Frequently Asked Questions on Leasing

Frequently Asked Questions

When I choose to lease a vehicle... But find out before the end of the lease term, the vehicle is no longer appropriate for my business... What can I do?
A.. We try very hard to work with our customers to avoid expensive penalties and with goodwill on both sides, the problem can usually be resolved to everyone's benefit.

Which is better — leasing or buying?
A.. The answer depends on a number of factors that are different for everyone. Your driving "personality", your vehicle choices, and your financial objectives are important factors. For more details see Lease Vs Buy.

Are 0% loan payments less than lease payments for the same car?
A.. No. Lease payments will always be lower. But this doesn't mean that leasing is always better and you shouldn't base your decision strictly on payment amount. For more details see Lease vs Buy.

Do I have to guarantee the value of the vehicle at lease-end, as with most dealer or finance company leases?
A.. Simply... "NO" !

Are there any "surprise" or "hidden" fees that I should be aware of?
A.. No! We do not charge "Lease Registration" fees, "Start-up" fees, "Pre-Delivery" expenses, commissions, "Documentation" fees, etc... The only thing you are billed for over our quoted rates are taxes.

A dealer ad in my local newspaper had a new Ford Explorer lease for $329.00 Is this a good deal?
A.. Maybe. But you won't know for sure unless you examine all the figures and conditions associated with that lease ad. Find definitions for all that small print in those dealer ads here >>

What does a Full Maintenance Lease cover?
A.. Everything. Except tires, and damaged caused by abuse or neglect.

How am I billed for a Maintenance Lease?
A.. You pay a few cents per kilometer, based on the vehicle and the expected usage. It is included in the monthly bill as a separate item.

What are the benefits of a Maintenance Lease?
A.. The cost of maintaining the vehicle is spread evenly throughout the lease term, and is usually cheaper than paying on a "Work Order" basis, because we use internal rates. A major part of our Maintenance Lease policy is the supplying of replacement vehicles where necessary. This provides a major saving in the areas of both vehicle and staff downtime. Major failures (engines, transmissions, etc..) are covered, even after the factory warranty expires.

What will Zeemac do if I happen to lease a "Lemon"?
A.. We will apply our own independent technicians' expertise, and work with the selling dealer or manufacturer to resolve the problems. If all our efforts in this area fail... we will replace the vehicle.

If I commit to a rental term of 6 months but have to return the vehicle after 4 months... Is there a penalty?
A.. As long as there is a valid business reason for doing so... there is no penalty.

Am I allowed to attach my business logo to a Zeemac vehicle?
A.. Yes, and as long as the vehicle does not need to be repainted, there is usually no charge for removal of business identification decals.

Can I use a private insurance on a leased vehicle?
A.. Yes, as long as the required coverage's are used.

Is it permissible to attach auxiliary equipment to a leased unit (2-way radios, alarms, cell phones, etc...)?
A.. Yes, and there is no charge when they are removed. As long as screw-holes, glue, etc... is kept to a minimum.

Can I have specialized add-on equipment included in the lease (cranes, decks, dumping boxes, etc...)?
A.. Yes. We do also have a wide variety of equipment on site that you may also choose from - Check out our Equipment Page for further details... coming soon>>

Are there limits on the kilometers that are allowed in the lease term?
A.. Yes, but we work with the customer to arrive at a reasonably accurate assessment of the likely usage, and build that into the lease so that there is not a heavy over mileage charge at the end.

I'm now in a lease and I can see that I'll exceed my mileage limit. What should I do?
A.. It's important to realize that if you drive lots of miles, you'll pay for those kilometers one way or the other, whether you lease, buy, or rent. Any vehicle depreciates in value for every km that it is driven. You could consider purchasing your vehicle, which avoids mileage fees but this may not be your best option.

What are the advantages and disadvantages of making a down payment on a lease?
A.. Making a down payment can substantially reduce your monthly payment amount. If you think you might ever want to end your lease early, an initial down payment can reduce or eliminate the cost of early termination. Many promotional lease deals require a specific down payment amount in order to get the deal. Some people mistakenly think that a down payment is a kind of deposit that you get back at the end of the lease. Not true.

How about those "lease-like" deals such as GM's Smart Buy, Chrysler's Gold Key Plus, and Ford's Red Carpet Option?
A.. These are not leases, but conventional "balloon" loans that are promoted as having the benefits of both leases and loans. In order to have smaller monthly payments, there is one huge last payment, the "balloon." At the end, you either pay the balloon payment and buy the car, or you return it. The catch is that the balloon payment is generally less than the car is worth, making it almost a certainty that you'll buy. If you return it to the dealer, you're handing him this "equity" that belongs to you.

How does a lease show up on my credit report?
A.. Just like a loan. In fact, leases are often not identified as leases and look just like loans on the report. Sometimes the amount owed includes the lease residual amount, sometimes not. It depends on the company doing the reporting.

If the cost of a lease is directly related to depreciation, why does a short lease have higher monthly payments than a longer lease?
A.. The reason the shorter lease is more expensive is that a typical
car (let's use an Acura TL as an example) depreciates 35% in its first 24 months, 9% more in the next 12 months, and only 7% more in the next 12 months. So in a short lease, you're paying primarily for the large initial depreciation that all new cars and trucks experience.

My 3-year lease specifies 12,000 kilometers per year. Does the lease company actually inspect my car each year for mileage?
A.. No. All this means is that you have 36,000 kilometers (3 times 12,000) as a total limit for the entire lease. It doesn't matter when you drive those kms.

I want a short-term lease — less that 24 months. Possible?
A.. Typical lease terms are set by lease companies at a minimum of 24 months. And because most of a vehicle's depreciation happens in the first year, a shorter new-car lease would be very expensive. A better solution is to "Long Term Rentals" or "Project Rentals" which is what Zeemac also specializes in. Jump to Rentals here >>