Question about assuming existing lease in Ontario

1. No safety is required not sure about the e-test but for some reason I think so.

2. Depends on the leasing company, everyone has different rules.

3. You really need to ask your accountant this question to be sure, I believe you can write off up to $750 a month of a leased vehicle.

 

blackcamaro you have the reversed.

all transerfs need a saftey, but a car under 3 yrs does not need a e-test.

Rob - all leases are structured just alittle different, is this a walk away lease ? or not.

a walk away lease is more per month because after the term if you want to walk away the leasing company will let you -- regardless of car valve. - closed end lease, the keep you on the hook if the value of the car is lower than its buy back.

check your mileage cap on the lease - what your allowed

are you planning on buying the car after the lease? id yes, dont worry about the above.

if you plan on giving it back, becareful on tire wear , and dents or knocks in the pant, they will want it repaired.

if your company is paying , you are ball park allowed about $550 - but i prefer to buy it out right myself and take the depreciation off my taxes over the yrs...my CA says it works better for me long term unless i find something at 0% --- which is what i plan to do on my next car.

hope that helps.

 

Big Red the reason why I said you wouldnt need a safety is the vehicle is not being transfered between owners. The leasing company still owns it so no safety is required, anyone with a dealer number can plate a vehicle they own without a safety. A leasing company doesn't need to take a safety cert. to the license office to attach customer plates but a e-test is required (thats why I wasn't sure if in a transfer it was needed or not) but the leasing company does need to have a copy of either the safety or a work order for an inspection in the file incase OMVIC audits them.

 

Rob......

Nothing wrong with assuming a lease.....but....most (if not all) leases have clauses within them that DO NOT release the original party to the contract from their financial liability in the event you default.

And most lessees don't realise this and therefore balk and signing time when they get this unique little paragraph explained to them. Better to sort out this issue now before you worry about anything else, unless you already have done so of course.

1. When transferring the lease do I still need a cert and e-test because the ownership remains in the leasing companies name and all I would do is change the plate portion of the ownership ?

Don't know as I am in Alberta and we don't have this out here.

2. In paying the lump sum of the lease are there any penalties in doing so ?

Totally irrelevant to you, all that matters is how the sum you are paying is relative to the current market value for the vehicle........

3. What are the tax advanatages (this would be a company car) of leasing vs. buying outright ?

Lease deductability amount and tax credit flow thru versus CCA depreciation and interest write off depends on several things. Talk to your accountant......if he/she says........"don't lease".....but cannot explain exactly why in numbers that are salient to this transaction, fire your accountant on the spot, and hire one who can work a calculator and understands basic math and cost and use of money.

 

So what you gettin Rob. Anything exciting?

 

yes guy -
true its not being traded between owners, but the plates are being transfered from one owner to the next, hence usually needs to be certified ( i guess nobody buys cash anymore ..) - looks like Rob has the inside story ... any car under 3 yrs old does not need etest in ontario ...