How Does Car Leasing Work in Ontario?
A plain-English guide from The Car Doctor
Leasing, Explained Without the Jargon
Leasing has a reputation for being confusing, and dealers do not always rush to clear it up. Here is the honest version. When you lease a vehicle, you pay for the part of its value you use during the term instead of buying it outright. Because you are not paying for the whole vehicle, the weekly or monthly payment is usually lower than financing the full purchase.
At the end of the term you simply return the vehicle, buy it for the agreed residual value, or lease something new. For a lot of GTA drivers who like being in a newer, warranty-covered vehicle every few years, that flexibility is the whole appeal.
The Five Numbers That Drive Your Lease
1. The vehicle price
Leasing starts from the negotiated price of the vehicle, the same as a purchase. A lower price means a lower payment, so the all-in price still matters even though you are leasing. At Golden Mile Chrysler the CDD6 price is published up front.
2. The term
The term is how long you lease for — commonly 36, 48, or 60 months in Ontario. Shorter terms keep you in warranty and newer vehicles; longer terms lower the payment. Pick the term that matches how long you actually want to keep the vehicle.
3. The kilometre allowance
Every lease includes a yearly kilometre allowance (for example 16,000 or 24,000 km/year). Drive more and you pay a per-kilometre charge at lease end, so it is worth matching the allowance to your real commute on the 401 or DVP from the start.
4. The interest rate (money factor)
Leases carry an interest cost, quoted as an APR or money factor, set by the lender on approved credit. A stronger credit profile generally means a lower rate and a lower payment.
5. The residual value
The residual is the vehicle's estimated worth at the end of the lease. A higher residual means you are financing a smaller drop in value, which lowers your payment. It is also the price you can buy the vehicle for at lease end if you choose to.
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No pressure — just straight answers about leasing.
📞 437-371-5007The CDD6 Difference: All-In Pricing
Here is where most lease quotes fall apart: the fees. Freight, PDI, admin, and the OMVIC fee can add thousands, and many dealers leave them out of the advertised payment. Under Ontario's all-in advertising rules those costs must be disclosed, and CDD6 goes further by building every dealer-controlled fee directly into the weekly price you see.
That means the only extras on a CDD6 lease are HST and licensing, which the government collects. All offers are on approved credit (OAC) and not all lessees will qualify, but the price itself holds no surprises. Every lease also includes the Car Doctor Offer: a $250 gas card, lifetime oil changes, and two years of free winter tire storage.
GENERAL: CDD6 is a marketing campaign operated by Golden Mile Chrysler at 1743 Eglinton Avenue East, Toronto, ON M4A 1J8. All advertised lease prices are all-in weekly payments including freight, PDI, admin fee, OMVIC fee, and all dealer-controlled charges. HST (13%) and vehicle licensing are extra. Offers valid while the current Stellantis OEM program lasts or while quantities last. On approved credit (OAC). Not all lessees will qualify. Not combinable with other offers. Dealer may sell for less. Prices subject to change without notice. E.&O.E.
*LIFETIME OIL CHANGE OFFER: Lifetime oil changes provided at no additional cost, every 6 months or 8,000 km, whichever comes first. Vehicle must be serviced at Golden Mile Chrysler following the OEM-recommended maintenance schedule. Subject to parts availability. See dealer for full details. E.&O.E.