Honda Leasing
The decision to lease or finance depends on many factors, but most customers make the decision based on monthly payments and how long they typically drive their vehicles. You can take the quiz at the bottom of the page and/or look at the pro's and con's of leasing and buying below.
Customers are able to do one of three options at the end of a lease:1. Turn their lease in and get into a new Honda purchase or leaseÂ
2. Turn their lease in after inspection and purchase different vehicleÂ
3.Purchase the lease out for the residual value determined at original lease signing
To get the best leasing deal, it's imperative to understand the complicated vocabulary associated with leasing. Click the button to the right to read through the leasing glossary to ensure you understand the basics. Â >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>
You Should Lease
Pros of Car Leasing:
- Substantially lower monthly payments.
- No depreciation concerns.
- Down payments are small (if there are any at all).
- If you own a business and use the vehicle only for business purposes, you can claim it as a tax deduction.
- Even if you have a low credit rating some leasing companies will still be willing to work with you.
Cons of Car Leasing:
- You'll always have car payments.
- There are penalties for exceeding allotted miles. These penalties generally range between 15 to 25 cents extra per mile.
- Higher insurance premiums.
- There are wear and tear fees, creating heightened concern when traveling with small children or pets.
You Should Buy
Pros of Buying a New or Used Car:
- You're free to modify and/or accessorize.
- You can drive it at will, never having to worry about mileage limits.
- Eventual ownership, freeing you from the pain of payments.
- Insurance costs are generally lower than leased vehicles.
- After the vehicle is paid off, you're free to sell it at any time.
- No worries over minor mistakes like spilled coffee stains on the carpeting or a dog-chewed seat belt.
Cons of Buying a New or Used Car:
- Rapid depreciation, diminishing the vehicle's resale value.
- Dealers require a rather hefty down payment.
- With extended use you can expect to incur repair bills.
- Monthly payments are higher than those of a leased vehicle.
If You Choose to Lease
Understand that certain rates are determined by the difference between the salvage value (indirect term for the vehicle's predetermined worth at the end of the lease agreement) and the vehicle's purchase price. So, to keep your payments in check, look to lease a car that holds its value well. If you don't, you'll pay more if you opt for a vehicle with a higher depreciation rate.
Make sure to protect yourself by reading the lease agreement thoroughly. You don't want to discover at the end of your lease any surprise clauses mandating extra fees. When you read the contract/agreement, pay extra attention to the following:
- The mileage allowance section.
- Amount of required insurance coverage.
- Wear and tear specifications.
- Whether you're agreeing to an open-end or a closed-end lease. A closed-end lease allows you to walk away at the end of your agreement, while an open-end lease requires purchasing the car at the end or your agreement.
- The Federal Consumer Leasing Act Disclosures. This houses all of the payment breakdowns.
- Conditions regarding early lease termination.
- Information on gap insurance (also known as gap protection). This covers you against early termination fees resulting from theft or accident.
Less cash up front, flexibility and lower monthly payments than financing. Ask our leasing specialists about leasing through Honda financial services. We can further discuss which option will work best for your personal situation and lifestyle. Whether you are located in Spokane or traveling from Coeur D' Alene, Lewiston, Spokane Valley, Tri-Cities or Pullman we will get you the most competitive lease rates on new Honda's.Â
