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Why lease?

Through two subsidiaries, Prospera offers vehicle and equipment leasing to individuals and businesses across Canada.

Stay flexible by preserving your cash flow

Vehicles and equipment get you where you want to go — to your destination or to the next level in your business — but they’re expensive. Leasing provides an alternative to paying a substantial down payment and high monthly payments. It can reduce your monthly costs and keep your cash flow intact.

Understanding leasing helps you get the most out of it

Paying the total price in cash is still the least expensive way to obtain a vehicle or equipment.
If you cannot pay cash, then a loan or lease with the shortest term available to you will lower the “carrying cost”.
When leasing, you only pay off the depreciation amount and not the entire value of the vehicle or equipment.
For businesses, leasing allows you to manage your cash flow by not requiring full payment up front.
You pay taxes only on the monthly payments, rather than up front on the full value of the vehicle or equipment.
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Benefits of leasing for dealers and brokers

  1. You can attract more leasing business by advertising lower monthly payments and less impact on customers’ cash flow.
  2. You can increase repeat leasing business by ensuring customers don’t end up with negative equity. Also, we provide dealers with End-Of-Term (EOT) reports and send letters to customers referring them back to the originating dealership. Then you can rewrite leases at the end of term.
  3. You can tailor flexible payment structures to each customer’s needs, with leases available on cars, vans, light-, medium-, and heavy-duty trucks, exotic vehicles, and various types of equipment.
  4. You can create a good source of used vehicles when customers don’t buy out or rewrite the lease. You have the opportunity to buy off-lease vehicles to retain in your inventory for resale. Off-lease vehicles often provide better grosses than the average used vehicle from other sources.

Benefits of leasing for customers

  1. You pay less upfront — generally, just the first monthly payment and the security deposit. Then your vehicle or equipment is yours to enjoy.
  2. You can upgrade more quickly thanks to shorter-term leases. Vehicle leases ranges from 12 to 60 months
  3. You can set the residual value (the value at the end of the lease) for a vehicle as low as $250.
  4. You spread out tax payments, paying tax with each lease payment instead of all at once on purchase.
  5. You may be able to write off a portion of the tax if you own a business or are self-employed.
  6. You don’t have to worry about kilometre restrictions or wear-and-tear penalties with an open-end lease

Want to learn more?

Equipment and vehicle leasing is provided by Prospera Auto Leasing LTD., a subsidiary of Prospera Credit Union.