Honda Finance FAQ
What is Leasing?
If you enjoy driving a new vehicle regularly, like to keep your monthly vehicle expenses low & prefer to drive a vehicle that’s always under warranty – then you should consider leasing as a great option.
As a lease customer, you pay only a portion of a vehicle's cost, which is the part that you "use up" during the time you're driving it. Taxes are only charged on the monthly payments and not the full vehicle price.
Signing a leasing contract means that you agree to make regular monthly payments, keep appropriate insurance, pay any vehicle taxes and licensing fees, and take good care of the vehicle for the duration of your contract.
What are the benefits of leasing?
With lower monthly lease payments over a shorter period of time, you can drive a new vehicle more often.Low Monthly Payments & Flexible Terms
Lease payments are traditionally lower than retail payments on the same vehicle. That allows you to keep more of your cash to use or invest.Less Taxes
You pay only the taxes on the monthly payment rather than the full cost of the vehicle.
What is a one pay lease?
HFS One-Pay Lease is a designed for people who prefer to pay for their lease upfront and bypass monthly payments. It’s also a preferred choice for those who like the idea of getting a new vehicle more often and save money on interest. By paying all lease payments in a single lump-sum payment upfront (One-Pay), customers receive all the benefits and comforts of a traditional lease, but with the added benefit of significant interest savings. To see if an HFS One-Pay Lease is right for you, please speak to your Honda dealer.
What is a Closed End Lease?
A closed end lease means there is a set number of payments that you agree to make over the term of your lease. HFS determines the purchase price or “residual value” of your vehicle up front.
At the completion of the lease, you can choose to purchase the vehicle for the Residual Value (plus applicable taxes and fees) or simply return it without further obligation.
Do I have to insure the vehicle?
Yes. You are responsible for insurance coverage.
Is a down payment required?
No. Down payments are not required on a lease but you may choose to make a down payment in order to reduce the monthly lease payments. .
What is due at the time of picking up the vehicle?
Most lease agreements require a first monthly payment on delivery of the vehicle, a refundable security deposit and any applicable provincial fees.
Am I responsible for maintenance?
Yes. You are responsible for maintaining the automobile. A maintenance schedule is outlined in the owner's manual.
Am I responsible for wear and tear charges?
If you are returning your vehicle at lease end, your vehicle will be inspected by an independent company to determine if there is any chargeable damage.
Chargeable damage can include dents, paint damage, missing equipment cracked or chipped glass, mechanical damage, holes, tears or burns to upholstery.
You are responsible for either repairing identified damage to acceptable standards prior to returning the vehicle or paying the amount indicated on the inspection report plus applicable taxes.
For peace of mind, ask your dealer about Honda Lease-Guard.
How many kilometers can I drive?
HFS offers low mileage lease options starting at 12,000 km or you can choose our standard allowance of 24,000 km. You can also purchase additional kilometers up front if needed.
What is the Total Vehicle Price?
While taxes are not included in this price, it does include all equipment, accessories, freight and dealership fees.
Do I own the vehicle?
Yes. You are the owner of the vehicle. HFS will have a lien on your vehicle until the loan if paid in full.
Is this an open or closed loan?
All retail loans from HFS are open. You may pay the full balance at any time without prepayment penalties.
Are there any fees?
Yes. Fees vary from province to Province. However HFS demands transparent fee disclosure so fees are easy to see and understand.
You can typically expect to see:
What is conventional financing?
Your interest rates are fixed and equal monthly payments remain the same during the 24 to 84 months of your loan term. Note: 84 months only available on New Vehicles.
When should I have my leased vehicle inspected?
The inspection should be completed 30 days prior to the return of the vehicle. This allows you the necessary time to have the repairs made. Or, if you choose not to make the repairs, you will receive an invoice for the cost of excess wear and use.
Can my Honda Dealer perform the inspection of my vehicle?
Only authorized agents can perform the vehicle inspection. We have contracted a third party service provider to perform our vehicle inspections. To get assistance in scheduling your vehicle inspection, please contact our Honda Finance Customer Service at 1-800-387-5399
What if something happens to my vehicle between the time it's inspected and the date that I turn in the vehicle?
Your vehicle is subject to a final inspection. If a condition arises after your preliminary inspection, you may still be liable for it. However, sometimes damage or malfunctions can't be detected during the inspection, or an unexpected condition arises after your vehicle is inspected. If you receive an invoice from us for charges with which you are not familiar, please contact our Honda Finance Customer Service at 1-800-387-5399.
Do I have to be present during the inspection?
Since you will be asked to sign the report, you will want to be present as the inspector looks at the vehicle. If you simply cannot be present for the inspection, enlist someone who knows your vehicle well to be there for you.
How do I find out more about your rates?
In order to find the most current rates being offered by Honda Financial Services, visit the Build & Price website or your nearest Honda dealer.
Can I insure my leased vehicle for more than $1,000,000 for Third Party Liability Coverage?
Yes. $1,000,000 third party liability insurance is the minimum requirement to meet the terms of your vehicle lease agreement. You are always welcome to increase Third Party Liability coverage to meet your additional needs.
Can I reduce the amount of my collision & comprehensive deductibles from $1,000?
Yes. Lower deductibles are acceptable, however, $1,000 is the maximum deductible allowed.
Who is OPTA?
We have partnered with OPTA a professional firm that specializes in Insurance Tracking. They will confirm that your vehicle is adequately insured and inform you if there is a problem. All other aspects of your lease account are handled directly by Honda Financial Services.
Does Honda Financial Services require a copy of my insurance policy?
Yes. Honda Financial Services requires a copy of your full insurance policy including endorsements and coverage limits every year upon renewal.
How can I send a copy of my insurance to OPTA?
When you change insurance carriers or renew your policy, either you or your agent must send a copy of the new policy to OPTA. You may choose to take a clear photo of the policy with your smartphone and securely upload it at www.insuranceonfile.com. If you have more than one policy covering this vehicle, please ensure that all are uploaded to the website.
If sending by mail:
Honda Canada Finance Inc.
600 - 175 Commerce Valley Dr. W.