For starters, there are two basic lease types: open-end and closed-end. With an open or closed-end lease, the residual value of the vehicle is established at the onset of your lease. And unlike an open-end lease, a closed-end lease residual value is guaranteed by NCF, and is the responsibility of, the leasing company upon its maturity. With an open-end lease, you (the lessee) assume responsibility for the vehicle’s residual value at the end of the lease. For your protection and peace of mind, all NCF leases are closed-end. We assume the risk. So if the market value is higher than the residual value we have established, and you decide to purchase the vehicle, you come out ahead. If the market value is lower, you are protected.
Our lease program allows for 24,000 km of driving per year. That’s about what the average Canadian drives in a year. If you’re a high-use driver and expect to exceed the standard lease’s 24,000 km yearly limit, you may find it more economical to buy extra kilometres upfront.
It's the difference between paying 8¢/km in the beginning and 10¢/km at maturity. And that's yet another way your Nissan Dealership can tailor the lease to meet your needs.
ACQUISITION COSTS TAILORED
With a lease, you may not have to make any down payment at all.* Or, you can tailor the down payment to suit your situation. We hasten to add here that making a down payment will lower your monthly lease payments
We offer lease terms between 12 and 60 months. Choose a short-term lease and every one, two or three years, you’ll enjoy the ride in a brand-new Nissan. So if you’re the kind of person who likes change, you can change cars more often. And if these changes are in your job or family, a short-term lease lets you switch vehicles sooner to accommodate the change
HASSLE-FREE IS THE OPERATIVE WORD
You won’t have to put up with the hassle of trading or selling the vehicle –ever. Plus, we protect you by assuming the risk if the used car market value of your vehicle turns out to be lower than established. Assuming the vehicle is within the kilometre limit set out in the lease agreement and has no abnormal wear and tear, you can simply return the vehicle to us at lease maturity. No more waiting by the phone, haggling over the price, or getting it certified
LEASE, THEN BUY
Purchasing the vehicle at the end of your lease is yet another option you may wish to consider. Because by this time you will not only like the car, you’ll also be familiar with it.
AND, THE FLIP SIDE…
Attractive as leasing may be, there are some considerations you may wish to weigh with regard to your personal requirements. For instance, at the end of your lease you won't have ownership of the vehicle. It’s like renting an apartment.
You are also responsible for excess wear and tear to the vehicle. That means serious dents, cracked windows and damaged mechanical or electrical components, for example, must be repaired when you return it to us. All or part of which will come out of your security deposit.
*On Approved Credit and no matter what your down payment, you are responsible for the first month’s lease payment (plus taxes) as well as a security deposit (normally equal to approximately one month’s payment, including taxes). The security deposit and first month’s payment are payable when you take delivery of the vehicle.
Yes, NCF offers financing for pre-owned Nissan and non-Nissan vehicles that are up to five years oldand have less than 125,000 km. subject to credit approval by NCF.
Your trade-in value depends on a number of factors, including the vehicle model, year and condition. You can also get a general idea of your car's worth by checking independent car value guides. However, a vehicle survey by your Nissan dealer is always necessary to determine the final trade-in value.
While in some cases you may be able to make more money selling it on your own, trading your car in to a dealer offers several advantages. You are likely to get immediate cash or credit. Your dealer will handle the paperwork and might pay off your current loan/lease. And you won't have to deal with some of the hassles associated with selling a car on your own. No running ads, no title transfer paperwork, no strangers in your car, and no bad checks.
Here are some of the most commonly used terms along with their meanings. With a little effort, you’ll be talking like a leasing or financing pro.
|Abnormal Wear and
|Considered to be heavy damage; dents, cracked windows, interior burns, rips, etc. Should damage exceed the amount of the security deposit, you will be responsible for the difference. The terms and conditions are defined in your lease agreement.
|This is the amount a leasing company may charge for acquiring a vehicle and processing the paperwork on your behalf. We do not currently charge an administration fee.|
|Kilometre Allowance||This is the number of kilometres you are permitted to drive the vehicle during the course of your lease. Our standard lease program allows a maximum 24,000 km/year. An excess kilometre charge will apply should you drive the vehicle beyond the limits set out in your lease agreement.|
|Annual Lease Rate (ALR)||Just like finance rates, leases also charge an annual interest rate. You’ll find your rate listed on your lease agreement.|
|Annual Percentage Rate (APR)||Just like lease rates, financing also includes an annual interest rate. You’ll find your rate on your conditional sale agreement.|
|Assignment||You also have the option (with our approval) of assigning your lease to a third party. Look for the details in your lease agreement.|
|Depreciation||The estimated decline in the value of the vehicle over the lease term. It is calculated by taking the Net Lease Vehicle Amount less the Residual Value. This is the amount that is amortized over the term of the lease.|
|Early Termination||Our lease offers you the right to early termination. Your options are fully disclosed in your lease agreement. For more information, we recommend that you see your local Nissan Dealership.|
|Excess Kilometre Charges||This is the fee charged if you exceed the number of kilometres specified in your lease agreement. Payment of the excess kilometre charge is made to us when you return the vehicle.|
|GAP||We provide a Guaranteed Asset Protection plan to you at no extra cost. It works like this: should the vehicle be lost, stolen or damaged beyond repair, it covers the difference – after you pay the deductible – between the amount of the insurance settlement and any amount still remaining under the terms of your lease. As a result, you won’t be stuck for any additional payment. If you live in the province of Quebec, GAP insurance is not provided because you are already protected under the Quebec Consumer Protection Act. We do, however, provide GAP insurance to non-consumers in the province of Quebec.|
|Leased Vehicle Amount||This is the total cost of the vehicle. It includes any accessories, options, freight and PDE charges, and all federal or provincial surtaxes for items like air conditioning, fuel and tires if applicable.|
|Leased Vehicle Amount Adjustments||This is the amount of your down payment or the value of a vehicle you have traded in as the down payment portion of a standard lease agreement. The greater your down payment or the value of your trade-in, the lower your monthly lease payment can be.|
|At the maturity of your lease or at any time during it, you have the option of purchasing the vehicle. With a Nissan lease, the purchase price of the vehicle at the end of the lease is clearly stated in your lease agreement. Should you choose to purchase the vehicle prior to lease maturity, your obligations are outlined in your lease agreement. Please consult your local Nissan Dealership for additional information.|
|PAPP||This stands for Pre-Authorized Payment Plan, and it is part of all our lease and conditional sale agreements. In essence, it gives us authorization to automatically debit your bank account to cover the monthly payment of your lease or conditional sale agreement.|
|Just as its name implies, you may choose to pay the entire amount of your lease upon delivery of the vehicle and enjoy your Nissan payment-free for the duration of the lease. Because we receive the full amount upfront, you will also realize a savings.|
||The residual value is the estimated value of the vehicle at the end of its lease term. With all of our leases, we fully guarantee the residual value of the vehicle. The residual value amount is clearly stated in your lease agreement.|
|Leasing a car is very much like renting an apartment. You are paying for the use of it and you are responsible for maintaining it in good condition. Just as a landlord seeks to protect himself or herself from any expenses which might arise from the neglect or misuse of the property by requesting a nominal security deposit, we do the same. Your security deposit also covers any excess kilometres or abnormal wear and tear. And in either instance, it can help alleviate an annoying additional expense at the end of your lease. Any unused portion of your security deposit, or the full amount, is refundable to you. Please note, interest is not paid on security deposits.|
|These are the carrying costs you pay over the term of the lease and are similar to borrowing charges when financing. This amount, plus the monthly depreciation, makes up the monthly lease payment before taxes.|