Honda Civic Leasing Advice - Newb

1. Don't lease 60m although it sounds cheaper, the longer you hold the car, the more there is tear and wear and parts that needs to be replaced.
Keep the lease at 3-4 years, during that period, your car is still under warranty, you won't have to pay out of pocket to fix it in case the car needs repairs after the warranty period ends.
They are throwing out the winter tire package so your summer tires will likely last for 4 years until you return. Versus 60 months, you will have to buy new summer and winter tires after 4 years, same for battery and other wearable parts.

2. Dealer did not give out any discount other than the winter tires package. MRSP can be $1600, but indeed 4 soso winter tires on a Civic is probably around 500-600$. Steel rims are $50 each ($200 for 4), Those are freebies of under $1000, not $1600
You need to nego down further, and nego the MRSP of the car, not payment. For example, ask to get an extra 1-2k down on top of the $750 rebate.

3. Consider getting lease protection plan. This is your first car, so it is better safe than sorry, it cover some minor damages up to a certain amount when you return the car, for examples, shopping cart scratches, windshield dent, bald tires...

4. Check careful the final bill of sale before you sign it, don't be afraid to have the salesman to Email you the draft and you can check it out careful or even upload it here for us to give you other advice if they added any "strange" fee.

5. Estimate your mileage, are you go to commute a lot? chose the allowable mileage that you need. From 18000km to 24000km, it is probably $20-30$ more per month? but if you pick the lower one and went a lot over, it can cost you thousand of dollar for penalty.

$290 tax in sounds low, but this is because of 60 months lease. I wouldn't say this is a good deal. if this is a 48 months lease, then yeah.

Good Luck!

From Honda website with your listed config the car would cost $328.26/month after tax. You are getting ~14% discount which isn't too bad. The winter tire package they are giving you is probably the $1440 one with Michelin X-ice steel wheels (from their website). To buy yourself you can keep the cost under $800. So you can ask them to give you $1440 discount instead of the wheels, then you'll save another $600 from there.

2022 Civic is coming mid-June so you can shop around to get a better price since dealers will want to clear out all 2021 inventory (not that there are many to begin with)

Try to stick to 3 year lease if possible. Lease will be covered under warranty and then after 3 years you can decide on keeping it or not.

Agree with MP3 and Alic...

I would pursue that they thrown in the Protection Package as you are leasing for 5 years. There is a 50/50 chance you will not buy it out after the lease. I think you can still get a better deal. I would use the email bomb approach this time as most of the dealerships trying to clear the 2021 model. Good luck.

What the others seem to ignore is that you are looking to "own" the car. You can lease and by the end of your lease buy out the car. You would want to buy the car out and not finance it afterwards as a car generally starts having issues after 5 years where you need to spend money on fixing such as a new set of tires. Having things like the lease protection is useless if you are going to buy it out afterwards. I do agree the $1600 winter package is too expensive. Should be under $800 or you can choose to not take it and buy your own rims and winter tires somewhere else.

You may also ask the dealer about the OTD(out the door) price as it is the total price of the car including the taxes, leasing costs, fees, etc. That would help you if you have an overall budget like a max of $30k all in.

Now if you don't think you are going to buy out the car once the lease end, then yes get the lease protection. You can still buy rims and winter tires somewhere else if you so choose. With that, you shouldn't put a downpayment on the lease as you are going to give the car back to the dealer at the end. A security deposit would be better where you can get the money back.

The 2022 Civic has been announced the StraightPipes, a Canadian auto reviewer, just did a video on this. The car should be on sale next month. So you do have a bit more negotiation room with that knowledge as dealers are looking to get rid of the 2021 models but given the current new car climate, there may not be a lot on the dealer lot so you may not have that much more to negotiate down.

Hi everyone.

First off, thank you for your answers because they have been all been extremely helpful. I had been 'tipped off' that the 2022 Honda Civics will be dropping next month, but the risk of waiting until then is losing the 0.99% and $750 rebate (ending May 31 apparently), with also the risk of my car being snatched... or so I would think! There are two other Honda dealerships in my area that I could try and reach out to. From what I am gathering, another option is to try and have them include the Extended Warranty to cover past the first 3 years ($819 to extend 1st coverage to 4 years; $1258 to extend 1st coverage to full 60 months - if I am interpreting that correctly!) or the Lease Guard protection ($898). That would also give me the assurance of no out-of-pocket fees, plus extra mileage as a cushion, to continue with the 60-month lease term, correct?

Thanks again, everyone!

Yes, you can get the extended warranty, the Lease Guard, you may get it anyway doesn't matter it is 48m or 60m lease.

