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Worry no more. Chrysler Financial is pleased to offer you "Worry-free XS Lease Protection" - an option designed to make your Gold Key Lease experience as stress-free as possible. For a small fee at lease inception, Worry-free XS Lease Protection will waive up to $3,500 of wear and tear charges. Now you can drive with peace of mind - knowing that a scratch or dent is not going to dent your bank account at the end of your lease. Ask us for full details. Worry-free XS Lease Protection - it's just another way that we have YOU in mind.
Insurance
Several types of insurance are available to you when you buy a new or pre-owned vehicle. You may want the security of health insurance on your vehicle or the more complete life insurance. Whatever the case, our experienced Finance Managers will design the right type of insurance for you. Of course there is also Accident Insurance for the vehicle itself. While Big4 Motors does not sell this type of insurance, we do work directly with some of the best Insurance companies around. An agent would be happy to give you a quote on the vehicle you plan to own, and will even meet you at Big4 Motors to finalize your insurance. You can contact Doreen (403) 537-8564 or Michelle (403) 537-8565 for further information.
Why Lease?
When you are looking at purchasing a new or used vehicle you need to be informed by getting the best, most accurate information possible. At Mig4 Motors we want you to understand all the intricacies of the vehicle you are about to purchase and also the financing or lease alternatives that are available to you.
To many, leasing may seem complex and unfamiliar, but it has many advantages that are not readily apparent. Please browse through the following lease information links for answers to your leasing questions. If you still need answers please contact one of our leasing specialist, at (403) 537-8563 or jnarfason@big4motors.com.
Leasing vs. Financing?
Pay for what you use. This brief sentence probably best sums up the single, greatest difference between leasing and financing a new vehicle. And, it's a difference that can lead to a wide range of opportunities if you're in the market for a new car or truck.
In the simplest terms, leasing allows you to make monthly payments based on the portion of the vehicle's worth that you intend to use, instead of financing its full purchase price.
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Leasing: A real-world scenario
With leasing, the magic phrase is "Residual Value". For example, suppose you are interested in a new car with a Manufacturer's Suggested Retail Price of $20,000. After speaking with Big4 Motors, you decide that you'd like to spread your payments over 36 months.
The next step is to determine the vehicle's Lease-End Residual Value -- the value of the car at the end of 36 months. In this example, the car will be worth $8,800 -- or 44 percent of the Manufacturer's Suggested Retail Price (not the reduced price you would pay). For an example of how this works, please see the Estimators located in Your Finances.
So, for the 36 months you will be driving the car, your payments will be based on $11,200 depreciation plus service charges (interest) instead of the full Manufacturer's Suggested Retail Price (MSRP) of $20,000 plus finance charges, if any.
Finally, at the end of the 36 month period, you can simply return the vehicle in good condition and select a new vehicle to drive (excess mileage charges or excess wear and tear charges may apply). Other options are also available at the end of a lease -- check out Lease End Options in Your Options for more information.
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The Benefits of Leasing
- Lower Monthly Payments
- New Vehicle, More Often
- Residual Value
- More Vehicle for the Money
- Possible Tax Advantages
- Ownership Option
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Conventional Financing
The pride of ownership: while leasing offers low monthly payments, owning a new vehicle is still an attractive option for a large percentage of shoppers. For starters, conventional financing keeps the vehicle titled in your name and once it's paid off, it's yours.
Payment plans such as Chrysler Financial's Gold Key Plus, however, are a kind of hybrid between a lease and conventional financing. Similar to leasing, your monthly payments are based on a Residual Value at the end of the finance term. At the end of the term, you can make a final fixed value payment for the remaining balance. The result is a low payment each month, with your name on the vehicle's title.
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Weigh the Advantages
When choosing whether to lease or conventionally finance your next vehicle, take some time to examine your budget, as well as both your driving habits and needs.
Take a close look at your budget. Chances are, you'll find some useful information in there. Within it are the answers to some important questions, including which vehicle payment plan best works with your income and lifestyle.
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Should I lease?
While leasing first gained strength in the business world, there has been a steady increase in its popularity among all types of consumers. First, if you prefer to have more cash on hand every month, then you're already a good candidate for a lease. Leasing works to lower your monthly payments by forecasting the amount the vehicle will be worth at the end of the lease term -- it's called the "Residual Value". So, instead of financing the vehicle's full purchase price, your payments are based on the depreciated value of the vehicle, which is substantially less.
Second, if you normally pay cash for a new car or truck, leasing might still be an attractive option. Chrysler Financial's Gold Key One Payment Lease combines the benefits of paying cash and leasing. To learn more about these benefits, we suggest you step over to Getting the Facts, located in Your Options.
Leasing can also help you get behind the wheel of a new car or truck on a more frequent basis and allow you to choose from a larger variety of better-equipped vehicles. With lower monthly payments, you have greater financial power to take advantage of the latest technology and styling when it's available. In addition, you can choose to upgrade to a larger car with more options, or to a full-size, better-equipped truck.
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Should I select a plan like Gold Key Plus?
A plan such as Gold Key Plus can help if your budget requires the lower monthly payments of leasing, and it allows you to keep your name on the title and enjoy the pride of ownership.
