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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
Ownership

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

  • Zoe Campanaro

    My first time purchasing a brand new car (actually am leasing). I had been to 5 dealers in one day. Had the worst experience at Kitchener Honda before I ended up at Cambridge Honda unintentionally, but it turned out to be great. I was welcomed right away. Worked with Stan from the beginning. He asked me a few simple questions and I needed clarity on [...]

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  • Donna Kincade

    Cambridge Centre Honda was amazing! Kevin was wonderful! The entire organization is very customer focused. Everyone went out of their way to make sure we had all the information we needed to purchase a 2018 Honda Civic EX. The orientation to all the car's features was most appreciated. We look forward to driving our new car and are grateful to [...]

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  • Boriana Kanters

    We purchased a 2017 Honda Civic in the summer. Everyone at the dealership was friendly and we were offered an exceptional pre- and post-purchase care. Kevin showed us around and guided us through the available cars, he was very informative and we are happy with our purchase. Scott handled the financing with ease and professionalism. Thanks again [...]

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  • Matt Robinson

    When I walked into the express service department at Cambridge centre Honda I truly never expected to be treated the way I was. It was AMAZING, from the smiles on the super friendly staffs faces to the more then satisfactory work done by them. I am thoroughly impressed and from now on this will be the only place I bring my vehicles (Honda or not). 6 [...]

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  • Andrea Walford

    I was absolutely blown away by the service I received at Cambridge Centre Honda. Kevin (my sales person) and Scott (finance) went above and beyond to make this a smooth, seamless purchase. They answered each and every one of my questions, and took care of absolutely everything as it came up. They also gave me a thorough tour of my vehicle, making sure [...]

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