While the popularity of leasing a new vehicle has rebounded dramatically in recent years, nearly three quarters of Canadians still choose to own their new vehicle, with 57 per cent choosing to finance their purchase, 17 per cent paying cash and 26 per cent opting to lease according to J.D. Power. However, leasing popularity is still lower than the peak in 2005 when 45 per cent of new vehicles were leased.
The attractiveness of leasing has been dampened by the rise of longer financing terms of up to 96 months in some cases. Approximately 75 per cent of new vehicle loans in 2016 had a term of 72 months or longer, whereas only 36 per cent did in 2009, according to J.D. Power.
That said, leasing a new vehicle has many benefits including the potential for lower monthly payments (as compared to financing), the ability to upgrade the vehicle at the end of the lease term and not having to worry about diminishing resale value. In many cases, auto makers are offering significant incentives to encourage customers to consider leasing as it tends to shorten the vehicle replacement cycle and bring consumers back into showrooms for their next new vehicle sooner.
We've highlighted some of our favourite deals with big lease incentives below this week. Be sure to also check out the rest of our featured deals for March:
- The biggest discounts on popular SUVs with better-than-average fuel economy
- Potential minivan wars in future mean big savings now
- The biggest incentives on German luxury cars
- Small cars with big savings
2016 Cadillac SRX
While Cadillac has plans to phase out the SRX to make room in its model lineup for the all-new XT5 crossover, those who opt for the current 2016 model will be eligible for big savings. Cash purchasers, finance and lease customers can take advantage of a $3,500 manufacturer incentive on the 2016 SRX (compared to zero in February). Financing for up to 72 months and leasing for up to 48 months are both available at 0.9 per cent.
2016 Cadillac SRX Luxury 4WD
- MSRP: $51,630
- Manufacturer incentive: $3,500
- Estimated dealer discount: $1,000
- Freight, PDI, government fees: $2,090
- Cash purchase price before tax: $49,220
- Finance for 60 months at 0.9 per cent for $948 per month including tax (includes a $3,500 manufacturer incentive applied before tax and assumes zero down payment)
- Lease for 48 months at 0.9 per cent for $695 per month including tax (includes a $3,500 manufacturer incentive applied before tax, assumes a 20,000 annual kilometre allowance and zero down payment)
2016 Land Rover Range Rover Evoque
Cash purchasers can take advantage of a $4,000 manufacturer incentive on the 2016 Range Rover Evoque (compared to $3,000 in January) while lease customers are entitled to a $4,200 rebate (compared to $3,700 in January). Financing for up to 72 months is available at 0.9 per cent and leasing for 48 months is available at 4.9 per cent.
2016 Land Rover Range Rover Evoque HSE
- MSRP: $56,490
- Manufacturer incentive: $4,000
- Estimated dealer discount: $1,000
- Freight, PDI, government fees: $2,810
- Cash purchase price before tax: $54,300
- Finance for 60 months at 0.9 per cent for $1,123 per month including tax (assumes zero down payment)
- Lease for 48 months at 4.9 per cent for $905 per month including tax (includes a $4,200 manufacturer incentive applied before tax, assumes a 20,000 annual kilometre allowance and zero down payment)
2016 Ford F-150
Cash purchasers can take advantage of a $7,500 manufacturer incentive on the 2016 F-150 while finance and lease customers are entitled to a $3,750 rebate. Financing for up to 72 months is available at zero per cent and leasing for 48 months is available at 2.49 per cent.
2016 Ford F-150 XLT 4x4 SuperCrew 145 inch bed with 301A package
- MSRP: $46,849
- Manufacturer incentive: $7,500
- Estimated dealer discount: $2,000
- Freight, PDI, government fees: $1,840
- Cash purchase price before tax: $39,189
- Finance for 60 months at zero per cent for $809 per month including tax (includes a $3,750 manufacturer incentive applied before tax and assumes zero down payment)
- Lease for 48 months at 2.49 per cent for $615 per month including tax (includes a $3,750 manufacturer incentive, assumes a 20,000 annual kilometre allowance and zero down payment)
2016 Chevrolet Cruze Limited
Chevrolet introduced a redesigned, next generation version of its Cruze sedan this year, which means consumers who opt for the current generation Cruze Limited can take advantage of big discounts. Cash purchasers can take advantage of a $3,500 manufacturer incentive on the 2016 Cruze Limited (compared to zero in January) while finance customers can take advantage of a $1,500 incentive (compared to zero in January). Lease customers are entitled to a $3,250 rebate (compared to zero in January) for terms greater than 24 months. Financing for up to 84 months is available at zero per cent and leasing for up to 48 months is available at 0.5 per cent.
2016 Chevrolet Cruze Limited 1.4 2LT Turbo
- MSRP: $22,240
- Manufacturer incentive: $3,500
- Estimated dealer discount: $500
- Freight, PDI, government fees: $1,740
- Cash purchase price before tax: $19,980
- Finance for 60 months at zero per cent for $414 per month including tax (includes a $1,500 manufacturer incentive applied before tax and assumes zero down payment)
- Lease for 48 months at 0.5 per cent for $286 per month including tax (includes a $3,250 manufacturer incentive applied before tax, assumes a 20,000 annual kilometre allowance and zero down payment)
Andrew Tai is CEO of Unhaggle
Pricing and calculations are based on Ontario customers and subject to availability of inventory. Please note that while the information above is accurate at the time of publication, pricing, incentives, and discounts may vary and are subject to change or discontinuation at any time. Dealer discounts are estimates and may be given at the discretion of individual dealers. Consult your local dealership for details.
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