Why is Honda’s High Residual Value So Attractive?

Whether buying or leasing, there’s no shortage of factors to consider when you’re seeking a new car, and yet people often fail to take one of the most important into account: residual value.

New Vehicles Finance

 

The Importance of Residual Value When Buying

You’ll hear a lot of Danvers drivers talking about how buying, as opposed to leasing, is an investment; after all, you’re putting in money to make the car yours. So, it should come as no surprise that residual value is important.

All new cars depreciate in value, so the car you’re investing in is going to be worth less as the years go by. However, a car with high residual value isn’t going to depreciate as dramatically. That helps when the time comes for you to sell your vehicle and move on to a new one.

Car Salesman Speaking with Couple_101736128-1

 

 

Does Residual Value Matter When Leasing?

Residual value is just as important when leasing a vehicle, if not slightly more. Residual value is a crucial factor in determining your monthly payments. When you lease, you’re essentially paying for the value the car loses while it’s in your possession. If the car loses a smaller portion of value – in other words, if it boasts high residual value – the monthly payments will be lower.

Let’s take a hypothetical look:

  • You lease a $25,000 Honda Civic. It’s worth $20,000 at the end of the lease, so you’ve used $5,000 worth of value, or 20%.
  • You lease a $25,000 rival model. It’s worth $15,000 at the end of the lease, so you’ve used $10,000 worth of value, or 40%.

The dealership would clearly need to charge higher monthly payments for the rival model.

Couple Shaking Hands with a Salesman

 

 

Why Choose a Honda?

Okay, so residual value is important, but what does that have to do with Honda? Well, Honda vehicles have consistently retained a higher residual value than other brands. Several models have earned a Best Retained Value Award, and the following have all claimed the top-spot in their respective classes for resale value in 2018:

2018 Honda HR-V side view

 

Residual Value is One of the Most Important Things to Research When Buying or Leasing

Honda’s exceptional reputation for retaining residual value is an often overlooked benefit. Contact Honda North today to explore financing further.

 

More from Honda North

  • Explore the Upcoming 2024 Honda Prologue

      Honda has solidified its reputation for delivering excellent fuel saving models for your Lynn travels, and they aim to go even further with the anticipated new 2024 Honda Prologue EV. As a new all-electric Honda SUV, the Prolouge enables you elevate your mpg performance and enjoy an extra boost to transform your daily commute….

  • 2023 Honda HR-V Trim Levels & Prices

      If you’re in need of an accessible Honda SUV to get around Lynn and beyond with ease, then you’re sure to find the right match with any of the new 2023 Honda HR-V trim levels. This lineup of Honda SUVs features competitive pricing, accommodating features, excellent performance specs, and so much more to transform…

  • 2022 Honda CR-V Colors

      Did you know that there are eight exterior 2022 Honda CR-V colors to choose from? The variety of options in the new Honda CR-V colors ensures that this SUV is sure to turn heads in any Lynn neighborhood. The new CR-V colors for the interior are just as attractive. Let’s take a closer look….

 

AudioEye
Search
Contact
Glovebox
AudioEye
Search
Contact Us
Glovebox
Honda North 42.5976899, -70.9636209.