Whether you want to get behind the wheel of a new Honda car or a pre-owned Honda, you’re likely going to have to take out a loan. While some drivers are able to pay in cash upfront, the majority utilize our Honda finance center to obtain an auto loan.
We know that Honda financing can come with a lot of questions attached to the process, especially if you’re new to it. Here are some of the most common questions that our finance experts receive.
What Is an Auto Loan?
A loan is a set amount of money that you borrow from a lending institution in order to purchase a vehicle. You make a commitment to make monthly payments for a specific period of time until the full amount borrowed is repaid.
What Are Some Key Financing Terms?
When taking out an auto loan, you’ll likely come across the following terms:
- Down payment: The amount that you pay upfront. The higher your down payment, the lower your monthly payments.
- Interest rate: The amount that you’ll pay every month in addition to the principal payments. Varies based on a variety of factors.
- Principle: The amount that you borrow and the remaining balance during the life of the loan.
I Have Bad Credit. Can I Still Get a Loan?
Are you looking to get a loan for that new Honda HR-V but are worried that a bad credit score may prevent you from doing so? Our friendly Honda finance representatives will do everything they can to get you a loan no matter your credit score. We work with a variety of different lending institutions.
If you have any more questions about auto loans, reach out to our Honda finance professionals.
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