A Simple Guide to Leasing a New Honda | Auburn, NY  

Considering your first vehicle lease? Have questions about what leasing is and how it works? To get you started, here's a simple guide on leasing a car from our finance team at Fox Honda in Auburn, New York.

What is a lease?

When you finance a Honda vehicle like the CR-V or the Pilot with a loan, your ultimate goal is to own it. But with a lease, you pay to use that Honda for a specific number of years without being the actual owner.

Your monthly payment during the lease period covers expected depreciation and wear for the vehicle, plus fees and taxes. As part of expected wear, lease agreements also include a limit on the number of miles you can drive each year. When the lease is up, you simply return the vehicle to the dealership.

What are the benefits of leasing?

Leasing an HR-V, Civic, or other model from Fox Honda comes with some great benefits.

  • Your down payment and monthly payments are likely to be lower than if you were making a purchase.
  • With the money you save by leasing, you can upgrade to a nicer, better-equipped trim level.
  • Instead of committing to own one vehicle for a long time, you can switch to a new one every year and keep up with the latest tech.
  • Maintenance costs will be lower because you won't drive the car long enough for the warranty to lapse.

How does leasing work at Fox Honda?

When you lease a vehicle at Fox Honda, you'll pick out the model you want just like if you were buying it. Our finance team will help you find the best deal and put together a lease agreement that meets your financial needs. The agreement will include:

  • The residual percentage and amount, which help to determine the vehicle's expected depreciation and how much you'll pay monthly.
  • The money factor, a rate that works for leases like an APR works for loans.
  • Allotted miles and overage charges, covering how many miles you can drive annually and the fee you'll pay for exceeding that amount.
  • The disposition fee, which pays for cleaning and other dealer expenses at the end of the lease.
  • The lease term, which is the number of years or months you're agreeing to lease the vehicle.

Have more questions about how to lease a vehicle? Contact us here at Fox Honda or stop by for an in-person visit.

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