When leasing a vehicle, a key factor consumers need to pay attention to is residual value, as it will affect not only their monthly lease payments but the final purchase cost of a vehicle they’re leasing if they choose to buy it.
If you’re in the market for an SUV or crossover, you may wonder how the popular 2016 Honda Pilot residual value stands up against the competition. Keep reading, and we’ll compare the Pilot’s residual value to that of some of its top competitors.
So What Exactly Is Residual Value?
If you’re like many car shoppers, you’ve been exploring features, horsepower, and fuel economy as you browse available models, but “residual value” may be an unfamiliar phrase. So, before we start comparing models, an explanation.
Simply put, residual value is the value that is left over once your vehicle lease has ended.
So, for instance, if you lease a vehicle that has a sticker price of $10,000 at the beginning of the lease, and it is estimated that the vehicle will retain only 30% of its value, or $3,000, by the conclusion of a 60-month lease period, that $3,000 of value left over at the end of your lease is the car’s residual value.
Taken a step further, this means the vehicle will lose about $7,000 in value over the course of the 60-month lease. That $7,000 of lost value essentially becomes what you will pay as a consumer for the privilege of driving it.
Your monthly lease payment is figured by dividing that lost value—in this example, $7,000—by the number of months in your lease—in this case, 60 months. That would make your lease payment about $117 per month, plus the associated interest, taxes, and fees.
So, as you can see, residual value, or the amount of value a vehicle retains once you’re done leasing it, directly affects how much you will pay per month while you lease.
Residual value is generally also the amount a driver will pay if he or she decides to buy the vehicle once the lease has run out. Continuing the example, that $3,000 of residual value would become the remaining price the driver would pay to buy the car, not counting taxes, fees, etc.
Pilot vs. Competitors
Now that you have a basic understanding of residual value and how it will affect your lease, let’s look at how the Honda Pilot measures up against some of its competitors in terms of residual value.
According to data from ALG, the 2016 Pilot is projected to retain approximately 40% of its value after a 60-month lease.
Here is how its rivals measure up:
- 2016 Jeep Grand Cherokee: 32% residual value after 60 months
- 2016 Ford Explorer: 35% residual value after 60 months
- 2016 Kia Sorento: 38% residual value after 60 months
- 2016 Toyota RAV4: 38% residual value after 60 months
Take a Closer Look at the Pilot
Drivers can explore the 2016 Honda Pilot’s various features and assets and take it for a spin at any Hampton Roads Honda Dealers location.
Visit any of our associated dealerships or contact us today to take a test drive onboard the Pilot.