subject: Should I Lease Or Buy My New Honda? [print this page] Gordon everybody asks the question at one time in their life. Do I lease or do I buy?
That really depends on the individual customer, and their individual situation. Leasing, especially with Hondas because they hold their value so well, is kind of a unique proposition, because there really isnt any negative equity position at the end of three years, whether youre buying or leasing with a Honda. And thats not true for all makes. But it really comes down to how often do you like to have a new car, how many miles you drive, and what level of car do you want? You can afford a much nicer car, a higher trim level vehicle, at a lower payment with a lease. Because youre not buying the whole car, youre only buying the part that you use.
But in the back of my mind, Im concerned about mileage. Whats the normal amount of mileage for a year allowed on a lease?
Twelve to fifteen thousand.
If I go over the twelve to fifteen thousand Im going to be highly penalized, correct?
Well, no. First of all, when you come in, were going to do a really good job of trying to estimate how many miles youre going to drive. Were not going to let you buy, say a ten thousand mile lease, when we know you drive fifteen thousand miles a year. Part of our process is to really understand how you use the car, and really get the best value in the deal for you. The second thing is, is that over mileage is fifteen cents a mile. So lets say you had a fifteen thousand mile lease, and you drove sixteen thousand that year. Thats only a hundred and fifty dollars, so its not really substantial.
Over a year?
Right, over a year. But even more important than that, if you decide that at the end of the lease you really dont want to keep the car, you most likely have equity in the car, even at the higher mileage, because Hondas hold their value so well. So you come in before the lease is terminated, and you trade the car in on a new car or just want us to buy it, and we, most of the time, can eliminate any mileage because the cars worth more than the residual value that youve agreed to pay at the end of the lease, plus the mileage charge. So its really a very easy thing to overcome, on mileage.