But then again, you will probably have to buy new summer and winter tires, new car battery, new brakes, etc. You are probably getting brand new parts for the car with only 1-2 yrs left on the lease.

Also those are not going to coverage by that extended warranty, but your own pocket.

Versus 48 months later, you send the car back to dealership as it is and get a brand new car with everything Fresh again.

5 years lease is too long. You probably in your exciting stage of your new and first car, but 4 years later you will probably get bored or sick of that Civic and want to get rid of it......but tide up for another 2 years if leased at 60m.

McGuinness101 wrote: ↑ Hi everyone.

First off, thank you for your answers because they have been all been extremely helpful. I had been 'tipped off' that the 2022 Honda Civics will be dropping next month, but the risk of waiting until then is losing the 0.99% and $750 rebate (ending May 31 apparently), with also the risk of my car being snatched... or so I would think! There are two other Honda dealerships in my area that I could try and reach out to. From what I am gathering, another option is to try and have them include the Extended Warranty to cover past the first 3 years ($819 to extend 1st coverage to 4 years; $1258 to extend 1st coverage to full 60 months - if I am interpreting that correctly!) or the Lease Guard protection ($898). That would also give me the assurance of no out-of-pocket fees, plus extra mileage as a cushion, to continue with the 60-month lease term, correct?

Thanks again, everyone!

What province are you in?
What is your budget?
What is your commute like?
Can you make do without a car for a bit?
Have you test driven the Civic, or any other cars?

Don't be too attached to that pearl white LX and be afraid of it being snatched. There are no shortage of Civic out there, and many other options from other brands. Don't worry about the 0.99% and $750 rebate either, there are also tons of promotion in the future.

If you start to worry about "losing on deals or cars", then you will be in that fear of missing out mindset and start making irrational decisions.

Extended warranties covers things that are unexpected to happen such as the AC being broken for whatever reason. Normal wear and tear are not included such as new tires. You can buy extended warranties from the dealership after. You don't have to buy it right now when you are signing the papers for the car. Even if the manufacturer's warranty has ended.

Just FYI, the 2021 Civic is the last model of this 10th generation Civic. That is generally the most reliable model for the manufacturer for that particular type of vehicle nameplate. So I personally don't think you need the extended warranties. But if you want peace of mind, even if you don't use the warranties, then I guess you can get it.

I don't know where you are but in Mississauga, there are 5 LX in that Premium Pearl white colour you wanted so if you don't decide now, there is still more available plus you don't compete with people who want the latest and greatest.

You are getting a fair deal but...

You mentioned just finishing school, first car, new model coming in about a month and possibly leasing.

Leasing is the way to go. 42 / 48 months max. Don't buy any lease warranties or extended warranties. You won't need it or use it. If you play your cards right with the lease your superstar sales person will call you in 2 years to pull you out of that lease and into the redesigned Civic, which by then will have promos and lower interest rates. You will also qualify for a rate reduction because you are a Honda customer. Your 290 payment will be $319 over 48 months or $330 over 42 months.

The deal your getting now is $1000 off msrp and free winter tires. Pretty fair deal for a base model Civic. There is only $1400 profit in that car. Dealer is making $400 upfront and gross on the tires and rims.

Leasing is the way to go, your not gonna want this car forever and Leasing will give you more options to get out of the car if anything changes.

Congrats on graduating OP have you considered leasebusters?...since you're planning to own the car after...

No one's going to snatch previous year model when newer model is out now. Infact, this is perfect time to buy previous year model (2021) for hearty discount. Keep pushing the dealer that you just saw on YouTube someone reviewing the new model and no one's going to buy 2021 unless given more discount. They know it, you know it. I would aim for $1-2000 more + existing $750 + winter tires.

Med school debt prob is high. I would defnitely not buy a new car but to each their own. you could buy a used civic from the past few years (2019 till present should be the same). What is the out the door price? My LX base was 27k... so try to negotiate the out thedoor lower. The only reason to buy this 2021 car is to buy the end of this generation as a discount to the previous one.

If you're in Ontario and that $290 is with HST that's a great deal. As someone else pointed out there's hardly any mark-up on these entry level cars. Getting $750 from Honda and free winter tires and wheels from dealer is a good incentive. 0.99% interest is also awesome on a long lease like that. I wouldn't worry so much about it being 5 years. Honda has a 5 year warranty on engine and transmission. Those are the big ticket items anyways.

If you're sick of the car after 3-4 years I can almost guarantee you can either sell it or trade it in early on something else and not have to pay anything on top. Inflation always works in your favour in Canada in cases like this. IE cars new and used will be much more expensive in 3-4 years.