Gold Key Plus Financing reduces your monthly payments in the same way that a lease does. A fixed value is forecasted at the beginning of the finance term as a basis for payment, instead of the full purchase price.
At the end of the finance term, you can again evaluate your budget and elect to pay or refinance the fixed value payment on the vehicle, or simply turn it in as you would with a lease. This kind of flexibility works well if you need more available cash every month, but prefer having a vehicle titled in your name.
If you're looking to lease a new car or truck, it's helpful to understand the differences between the two types of leases: "closed-end" and "open-end".
Both closed-end and open-end refer to who is at risk at the conclusion of the lease term. It's worth noting up front that Chrysler Financial's Gold Key Lease is of the closed-end variety while a Tower Auto Leasing Lease can be close or open-ended.
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Closed-End Leasing
The vast majority of leases available to consumers are closed-end. With this type of agreement the finance company absorbs the loss if the vehicle is worth less than the Residual Value as determined at the inception of the lease. In other words, the risk is "closed" to you.
For instance, let's say you leased a new vehicle from Chrysler Financial for 36 months with an $8,800 Residual Value. However, when you turn the vehicle in at the end of the term, it's only worth $7,000. A closed-end lease means that Chrysler Financial will absorb the difference between the anticipated residual value at the end of the lease and the actual residual value at the end of the lease. You can simply walk away from the vehicle, providing that it's in good condition (without excess wear and tear and
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Siginificant Advantages
As you've probably seen by reading our information, leasing can have some fairly significant advantages over traditional financing...
- lower monthly payments
- little or no down payment
- more vehicle for your money
In most cases you can choose from three options at the end of your lease term. This allows you to customize the lease to your needs at turn-in:
- Keep It:
- Purchase your vehicle at the predetermined "Purchase Option Price" stated on your lease agreement.
- Turn It In:
- Return your vehicle to your dealer, pay any fees and charges and lease a new vehicle.
- Buy Out and Sell:
- Buy your vehicle at the predetermined "Purchase Option Price" stated on your lease agreemenet and sell it.
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A No-risk Situation
Chrysler Gold Key LeasingRemember, because Chrysler Financial's Gold Key Leases are closed-end, you bear no financial risk beyond excess mileage and excess wear and tear at turn-in.
A mileage allowance that goes the distance. One of the basic components of any lease agreement is a mileage limit. In fact, it's one of the factors that will heavily contribute to your lease's monthly payments.
The reason is actually quite simple: lower mileage vehicles have a higher value at trade-in. This helps the dealer arrive at an accurate figure for the vehicle's Residual Value.
Before you begin your lease term, you'll work with your dealer to determine a mileage allowance. The standard allowance is 24,000 kilometres annually. You'll also note a stipulation for "cost per additional kilometer driven" -- 12 cents per kilometer in the case of a standard Gold Key Lease (charged only when the vehicle is returned). Therefore, it's a good idea to approximate how many miles you'll drive the vehicle in a given year beforehand.
Another option is to purchase extra miles at the inception of the lease for only .08 per kilometer. With a Gold Key Lease, any unused purchased miles will be refunded at vehicle turn-in.
Low Mileage Option To reduce your monthly payments even further, you may decide on Chrysler Financial's Low Mileage option. Instead of a standard allowance of 24,000 kilometers annually, this option allows for 20,000 kilometers annually and results in a higher Residual Value and lower monthly payments. The "cost per additional mile driven" is 15 cents per kilometer in the case of the low mileage option lease.
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Wear and Tear
"Normal wear and tear" is another major part of a lease agreement Minor indications of daily use like small dings and scratches, are considered normal wear and tear. This provision allows us to make a more accurate assessment of the leased vehicle's Residual Value when you begin the lease. At the beginning of your lease, you'll pay a security deposit to help protect the lessor against excess wear and tear. While we can go over the specifics, here are a few items that would fall into the "excessive wear and tear" category.*
Missing body moldings and antennas Cracked or damaged glass Torn or heavily soiled upholstery If your leased vehicle has normal wear and tear, and if all other charges have been paid, then the full security deposit will be refunded at the conclusion of the lease agreement. However, if repairs or damage exceed the security deposit, then the dealer will keep the security deposit and an additional wear and tear charge may apply.
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Maintenance Tip
Be sure to follow the Manufacturer's Recommended Maintenance Schedule for oil changes and other items. While this maintenance is your responsibility, it will help the vehicle maintain more of its original worth. It can save you money in the long run. *Other items do fall under excess wear and tear.
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Completing the Journey
When you lease a new vehicle from Big4 Motors Chrysler Dodge Jeep you will receive a Gold Key Lease-End guide that outlines leasing's flexible options, what to do when preparing to return your vehicle, vehicle condition guidelines and information to do your own personal evaluation of the vehicle. You will also receive a worry free Card to check your vehicle for possible damage, such as dents, tears, stains, scratches and cuts.It used to be difficult to decide what was "acceptable wear & tear" on your lease vehicle, but not anymore with Chrysler's Gold Key Lease-End Guide and Worry -Free Card. Leasing just got a whole lot easier.
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