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

  • Honda CR-V Trim Levels

    The 2018 Honda CR-V is a versatile vehicle, great for North Plainfield driving. What separates this model from others in its class are the Honda CR-V trim levels you get to choose from, each providing the same style and quality but designed to meet your unique needs. Compare the CR-V trim levels below and find…

  • How Do I Connect and Use Android Auto™ for My Honda Vehicle?

    Contact Us Wondering how to connect and use Android Auto™ for your Honda model? As long as you have an Android smartphone, you have nothing to worry about. Watch this simple video, then make your way from South Plainfield to VIP Honda to see it in action! Connecting and Using Android Auto™ Connecting an Android Auto™ compatible phone to…

  • 2018 Honda Civic Reviews

    Learn MoreView InventoryContact Us From the Honda CIvic safety features to upgraded interior features, the Honda Civic is a great choice for South Plainfield drivers, and reviewers agree. Read through a few snippets from Honda Civic reviews, and learn more about what makes it a favorite in its segment—and here at VIP Honda, too. See what the…

  • How to Jump Start a Car

    Schedule Service It happens to almost every South Plainfield driver at some point: you’re stranded with a car that won’t turn on because the battery is dead. What do you do? Figure out how to jump start your car battery, and count on the team at VIP Honda for a range of automotive tricks and tips. A…

  • 5 Tips to Becoming a More Fuel-Efficient Driver

    View InventoryContact Us If you frequently fill up your Honda in Union — or anywhere, really — you probably know that gas is expensive. But you don’t have to feel like you’re emptying your wallet every time you fill up your car. Reduce the cost of daily driving and become more eco-friendly with these five…

  • Active Safety: Honda Sensing® vs Subaru Eyesight

    View InventoryContact Us While Subaru Eyesight offers a number of active safety features, it fall short of Honda Sensing® in a number of different areas. First, see how Honda Sensing® beats Toyota Safety Sense, and then check out this comparison guide to see how Honda’s active safety lineup beats Subaru’s when it comes to road…

Posted in Honda Models