Honda Financial is the credit division of Honda.
It offers customers help when arranging finance for cars and trucks.
Also with motorcycles, generators and power equipment.
There are three or four main things to think about:
Whether to buy or lease
If buying, new or second hand
How to check your credit score
How to improve your credit score
How to get the best deal on price and finance
Many customers like the idea of being able to buy or lease a vehicle from Ford.
Honda have made a significant effort to try and move people away from the idea that leasing a vehicle is essentially something that relates to the commercial corporate world.
There is a huge market for individuals to lease a car or truck, as opposed to buying one outright.
For many people there are a number of attractions about leasing a vehicle from Honda.
The main one often is that it gives a potential customer the option of being able to essentially own a new car, when they would not otherwise be able to afford it. In many ways it is worth thinking about the idea of leasing a vehicle as being similar to that of a long-term rental.
1.HONDA FINANCIAL – HOW LEASING WORKS
The customer does not actually own the vehicle outright, but has ownership of it for a specified period of time, subject to certain terms and conditions. In terms of the loan arrangement, the potential customer would need to make a down payment on the vehicle, agree monthly payments for the use of vehicle, and potentially agree costs at the end of the lease period. Lease end costs can add up to quite a significant amount of money in some cases, and it is important that what these costs are is specified at the outset of any lease contract.
2.BENEFITS OF LEASING
The main benefit of leasing for most people is that it gives them an opportunity to effectively own a new Honda without actually buying once. The lease contract can normally be between 24 and 60 months, there will also be different options as to the mileage allowance for the period of the lease, the lease may well include paid for gap insurance, there will normally be an option to purchase the vehicle at the end of the lease, and Honda often offer from a high degree of greater flexibility about lease end payments. The other main benefits include the fact that it will come with a full warranty, and specified maintenance costs which should be negotiable as part of the lease agreement.
3.LEASING COSTS
The cost of leasing a Honda will of course vary depending upon the vehicle, the credit score of the individual and the dealership. Remember from a customer point of view that all of these should be negotiable. There will be a down payment on the vehicle, a fixed monthly payments charge, certain specified insurance costs and the possibility of certain costs incurred at the end of the lease relating to wear and tear. There may also be an early termination charge in the event that the customer terminates the lease before the end of the agreed contract period.
4.LEASE END PROCESS
Lease end costs tend to relate to charges incurred for excessive wear and tear on the vehicle, any additional bodywork that may need repairing or replacing, and any excess mileage that may be charged to the vehicle. From a customer point of view, whilst they have ownership of the vehicle for the specified period of the lease they are not allowed to make any modifications or changes to vehicle, and are responsible for it completely whilst it is in their care. There may well be the option to purchase the vehicle outright at the end of the lease, in which case the lease end costs would either not be incurred or would be modified to reflect the market value of the car or truck.
5.HONDA FINANCIAL SALES
Honda Financial services also very much related to sales of cars and trucks as well as leasing. A Honda dealer is likely to be able to offer credit finance to any potential customer, subject to status, and it’s possible to get pre-approval for a loan through the Honda website. Any potential customer looking to buy a Honda vehicle will have to fill in an application form, normally online, which will be used as a basis for assessing and obtaining a credit score.
This credit score is used by Honda financial as a way of determining whether or not to lend the individual any money by way of a loan, if so how much, on what terms and conditions and the size of any down payment may be needed. If the individual has a poor bad credit rating, then this will be reflected in the decision that Honda make regarding the availability of finance, and may well result either in declining any finance, or imposing certain terms and conditions.
6.HONDA FINANCIAL – NEGOTIATING OTHER LOANS
It is always worth getting alternative quotes for any loan, either from a bank, credit union or other financial institution. These can then be used as a basis for negotiation either with Honda Financial or one of the other finance institutions. It is always a good idea to at some level keep the process of buying or leasing the Honda car or truck separate from the process of arranging finance or credit for it.
They are essentially two separate items, and keeping them separate allows a clearer sense of what each is actually going to cost. Whilst it can make life easier anyway to have the finance or credit arrangement under at the same time as buying or leasing the vehicle, it can also slightly blur the reality of what the specific costs are for each area of the transaction. Clarity makes life a lot easier, and in the end gives the individual a better sense of where to be able to negotiate the best possible deal.
7.HONDA CERTIFIED PRE-OWNED VEHICLES
Like a lot of manufacturers, Honda offer a selection of what they refer to as pre-owned vehicles, which tend to be Honda vehicles that they have either sold and maintained since new, or vehicles that they have inspected and verified to certain specified standards. The intent is to give a used vehicle a high degree of credibility through using the Honda brand as a way of confirming its mechanical condition. What often there are special deals on these pre-owned vehicles that are made available to customers who apply for and are accepted into the Honda financial credit program.
8.HONDA CARE MAINTENANCE
Honda Care Maintenance is a Honda program that allows you to prepay for a range of servicing and maintenance options for a vehicle that you buy from them. The program will specify exactly what services are covered and will include parts and labor for the services. Obviously prepay means you pay upfront, although Honda does often offer interest-free payment plans. The advantage from a customer point of view is that prices are fixed, and that as a fixed cost it is known in advance how much you will be paying.
9.VEHICLE SERVICE CONTRACTS
Honda offer a range of vehicle service contracts, which give differing levels of service and benefits depending upon your type of vehicle and what level of cover you want. There is normally new vehicle coverage, pre-owned vehicle coverage and certified additional coverage. These plans will normally cover extensive mechanical and electrical servicing and masons costs shall be specified in the contract, and may also include rental car reimbursement and various types of roadside assistance and emergency service help.
10.COLLEGE GRADUATE PROGRAM / MILITARY APPRECIATION
Honda, like many other manufacturers offers special deals and discounts throughout the year to certain types of potential customer, these normally include college graduates and people who have served or are currently serving in the military. These discounts and programs can often offer significant financial savings and should be well investigated.
11.GAP INSURANCE
Gap Insurance refers to the difference between the final price paid for a vehicle, and possibly any additional costs, and it’s insurance value if it is involved in an accident or is written off. In such an event, the amount paid by the insurance company is likely to be significantly less than the amount paid for it, and this type of insurance is designed to cover the difference which would otherwise be left as an unsecured debt is the responsibility of the owner of the vehicle.
12.HONDA ACCOUNT MANAGEMENT
This is an area that many people either neglect or do not really think through, and which can generate practical problems after any sale or lease agreement has been signed and sorted. It simply relates to how someone manages their account, including payments, end of lease agreements, booking servicing and maintenance schedule for the vehicle, dealing with any problems that may arise etc. it is just really important that anyone looking to buy or lease a Honda vehicle getting permission a need for signing off on a sale or lease, including contact numbers, addresses and most importantly people’s names.
13.Honda Financial – Refinancing
At some point of a car loan, many people will consider refinance as an option. This allows them to take out another loan, which effectively pays off the original loan and supersedes it with another, usually on improves tersm and conditions for the customer, such as an improved interest rate or reduced down payment
Honda Vehicles – Reviews TBA
Honda Accord Sedan
Honda Accord Hybrid
Honda Accord Coupe
Honda Civic Sedan
Honda’s Civic Coupe
Honda Civic Hatchback
Honda Civic Si
Honda Civic Si Coupe
Honda Civic R
Honda Fit
Honda Clarity Electric
Honda Clarity Fuel Cell
Honda HR – V
Honda CR – V
Honda Pilot
Honda Odyssey
Honda Ridgeline
Honda Accord
