FAQS
WE MAKE LEASING SIMPLE
LEASING
You only pay for the vehicle’s depreciation during the lease term, plus fees. At the end of the lease, you return the vehicle or have the option to buy it.
BUYING
You finance or pay the full cost of the vehicle, and once paid off, you own it outright.
OPEN-END
In an open-end lease, the lessee assumes the risk for the vehicle's residual value. If the vehicle's market value at lease end is less than the estimated residual value, the lessee must cover the difference, though no strict mileage limits apply.
CLOSED-END
In a closed-end lease, the lessor takes on the residual value risk, and the lessee simply returns the vehicle at lease end, provided it’s within mileage and wear-and-tear limits. If these limits are exceeded, penalties may apply.
Return the vehicle – if the lesee chooses to return the vehicle, the lessee will have to pay any difference between the wholesale fair market value of the vehicle and the residual value. If the residual value is more than the wholesale fair market value, the lessee must pay the difference, referred to as “inequity”. If the wholesale fair market value is more than the residual, the lessee gets the difference, referred to as “equity”.
Purchase the vehicle at the option to purchase price, plus applicable taxes, as outlined in your lease agreement.
No, if you want to continue leasing your vehicle after the scheduled lease end date, then a new lease agreement must be completed. The new lease agreement is subject to the applicable fees and current rates and could require an updated credit check.
There is no fee or refund associated with exceeding or not exceeding the total kilometres at the scheduled lease end date. The residual value of the leased vehicle is estimated based upon the kilometre allowance predetermined by the lessee. Exceeding the total kilometres at the scheduled lease end date as outlined in the lease agreement, will negatively affect the wholesale fair market value of the vehicle if the lessee chooses to return it.
Yes, a leased vehicle can be returned or purchased during the lease term, but would be subject to an early termination fee equal to 3 months’ interest from the date of the lease’s termination.
Yes, a leased vehicle can be sold by the lessee, but the balance owing must be paid out on the lease before Davis Capital Leasing will release its security interest. The balance owing will be subject to an early termination fee if the lease is terminated before the scheduled lease end date.
Yes, at all times during this lease, the lessee must at the lessee's cost and expense obtain and maintain insurance on the leased vehicle which insurance as a minimum must include: (a) primary bodily injury and property damage insurance with a combined single limit of $2,000,000.00; (b) comprehensive fire and theft insurance with a deductible amount of not more than $500.00; and (c) collision insurance with a deductible amount of not more than $500.00. Such coverages must be maintained for the term of the Lease. Appropriate evidence of such coverages must be provided to the Lessor. Such coverages must name the lessor as an "Additional Insured" and “loss payee”.
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The vehicle’s depreciation (difference between the vehicle’s initial value and its residual value)
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Interest rates (also called the “lease charges” or “money factor”)
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Lease term (number of months)
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Taxes and fees.
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Cash down or trade-ins
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Kilometre allowance
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Credit worthiness
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The residual value is the vehicle’s estimated value at the end of the lease term. A higher residual value generally leads to lower monthly payments, as there is less of an amount to amortize over the lease term.
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Depreciation rate
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Lease term
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Kilometre allowance
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Vehicle condition
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Market conditions
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Incentives and promotions
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Economy and fuel prices
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Technology and model updates
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Credit worthiness
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No, Davis Capital Leasing does NOT allow a lease be transfer to someone else. The person assuming the lease would be treated as a new applicant and be subject to a credit check. The new lease agreement is subject to the applicable fees and current rates.
Yes, the leased vehicle can be customized or modified, but not without prior written consent of Davis Capital Leasing. Since the lessee does not own the leased vehicle, any customizations or modifications would be the property of Davis Capital Leasing in the event of default.
The lessee is responsible for all maintenance and repair costs to keep the leased vehicle in good working order and condition except for reasonable wear and tear.
A leased vehicle is subject only to the manufacturer's warranties which accompany the vehicle and any extended warranties or service contracts purchased by lessee.