Customers of Honda can get the financing they need through Honda Financial ServicesSM (HFS), a division of American Honda Finance Corporation (AHFC).
Have inquiries? To find queries and solutions on particular subjects, go to the HFS Help Center main page or click on the links below:
In This Article...
What is the function of American Honda Finance?
Depending on the product and the requirements of each of our customers, HFS and AFS currently offer financing in the form of both retail installment sales contracts and automotive leases. For both new and used Honda and Acura automobiles, leases are made available through our associate Honda Lease Trust.
How can I pay my financial bill with Honda?
Here are your choices:
- paying online.
- Paying automatically via EasyPaySM.
- Pay via phone.
- SpeedPay by Western Union.
- Quick Collect from Western Union.
- Mail-order payment.
How can I obtain a letter of payback from Honda Financial?
Call us at (703) 660-0100 or a Honda Financial Services customer service representative at 1-800-708-6555 to get your payoff estimate. Honda Financial Services’ Express Payoff system is accessible 24/7, so you can contact at any time to receive a quote.
Buying a Honda
Auto loans with 0% APR financing are available through Honda Financial Services, with loan durations ranging from 24 to 72 months. Honda finance typically requires a credit score of at least 610, but the best offers, like 0% financing, are typically only available to individuals with excellent credit. Although Honda Certified Pre-Owned (CPO) models may also be eligible, low APRs are not only available for brand-new cars.
Customers can even apply for preapproval online with Honda. We advise obtaining at least one other preapproval from a different lender so you have a comparison point.
Leasing a Honda
The fact that new automobile leasing frequently offers a low payment on a new vehicle is a huge incentive.
But there are a few drawbacks: Even if you only use around half of the vehicle’s lifespan during a 36-month (three-year) lease, you pay for roughly half of the vehicle’s worth. If you’re not sure whether to lease or buy, consider the following information.
Leasing options from Honda range from 24 to 60 months with 12,000 or 15,000 yearly kilometres. Vehicles having an original MSRP of $30,000 or less can have up to $0.15 every extra mile tacked on; those with an MSRP exceeding $30,000 can be charged $0.20 per extra mile. You had the option to return your Honda, trade it in, or purchase it at the end of the lease. If you choose to purchase or lease a different Honda, you might find loyalty perks.
What is a well-qualified buyer’s credit score?
Buyers that are well-qualified or competitive lessees often possess a Tier 1 credit score, a strong credit history, and a high enough monthly income to easily afford the new car’s monthly payments.
Competitive buyers often need to have a Tier 1 credit score, which varies depending on the financial provider, but it is generally above 720.
Dealerships may take into account your debt-to-income ratio, credit history, and even the amount of the down payment you are willing to make in addition to your credit score.
If you are not a well-qualified buyer, you can attempt to obtain a personal loan from your bank, find a cosigner who is, or try to bargain with the dealership to obtain the best available terms.
You typically need to be a qualified buyer or a competitive lessee to qualify for 0% APR rates and low to no down payment lease packages.
Is paying off your automobile a wise decision?
In some cases, a car’s depreciation rate exceeds the vehicle loan’s repayment period. If you have a lengthy payback period or a high interest rate, this is especially true.
A problematic situation is having a loan that is in the red or owing more on an automobile than it is worth. If you try to sell or trade in the car, or if it is totaled, you can have issues. If you trade in your car, most lenders will let you roll the difference into your new loan, but in other cases, you may need to pay your lender the difference in full.
Important lesson learned: Be aware of how your car will depreciate to prevent owing more on your loan than the car is worth.
Improve your debt-to-income ratio
The percentage of your gross monthly income that is used to pay off debts is known as your debt-to-income ratio (DTI). It’s a crucial consideration for lenders when figuring out how much you can borrow. The riskier you appear as a borrower, the higher your DTI.
