Car Buying Frequently Asked Questions
Buy vs. Lease
When it comes to whether to buy or lease a car the options can be confusing. To help you make an informed decision we have provided detailed information about Who Owns It, Future Value, etc, here. We hope you find it informative and useful.
Components of a Lease Payment in Wisconsin
A lease payment is essentially comprised of three components: Depreciation + Interest + Tax.
- Depreciation is the difference between the capitalized cost and the lease end residual.
- Interest is paid per month on the outstanding balance.
- Tax in the State of Wisconsin is calculated on the payment itself, not the transaction price. That’s a big advantage and a major reason why leasing is so popular in Wisconsin.
Honda Car Leasing Benefits
Here are some top reasons to lease Honda cars:
- You get more automobile for the money
- Low monthly payments
- Vehicle is covered up under warranty
- You would like to drive a new automobile more often
- You don’t like selling or dealing your used car
- Low or zero down payments
- Lower sales tax (in most states)
Scenario: You finance a Honda car for 60 months and, for whatever reason, you are ready for something new in 36 months. At first, you believe you can trade your Honda car until you realize you owe more than it’s worth. So you venture to a trader to try to work out a deal. You end up burying all that negative equity into the following loan. And the cycle goes on.
Numerous people have good intentions of paying off their car loan and keeping the vehicle at least for the length of the loan. Unfortunately, most folks end up trying out to get out of their loan too soon because they want another Honda car.
Honda Car Leasing: A benefit to leasing is your Honda car is up-to-date. Cars eventually become outdated. With a lease, you eliminate the financial burden of obsolescence to the Honda car leasing company. When that lease expires you are free to lease newer Honda car, potentially faster and cheaper. In fact, 65% of responders on a Honda Car Leasing Association Survey stated the ability to have the latest Honda car was the #1 benefit of leasing.
Budget Friendly: With a Honda car lease, you have a preset monthly bill, which can assist you in budgeting more effectively. 35% of responders to the Leasing Association’s survey stated this was leasing’s 2nd highest benefit.
Low or Zero Down Payment: A lot of people fight with cash flow and must keep their coffers as full as possible. Since leases seldom ask for a down payment, you can drive a new Honda car without tapping much-needed funds.
Modern Technology: Honda car leasing can enable you to get advanced technology, such as a 7-speed Honda Doppelkupplung (PDK), a Burmester Hi-End Sound System, Honda Communication Management (PCM), and a Honda Ceramic Composite Brake (PCCB), that could otherwise be expensive. The result: you are better able to keep up with your larger competitors without exhausting your financial resources.
At signing you can expect to pay for the first monthly payment, the security deposit, the acquisition fee, and other fees and taxes, so be prepared. Depending on your financial situation you may be able to finance some of your up front costs through your lease contract.