Cash incentive: The amount of money that the person who wants to get out of a lease is willing to give to someone who will take over his/her lease. A cash incentive often consists of cash paid upfront, a refundable security deposit and or a rebate for unused kilometers that the new person would be entitled to at the end of the lease. See the comments area of the vehicles details information sheet to see what cash incentive is being offered on the vehicle that you’re interested in.

Down payment:  The amount of money that the person who wants to get out of a lease is asking for from the person who wants to take over his/her lease. A down payment is commonly only asked for when the person getting out of his/her lease has paid a large down payment at the beginning of the lease and is trying to recoup some of it. These deals typically have a much lower than average monthly payment as well.

Payment before taxes: This is the monthly payment that you will make plus applicable taxes.

Effective Payment: This payment takes into account either the Cash incentive offered or Down payment requested to calculate your effective payment. For example, if the monthly payment is $500, there are 20 months remaining and there is a $2,000 cash incentive, simply divide the $2,000 cash incentive by the 20 remaining months to establish a $100 per month incentive, which would give you an effective payment of $400. If in the same case there was a down payment of $2,000 instead of a cash incentive of $2,000, simply divide the $2,000 down payment by the 20 remaining months to establish an effective monthly payment $100 higher than the actual payment, which would give you an effective payment of $600.

The effective payment is an approximate figure that is calculated by dividing the incentive/down payment by the number of months remaining, and subtracting this amount from the pre-tax payment.  *****Please note that as a result of variances in sales taxes between the different provinces, this number should be used only for the purpose of approximation.  For a more precise calculation, use the payment include your local sales taxes and subtract/add the monthly incentive/down payment using this figure.