The name Honda is well-known to anyone who loves cars and motorcycles. Since 1959, they’ve been the largest manufacturer of motorcycles in the world, which is no small accomplishment considering all of the competition. Honda hasn’t done too shabby in the car, SUV, and truck department either. They’ve got a full menu of models that is enough to attract the interest of just about any range of car lover. Right now the top Honda models are the Honda Civic, Honda CR-V, Honda Accord, Honda Fit, and Honda HR-V. In recent years, they’ve been listed as the 8th largest car maker in the world and should still be considered a major player in the automobile industry.
Honda features a lot of lower-to-mid priced cars and aren’t necessarily known for their luxury cares. What they do well is the overall safety and reliability of their offerings. They’re well-known to produce cars that will be on the road over a decade from now and if well-maintenance, perhaps a decade after that. They might not be the most stylish cars on the road but when you drive off the lot in a Honda, you can bet you’re going to be safe and secure in that comfortable car for the duration of the time you’re driving it.
Car leasers definitely love Honda’s cars. This is because in many cases, people want to lease a car that they can depend on. While leasers enjoy the perk of almost entirely free repairs, it’s still nicer to drive a car that never needs to be repaired, a car that starts when you need it to start and goes when you need it to go. Honda fits that bill.
If you’re interested in leasing a Honda car, the Civic is by far the most well-known and popular of Honda’s offerings. They don’t have a large variety of cars but what they do have get the job done year after year. Civic safety ratings are as respected as they get and so are the safety and reliability ratings of their hatchbacks. The Honda Civic was ranked the number 3 overall small car in the most recent US News and World Report rankings. Leasing one of these is extremely easy. If the Civic isn’t your cup of tea, Honda has other things that might interest you.
1. Check credit rating: If you want to lease, make sure that your credit rating is very good or excellent. In some cases, income can help cushion a very good credit rating. It’s harder to lease a car than buy a car if your credit isn’t up to par, so first things first: Check your credit score!
2. Calculate monthly payments: Here’s the great news about this part. Leasing a Honda car is going to be much cheaper in the short-term than buying one. In most cases, your monthly payments will be 60% less when you lease. Look forward to an amazingly low monthly payment on a Honda, since these cars are typically cheaper than their more luxurious counterparts. Leasing a Honda will give you a very reliable and safe car while allowing you to save a lot of money over the lease period.
3. Discuss lease period terms: Decide how long you want to lease your Honda for. There are short leases and relatively longer leases but most of the time the cutoff is 3 years.
4. Determine your annual mileage: Leasing a Honda means you’re going to have to drive it a set number of miles per year. Usually this is 15,000 miles or less. If you drive 15,000 miles or less a year, leasing is a great option for you.
5. Contact a dealership: This is the most important part of the road map. If your credit is great, you know what your monthly payments will be, you know how long you want to lease for, and you know you drive within the set number of miles per year, then it’s time to spring to action and lease the favorite Honda model of your choice.
Leasing a Honda gives you a much wider range of cars to choose from in the Honda lineup. You’ll be able to lease even the most expensive of Honda cars as long as your credit is good, which means you’ll drive a high quality car for a set period of time and then turn it into the dealership and be free of it at the end of the lease. This simplified way of obtaining a car to drive is growing in popularity as more and more people have discovered the joys and financial benefits of leasing Honda models and other brands.
With the prices of cars soaring into the stratosphere over the last 20 years, leasing is an increasingly attractive option. For millions of Americans, leasing provides a way to drive off the lot in a brand new car, enjoying the safety, reliability and confidence that can only be found in having a new car.
Honda Leased vehicles are typically brand new. This means that they are almost always totally covered by a manufacturer warranty but that they almost never break down anyway. Many current Honda car lease deals even include things such as oil changes and tune-ups for free.
What Does Leasing a Honda Car Involve?
There’s nothing complicated about Honda Car Leases. In fact, it’s usually considerably easier than buying one. That said, there are a few things that you should know. We break down the most important points, so that you can make an informed decision about buying versus leasing.
Your Payments Reflect the Car’s Value.
The monthly lease payment will usually be determined in large part by the sticker price of the car. The lower the value of the car, the lower the monthly Honda car lease payment will be.
Some compact cars may be leased for less than a few meals out each month.
Higher Residual Percent Saves You Money.
The residual percent is a way that dealerships measure the portion of the car’s original value that they expect it to hold upon expiration of the lease contract. The higher the
residual percent, the lower your monthly payment will be.
Understand Your Set Miles.
One unique aspect of leasing is that there is typically a cap on monthly miles allowed to be driven. Once this number is exceeded, the lessee will being running up per-mile surcharges. So it’s extremely important to know the set miles on your Honda Car Leases.
Expect a Disposition Fee.
Another idiosyncrasy of leasing is what’s called a disposition fee. This is a fee between $300 and $500 that you will be required to pay upon turning in your car. The money helps the dealership prepare the vehicle for resale, an expensive process.
Understand What Money Factor Means.
Money factor is the leasing equivalent to APR for auto loans. It is a measure of credit risk. The lower the money factor, the lower your monthly payment will be.
Is it Better to Lease or Buy a Honda Car?
That question can only be accurately answered by the consumer themselves. However, it’s a lot easier to come to a conclusion about whether to buy or lease when you’re well-informed. As with any other transaction, it’s crucial to carefully read the Honda Car Leases agreement and absorb as much information as you can, in order to come to the best decision about leasing versus buying.
You Won’t Own the Car
This is the reason most often given by people who argue that you should never lease a vehicle. But it’s misguided. Ownership does carry benefits. But it also carries significant risks. This is especially true with bank loans.
One of the worst things that could happen to any car buyer is to have their vehicle repossessed for missing a payment. In today’s environment, banks typically don’t mess around. Auto loans are typically handled by huge banking conglomerates. Even getting someone on the phone to discuss payment options can be impossible. When a bank repossesses a car, the car owners often lose most or all of the equity in the vehicle.
Leasing avoids this risk completely
Leasing Cuts Down Up-Front Costs
This is one of the most compelling reasons to lease. Purchasing a new car, even on a bank loan, can often involve tens of thousands in up-front costs. These can often prove to be too steep for many, leading them to compromise on used cars that don’t have the reliability or safety of newer models.
On the other hand, the drive-off costs of a new lease are often only a couple hundred dollars. You’ll have to pay some taxes and usually make a small security deposit, but a lease will get you more car for your buck and have you driving off the lot with the safety, reliability and comfort of a brand new car.
No Need to Worry About Selling Honda Car Leases
Another one of the main reasons people avoid leasing is because they figure they’ll recoup a lot of the costs of the car’s purchase price by selling it themselves when they’re done. Anyone who has sold more than a few cars themselves will tell you that it’s no walk in the park. Most people with decent jobs would be far better off leasing their car, then working the 50-100 hours they may have spent trying to sell it themselves than they would be owning it and taking the extra cash they can make by selling it.
When the Honda Car Leases is done, you’re free to walk away. You’ll have an option to buy. But you won’t be under any obligation to do so.