Honda Financial Services Review, Rates and Deals (2024) (2024)

All APR figures last updated on 3/16/2024 – please check partner site for latest details. Rate may vary based on credit score, credit history and loan term.

Year founded: 1948
Headquarters: Torrance, Calif.
Better Business Bureau (BBB) rating: F

The Honda Motor Co. Ltd. was incorporated in 1948 as a bicycle auxiliary engine manufacturer in Hamamatsu, Japan. The company expanded into North America in 1959, opening its first office in Los Angeles. Today, the manufacturer produces cars and SUVs for Honda and Acura.

Honda has a solid reputation in the manufacturing and finance industries. While it holds a 1.1-star average customer rating on the BBB, the company only has about 70 reviews on its company page. That’s a tiny percentage of the automaker’s business.

Honda Motor Finance Pros and Cons

Honda Financial Services offers direct-to-consumer financing for new, used and CPO vehicles sold at Honda dealerships. You can apply for financing online before purchasing or leasing a Honda vehicle. After you submit your application, Honda will notify you if you’ve been approved.

During our research, our finance experts found that Honda doesn’t list a minimum credit score required for an auto loan or lease. Note that borrowers with high credit scores often receive lower interest rates.

Buying a Honda

Honda auto loans can be used for new, used or CPO vehicles. During our research, our experts found that Honda tends to offer special APRs several times per year. The current APR for borrowers with high credit scores generally starts at around 3.90% but can be lower for select models. Term lengths for Honda auto loans range from 24 to 72 months.

There are no application fees or prepayment penalties if you pay your used or new Honda off early.

*Rate range as of 9/25/23

Leasing a Honda

A big draw of a Honda lease is having lower monthly payments. Honda offers lease contracts ranging from 24 to 60 months with mileage options of 10,000, 12,000 or 15,000 miles per year. Each lease comes with guaranteed asset protection (GAP) insurance, which covers the difference between the remaining amount on your lease and the amount your vehicle’s insurance takes care of in the event your vehicle is damaged or stolen.

Honda’s One-pay Lease

Honda offers a one-pay leasing program that allows you to pay for your lease in a single financial transaction. Some highlights of the program are a $500 waiver for excessive wear and use or damage, as well as potential savings and income tax benefits.

Honda’s Leadership Purchase Plan

Honda’s Leadership Purchase Plan is a service contract that lets you easily finance a Honda vehicle. The program allows you to trade your vehicle in, return it, or purchase it at a guaranteed price once your contract ends.

The Leadership Purchase Plan is only available in certain states, including:

Terms vary by state. Check with your nearest Honda dealership for program availability.

Insurance Requirements for Financing a Honda

All borrowers who want to get financing for a car for purchases or leases with Honda are required to have the insurance coverage below for the duration of their contracts:

• Liability insurance
• Comprehensive insurance
• Collision insurance
• Minimum coverage amounts under state law

The American Honda Finance Corp. must be named as the loss payee on any records.

While Honda does not offer 0% APR financing deals on their website or dealerships, there are still great offers. In the sections below we will break down current deals, incentives, and specials provided by Honda Financial Services for both finance and leasing:

Best Honda Finance Deals

*Updated as of 9/25/23

Best Honda Lease Deals

To get approved for a Honda loan or lease, you’ll need to prove you have sufficient funds to meet payment obligations. You can determine how much financing you may qualify for by submitting a car loan preapproval application.

When applying for preapproval, you’ll need to follow these steps:

1. Provide your information: Fill out the preapproval application online, or print it out and take it to your nearest Honda finance center and dealership.
2. Receive a decision: You’ll receive an email from Honda Financial Services when your application status is ready. You can also check your application status online by clicking on “Apply for Pre-Approval” under the “Finance Tools” menu.
3. Accept or decline the offer: If you’re happy with the terms Honda Financial Services offers, you can take your preapproval email and head to the nearest dealership to speak with the finance team. They’ll help set you up with the Honda car you want.

Honda Financing Requirements

Honda doesn’t list eligibility requirements for its auto loan or leases. However, borrowers must be at least 18 years old to sign a loan agreement. This is because those under 18 are considered minors, which means they’re not allowed to enter into contractual agreements with lenders.

While Honda doesn’t list credit requirements, there’s certain information you’ll need to have handy to apply for car financing. This information includes:

• Social Security number for each applicant
• Savings and checking account numbers
• Employment information
• Honda model you want to purchase
• A down payment amount, if applicable

You’ll also need your co-applicant’s information if you choose to include them in the financing process.

Honda Financial Services has an average reputation within the industry. The financing department’s BBB score and customer reviews are posted on the profile for its parent, the American Honda Finance Corp. (AHFC). Here, the company holds accreditation with the organization and is not rated.

Customers give AHFC an average rating of 1.0 out of 5.0 stars on the BBB. While this may seem like a low number, fewer than 100 people have reviewed Honda’s financial branch, which is a very small fraction of its customer base.

In the J.D. Power 2021 U.S. Consumer Financing Satisfaction Study^SM, Honda Financial Services came in third place for overall customer satisfaction with 860 points out of a possible 1,000. It ranked behind Ford Credit and Capital One Auto Finance.

Our review team reached out to Honda for a comment on these scores and received the following response:

“Honda Financial Services strives to provide a positive vehicle financing experience to all account holders. We encourage any account holder with questions or concerns to contact their nearest regional customer service office, which can be located by visiting https://honda.americanhondafinance.com/s/contact-us-pre-login.”

Before you decide to purchase or lease a car from Honda, shop around for the best auto loan rates. We recommend reaching out to myAutoloan and Auto Approve for loans and refinancing quotes.

myAutoloan: Most Popular Marketplace

The myAutoloan online marketplace lets you get several auto loan rates all in one place. The company allows you to comparison shop for auto loans for new- and used-car purchases, auto refinancing and lease buyouts. Rates start as low as 2.24% for borrowers with excellent credit who plan to purchase new cars.

Overall, myAutoloan has a strong reputation in the market. It holds an A+ rating and accreditation from the BBB. Customers rate myAutoloan an average of 4.2 stars out of 5.0 on Trustpilot.

Read more: myAutoloan review

Auto Approve: Top Choice for Refinancing

Auto Approve specializes in refinancing auto loans and offers a lease buyout option for those looking to purchase their leased vehicles. The company’s rates start at 2.25% for refinancing, though only those with high credit scores will qualify for lower rates. Auto Approve doesn’t offer loans for new or used cars.

Auto Approve has a solid reputation among industry organizations. The company has an A+ rating from the BBB and is accredited by the organization. Customers give the company an average rating of 4.4 stars out of 5.0 on the BBB.

Read more: Auto Approve review

All APR figures last updated on 3/16/2024 – please check partner site for latest details. Rate may vary based on credit score, credit history and loan term.

Because consumers rely on us to provide objective and accurate information, we created a comprehensive rating system to formulate our rankings of the best auto loan companies. We collected data on dozens of loan providers to grade the companies on a wide range of ranking factors. The end result was an overall rating for each provider, with the companies that scored the most points topping the list.

Here are the factors our ratings take into account:

• Reputation (25% of total score): Our research team considered ratings from industry experts and each lender’s years in business when giving this score.
• Rates (25% of total score): Auto loan providers with low APRs and high loan amounts scored highest in this category.
• Availability (25% of total score): Companies that cover a variety of circ*mstances are more likely to meet consumer needs.
• Customer Experience (25% of total score): This score is based on customer satisfaction ratings and transparency. We also considered the responsiveness and helpfulness of each lender’s customer service team.

*Data accurate at time of publication.