During the leasing period, you can end the contract at any time by returning the vehicle to the merchant. However, doing so usually means the merchant will make a claim for damages, often for several thousands of dollars.

This practice is called "rescission." This means that you are terminating the contract, but you will not be reimbursed for the previous instalments paid.

Fees that cannot be charged by the merchant

The merchant cannot keep the security deposit. This deposit is fully refundable at the end of a lease, unless it was used to fulfill a late payment.

Moreover, the merchant cannot charge you for:

  • cleaning fees to put the vehicle back up for lease or sale;
  • towing services that you did not require;
  • fees to transport the vehicle to an auction sale;
  • sale and commission fees for an auction sale.

None of these fees are incurred as a result of the contract rescission. The merchant would have incurred those expenses at the end of the contract in any case.

When you return the vehicle before the end of your contract, the merchant is not allowed to file a bad report in your credit file. For example, the merchant may not send any information about the contract rescission to a credit assessment agent (businesses such as Equifax or TransUnion). Nor can the merchant send them any information concerning the amounts that can no longer be collected because you have cancelled the contract.

Balance of the lease contract

You can use a calculator (in French only) to determine the balance of your lease contract (the amount you have left to pay).

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Last update : May 3, 2021

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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.