Misconceptions about leasing classic or vintage cars

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Misconceptions about leasing classic or vintage cars 

Classic and vintage cars have a certain enticing quality about them. Maybe it’s because we rarely catch a glimpse of them on the road anymore, or because we grew up seeing them in family photo albums and Hollywood movies. Whatever the case may be, in a world full of hybrids, sports supercars, and foreign luxury brands, classic and vintage cars still hold their own. What many onlookers and daydreamers don’t realize, is that they can still have the opportunity to lease a classic car, because Pfaff Leasing is home to those rare breeds of the good old days, or we can track them down for you! With locations in Vancouver, Calgary, Montreal, and Toronto, our clients have a greater chance of locating the classic or vintage car they are looking for. There are many misconceptions out there in regards to leasing a classic or vintage car. In this blog, we share some information about a few of these misconceptions about leasing a classic car. 

Leasing is only for people who can’t afford to buy the car 

This opinion is often driven by ego, rather than financial realities. The ability to avoid writing a large check upfront for sales tax, for example, is just one of several reasons why many high net worth owners, who are capable of easily paying cash for multi-million dollar cars, prefer to lease rather than purchase. Additionally, it is well known that vehicles depreciate quickly, which could be a big enough factor for someone to choose not to buy the vehicle, but instead lease it, this is common with everyday vehicles.

Leasing locks you into ownership for three-five years. 

This might be true for a traditional lease arrangement through dealers such as BMW or Audi, but leasing of exotic and vintage cars is a unique type of business that operates differently from mass-market lease providers. In fact, because most serious auto enthusiasts prefer to change cars every two-three years, lease arrangements are tailored to address that need, for example, by allowing owners to end their lease early without the penalties and fees associated with traditional lease arrangements.

Leasing is only for acquiring new cars. 

In fact, in the exotic and vintage car world, leases are written on previously owned cars more often than they are on new cars. These transactions are very simple: the leasing company purchases the vintage car the buyer has selected, and then structures a lease arrangement that meets their financial needs, in terms of down payment, lease payments, the car’s residual value, and lease termination.

If a leased car’s market value declines, I’m in trouble. 

A reputable exotic and vintage car leasing firm knows current and anticipated car values extremely well and will calculate a leased car’s residual value with a high degree of accuracy. While the market value for fine cars can often appreciate, there’s no guarantee this will happen. For that reason, leases are structured to enable owners not only to benefit from price appreciation but also to provide some protection from a big drop in a car’s residual value. For example, owners can refinance the residual through a new lease without a large cash outlay, and continue to own the car.

As you can see, there are many misconceptions about leasing a classic or vintage car. At Pfaff Leasing in Vancouver, Montreal, Calgary, or Toronto, we make it simple for our clients to get behind the wheel of the classic or vintage car of their dreams. For more information about this, we encourage you to continue browsing through our website.

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