You have had your eye on the new Honda Accord for a while, but you are not quite sure if this is the car for you just yet. If this sounds like you, leasing is a great way to make a final decision. But, just how much does it cost to lease a Honda Accord?
In most cases, leasing a Honda Accord will cost approximately $360-$500 per month. However, this amount can vary based on the length of your leasing term and the amount of money you put down initially.
While many lessors offer leasing deals for $0 down, putting some additional cash down at signing can reduce your monthly payments.
Below, we will discuss more information about the cost associated with leasing a Honda Accord. Keep reading to learn everything you need to know before signing!
- How Much Does It Cost to Lease a Honda Accord?
- How Long is the Leasing Term on a Honda Accord?
- Leasing vs. Financing a Honda Accord: Which is Better?
- How Much Does It Cost to Insure a Leased Honda Accord?
- The Bottom Line
How Much Does It Cost to Lease a Honda Accord?
As far as leasing costs go, Honda Accords are pretty much on par with similar vehicles. Your monthly lease payments will likely be between $360-$500, with $375 being the true average.
Your exact monthly payments will vary depending on the terms of your lease. Shorter-term leases typically come with higher monthly costs, as do higher mileage limits. The table below will highlight the average cost of leasing a Honda Accord based on these factors.
|Annual Mileage Limit||24-Month Lease||36-Month Lease||48-Month Lease|
In addition to monthly payments, you will also have to consider the amount of money due at signing. You may be able to find a leasing deal that does not require an initial payment, but this will increase your monthly cost.
In general, expect to pay $2,000 upfront when you sign your lease agreement.
How Long is the Leasing Term on a Honda Accord?
A vehicle’s leasing term refers to the length of time you get to drive the car. Some lease terms are as little as 24 months, or two years, while others are up to 60 months, or five years.
In most cases, you will find Honda Accords with 36-month leasing terms. This is equivalent to three years. At the end of your lease, you may have the option to extend this term.
Leasing vs. Financing a Honda Accord: Which is Better?
When you lease a vehicle, you are essentially renting it from the dealership or third-party lessor. If you choose to finance it, on the other hand, you are purchasing the vehicle by making monthly payments.
Some people prefer the flexibility of leasing, while others like the freedom that comes with financing. The best option really depends on your unique set of circumstances. Below, we will highlight the differences between leasing and financing a Honda Accord.
Leasing a Honda Accord
When you lease a vehicle, you do not own it. The lessor essentially rents the car out to you for a set term, and your monthly payments balance out the car’s depreciation during this time.
The biggest advantage of leasing is flexibility.
Once your lease ends, you have a few different options on what to do next
Extend your leasing term
Upgrade to a newer leased vehicle
Purchase the vehicle for the remaining value
This type of deal gives you access to brand-new models with the latest features as soon as they come out. There is also no long-term obligation to your Honda Accord. If you decide you don’t like it at the end of your lease, you can walk away and try something new.
While leasing is an excellent option for people who enjoy this kind of flexibility, there are a couple of downsides. You will need more insurance than just liability coverage to protect the lender’s investment, and you can’t make any modifications to the vehicle.
There’s also the issue of mileage limits. To keep your Honda Accord’s value high, you will have annual limits on the number of miles you can drive. These vary by lender, but are often between 10,000-15,000 miles per year.
Financing a Honda Accord
Although both financing and leasing require you to make monthly payments, they are very different concepts. When you finance a car, all the payments you make go toward the purchase of the vehicle, not the depreciation in value over time.
Compared to leasing, you have much more freedom when you finance a vehicle. The car is yours and yours alone, meaning you can make all the modifications you’d like and even sell it in the future.
This means there are no mileage limits to worry about, either. You can take your Accord on a cross-country road trip, or just use it to drive back and forth to work. Drive as much or as little as you want to.
The biggest downside of financing? It’s typically more expensive. Depending on your loan term and down payment, your monthly expense could be anywhere from $360-$700.
Dealerships and other sellers recommend that you put down about 20% of the total price when you purchase the vehicle. New Accords usually go for between $25,000-$30,000, meaning you will want to put down between $5,000-$6,000 at signing.
The length of your loan will also impact the monthly cost. Most car loans go for 60 months, or five years, but you may want to shorten the term to reduce the amount of interest you incur.
Shortening your loan term will increase your monthly payments, but you will likely end up spending less money overall. The table below will highlight the average monthly financing cost based on your lease term.
|Loan Length||Low-End Cost||High-End Cost|
How Much Does It Cost to Insure a Leased Honda Accord?
Insurance is usually more expensive on a leased vehicle than on one you own. This is because you need more complete coverage to protect both yourself and the lessor in the event of damage.
The amount you will pay monthly or annually can vary based on where you live, your driving history, and your chosen deductible amounts. On average, however, expect to pay $175 per month or $2,100 annually in insurance costs.
|Low-End Monthly Insurance Cost||$120|
|High-End Monthly Insurance Cost||$250|
|Average Monthly Insurance Cost||$175|
What Type of Coverage Do You Need?
Because you do not own the vehicle you’re leasing, you’ll need more complete insurance coverage. This is intended to protect the lessor’s investment and reduce their risk while leasing the vehicle to you.
When you own a vehicle, you usually only need liability insurance. However, lessors often require that you also purchase comprehensive and collision policies for your leased Honda Accord. While it’s not required, many loaners recommend gap coverage, as well.
What is Comprehensive Coverage?
Comprehensive insurance covers any damage to your vehicle that is outside of your control.
This includes damage due to
Weather and other acts of nature
This type of policy often comes with a deductible. Your lessor may have specific requirements when it comes to the amount. However, agents usually recommend a deductible between $100-$500.
What is Collision Coverage?
Collision coverage, as the name suggests, covers any damage due to a collision with another vehicle or an object. Unlike liability insurance, which does not cover the at-fault driver, collision insurance will cover your vehicle no matter who’s at fault.
Like comprehensive policies, collision coverage comes with a deductible. This amount is typically between $500-$1,000, but your lessor may have specific recommendations.
What is Gap Coverage?
Vehicles begin depreciating as soon as you drive them off the lot. If your vehicle is stolen or totaled during the leasing term, gap coverage helps pay the difference between what you owe and the vehicle’s actual value.
While a gap policy is not usually required, it can be very helpful if you ever find yourself in this situation. Not only will it help the lessor protect their investment, but it can also save you from a huge bill if something ever goes wrong!
The Bottom Line
Leasing a Honda Accord before you decide to purchase it is often a great choice. Leasing allows you to test out the vehicle, see how it handles, and decide whether or not you like it.
If you decide that this is the car for you, you can purchase it at the end of your leasing term for the remaining value.
Leasing a new Honda Accord will usually cost anywhere between $360-$500 per month, with the average monthly cost being $375. However, the actual price will vary based on the terms of your lease.
Although many loaners offer leasing deals with no initial payment required, putting some cash down at signing can reduce your monthly payments. Typically, you will want to put down approximately $2,000 when you sign your lease.