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

  • 2020 Honda Civic MPG Ratings

    If you’re like most of our Lynn customers, you don’t want to empty your bank account to fill up your gas tank. Who does? Honda knows that, which is why the 2020 Honda Civic fuel economy is so impressive. You won’t have to worry about going broke at the pump, no matter which Honda Civic…

  • How Much Can a Honda Pilot Tow?

    Don’t let the sleek, sophisticated looks of the new Honda Pilot fool you. This beautiful SUV is not just for commuting. The Pilot is built to play as hard as you do. That means it can handle towing your boat or ATVs all over the Lynn area on the weekend. How much can a Honda…

  • What are the 2020 Honda HR-V Safety Ratings?

    From Lynn to Newburyport, Ipswich area drivers know that Honda safety is among the very best in the auto industry today. Honda sets the standard with innovative technology and state-of-the-art features, and you can look at the 2020 Honda HR-V safety ratings as a shining example. This popular SUV has earned strong safety ratings from…

 

Saved Vehicles

SAVED VEHICLES

You don't have any saved vehicles!

Look for this link on your favorites:

Save

Once you've saved some vehicles, you can view them here at any time.

Contact Us

(978) 539-5059

Call Now

382 Newbury St • Danvers, MA 01923

Get Directions

Today's Hours:

Open Today! Sales: 9pm-7pm

Honda North 42.5976899, -70.9636209.