Why is Honda’s High Residual Value So Attractive?

January 8th, 2018 by

2018 Honda Accord outside home

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.

The Importance of Residual Value When Buying

You’ll hear a lot of North Plainfield 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.

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.

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:

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 VIP Honda today to explore financing further or to arrange a test drive!

Recent News from VIP Honda

  • How Does an Oil Change Work?

    Service SpecialsSchedule ServiceContact Us Regular oil changes are vital to keeping your South Plainfield vehicle running smoothly and efficiently for years to come. While the staff at VIP Honda is well-trained and ready to change your oil, we know some drivers prefer to handle it themselves. Luckily, are are here to guide you through changing your oil…

  • Where is the Best Pizza in Plainfield, NJ?

    Contact Us Pizza is a timeless favorite among Edison residents, and when you want some tasty pie with all the fixin’s, you’ll need to check out these restaurants with the best pizza in Plainfield, NJ. Ferraro’s Pizza Plainfield, NJ What makes Ferraro’s Pizza so great is that there’s more than just pizza. This family owned…

  • Genuine Honda OEM Parts at VIP Honda

    Contact Us South Plainfield drivers count on VIP Honda for our full stock of Honda OEM parts, specifically approved by Honda to be fitted onto specific models. Order Honda genuine parts from our dealership in North Plainfield today! Why Choose Genuine OEM Parts? Each Honda vehicle is engineered with unique features like the Honda Sensing® suite so…

  • What is HondaLink?

    Contact Us HondaLink is a connectivity suite that enhances your daily drive in a variety of ways. The HondaLink first-generation system allowed drivers to connect their compatible smartphone to do a few convenient things that improved driver safety, including: Hands-Free Calling Phonebook Access Music Streaming Selected App Access Learn more today at VIP Honda! Advanced…

  • Does Honda or Toyota Offer Better Safety Features?

    Learn MoreView InventoryContact Us Honda and Toyota have been at the forefront of the market when it comes down to helpful safety technologies for your hectic Edison commute. Both Honda Sensing Suite and Toyota Safety Sense technologies employ active features to help crashes from occurring. But which safety package – and, as a consequence, which brand…

  • How to Change a Flat Tire: The Right Tools and the Right Method

    Contact Service How to change a flat tire – it’s knowledge all drivers should have, and yet it’s a skill frequently neglected. To start, you’ll need the following: The Right Gear The Right Method The Right Gear Firstly, have these items in your car: Jack Lug Wrench Fully Inflated Spare Tire Owner’s Manual If you…

Posted in Honda Models