If you're nervous about tying up capital in a vehicle, or if you're worried about high monthly payments, a lease is often an option that may have great value for you. What follows will help you make an informed choice.

With Our Lease Your Future is Guaranteed

With a Honda Finance Future Value Lease™, the future value of the vehicle is determined at the beginning of the lease. So instead of making monthly payments based on the total purchase price, your payments are based on monthly depreciation.

As a result, you are only paying for the portion of the vehicle that you use which in turn allows you to take advantage of a lower monthly payment.

With a Future Value Lease™ You Can Afford the Vehicle You Never Thought You Could.

Let's assume you were originally looking to purchase a vehicle worth $12,500. With a Future Value Lease™ you could afford a vehicle worth $20,000 for the same monthly payment.

A New Vehicle More Often.

With lower monthly payments over a shorter period of time, you can drive a new vehicle more often. So just about the time your vehicle requires increased maintenance such as new tires, you have the option to leave it behind and be in a brand new vehicle.

At the End of Your Lease You Can Drive Your Options.

With the Future Value Lease™ at the end of your lease you have the option to purchase the vehicle for a pre-determined price as shown on your lease contract or you can return it without further obligation. If you decide to walk away from the vehicle, all you have to do is make sure you haven't gone over your kilometer limit, have all outstanding fines paid, pay your disposition fee and be sure there is no excess wear and tear on the vehicle (major chips, dents, excessive tire or brake wear, etc).

If There's a Gap We Fill It.

Sometimes car insurance isn't enough. If your leased vehicle ends up in an accident, fire or is stolen, the vehicle may be written off. To insurance companies a "write-off" means fair market value minus your deductible. Sometimes, this isn't enough to cover what is still owing on your lease. Our Future Value Lease™ offers you protection against these situations. Any gap between your insurance settlement less your deductible and your lease contract is covered automatically by GAP Protection (Guaranteed Asset Protection). It's a little like having a money back guarantee on your lease vehicle.

Tailor-Made To Your Terms, Not the Banks.

When you borrow money to purchase a vehicle it's usually the banks who call the shots. But with a Future Value Lease™ you tailor the monthly payments to match your budget, the term of the contract and even the kilometers you expect to drive.

With our lease you are automatically granted 2,000 kilometers per month, which is the average distance for Canadian drivers. If you know you'll drive more than 24,000 kilometers a year.  We give you the option to buy additional kilometers up front at a reduced cost.

Case Closed.

Many institutions offer "OPEN END" leases. This means you are responsible for the vehicle's market value at the end of the lease. With the Future Value Lease™ , Honda Canada assumes the risk of the future value with a "CLOSED END" lease. The "option to purchase" price shown on your contract is what you pay regardless of the vehicle's market value at the end of your lease.

Leasing is another form of paying for a vehicle.  You are the one that decides if it is right for you or not.

Leasing is usually arranged by the Dealer. Banks are not legally allowed to do direct leasing. The Dealer will work with his Bank or the Dealer's financial institution.

Like finance contracts payments are due each month. Unlike finance contracts, the first lease payment is due on delivery.

Leases may require a refundable security deposit equal to approximately one payment, and is due on delivery.

Many customers will pay a down payment on a lease to have a lower monthly payment during the lease.

At the end of a lease customers generally have four options:

     1) Turn the vehicle in with no further liability (providing the mileage and condition of the vehicle are within the terms of the lease).

     2) Buy the vehicle for the residual or pre-determined value plus applicable taxes after which you may do with the vehicle as you please.

     3) Re-lease or finance the vehicle for an extended term subject to rates at that time.

     4) Negotiate the lease on another new vehicle.

Residuals are set at the beginning of the lease and will vary by the term, mileage and model. At the end of a lease you may or may not have equity in the vehicle.

If you have equity you can only get this equity out by buying a vehicle out, and then disposing of it by selling or negotiating a trade to a new vehicle. Most lease contracts do not formally recognize a lessee’s right to equity.

Leasing companies should offer you full disclosure of your lease transaction.  This disclosure will tell you what you are actually paying, the value of your trade, the term, interest rate, amount of acquisition fees, and the residual.

If you cannot receive full disclosure you should be very wary of the transaction and consider not committing to it.

Penalties may be charged by some companies for early termination of a lease and you should be aware of this as you may not want to be in that position in the future. You may also want to avoid excess mileage charges.

Taxes in Ontario are unique and complicated. If you purchase a new vehicle outright you must pay both GST and PST on the selling price. If you trade in a vehicle, you pay GST and PST on the difference unless you are a GST registrant. If you lease a vehicle you pay the GST and PST as you go. Taxes are payable with and in addition to each of the monthly payments, and the residual value if you purchase the vehicle at the end of the term. The down payment is also subject to GST and PST.

Documentation fees are charged by many dealers to offset the costs of all the administration involved in today’s costs of selling or leasing a vehicle. All trade ins must be searched to verify ownership and free title. All leases and finance contracts must be registered. All required supporting documents must be received by financial institution or lease company before the dealer is paid.

Any vehicle being considered by a customer should be test driven before any agreement is made. When deciding to lease or purchase a vehicle have the sales person outline the equipment and options for you by having them listed on a work sheet. Along with this should be a description of the exact model and code. This practice will ensure that you are getting what you expect, and that management is also aware of your expectations.

Licensing of your vehicle is your responsibility. It must be done prior to taking delivery, as well as transfers from one vehicle to another must be done immediately to ensure you have coverage.  The dealer will generally do this for you but you are responsible for the cost.