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"LAP" Balloon Lease Alternative Purchase 

"LAP", a.k.a. balloon lease, residual note financing, or self lease . In a nutshell customers find the LAP option attractive because, it offers lower monthly payments and they can have full ownership rights.  

Once you understand LAP's features you will see why some customers are making use of this financing option, but you need to be aware of its disadvantages as well - new olim using their rights are not eligible for this option.  

Self Lease LAP Program

The LAP program mimics some, not all, of the positive aspects of a lease program and you can apply the LAP plan to any New, or Program New car and enjoy:

  1. Lower monthly payments 
  2. Full factory warranties 
  3. NO contractual km restrictions - 20k per year market restrictions remain
  4. NO contractual early termination penalties
  5. NO end of contract evaluations - market evaluations remain

If you opted for a Program New you will also avoid the disproportionate new car depreciation. With the LAP plan you can have the best of both worlds.

Balloon Lease / LAP

We aim to be balanced in our advice, understanding that there is not a one size fits all financing program. Although we are real advocates of American Style closed end leasing, in fact for most clients we feel it is the best option, we know some clients simply need or want to own, so LAP is their answer if they are not paying cash.  

Dealers - There are variations of this plan offered by dealers but you must fully understand end of contract parameters, the salesperson assuring you that all will be ok and they will buy it back is not an understanding - its a sales pitch. You can read more on their plans in our blog page titled pseudo leases but suffice it to say theirs is built for their benefit not yours.  

Banks - Most banks are offering these plans and directing customers to selected dealerships but we find some of their plans are too aggressive, the end of contract residual values are too high. Since your are responsible for this amount it would be wise to not put yourself in a position of owing more on the car at the end than it may be worth.  

We can demonstrate for you the differences; we are available for telephone and internet consultations even after regular business hours, ask for an appointment.

If it is common for you to hold a vehicle for many years before trading but for the immediate future you need to lower your out of pocket expenses then this LAP option may be your answer.  Contact us, you need to speak with a finance professional to understand all the features of both programs before deciding which is the best for your current situation.

To explore the possibilities of LAP balloon lease financing, leave your information at the top right of this page or give us a call. We will contact you and demonstrate its financing advantages on a car that interests you.

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