Lease vs. Finance

We know that purchasing your next car can be confusing, but it doesn't have to be. Our Finance team is here to help you find the best plan there are more choices for you now than ever, with a large range of terms, numerous rates and leasing options.

Why Lease

If you enjoy driving a new vehicle every two to four years, want lower monthly payments, protection under warranty, and drive an average number of kilometers, then you should consider lease as an option. When you lease you have the option of not making a down payment and you pay sales tax only on your monthly payments (in most provinces), and you pay a financial rate, that is similar to the interest on a loan. You may also be required to pay fees and possibly a security deposit that you don't pay when you buy. Your first payment is made at the time you sign your contract for the month ahead. When your lease ends you have options.

Maturity Options

Why Leasing Makes Sense: (EXAMPLE)

If you lease a $23,000 vehicle with an estimated resale value of $11,000 after 48 months, you are only paying the $12,000 difference, this is the depreciation (plus finance charges, and possible fees). At lease-end you can return the vehicle of buy it to own it.

Honda End Of Lease Process

Key Benefits Of Leasing:

• The payments are based on the difference between the lease and end value of the vehicle (plus finance charges).
• You are able to drive a new care more often, lower monthly lease payments over a shorter period of time will allow you to upgrade and drive new vehicles more often.
• Keep your own cash to use or invest.
• Flexible terms
• Lower monthly payments, traditionally lease payments are lower than retail payments on the same vehicle.

Why Buy or Finance:

If you like the idea of having ownership of your car, prefer paying off your loan, and don't like the risk of possible lease-end charges, then you should consider finance as an option.

As a finance customer, throughout the term of your finance contract, your payments will consist of part principal and part finance charges. Each payment you make increases the amount of equity you've built up in your vehicle. You make your first monthly payment a month after your sign your contract. Later you may decide to sell or trade in the vehicle for its depreciated resale of trade value.

When you buy you pay the entire price plus finance charges, plus possible fees. You will own the vehicle at the end of your loan. Its value will be less than what you initially paid for it

Your equal monthly payments are determined using competitive rates from the many financial institutions we use and are offered over 24-84 month periods (finance period can vary depending on the vehicle)

We look forward to the opportunity to work out the financing arrangements that will fit your budget and needs best!

The benefits of financing your vehicle with Honda Financial Services are:

• You are the owner of the vehicle.
• All retail loans are open and you may pay out the finance contract at any time without prepayment penalties.
• Simple interest method to calculate interest charges.
• No kilometer charges.
• No wear and tear charges.
• Build equity.
• Flexible terms.
• Once all the payments have been made, you own the automobile.

Things to be taken into consideration:

• Monthly finance payments are typically higher than monthly lease payments as you are financing the total cost of your vehicle.
• You are responsible for insurance coverage. Required coverage typically is detailed in your financing agreement.
• You are responsible for maintaining the automobile. A maintenance schedule is outlined in the owner's manual.

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