Tag Archives: Leasing in Toronto

For most people, buying a car usually makes more financial sense than leasing. However – if a lease turns out to be right for you, then you should be aware of the advantages it offers versus buying a car.

Lower Monthly Payments

Leasing a car usually results in monthly payments that are 30% – 60% lower versus buying a car. This allows you to drive a vehicle that you may not usually be able to afford, and this is perhaps the most significant advantage that leasing offers.

Substantial Flexibility

You can return the vehicle at the end of the contract period or you can buy it or extend the contract. Of course, you could also select a new car.

No Hassles with Used Cars

When your lease is over, you simply return the car to the leasing company. No more hassles trying to sell a used car – and the value of the vehicle at the end of the lease is not your problem. There are some cases where leasing companies overestimate the value of the car, which results in a lower lease payment for you and a loss for the leasing company.

No Repair Costs, Low Maintenance

If you follow my advice and only rent for 36 months or less, then the manufacturer’s bumper-to-bumper warranty generally covers you for the full term of your rental. You’ll never have to worry about significant repair costs, and in some cases, manufacturers also offer free maintenance for the first two years.

Drive The Newest Cars

Leasing allows you to drive a new car every 2 or 3 years, allowing you to benefit from the latest technological advances and safety features.

Tax Benefits

If you intend to use the car for your business, you can generally write off the entire lease payment as a tax deduction. And even if you don’t own a business, most states only tax you on the “use” portion of your lease, which means you don’t have to pay tax on the full price of the vehicle. This can save you a few hundred dollars compared to buying a car and paying taxes on the total amount.

A Greater Choice Of Vehicles

When you rent a car, you don’t have to worry about its reliability or quality because you only drive it for 2 or 3 years. Most cars will have no problems during that time, which allows you to choose vehicles that you won’t necessarily buy.

Ideal If You Are Accident-Prone

If you buy a car and destroy it, the insurance will pay for the damage, but when you sell the vehicle, you will suffer the consequences because of its “reduced value”. People are not willing to pay the same price for a damaged car. With leasing, if you destroy the car, insurance will still take care of it, but the diminished value is the leasing company’s problem, not yours.

Less Money Up Front

Many cars can be leased without a down payment (although there is always an up-front fee that can usually be built into the monthly payment). When you buy a car, you typically have to make a 20% down payment to get a decent car loan rate.

No Resale Risk

The leasing provider generally assumes the residual value risk in standard operating leases, which means that the lessor is responsible for remarketing the vehicle at the end of the lease. It is sufficient to return the car.

Includes GAP Coverage

Most rental contracts include free additional insurance, which will protect you in case of theft or destruction of the car during the term of the contract.

The rate of leasing vehicles has grown steadily over the last couple of years. Approximately 30% of new cars are leased. This is due to lower costs at the pump, which decreases your cost to own, and affordable monthly lease payments, which allows you to get more for your money.

Whether you opt for a larger car or a car with premium features, you are among those buyers who realize the benefits of leasing in today’s market. Be assured that leasing a vehicle almost guarantees you a lower monthly payment. Explore your options to make the best decision for you, your finances, and your car. Contact DLC Estate Mortgages INC today! With more than ten years of experience in mortgage services, they will guide you through the car-buying adventure and help you determine if now is the right time for you to refinance!

We’ve all heard about refinancing, but only a few are aware of its benefits. If you’ve never come across this word before, let me briefly throw some light on it (without sounding like a dictionary or Wikipedia). Mortgage refinancing is simply a strategy of paying off a mortgage with a new loan (pretty much repeating the original loan process) but on more recent and favourable terms.

If you’ve maxed out your current bank loan limit and are looking for a better alternative to lower your mortgage payments or pay off your mortgage faster, refinancing may be the answer. In addition to helping you solve your financial problems, it has many other perks that not only help you achieve your goals but also make your life much more comfortable. But how? Buckle up for some of the best benefits of this intriguing strategy!

Much Better Mortgage Rate

Rates are significantly low, making it the number one reason that many people choose to refinance. If mortgage rates have gone down by the time you’ve taken out the loan, it’ s often possible to save money by refinancing your mortgage into a new home loan at current rates.

Save Some Bucks

Did you know refinancing saves homeowners an average of $4,264/year? A lower rate is synonymous to lower payments, meaning you’ll generally pay less for your home, especially if your refinanced mortgage matches the same payment date as your old mortgage. You can also minimize your month-to-month payments by extending the repayment date beyond what it is now. By paying less each month for your mortgage, you also free up extra cash in your budget that you can put into your savings accounts!

Bid Farewell to All Your Debts

It’s indeed a sad reality! Most of us struggle with daily or monthly payments because of our loans or leasing and want to consolidate our respective debts as quickly as possible. Thanks to cash-out refinancing, you can use the funds to pay off all your debts, be it a student or your car loan. Alternatively, you may also use the extra funds to finance renovations, wedding expenses, emergencies or perhaps simply enjoy a well-deserved family vacation!

Stabilize Your Loan Payouts

For those of you who currently have a variable rate mortgage and want more predictable monthly payments, consider refinancing your loan with a fixed-rate mortgage. Depending on the level of risk you are willing to take and your current and future financial situation, switching from a variable rate mortgage to a fixed-rate mortgage may be the ideal solution for you. This way, you don’t have to worry about seeing your monthly payments increase even when rates start to rise. Most people choose to switch from the first to the second, especially when interest rates are rising.

Own Your Home Sooner

There is no better feeling than owning a house much faster! From credit cards, loans, car payments and all the other financial obligations you may encounter, having one less monthly payment to deal makes you feel much more in control of your finances. Refinancing can be a great bonus if you want to pay off your mortgage debt at a faster time. If you have a 30-year loan, refinancing over 15 years will allow you to own your home much sooner. Moreover, if you proceed this way, you’ll have the opportunity to increase your home equity in a jiffy!

Your Plan B for Unforeseen Events

Refinancing can be of a helping hand in dealing with unexpected and uncontrolled situations. No one wants to dwell on tragedies involving severe injury or even death. However, knowing the options available to you in an emergency can ease your mind.

Scale Up Your Business

Regardless of whether you’re consolidating debt or have chosen to switch to a fixed loan, lower interest rates could translate into increased cash flow. That money could serve as a source of reinvestment in your business and help it prosper. You must be aware of specific elements when deciding to refinance, such as hidden costs or high penalties for late payments. Do your homework in advance and make the right decision for the financial future of your business.

Taking A Person Out of a Mortgage

Sometimes, usually after a divorce, a person who initially took out a mortgage is no longer held financially responsible for the loan. The only way to get him or her out of the pledge is to refinance it. Refinancing could also help delist a co-signer whose support is no longer deemed and who would like to be freed from his or her responsibility.

If you haven’t had a home and mortgage for a while, this may be an excellent time to at least consider refinancing your house loan. Explore your options to make the best decision for you, your finances and your home. Contact DLC Estate Mortgages INC today! With more than 10 years of experience in mortgage services, they will guide you through the home-buying adventure and help you determine if now is the right time for you to refinance!

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