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STEPS TO

Leasing a HondaLeasing is a great way to get behind the wheel of the Honda car, truck, minivan, or SUV that you’re interested in. So, how do you go about Honda leasing? What should you know before you start discussing lease deals?

To help you prepare and be more familiar with lease terms and all the ins and outs of leasing, we looked at these Steps to Leasing a Honda. Apply for a lease today to get started!

Be Sure That Honda Leasing is Right For You

When you’re considering Honda leasing, the first thing you’ll have to do is decide if it’s really for you. It has a lot of benefits and offers an exciting alternative to buying. So, how do you know if it’s the best option for you? Let’s explore how leasing works and what the advantages are.

What is Leasing?Honda leasing is like a long-term rental. First, you’ll sign a lease term. While every term is different, most lease terms are for either 24 or 36 months. Then, you’ll get to drive the car you want for the next few years.

Once your lease ends, you’ll head back to the dealership. If you’ve gotten attached to the vehicle you’ve been driving, you can choose to buy it instead of returning it. You can also

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decide to start a new lease with another car.

Benefits of Honda LeasingOne great thing about leasing is how easy it makes it to upgrade. For example, let’s say you’re finishing up a 3-year lease for a Honda Civic. When you return it to the dealership, you can start another lease with the latest model and drive home in a brand-new car with all the latest features.

Another option is to switch vehicles. A lot can change in a few years. If you’re planning on starting a family, you can conveniently choose to make your next lease a roomy Honda CR-V instead.

Honda leasing can also save you money. When you buy a car, you’ll have to pay off its total value. First, you’ll make a big down payment, then make monthly finance payments until you’ve completely paid it off. With leasing, you’ll only need to make payments on its value during your term. This usually means you won’t have to worry about a down payment.

Find the Right Car For You

After you decide that leasing is the right option for you, it’s time to start looking for the vehicle you want to drive for the next few years in our inventory.

When searching for a car or SUV to lease, you can map out your criteria and budget just like you would if you were buying. Think about what kind of specs and features you want in the car, then put a budget together to see how much you can afford to pay each month

When you’re doing your research and getting your finances in order, see if you can find out what each vehicle’s residual value is.

Residual value is an estimate on how much the vehicle will be worth in a few years. You

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can figure out approximately how much you’ll have to pay for the vehicle each month by subtracting the residual value from the vehicle’s total value. This will help you see what models and Honda lease deals are within your budget.

Track Your Mileage

Before you start browsing Honda lease deals or talking to dealerships, think about how many miles you drive every week. Once you know many miles you put on your car, multiply it to figure out how far you drive every year.

The reason this is so important is because lots of lease terms include mileage limits. For example, a 36-month lease may have terms that limit your mileage to 12,000 miles per year. That comes out to 36,000 for the whole lease.

If you put more miles on the odometer than you originally agreed to, you’ll probably have to pay a fee. Usually this ends up being between 10 and 15 cents per mile. That may not sound like much, but if you have a long commute or take a road trip, it can add up quickly. By knowing how much you drive, you’ll be better prepared when you start looking through the terms of lease deals and negotiating with the dealership.

Check Dealership & Manufacturer Lease Deals

Now that you have a budget in place and know what vehicles you’re interested in Honda leasing and how many miles you drive per year, it’s time to start looking for lease deals.

Start by looking for which dealerships in your area have the vehicle you want in stock. Then take a look at their specials. Most Honda dealerships will have a selection of featured lease deals.

You can also check for Honda lease specials from the manufacturer. The nice thing about leasing a Honda is that Honda finance center can help you. Their Honda Leadership Leasing® program offers great rates and flexible options.

If you lease through Honda Financial Services, you can often sign up for an Excess Wear and Use or Damage Waiver. This is designed to cover your wear and tear and help put your mind at ease when you’re on the road.

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Look Past The Monthly Rate

When you’re browsing through lease deals, the first thing you’re going to look at is the monthly rate that’s advertised. It makes sense, but it’s a good idea to look beyond that.

While the advertised rate is how much you’ll be paying each month for the next two or three years, it doesn’t tell the whole story.

Try to figure out what the total cost of the Honda lease will be. Read the fine print and look for any mention of mileage limits. Also, check for any information on how much it says is due at signing. This is different from a down payment because the amount you pay when you sign the lease usually covers the first month

On top of that, you’ll also have your standard taxes and registration. These will vary depending on what state you live and who your insurance provider is.

Usually, there will also be an acquisition fee. Think of this like a service charge for the dealership preparing the lease for you.

Negotiate A Better Deal

After you find a Honda lease deal that works for you, it’s time to start talking to the dealership. One thing buying and leasing have in common is that you can and should negotiate to get a better rate. Here are some of the ways you can help yourself and negotiate a better rate.

Compare Residual Cost & Cap CostTo make sure you’re getting a fair rate, check the list price for the car that you’re interested in. See how much it costs to buy new from that dealership and how much it’s listed for on the manufacturer’s website.

The total value of the vehicle is also referred to as the capitalized cost, or cap cost. To get an idea how much your monthly payments should be, find out what the residual cost, or depreciated value, of the car will be when your Honda lease ends. The dealer should be able to provide you with the estimated residual cost. Then subtract the residual cost from the cap cost.

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Once you’ve got a sense of what rate is fair value, you can bring this to the dealer and negotiate a lease deal around it.

Improve Your CreditAnother one of the similarities between financing and leasing is that your lease payments will have interest on them. To qualify for a good interest rate, find out what your credit score is and see if you can improve it.

Just like financing, your credit plays a big part in what rates you qualify for. You can get a free look at your credit score and credit history online by going to websites like Experian and Credit Karma.

If you have less than perfect credit, don’t worry. You can improve your score by paying off outstanding lines of credit and not opening up any new ones until after you’ve signed the lease.

Every little bit helps. Taking these steps gives you a better chance at qualifying for or negotiating your way to a more favorable interest rate.

Discuss Your MileageWhen you’re going over the terms of your Honda lease, look back at how many miles you drive each year. If it’s close to or above what’s listed in the lease terms, you should try to negotiate for more miles or a lower mileage fee. Sometimes, you’ll even be able to pay up front for extra miles.

Trade In Your CarMuch like buying a car, trading in what you’re driving now can help knock off some of the cost of its replacement. With leasing, handing over your old vehicle may be able to lower the cap cost of what you’re about to lease and lower your monthly payments overall.

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Ask About the End of Your Honda Lease

A few years from now, when your lease is coming to an end, you’ll have the option to buy the car or SUV you’ve been driving. If that’s something you think you might be interested in, ask the dealership about the buyout price and purchase option fee.

The buyout price may or may not match the residual cost. Afterall, it’s only an estimate, but it’ll transition you from monthly lease payments to financing. The purchase option fee is essentially a service cost, just like the acquisition fee, but for financing instead of leasing.

Lease Your Next Honda

By following these Steps to Leasing a Honda, you’ll have an even better chance of getting a good rate on your next lease. From offering you more variety in what you’re driving to helping you upgrade and save money, it’s a fun and convenient way to get the keys to your next Honda. Find our Honda dealer near you to get started!