Lease Your Next Car and Get More With Zero!

April 1st, 2020 by

So, you have decided to get a new car, but the research on what to get has been overwhelming, not to mention the following:  The cars you are most interested in are priced in the mid-twenties and move upwards to $35,000; you may not have enough money for a down payment, and your monthly payment doesn’t fit within your budget.   But I found a great solution to solve this problem and you need nothing more than ZERO.


When I was starting my family, we decided that leasing a car for three years would allow us to get into a car that fit our growing family at a monthly payment that was lower than it would be if we purchased. As our family grew (we timed it with the lease) we were able to replace our car just in time to fit our new arrival. It worked out perfectly! 


Now back in the day, leasing used to be reserved for businesses and luxury car shoppers, but today right around 30% of cars driven are leased, and that’s according to the Experian credit bureau. 


What does it really mean to lease a car? 


Well, leasing is like renting a car for an extended period of time. At Clawson Honda of Fresno, you will generally find that the leases offered have lower monthly payments with NO money down. You can drive a new car, with more safety features, and more technology for less money! Plus when you lease, you have lower repair costs because you are covered under the vehicle’s factory warranty. 


How are the monthly payments and taxes figured?


Your monthly payments and taxes are based on the portion of the vehicle you use during your lease term. For example, the monthly payment is based on the difference between the MSRP and the Residual Value, plus interest and fees, not the full price. The Residual Value is locked in when you sign your lease agreement, meaning the Residual Value will not change. That is what is called a closed-end lease. The value doesn’t change when you drive off the lot like it does when you purchase a new car. 


There is even a greater benefit to leasing a car at Clawson Honda. 

On top of NO down payment, you pay NO Security Deposit and there is also NO first month’s payment to make. So, if you lease a car for thirty-six months (which is the typical lease term, but you can lease for longer), you will only make 35 monthly payments at Clawson Honda of Fresno. Of course, this is based on your credit approval.


If I have piqued your interest in leasing, there is a selection of lease terms to familiarize yourself with before heading into the dealership. Here are a few of those terms: 

Manufacturer’s Suggested Retail Price (MSRP): This is the full price of the new vehicle, also known as the sticker price. 

Residual Value: This is the wholesale value of the vehicle at the end of the lease term. Lessors estimate the residual value at the time the lease is written based on historical resale value data.


Depreciation: Depreciation is the difference between the value of the vehicle when it is new and its residual value. Put another way; it is the decrease in the value of the vehicle during the lease period. The depreciation cost is what makes up the biggest part of the lease’s monthly payment amount.

Money Factor or Lease Rate: This is just the interest rate stated differently. Remember, when you lease, what actually happens is that the leasing agency is purchasing the vehicle from the dealer and then leasing it out to you. The money factor, like other interest rates, depends heavily on the lessee’s credit score.

Mileage Allowance and Charges: Part of all car leases is a stated maximum number of miles that the lessee can drive the vehicle per year, known as the mileage allowance. This ranges from 10,000 to 15,000 miles per year. If a driver exceeds the mileage allowance, he or she will be charged an additional fee* of anywhere from $0.10 to $0.25 per mile. 

Lease Term: This is the length of the lease. Typical leases are two, three or four years long, although they may be shorter or longer. Lease terms are typically stated in terms of total months (24, 36 or 48, for example).

Purchase Option Agreement: This is an option to purchase the vehicle at the end of the lease period. The sales price is also written into the lease upfront and is often the same as the residual value.


Wear and Tear Charges: Wear-and-tear charges are those made to cover wear and tear on the leased vehicle that goes beyond what could be considered normal or reasonable.


I personally found that there were benefits for my family to lease our cars.  

  • Lower monthly payment than a loan on the same car.
  • Up-dated technology every few years when we leased a new car.
  • Opportunity to easily upgrade every few years to a car that fits the size of our growing family. This also worked as our kids started driving on their own, and we were able to downsize our cars.
  • Save money on sales tax.
  • Our cars were always under warranty coverage.
  • As long as I didn’t go over the mileage, and keep the car in good condition, there were no additional fees at the end of the lease.


If you decide that the following statements describe you, then check out the great lease options at Clawson Honda of Fresno. 


  • You want to drive a newer vehicle that remains under warranty.
  • You want a vehicle that will rarely require anything more than routine maintenance
  • You want a lower monthly payment 
  • You want to drive a nicer and more expensive car than the one you could afford to purchase
  • You want to lease a car for Zero Down, Zero Due, Zero Security Deposit and Zero First Month Payment**


Join the growing number of valley residents who lease their vehicles at Clawson Honda of Fresno and say YES to Zero!

*Over mileage charges are based on vehicle price. Lessee is responsible for maintenance, excessive wear/tear and .15 cents per mile over 12,000 miles a year for vehicles with MSRP less than $30,000, and .20 cents per mile over 12,000 miles a year for vehicles with MSRP of $30,000 or more. See dealer for complete details.

**Lease terms are subject to end dates and are based On Credit Approval. Please see the lease specials at