
Imagine yourself back again, now in two years from now looking for the same deal. The dealership will offer you, back again, the new Civic Coupe for 580, but your “2 years ago you” will have the same model available for you to lease for the price of a 48 months contract. If you are a budget-oriented person, that’s the one you take.
The benefits of this are numerous. First and foremost, by leasing their cars, the Canadians manage to save so much money. They can use that money for some other aspects of their lives. Besides this being a cost-effective option, you will have to stick by to the end. After 2 or 4 years, you can return the car to the dealer and just grab a new vehicle. Things change in families and you will need a different type of car as the years go by. Last but not least, you may be a car enthusiast who wants to try out as many vehicles as possible and this is a great way to switch car safely.
