In Quebec, the leasing contract with purchase option is the most commonly used. The duration of that contract is often 48 months, but it can also be shorter or longer.

The motor vehicle merchant license number must be included in the contract that is provided to you.

Instalments

The recurring instalments that must be paid over the leasing period must all be of equal value. Only the final instalment can be lower. Instalments must also be spread over roughly equal periods, usually once a month.

The merchant cannot require you to pay more than 2 instalments in advance.

Purchase option

When the contract provides for it, you can purchase the vehicle at the end of the leasing period, for the price specified in the contract. In the original contract, the merchant must indicate the price you will need to pay if you wish to purchase the vehicle, or how to calculate that amount, and include any and all other conditions as well.

Security deposit

The merchant can request a security deposit when you sign the contract. This amount must be refunded to you when the contract ends, unless for example it was used to fulfill a late payment.

Contract content

The page Knowing what must be included in the contract (section about long-term leases) provides details about the contents of a contract.

Last update : November 24, 2017

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The information contained on this page is presented in simple terms to make it easier to understand. It does not replace the texts of the laws and regulations.