Auto financing through banks or dealerships financial brands contributed to this spike where more Canadians are buying or leasing new vehicles. The lower interest rates in Canada may make it attractive for Canadians to get into a new car or new lease, but across the provinces the rising debt levels of Canada is suggested that it will catch up.
Canadians stuck in larger debt levels due to leasing a car have the option of a to get out of a car lease early. How can I get out of a car lease early, is a common question many consumers ask once their in their car lease and find their financial situation gets more difficult.
Though the lease transfer process, Canadians have the option to transfer their lease to someone seeking to take it over. The lease transfer process has been a silent, yet growing method for Canadian consumers stuck in their auto lease, a means to get out of the lease early. The lease transfer option also reciprocates the consumer taking over the lease, as it offers a great option to finance a vehicle for less money, at less risk. Rather than leasing a new car, a consumer can take over the remainder of the lease, known as a short term lease. He or she would benefit from lower monthly payments from any down payments the original lessee put down on the lease, or any cash incentives the lessee is offering to help get them out of the lease, which can range from one to three months worth of car lease payments.
Despite repeated warnings from the Canadian finance department, Canadians dug themselves deeper in debt in the first part of 2012. A consumer credit report released Thursday by Equifax Canada showed Canadians pushed non-mortgage debt 3.4-per-cent higher in the first quarter than a year earlier.
The numbers were driven largely by a 9.7-per-cent rise in auto financing.
The report, which looks at credit in the form of bank loans, lines of credit, credit cards and auto loans, showed credit-card debt fell by 2.1 per cent and has decreased for the past five quarters.
Bank of Canada governor Mark Carney has warned household debt, which now stands at 150 per cent of income, ranks as the No. 1 risk to the economy, as rising interest rates could imperil Canadians’ ability to pay their mortgages.