Have you been thinking of upgrading to a new Honda model but aren't sure whether you should buy or lease? Larry Silk, our resident Honda Lease Expert, is here to answer all your questions about the leasing process and help you make the best decision for your lifestyle.
Check out our auto leasing FAQs below, then head to our local Honda dealership near Lafayette to speak with Larry directly and learn more about our process!
Honda Lease Frequently Asked Questions
There are many factors to consider when determining when you should finance vs. lease a new Honda. If you know you like to drive a new car every few years, then leasing is a perfect option. If your vehicle needs may change in the next few years, due to a changing commute or change in family size, then leasing may give you the flexibility you need. Here are some of the most common questions and answers Larry gets about leasing a car:
01How do monthly payments differ between purchasing a vehicle and leasing it?
Leasing allows you to get the keys to a more well-equipped vehicle for less upfront. You'll also typically have a lower monthly cost than when you finance.
02Are there any tax benefits or drawbacks of leasing vs. purchasing?
With leasing, you pay sales tax with each payment. When financing or paying cash, you pay tax on the full purchase price.
03How do service maintenance costs differ between leasing and purchasing a vehicle?
Maintenance costs are the same, but your leased vehicle is under warranty for the duration of the lease.
04Are insurance premiums higher for leased vehicles compared to purchased ones?
Insurance premiums should be similar, but please consult with your insurance carrier to confirm.
05What type of insurance coverage is required for leased vehicles? Does it differ from purchased vehicles?
Full coverage insurance is required on both leased and financed vehicles.
06How does the depreciation of a leased vehicle compare to that of a purchased vehicle?
The depreciation of a leased vehicle is pre-determined, which protects you against market conditions. With purchasing, you are subject to market values at the time of sale or trade-in.
07Can I negotiate the purchase price of a leased vehicle at the end of the lease term?
The purchase price of your leased car is determined at the beginning of the lease.
08What happens at the end of the lease term? Am I obligated to purchase the vehicle?
You have the option to purchase, turn in or trade in your current leased vehicle.
09Can I get out of the lease early if I need to?
There is always a possibility of returning your lease early. Just like with financing, your vehicle has a trade value, and a payoff. A vehicle appraisal determines your equity.
10Are there types of vehicles that are better to lease than buy?
Not necessarily, we like to focus on what best suits the client's wants, needs and driving habits.
Lease a Honda Near Lafayette, CA
Have further questions about the benefits of leasing a Honda CR-V or Pilot and want to find out if leasing is the right option for your lifestyle? Contact Walnut Creek Honda to set up an appointment to go over your car leasing questions with Larry, or reach out to us online! We can't wait to hear from you.
Learn More:Ask a Finance Expert |Honda Lease Return Options
