Lease Or Buy?
LEASE OR BUY? IN MONCTON
Make the Best Choice for You and Your Needs
There are plenty of ways to pay for your next vehicle. You can pay in cash or you can go with one of the many financing and leasing options available at Moncton Honda. Perhaps you’re not sure whether you should finance or lease your next vehicle. If that’s the case, we will be able to provide you with the information you need and show you the ropes when deciding between financing and leasing. Our experts know both options like the back of their hand and they’re here to help you make an informed decision when purchasing your next Honda.
Leasing is a great way to reduce your monthly payments and allows you to get a better-equipped vehicle for the same monthly price. It’s also a great option if you like to replace your vehicle every three or four years. On the other hand, there are mileage restrictions with leasing, which means that you may be better off financing if you drive over 20,000 or 25,000 kilometres every year.
Financing is also a better option if you plan on keeping your vehicle for a long period, say over five years. These are the things that our team here at Moncton Honda can go over with you to help you find the best solution for your specific situation.
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. Our Honda Future Value Lease is a full disclosure document and has been written in plain language.
The Benefits of Leasing Your Vehicle with Honda Canada Finance Inc. Are:
- A new car more often: With lower monthly lease payments over a shorter period of time, you can drive a new vehicle more often.
- Low monthly payments: Lease payments are traditionally lower than retail payments on the same vehicle.
- Closed-end lease: You can choose to purchase the vehicle for a pre-determined price shown on your lease contract plus applicable taxes and fees 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 kilometre limit, that any outstanding fines have been paid, and there is no excess wear and tear on the vehicle.
- Automatic GAP Protection: 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 (Guaranteed Asset Protection) 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.
- Flexible terms
- Keep more cash to use or invest
Things to Be Taken Into Consideration:
- Insurance responsibility: You are responsible for insurance coverage. Required coverage typically is detailed in your lease agreement.
- Lease down payments: 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 a lease cannot exceed the residual value of the Total Lease Price.
- 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.
- Maintenance responsibility: You are responsible for maintaining the automobile. A maintenance schedule is outlined in the owner's manual.
- Excessive wear and tear: Determined at end of a lease (ie: dents, paint damage, missing equipment that was part of the vehicle, cracked or chipped glass, mechanical damage, holes, tears or burns to upholstery).
- Allowable kilometres: The yearly kilometre allowance with Honda Canada Finance Inc. is 20,000. At lease inception, you can purchase additional kilometres.
- 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.
- Total cost of lease transaction: The total cost of the 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).
- Lease rate and charges: The lease rate and associated charges are disclosed on our full disclosure contract.
Automobile financing is determined by how much you will need to borrow to pay for the entire automobile plus applicable taxes. Once financing is secured, you will then be required to pay back the amount you borrow plus interest, typically in equal monthly payments or bi-weekly over a pre-arranged period of time.
The Benefits of Financing Your Vehicle 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 kilometre 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 loan payments are typically higher than monthly lease payments because you are financing the total cost of your automobile, which includes all applicable sales taxes and purchase price.
- 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.
Honda Financial Services Options
Conventional Finance: With the Honda Financial Services regular program, you can tailor your purchase to reflect your individual needs. Your equal monthly/bi-weekly payments are determined using competitive rates and 24 - 84-month terms. Together with the dealer, you can work out the financing arrangements that suit your budget and your needs best.