Honda Canada Lease Agreement

Leasing is just another form of vehicle financing. Instead of paying your credit at zero, the residual value of the vehicle is determined. This residual value usually reflects the future value based on a certain mileage. For example, a lease allows 24,000 km per year and the residual value is set for this mileage. You will then have the option, at the end of the lease agreement, to purchase your lease agreement, return it if it is below mileage, or extend your lease until you ship it or exchange it for a newer model. What will happen if my lease expires? You can rent a vehicle for only 12 months and up to 60 months, depending on your needs and budget. In the case of a loan, you pay interest on the total amount financed or leased. They therefore pay interest on the total amount of the lease and not on the difference between the amount financed and the residual value. This is the same basic assumption as a loan or mortgage. The residual value is part of the lease calculation, so you know the residual value if you negotiate your lease Your lease can be displayed like any other payment obligation or it can only appear as a pledge in your credit file Option 1: Return your vehicle and rent a new one. This option is comfortable, easy and best of all, you can start in a brand new Honda! Thanks to our loyalty programme, we can offer you special prices and conditions if you conclude a new rental agreement.

The total cost of leasing is the total of the monthly payments plus all amounts paid to reduce the cost of the vehicle, i.e.: cash deposit, vehicle deposit, taxes incurred, vehicle license fees and registration fees. If you can claim part of your vehicle for commercial business, you may be can cancel your lease agreement. Check with your accountant to be sure. Remember that during the last two months of your lease agreement, you should always schedule a free vehicle inspection. You are also responsible for unpaid bills, excessive wear and tear and use, excessive mileage and all other obligations set out in your rental agreement at the end of the term. Yes, you can either refinance your lease or release it. We offer both options. Most leases allow you to negotiate the sale price or cost of capital of the lease agreement.

Yes, you have a payment that must be covered in your rental agreement. If your vehicle is worth the same or more than the payment, you are good, but if it is worth less, you have to pay the difference. Some leasing companies allow you to add this default to a new lease. This varies from brand to brand. Not all leasing companies offer used car rental….

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