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

  • Preparing Your Car For Trade-In

    Tire care is crucial to maintaining the overall health of your Honda model while driving on the Newburyport roads. Follow a few simple tips from the Honda North service center! Contact Us Q: How do I check my tire pressure? Driving with under-inflated tires can cause major problems for your vehicle. On the performance end, you…

  • What Is a Lease Buyout?

    Put simply, a lease buyout is when a dealership lets you buy out of a lease before it ends. Traditionally, there are two distinct types of a lease buyout, so be sure to read up on your options! Take a look at the different types to see which works best for you, then make your way…

  • Explore the History of the Salem Witch Trials Near Danvers

    The town Danvers is best known for the Salem witch trials of 1692. The first of nearly 200 victims, Rebecca Nurse, lived in Danvers. Her homestead is now a landmark for people to visit. There’s plenty of historical places to visit that will take you back into the history of the Salem witch trials. Learn more about…

 

Saved
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
Contact Us ×

(978) 539-5059

Call Now

382 Newbury St • Danvers, MA 01923

Get Directions

Today's Hours:

Open Today! Sales: 9am-9pm

Honda North

382 Newbury St Danvers, MA

Phone: (978) 539-5059

http://maps.google.com/?q=Honda+North,382+Newbury+St,Danvers,MA

Sales

Phone: (978) 539-5059

382 Newbury St Danvers, MA

Service

Phone: 978-539-5002

382 Newbury St Danvers, MA
42.5976899 -70.9636209
[schema type="organization" orgtype="LocalBusiness" url="www.hondanorth.com" name="Honda North" description="" street="382 Newbury St" city="Danvers" state="MA" postalcode="01923" country="United States" email="hneleads@iclautos.com" phone="(978) 539-5059" logo="https://www.hondanorth.com/wp-content/themes/DealerInspireDealerTheme/images/logo.png"]
Honda North
Honda North
382 Newbury St
Danvers, MA, 01923 United States
(978) 539-5059
https://www.hondanorth.com/wp-content/themes/DealerInspireDealerTheme/images/logo.png
Honda North 42.5976899, -70.9636209.