Frequently Asked Questions

Can insurance be in a different person’s name?

Yes, as long as the lessee is listed on the policy as a driver or insured. The primary lessee cannot be an excluded driver.

What are the steps involved if a lessee wants to sell their leased vehicle to a third party?

First, have the lessee contact AFG Canada. AFG Canada will give the lessee their payout, which is principal balance plus purchase option fee, plus unpaid late charges or NSF fees, etc. Then, direct the lessee to have the funds for the sale of vehicle made payable to the Credit Union. If the sale proceeds are greater than the payoff, the Credit Union will reimburse the lessee. If the sale proceeds are less than the payoff, the lessee must pay the difference to the Credit Union before the registration is transferred and lien released.

How are leased vehicles registered?

Regulations may vary by Province. For specific information, contact your dealer, credit union, or AFG Canada.

What happens if the lessee files bankruptcy and returns the vehicle back to the credit union? How is the repossession processed?

A repossession because of bankruptcy depends on the bankruptcy laws governed by your particular Province. If a repossession occurs because of bankruptcy, the credit union should process the delinquency as per Credit Union policies and procedures.

What documentation is to be scanned into SLC?

Varies by credit union, please refer to your dealer user manual linked under the Dealers tab.

How does the credit union process an assumption?

Once the credit union has approved the other lessee, AFG Canada will proceed with the assumption, the credit union can start the process in SLC along with the assistance of a AFG Canada Customer Service Representative.

Can the credit union reverse a termination from a prior month?

Yes, SLC will allow the credit union to reverse an early termination. The detail will be documented on the month-end change report. Please review month-end reports for accuracy regarding terminations and reversal of terminations. In the case of a repossession, wait until the reinstatement period has passed before reporting a repossession as a termination. SLC will not allow the CU to reverse a full term turn-in termination, please contact a AFG Canada customer service representative for assistance.

Can an originating dealership lease a vehicle to a resident in a different Province from where the dealership is located?

Yes, providing the lease is approved by the credit union, the dealer uses the appropriate lease agreement for the lessee’s Province, the lessee is approved for membership, and AFG Canada is licensed to do business in the lessee’s location.

Can a lessee skip a monthly payment?

No. A lease term cannot be extended as a loan term can. All payments are to be made in order.

How is AFG Canada removed from the asset as lienholder if the vehicle is registered incorrectly?

The credit union is given the power of attorney by AFG Canada to sign on behalf of AFG Canada as lienholder and have the registration corrected. This may occur by either the credit union insurance services or the originating dealership.

What forms are available from AFG Canada?

AFG Canada provides the Lease Agreement, and Odometer, Delivery & Acceptance (ODA) form. Other forms such as the Leasing Audit worksheet, Insurance Verification form, or Dealer File Correction form, are available as templates for the credit union to utilize. SLC will provide a lease validation worksheet upon submission of the lease.

Can anything else be added to the MSRP?

Discount packages are allowed to be added to the MSRP total.

How is a tax-exempt lease handled?

Tax-exempt leases are managed on a case-by-case basis. Proof of tax exempt status is scanned into SLC with the other required documents.

What do I do when a residual is not listed at AFG Canada's Residual Website?

Do not fund the lease without a residual percentage from AFG Canada’s residual website. Contact AFG Canada first and the residual value will be determined.

Which amounts due at lease signing are taxable and nontaxable?

Typically payments upfront such as down payment, documentation fee , and first month’s payment are taxable and items such as luxury tax, negative trade equity, warranty, and registration are partially taxable. For location specific details, please contact AFG Canada.

What is AFG Canada's tax number?

Call AFG Canada and ask for the specific tax number.

Can a lessee do a business lease as a D.B.A.? How are the parties named on the lease agreement?

A D.B.A. is permitted as long as the credit union confirms the lessee is authorized by the company to sign as the co-lessee on the lease agreement and the credit union approves the business lease.

When a lessee moves out of Province, what does the credit union do?

Out-of-province moves are processed through AFG Canada. If AFG Canada rejects an out-of- province, it will display several options. Contact your AFG Canada Customer Service Representative for assistance.

How is a re-possession reported to AFG Canada?

Repossessions are processed in SLC as a termination. Process a re-possession only after the reinstatement period has passed and the lessee has not reinstated.

Can a lessee convert a lease to a loan?

Yes, as long as the loan is approved by the credit union. The loan is based on the current payoff plus the purchase option fee, any late fees, NSF fees, accrued interest, and any official fees or taxes imposed unless the lessee chooses to pay these fees upfront.

Can a lessee purchase their leased vehicle?

Yes. The purchase price is based on the current payoff, plus the purchase option fee, any outstanding late fees, NSF fees, and accrued interest. Official fees and taxes imposed on the sale are either included in the payoff or are paid directly to the Province upon registration.

Can a lessee add their own equipment to their leased vehicle?

Several restrictions apply to the lessee adding their own equipment to the leased vehicle. A Vehicle Alteration Agreement must be completed for the vehicle. This can be obtained by your Customer Service Representative. AFG Canada is responsible to complete the form with the lessee and include with the lease in SLC. The lessee(s) cannot add any equipment that may void the manufacturer’s warranty, i.e., a lift kit of four inches or greater. If at the end of the lease, the additions negatively effect the vehicle in any way, the vehicle will need to be returned to its original condition at the lessee’s expense or the lessee will be charged for the reduction in the value of the vehicle.

Can a lessee turn their vehicle in early?

Yes, if the lessee has made all payments due under the terms of the lease agreement and it is within 6 months of the scheduled termination date or the lessee agrees to the Voluntary Early Termination clause of the lease agreement. If a member wants to turn in his/her vehicle lease early, contact AFG Canada.

What is a scheduled termination?

A scheduled termination is a lease where all lease payments are made and the lessee returns the vehicle at the end of the lease contract.

What is an assumption?

An assumption occurs when a lessee has another individual assume their remaining lease payments. The new lessee must be approved by the credit union and the assumption is processed in conjunction with AFG Canada.

What happens with a lease contract when the lessee dies?

It is up to the credit union’s discretion as to how this is processed. If the deceased is the only lessee on the lease contract, the credit union may treat the vehicle as a re-possession. If there is a co-lessee on the contract, then the co-lessee may become responsible for the lease.

How does the credit union remove a lessee’s name, for example, in the event of a divorce?

The credit union must approve this just as with any credit decision. This is processed through SLC.

What is an “unwind”?

An unwind is when a lease transaction is reversed. An unwind is processed in SLC as a type of termination.

Can a lessee take his/her leased vehicle out of the country to USA or Mexico?

AFG Canada cannot provide permission for leased vehicles to be taken into Mexico at any time, for any reason, or with any additional insurance purchased by the lessee. In the event the leased vehicle has been allowed in Mexico, the lease is considered in default, and there is no insurance coverage, no RVI coverage and no Contingent Liability or Contingent Physical Damage coverage in place for that particular vehicle.

Permission to take the leased vehicle to USA may be given with written authorization from AFG Canada in advance and the appropriate insurance documentation as required by AFG Canada. Contact the Insurance Department at AFG Canada for specific requirements and written authorization. Leased vehicles in the USA without written authorization from AFG Canada and required insurance documentation may be considered in default of the lease agreement.


6380 Chelmsford Street
Richmond, BC V7C 5E1

Toll-free Numbers:
Program Information: 888-486-1278
Lease Return Assistance: 877-354-4234, Option #2

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