Ever since it was redesigned in 2018, the Honda Accord has received much praise from critics and consumers alike. And what’s not to like about it? Its sharp exterior styling, luxurious interior features, and choice between a fuel-efficient 1.5-liter engine or a stout 2.0-liter one make it a viable choice for almost anyone in the market for a mid-size sedan. And if you are currently shopping for one, then now is a great time to lease a 2021 Honda Accord.
Financing a 2021 Honda Accord Might not be the best idea
When shopping for a car, you might be accustomed to the idea of financing it instead of leasing. However, when it comes to the 2021 Honda Accord, you might want to reconsider that idea. According to Ari Janessian, an auto broker on YouTube that gives car-buying advice, the incentives for financing don’t look that great right now.
Janessian’s financing breakdown looks like this:
2021 Honda Accord Sport 1.5-liter
Monthly: $479 plus tax
To explain these numbers, Janessian uses the 2021 Honda Accord Sport trim level equipped with the 1.5-liter engine since there are currently over 7,000 of them sitting at dealerships nationwide. The MSRP for that specific model is $28,580, however, Janessian says that you should aim for a target selling price of $26,865 after negotiations and any available dealer discounts.
Speaking of discounts, one of the reasons that financing an Accord isn’t so favorable right now is the fact that there are currently no nationwide rebates being offered by the manufacturer, which means that you might not get the best price possible this month.
However, there is currently a special financing rate of 1.9% for up to 60 months from Honda Financial, which would be beneficial to take advantage of should you want to go the financing route. Ultimately, this pricing example equates to a monthly payment of $479 for 60 months at that special financing rate.
Leasing a 2021 Honda Accord looks much better
If you’re shopping for a 2021 Accord this month, then leasing would be the better way to go. While you might not be keeping the car at the end of the lease term like you would with the financing route, you’ll have more options at the end of the lease term and, best of all, you’ll have lower monthly payments.
As far as leasing a 2021 Accord Sport 1.5-liter, Janessian’s breakdown looks like this:
Money factor: .00066
Down payment: $1635 (inception fees only)
Monthly: $303 including 6.5% sales tax
To further explain these numbers, Janessian used the same MSRP and target selling price of $26,865. There is currently a $200 rebate from the manufacturer if you lease the car, which is a small amount, but it’s better than nothing.
Luckily, Honda vehicles are known for their superb residual values and this Accord is no exception. After 36 months, you can expect a residual value amount of 61%, which means that you’ll have lower payments through the lease term.
Even better, Honda Financial has a money factor rate of 0.00066 (1.5% APR equivalent), which means that if you were put a down payment of $1,635, which is the inception fees only (first month’s payment, tax, title, and fees only), then you could look forward to a monthly payment of $303, which includes a 6.5% sales tax.
Your pricing, incentives, and taxes may vary
While that least payment looks great, considering you will be paying somewhere in the high $200 range before taxes, keep in mind that the pricing, incentives, and taxes may vary. Different areas of the country have different taxes and some dealerships may provide a larger discount than others.
So be sure to contact a few different dealers during your research phase. Also, the aforementioned incentives and rates may differ from month-to-month, so these numbers can differ in that regard as well.