What do I owe when my Honda lease ends?

The decision between buying or leasing a new Honda should begin with an examination of your driving habits.  If yours is a lengthy daily commute—or your inner vagabond cries out for frequent, mileage-intensive road trips—you are probably better off buying. On the other hand, if most of your automobile travel is local—but your inner fashionista always craves the latest new car models and driving technologies—leasing will likely be your most satisfying option. Of course, certain financial considerations should also be weighed before making your final decision to buy or lease.

When you buy a new Honda , you typically know exactly how much it will cost before you take possession.  Even if you finance the vehicle, you still know to within pennies what your exact monthly obligation will be before driving off the lot.  There will be no additional charges related to the purchase price, so long as you faithfully abide by the terms of the loan.  Best of all, after the loan is paid off, you own the car free and clear.

Leasing a new Honda, on the other hand, involves a little less certainty.  In a perfect world, you would never drive beyond your lease’s allotted mileage; nor suffer the indignity of a scratch or dent on the car’s body, circumstances that often result in extra charges at the end of the lease.

Still, in our less-than-perfect world, Honda has taken steps to minimize any out-of-pocket costs you might incur at lease end, thanks to the Honda Leadership Leasing program.  The cost of routine maintenance is also minimized because most leases end before the manufacturer’s warranty expires. Moreover, while regular maintenance—such as oil changes and tire rotations—are required per the terms of your lease, the associated costs are minimal.

At the end of your lease, you have three basic options moving forward.  You can return your leased Honda in exchange for a new one, purchase it at the agreed-upon price; or simply return it and walk away.  The amount you owe at the end of your lease will largely depend on which of these options you choose.

Here’s how each one works, including what you can expect to owe once the lease expires:

Option 1:  Exchange your leased Honda for a new one

If you like the Honda leasing experience as much as we think you will, your best option is to repeat it.  Signing a new lease not only results in driving the new Honda of your choice, but also entitles you to certain loyalty benefits—through the Honda Leadership Leasing program—which are calibrated to save you money now and on future leases. Your Honda Leadership Lease includes a $500 damage waiver.  At the end of your first lease, if any scratches, dents or other excess wear and use add up to more than $500, you are required to pay the difference.   Your lease outlines exactly what is meant by “excessive wear and use.”  Please review it carefully before signing.

Approximately two months before your lease expires, you are advised to schedule a free inspection to evaluate the vehicle’s condition.  Upon completion, the inspector will provide a Vehicle Inspection Report and review the results to help you understand exactly what repairs you will be responsible for at lease’s end. This extra time will allow you to take care of any necessary repairs yourself.  Or your authorized Honda dealer will be happy to complete them for you. The vehicle inspection is free, and the inspector will travel to a location convenient for you.

Additionally, at lease’s end you are responsible for any outstanding monthly payments, excess mileage surcharge, turn-in fee, and any other outstanding payment obligations agreed-upon in your lease.  The “turn-in fee” is charged for processing the vehicle once it is returned to the dealership; but is often waived for loyal customers who lease a new Honda within 30 days prior to, or after, the turn-in date of their last vehicle.  The exact amount of the fee depends on your state; but can be as high as $350.

Loyal customers may also qualify for an incremental damage waiver of up to $500 (for a total not to exceed $1,000 per lease); and may be eligible to have the turn-in fee waived.

Option 2:  Purchase your leased Honda

If you decide to purchase your Honda once the lease expires, the process is easy; and no vehicle inspection is required.

From day one of your lease, you will always know exactly what the final purchase price will be, as it is determined at signing and included in your contract.  The price is non-negotiable and may be financed through Honda Financial Services.

To complete the purchase, simply pay any outstanding balance on your account.  Additional sales and/or property taxes may be assessed depending on where you live.  If your lease included a security deposit, it is generally released once the outstanding balance is paid in full.

Upon verification of final payment, the car’s title will be mailed to you within two to three weeks, depending on the state and how the title is held.

Option 3:  Return your leased Honda and walk away

As explained in Option 1, your Honda Leadership Lease includes a damage waiver of $500, making you responsible for any costs over that amount.  As in Option 1, you will receive a detailed Vehicle Inspection Report alerting you to the repairs that must be made to satisfy the terms of your lease.

Additionally, you are responsible for any outstanding payments, excess mileage surcharge, turn-in fee, and any other outstanding obligations specified in your lease agreement.

Contact us for more information: To learn more about buying or leasing a new Honda, visit Wilde Honda Sarasota at 7333 South Tamiami Trail, call us at (941) 923-3413; or visit us online at gowildehonda.com.