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FAQ

Lease Options

Q. What are the benefits of leasing?

A.Leasing is like renting, you only pay for what you use. Payments are based on the difference between the lease end value and the vehicle cost plus lease finance charges. Taxes will be included in the monthly payment rather than the full cost of the vehicle.

  • A New Car More Often - with lower monthly lease payments over a shorter period of time, you can drive a new vehicle more often.
  • Flexible Terms
  • Keep More Cash to Use or Invest
  • Low Monthly Payments -Lease payments are traditionally lower than retail payments on the same vehicle.

Q. Is this an open or closed end lease?

A. Closed End Lease

At the completion of the lease, you can choose to purchase the vehicle for a pre-determined price shown on your lease contract plus applicable taxes or return it without further obligation. If you decide to return your car, all you have to do is make sure you have not exceeded your kilometer limit, that any outstanding fines have been paid, and there is no excess wear and tear on the vehicle.

Q. What happens if my vehicle is written off or stolen?

A.Automatic Guaranteed Asset Protection (GAP)

If your leased vehicle is involved in an accident, vandalized or stolen the vehicle may have to be written off. To insurance companies a "write off" means fair market value minus your deductible. Your insurance settlement may not always satisfy your monetary obligation. Our Future Value Lease offers you protection against these situations. The monetary GAP between your insurance settlement less your deductible and your lease obligation is covered automatically by our GAP. Some conditions may apply. See your local dealer for details.

Q. Do I have to insure the vehicle?

A. You are responsible for insurance coverage. Required coverage typically is detailed in your lease agreement.

Q. Is a down payment required?

A. Down payments are not required on a lease. In a lease situation, you may choose to make a down payment in order to reduce the monthly lease payments. Down payments on leases cannot exceed 30% of the Total Lease Price.

Q. What is due at the time of picking up the vehicle?

A.Cash Due At Delivery

Most lease agreements require a first monthly payment on delivery of the vehicle, a refundable security deposit and other miscellaneous fees.

Q. Am I responsible for maintenance?

A. You are responsible for maintaining the automobile. A maintenance schedule is outlined in the owner's manual.

Q. Am I responsible for wear and tear charges?

A.Excessive Wear and Tear

If you are returning your vehicle at lease end, your vehicle will be inspected by an independent company to determine if there is any chargeable damage. Chargeable damage can include: dents, paint damage, missing equipment cracked or chipped glass, mechanical damage, holes, tears or burns to upholstery. You are responsible for either repairing identified damage to acceptable standards prior to returning the vehicle or paying the amount indicated on the inspection report plus applicable taxes.

Q. How many kilometers can I drive?

A.Allowable Kilometers

The yearly kilometer allowance with HFS is 24,000. At lease inception, you can purchase additional kilometers.

Q. What is the total vehicle price?

A.Leased Vehicle Price (Total Vehicle Price)

Gives you the transaction price and is also used to calculate your lease payment. While taxes are not included in this price, it does include all equipment, accessories, freight and dealership fees.

Q. What is the total cost of the transaction?

A.Total Cost of Lease Transaction

The total cost of lease is the total monthly payments plus any amounts paid to reduce the cost of the vehicle ie: cash down payment, vehicle trade-in plus applicable taxes, vehicle licensing and registration fees.

Q. What are the lease rate changes?

A. The lease rate and associated charges are disclosed on our full disclosure contract.

Finance Options

Q. Do I own the vehicle?

A. Yes, you are the owner of the vehicle.

Q. Is this an open or closed loan?

A. Open Retail Loans - All retail loans are open and you may pay out the finance contract any time without prepayment penalties.

Q. Are there any fees?

A.Transparent Fees

  • Simple interest method to calculate interest charges
  • PPSA registration fee
  • No kilometer charges
  • No wear and tear charges

Q. What is conventional financing?

A. Conventional Finance

With the Honda Financial Services regular program you can tailor your purchase to reflect your individual needs. Your equal monthly payments are determined using competitive rates and 24 - 84 (84 offered on new contracts up to 72 on used) month terms. Together with the dealer you can work out the financing arrangements that suit your budget and your needs best.

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