September 15, 2014

What Does It Mean To Lease A Honda?

Photo credit: greggoconnell / Foter / CC BY

Photo credit: greggoconnell / Foter / CC BY

If you like to trade cars every few years — leasing may be for you.
If you like knowing your car is under warranty — leasing may be for you.
If you don’t like to do an abundance of maintenance — leasing may be for you.

A car lease allows you to drive a new vehicle without having to pay a large sum of cash or take out a loan. Usually in order to lease a car, you make a small down payment — less than the typical 20 percent of a car’s value you’d pay to buy– followed by monthly payments for the term of the lease. Typically a lease runs for three years and 12,000 or 15,000 miles per
year.

It is important to remember that once the lease expires you do not own the car. Essentially you are renting, not buying, the car. Once the lease has ended you can buy the car, or return it a lease another one. Keep in mind that by leasing you do not have equity in the car to use toward the purchase of another vehicle.

Steps on how to lease can be found here.

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