With Honda currently running a variety of great lease specials, our customers have asked us to put together a brief guide to how leasing works.  In speaking with our customers, we have found that a lot of people have concerns about leasing because of a bad experience with leasing in the past.  Leasing has changed a great deal in the last 15 years, so we have put this guide together to help you understand not only how leasing works today, but also to help you determine if leasing is right for you.  We have included a glossary at the end of this article to help with some of the technical terms.
How the Honda Lease Works
When you lease a new Honda automobile, you contract to use it for the first - and best - period of its life. Your monthly payment covers the depreciation of the vehicle, plus a service fee. That means that you pay only for the portion of the vehicle's worth that you are actually going to use. In a lease, your mileage is generally limited to 12,000 or 15,000 miles per year, although you can "buy" extra miles up front to save excess mileage charges at the end of your lease.

Your monthly lease payment is calculated based on several factors, including the term of the lease, a service charge, the capitalized cost which is based, in part, on the purchase price, and the vehicle's projected residual value at the end of your lease. A capitalized cost reduction, similar to a down payment, can help reduce your monthly payment.

Then What?
At the end of your lease, Honda offers a variety of choices. You can purchase the vehicle at a predetermined price and keep it, or just return the vehicle and take care of any end-of-term obligations. Best of all, you can return the vehicle and lease again. Our Leadership Leasing Loyalty™ program makes it easy and affordable to get right into another Honda at the end of your lease.

Why Lease Through a Honda Dealer?
Leasing offers a complete package of convenience, savings, and benefits. In particular, the Honda Leadership Lease™ program provides several advantages that are not always available from other institutions:
  • Generous mileage allowances
  • Excess wear and use waiver policy up to $1,500*
  • No disposition fees
  • Convenient online account access
  • EasyPaySM automatic electronic bill payment
  • Gap coverage included at no additional charge
*Except for damage caused by any single event which exceeds $500. Applies to lease contracts dated June 7, 2001 and later.

With superior customer care and flexible terms, you can be assured that your account will receive the very best service and support.

Automotive Options: Lease or Buy?
Is leasing right for you? Great question. If you typically drive 15,000 miles per year or less, then leasing may be your best option. Leasing requires less cash up front than buying and because monthly payments are lower than with traditional financing, you may be able to afford to drive a higher-priced model by leasing.


Term-  The duration of a lease or financing contract, usually expressed in months (e.g., 36 months).
Purchase Price-  The selling price of the vehicle plus any additional charges such as taxes, acquisition fees, official fees and other charges.
Residual Value-  The projected value of a vehicle at the end of a lease. This number is not negotiable. This value will vary according to the lease terms, mileage allowance and the vehicle's make and model. Vehicles that tend to have a high resale value will also have higher residual values, which typically lead to lower lease payments.
Capitalized Cost Reduction-  An initial cash payment on a lease of up to 20%, similar to a down payment. The more you pay at the start of the lease, the lower the monthly payments. This could be in the form of cash, or the value of a trade, or a combination of the two.

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