When you pay off your car early, your auto loan is no longer a factor. You’ll naturally have a smaller DTI, which makes you eligible for different types of credit. It also makes it more likely that you will be able to refinance other loans or consolidate credit card debt at a cheaper interest rate.
Conclusion: A lower DTI percentage may improve your future credit eligibility.
Free up money for other expenses
According to a research by Experian, the typical monthly payment for a new car is $648. The chance to advance on other monetary objectives is crucial when you pay off your car loan early. You can use that money to pay down other debt, save for a trip, or put it toward retirement if you keep the automobile you already have and don’t take out another loan. And even if you purchased used, finishing the $503 average payment could still have a substantial impact on your spending plan.
The main point: Include a few hundred dollars more each month in your budget.
What does place after an automobile is paid off?
An auto lien is a document that certifies another entity, frequently your lender, as the rightful owner of your car. A lien on your car is very much like a property lien on your house. Once a lien is put in place, the lender will have ownership of the car until you pay back the amount you owe plus interest and fees.
The lien on your vehicle’s title will be removed if your loan is paid in full, allowing you to take possession of the title. The title to the car now officially passes from your lender to you.
My Honda Finance Account Number is where I can find it.
What is the location of my account number? Your monthly or quarterly statements will list your 10-digit membership/savings account number.
How can I check my account with Honda?
To begin, go to your personal profile on the Honda Owners website by choosing My Account from any page. Under My Vehicles, select “Add a new Vehicle.”
Using your vehicle identification number (VIN) or hull identification number (HIN), add a new vehicle:
- Click “Save & Continue” and adhere to the on-screen directions.
- Validate to ensure that your VIN is accurate by clicking.
- Type in your VIN.
- Choose “Add my vehicle by VIN.”
No Hull Identification Number (HIN) or Vehicle Identification Number (VIN) is required to add a new vehicle.
- To choose your car, use the drop-down menu.
- Type the name of your vehicle (optional)
- Once this stage is finished, click “Save & Continue, then adhere to the on-screen directions.
- Select “Add my car by choosing the model details
Can you use a credit card to pay Honda Financial?
Credit cards are not accepted here. You can use ACI Pay or call Customer Service at 1-800-366-8500 to make a payment using your debit or ATM card.
Can you prepay your Honda auto loan?
The quick response is “yes”! Paying off a car loan early can reduce interest expenses, lower your debt-to-income ratio, and free up your cash for other projects if you can budget wisely, plan ahead, and pay a little extra each month.
How can I determine my auto payoff?
You have three options for getting in touch with your lender: over the phone, in person, or online. You must wait for the written response to arrive in the mail if you contact your lender by phone.
What occurs when a Honda lease expires?
When your lease expires, you have three basic options for the future. You have three options for returning your leased Honda: trading it in for a new one, paying the agreed-upon sum, or just walking away.
Who is Honda Financial’s owner?
Whose parent company is American Honda Finance Corporation? American Honda Motor Co., Inc., which is a wholly owned subsidiary of Honda Motor Co., Ltd., owns American Honda Finance Corporation (AHFC) in its whole (refer to the Company Structure Diagram on this page).
Does a pre-approval from Honda impact credit score?
Nope! We can pre-qualify you for loans without affecting your credit. Only one other lender, us, is able to provide soft credit pulls for prequalification offers on Honda cars. It follows that our application will launch a “soft inquiry” on your credit, which has no effect on your credit score. When you are prepared to sign your contract is the only time we will do a hard investigation.
Honda uses Transunion or Equifax?
If you just have those three credit cards, you will need to put a significant amount of money down—say, half—or have a cosignor to qualify for the higher tier rates. The best would be preferred with a co-x.
What I posted were the buy rates. They don’t make a reserve if you get such rates. You are receiving the rate that Honda gave the dealer.
Experian is used by Honda. The hardest test is it. Trans Union has the softest ratings and is likely where your best rating originates. Experian is used by the majority of car banks, however some also use Equifax.