A Plain-language guide
to your Honda Lease.
Whether you’re considering a lease for the first time, partway through a term, or approaching lease-end, this page walks through how Honda leases work and what to expect at each step.
THE BASICS
What is a lease?
A vehicle lease is a binding contractual agreement where you pay to drive a vehicle for a fixed period of time without taking ownership of it. Think of it as a long-term rental arranged through Westwood Honda and Honda Financial Services.
Unlike financing a purchase — where you pay for the entire value of the vehicle — a lease only charges you for the portion of the vehicle’s value that you actually use during your term.
Key characteristics
Most Honda leases run between 24 and 60 months.
You pay for the vehicle’s depreciation during your term, plus interest and tax.
Your contract sets an annual kilometre limit agreed to up front.
When the term ends you can return, buy out, or replace the vehicle.
LEASE GLOSSARY
Things to know about leasing
Five terms that come up in nearly every lease conversation. Knowing what they mean makes the rest of the contract easier to follow.
01
Capitalized Cost
The negotiated price of the vehicle, plus charges, fees, and government levies at the start of the lease.
02
Residual Value
The estimated worth of the vehicle at the exact end of your contract — locked in on day one.
03
Mileage Restrictions
Lease contracts offer different annual mileage caps based on how much you actually drive.
04
Taxes
Sales tax is calculated only on each monthly payment, not on the upfront sticker price of the car.
05
Term Length
Lease for as short as 24 months or as long as 60 months — choose what fits your life.
HOW LEASING WORKS
What a lease includes
A look at the financial, practical, and end-of-term elements that make up a typical Honda lease.
Financial considerations
How a lease affects upfront cost, monthly payments, and taxes.
Convenience & lifestyle
What day-to-day ownership looks like during the lease.
Depreciation & residual value
How the vehicle’s future value is handled in a lease.
Equity at lease-end
What happens if the vehicle is worth more or less than expected.
Newcomer programs
Options for customers with limited Canadian credit history.
End-of-lease options
The choices available when your contract reaches its term.
AT LEASE-END
Your three options
Every Honda lease ends with the same three choices. Here’s how each one works at Westwood Honda.
01
Replace your lease
Start a new lease or finance contract.
If you’d like to stay in a Honda, you can move into a new lease or finance arrangement when your current term ends.
02
Buy out your lease
Keep your current vehicle.
You can purchase the vehicle at the residual value defined in your lease contract through the BUYSMART process.
03
Return your lease
End the contract and hand back the keys.
Return the vehicle to Westwood Honda at the end of your term. We’ll walk through the inspection and any final paperwork.
BUYSMART
WESTWOOD HONDA PROCESS
About BUYSMART
BUYSMART is the process Westwood Honda uses to walk lease customers through their end-of-term options. It outlines residual value, any equity in the vehicle, and the steps for replacing, buying out, or returning the lease.
Common lease questions
Answers to the questions Westwood Honda customers ask most often. If yours isn’t here, the lease team can help.
Honda Financial Services owns the vehicle during the lease term. You’re the registered driver with full use of the car, but the title stays with the lessor until you exercise a buyout.
Any kilometres driven beyond your contracted cap are charged at a set per-kilometre rate at lease-end. If you expect to drive more, we can structure a higher mileage allowance up front — it’s almost always cheaper than paying overage fees later.
Yes. You can buy out your lease at any point during the term. The payoff amount is calculated based on remaining payments plus the residual value. Franklin can run an exact quote for you.
Ending a lease before the contracted term typically involves termination fees and the remaining payment balance. In many cases, trading into a new lease or financing arrangement is more economical — we’ll walk you through both options.
Lease payments are based on the difference between the capitalized cost and the residual value (depreciation), divided over the term, plus interest (the money factor) and applicable taxes on the monthly payment.
Yes — routine maintenance (oil changes, tires, brakes, etc.) is your responsibility, just like any vehicle. Major mechanical repairs are typically covered by Honda’s factory warranty during the lease term.
Permanent modifications aren’t allowed since the vehicle must be returned in factory condition. Reversible accessories (floor mats, roof racks, etc.) are fine as long as they’re removed before return.
Commercial ride-share use generally isn’t permitted under standard lease terms. If you’re considering it, talk to us first so we can structure a contract that works for both you and Honda Financial Services.
You don’t have to, but servicing at Westwood Honda keeps a complete record with the manufacturer, ensures genuine Honda parts, and protects warranty coverage on major components.
Yes — Honda offers lease programs on select Certified Pre-Owned vehicles. Talk to us about current inventory and approved CPO lease terms.
You have three: upgrade to a new Honda, buy out your current vehicle at the locked-in residual, or return it. See the lease-end options above for details on each path.
GET IN TOUCH
Questions about your lease?
Franklin Badu, our Lease Portfolio Manager, is the point of contact for lease customers at Westwood Honda. Reach out by phone, email, or the form below — no appointment required.
FB
Franklin Badu
Lease Portfolio Manager
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