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Lute Riley Honda | Leasing Information

emptyContentIf you are considering the purchase of a new or certified used Honda, there are many good reasons that make a Honda lease a smart decision. You can drive a new vehicle more often, usually with less money down and a lower monthly payment than with traditional financing. Then, at the end of your Honda lease, you have several options to choose from.


How the Honda Lease Works

When you lease a new Honda automobile, you contract to use it for the first - and best - period of its life. Your monthly payment covers the depreciation of the vehicle, plus a service fee. That means that you pay only for the portion of the vehicle's worth that you are actually going to use. In a lease, your mileage is generally limited to 12,000 or 15,000 miles per year, although you can "buy" extra miles up front to save excess mileage charges at the end of your lease.

Your monthly lease payment is calculated based on several factors, including the term of the lease, a service charge, the capitalized cost which is based, in part, on the purchase price, and the vehicle's projected residual value at the end of your lease. A capitalized cost reduction, similar to a down payment, can help reduce your monthly payment. To save time, you can even apply for pre-approval online. Don't forget to check with your insurance agent to make sure you have sufficient coverage.

Then What?

At the end of your lease, Honda offer a variety of choices. You can purchase the vehicle at a predetermined price and keep it, or just return the vehicle and take care of any end-of-term obligations. Best of all, you can return the vehicle and lease again. Our Leadership Leasing Loyalty? program makes it easy and affordable to get right into another Honda at the end of your lease.


Why Lease Through a Honda Dealer?

Leasing offers a complete package of convenience, savings, and benefits. In particular, the Honda Leadership Lease? programs provide several advantages that are not always available from other institutions:

  • Generous mileage allowances
  • Waiver of excess wear and use charges up to $1,500*
  • No disposition fees
  • Convenient online account access
  • AHFC EasyPay automatic electronic bill payment
  • Gap coverage included at no additional charge
 BUYING VS LEASING

 

Buying

Leasing

Ownership

You own the vehicle and get to keep it as long as you want it.

You don't own the vehicle. You get to use it but must return it at the end of the lease unless you decide to buy it.

Up-front costs

They include the cash price or a down payment, taxes, registration and other fees.

They typically include the first month's payment, a refundable security deposit, a down payment, taxes, registration and other fees.

Monthly payments

Loan payments are usually higher than lease payments because you're paying off the entire purchase price of the vehicle, plus interest and other finance charges, taxes, and fees.

Lease payments are almost always lower than loan payments because you're paying only for the vehicle's depreciation during the lease term, plus interest charges (called rent charges), taxes, and fees.

Early termination

You can sell or trade in your vehicle at any time. If necessary, money from the sale can be used to pay off any loan balance.

If you end the lease early, early-termination charges can be almost as costly as sticking with the contract.

Vehicle return

You'll have to deal with selling or trading in your car when you decide you want a different one.

You can return the vehicle at lease-end, pay any end-of-lease costs, and walk away.

Future value

The vehicle will depreciate but its cash value is yours to use as you like.

On the plus side, its future value doesn't affect you financially. On the negative side, you don't have any equity in the vehicle.

Mileage

You're free to drive as many miles as you want. (But higher mileage lowers the vehicle's trade-in or resale value.)

Most leases limit the number of miles you may drive, often 12,000 to 15,000 per year. (You can negotiate a higher mileage limit.) You'll have to pay charges for exceeding your limits.

Excessive wear and tear

You don't have to worry about wear and tear, but it could lower the vehicle's trade-in or resale value.

Most leases hold you responsible. You'll have to pay extra charges for exceeding what is considered normal wear and tear.

End of term

At the end of the loan term (typically four to five years), you have no further payments and you have built equity to help pay for your next vehicle.

At the end of the lease (typically two to four years), you'll have to finance the purchase of the car or lease or buy another.

Customizing

The vehicle is yours to modify or customize as you like.

Because the lessor wants the vehicle returned in sellable condition, any modifications or custom parts you add will need to be removed before you return the car. If there is any residual damage, you'll have to pay to have it fixed.

Lute Riley Honda has the car that you want. Lute Riley Honda has been Located in Richardson Texas for almost 30 years with a reputation that is second to none for providing Out Standing Customer Service.  Lute Riley Honda has won the Honda Presidential Award which means that our customers approve of the way we do business. Lute Riley Honda conveniently located just north of Dallas on Central Expressway. Lute Riley Honda is one of the largest volume sales Honda Dealer in the Country. Just give us a call at 866-799-4700, or send us an email, or even use our new chat service let us show you the Lute Riley Honda Experience.