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Leasing vs. Financing

Is Leasing Your Honda Right for You? Compare Leasing and Financing Here

You’ve chosen a Honda for your next vehicle, which is the best decision you can make. But should you choose to lease or finance your Honda? How do the two stack up? Find out here!

Leasing Financing

With a Honda lease, you drive your new car as if you own it. When your lease comes to an end, you have the flexibility to simply turn your lease in and get a new car, or buy it out and keep it. The choice is yours!

Purchasing your vehicle through financing means the vehicle is fully yours when your financing term is finished. If you decide you want or need a newer vehicle before it’s paid off, there’s a delicate equity balancing act to consider – do you still owe more than the car is worth?

Monthly Payments

Lease payments are often considerably lower than financing payments. It’s because you’re only paying for the part of the vehicle you’ll use over the term of lease, not the whole vehicle.

Financing payment can vary greatly depending on the length of term you choose. In the end, you own the vehicle, but payment rates over terms similar to a lease are much higher in comparison.

Upgrading to a New Vehicle

When your lease is over, you can simply settle up your end-of-lease costs, turn it back in and start a new lease on a brand new vehicle.

If you decide to upgrade to a new vehicle or a different model, you’ll need to deal with selling or trading in your car. You may have negative equity or repairs to sort out first, which can be a hassle.

Mileage Allowance

Honda leases offer convenient mileage terms to suit most drivers’ needs. If you go overmileage, you can either pay a mileage fee or buy out your lease.

There’s no limit to the mileage you can put on your vehicle purchase. However, if you finance over a long term and rack up high mileage, you may find you’re still making payments when your car is miled out.

Normal wear and tear

Leases allow for normal wear and tear in most cases. As long as you still meet minimum wear requirements, you can turn in your lease without having to perform costly repairs or maintenance.

When you finance a vehicle, you’re fully responsible for its wear and tear. You may not have to deal with it immediately, but at some point during your vehicle ownership you’ll need to service or repair the problems before you experience a breakdown or sell it.

Future Value

A leased vehicle offers flexible options. If, at the end of your lease, you find you have equity in your lease, you can choose to buy it out. Otherwise, you can turn it in and walk away from the depreciation.

When you choose the financing route, there’s no question you’ll experience depreciation – it’s just a matter of how much.

Cash Flow

With lower payments, you can use your cash flow in other money-saving ways. You can pay down your mortgage, start a savings account, buy an RRSP or RESP, pay off your credit card, or open an investment portfolio.

More of your money is tied up in your vehicle, limiting your available funds for other important things in life. You may have equity in your car but you’d have to sell it to use that equity.

Considering a Honda lease? Let us help! Contact one of our sales professionals to find out how to lease your next Honda vehicle. With flexible rates and terms, Honda Financial Services makes it easier to make it yours.

Customer Reviews

We are committed to making you a long-lasting customer and friend

  • Jenessa VanRooyen

    Cambridge Centre Honda was a perfect place to buy our van. Each team member that we met with was quick, professional, honest and we felt that they were listening to what we needed. We got the best price on our trade in and they worked quickly to get the best price for us. We appreciated how they worked. We highly recommend them to anyone, great [...]

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  • Rascle

    I bought my first brand new car here. Mark my sales associate was great and has become a friend of mine. Everyone that I delt with here was exceptional! They treat you like family which is awesome! Not enough good words to describe the wonderful staff here. Would absolutely buy another car here.

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  • Rachael Schaefer

    Cambridge Centre Honda made buying a car much easier. My husband and I had not planned to buy a new vehicle, but had to. We dealt with Mark in sales and he was very informative and helpful. When we decided on a vehicle, Colin finalized all the paper work. We had to wait a week for our car, but Colin was always available to answer any questions and got [...]

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  • Codi Forrest

    Purchasing my 2012 Civic EX from Cambridge Centre Honda was a great experience. It was a low-pressure environment and they were more than welcoming when I asked if I could have my mechanic inspect it. Kevin MacKenzie was very helpful and informative throughout the entire buying process. I would highly recommend visiting Cambridge Centre Honda if you're [...]

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  • Barb DaTerra

    Best experience we have had purchasing a new car. Fair trade in allowance without having to arm wrestle the new car manager. Marci, Colin and Tanja were very friendly and easy to deal with. We have heard only good things about the service department and look forward to meeting the people on that end of the dealership.

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