Document background
The Vehicle Lease Agreement With Option To Purchase is designed for situations where a party wishes to lease a vehicle while maintaining the flexibility to purchase it at the end of the lease term. This document is commonly used by car dealerships, leasing companies, and financial institutions operating in Canada to structure vehicle financing arrangements that combine the benefits of leasing with a potential ownership pathway. The agreement must comply with both federal and provincial regulations, including consumer protection laws, security registration requirements, and financial disclosure obligations. It includes essential provisions for vehicle identification, payment terms, maintenance responsibilities, insurance requirements, and detailed conditions for exercising the purchase option. This type of agreement is particularly suitable when lessees want to test a vehicle long-term before committing to purchase, or when they prefer to spread the potential purchase cost over time while maintaining the flexibility to return the vehicle if desired.
