MW Financial Services _ wis LEASING Continued from page 37 buck, he could step up to a better vehicle. “You can get more car for the same money as you might get through a standard loan,” explains Commcorps Lapointe. Furthermore, there is usually little or no requirement to lay out capital, since the leasing company provides it. Nor does a lease tie up a person's line of credit because he doesn't actually own the vehicle. “The consumer is free to invest his capital in other things,” says BMW's Kerp. “He or she has more liquidity available.” Still, there is usually a small, retundable security deposit needed, based on the person's credit score, which the leasing company uses to determine craditworthiness. oe a AVID HOG cgy leasing you only pay for the part of the car that you use.” Overall, says Lapointe, most leases have a lot of flexibility. Assuming you're in a walk away or closed-end lease, you can simply retum the vehicle at the end of the lease and start all over again with another vehicle, Alternatively, if you like the vehicle you leased you can purchase it. Or, if your vehicle turns out not to perform as anticipated, most companies charge an early termination fee that will release you from the lease. Still, there are some caveats about leasing of which consumers must be aware, says Dennis DesRosiers, an auto industry analyst and president of . DesRosiers Automotive Consultants inc. of Toronto. Unlike loans that are covered by consumer protection legislation, leases are not regulated or govemed by rules of disclosure. That means “consumers should make sure they get in writing the three variables a lease is dependent upon: the capital cost of the vehicle, the interest rate and Auto analyst Dennis DesRosiers residual value. You need to know ail three to figure out whether you're getting a good deal or not,” he says. If a consumer only knows two of the three factors, the third could be manipulated by the leasing company. For instance, the lease ona car could be $300 a month and the leasing company claims the interest rate is the same as the prime bank rate. But, the consumer doesn't know that the original or capital cost of the vehicle may be $1,000 higher than normal, resulting in a higher total cost.over the course of the lease. “There's no disclosure, sc you don't know,” says DesRosiers, emphasizing that a consumer should not lease a vehicle until all Continued on page 39 LEASE OPTIONS NOW AVAILABLE e TERMS 24 TO 60 MONTHS ¢ RATES FROM 4.8% ° FLEXIBLE DOWN PAYMENTS 1994 BMW 325i 4 Door, 5 Speed ~ 4994 BMW 318i 4 Door, 5 Speed 485 MONTH PLUS TAXES “0” DOWN $10,600 RESIDUAL 48 MONTHS T.P. $23,280 *599 MONTH PLUS TAXES $4000 DOWN $17,415 RESIDUAL "36 MONTHS TP. $25,564 These are examples of available leases. Taxes, licenses, documentation, registration and insurance are not included. O.A.C. This offer is time limited to July 31st, 1994 delivery. Mileage limitations apply 1995 BMW 546i Automatic *799 vi MONTH PLUS TAXES $10,000 DOWN $21,459 RESIDUAL 36 MONTHS T.P. $38,764