• Preowned

Ensign Pacific

216 W. 2nd Ave.
Directions Vancouver, BC V5Y 1C6

  • Sales: 1 (866) 979-1741

BC Leasing History

BC Leasing History

Late 1940's

In the late 1940's, many larger companies were looking to acquire vehicles for their employees. However, they didn't want to purchase the vehicle and have a capital asset on their books.

Local dealerships in Vancouver were the first to start a new financing program, which was known as an "In House Lease".
Lease payments were 100% tax deductible for companies which made vehicle leasing more attractive.

All leases of that time were for a 24 month term, two lease types were available: Full Maintenance (Wet Lease) or Non Maintenance (Dry Lease).

All were Closed End Leases which means the vehicle was returned to the lease department at the end of the term and subsequently sold as a used vehicle at the dealership.

Late 1950's – 1960's

Vehicle leasing became more popular and mainstream. Not only companies, but also executives and individuals were starting to lease vehicles.

Larger financial institutions had been watching vehicle leasing for years and now decided it was time they join in and start their own vehicle leasing companies to try and protect their declining share of the market place.

Mid-1960's

With plenty of competition in the marketplace, customers who had been leasing vehicles for years started looking for extra value.

Employees who had been driving the company lease vehicle had been approaching the dealers to buy that vehicle from the used car department after the lease.

Many companies noticed the trend of their employees buying the Lease Returns and asked the lease companies to build in a lease provision where they would have an Option to Purchase the vehicle at end of the term.

National lease companies also preferred this type of lease. They took it one step further—the Lessee guaranteed the Residual Value so the risk was solely the responsibility of the company or individual leasing the vehicle. 

This was the start of the Net or Open End Lease which continues to this day.

Late 1960's

As vehicle leasing became more commonplace, manufacturers decided to try and capture their own part of this market and started their own leasing divisions.

Manufacturers' noticed that most leases were geared toward companies, so they focused their attention on the individual consumer.

They would offer a subsidized interest rate, closed end lease with a term end option to purchase. This lease in our industry is known as a Consumer or Retail Lease.

1970's to Present

A variety of lease terms are now offered such as increasing the length of the lease term (From 24 to 60 months)

Currently over 55% of all vehicles on the road in BC are or have been leased in one form or another.

Vancouver has a very strong history of success in vehicle leasing within Canada. The basic fundamentals that started in the 1940's have been the main stay in the leasing industry. We are very proud to have been part of its evolution.