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Honda Financial Services (HFS) could help you get your next Honda product, whether that be a car, motorcycle, boat, or lawnmower. The company is an extension of American Honda Motor Co., Inc. and it began its financing operation in 1980.
Now, it offers purchasing and leasing options, programs to help customers save, and an easy online pre-approval process.
The only question is, will Honda Financial Services offer you the best deal? Here’s an in-depth review to help you find out.
Honda Financial Products and Services
Honda Financial Services (HFS) provides financing solutions for new and certified pre-owned Hondas through its network of authorized dealers.
What does the term “Certified Pre-Owned” mean for Honda Finance vehicles?
- The vehicle passed a 182-point mechanical and appearance inspection
- It underwent reconditioning to meet factory standards
- It comes with a Honda Certified Pre-Owned Limited Factory Warranty
Honda Financial Services’ Leasing Program
First, let’s talk about leases. Honda Financial Services customers can opt for the standard lease in which they pay monthly over a set term. On the other hand, Honda Financial Services’ One-Payment Lease allows for one up-front payment for the entire lease.
Regardless of which payment plan you select, you can choose from a 12,000 or 15,000 annual mileage plan. Further, you can purchase additional miles at signing for less than they will cost after going over your limit.
Next, Guaranteed Asset Protection (GAP) is included when leasing a car with Honda Financial Services.
At the end of the lease, you can purchase the vehicle, trade it in for another Honda, or return it. If you purchase it, there will be no surprises as the price is determined when you sign your lease.
Honda Financial Services’ Financing Program
In this section, we will take a look at the financing option for Honda customers.
Honda Financial Services offers financing for a variety of vehicles and equipment including:
- New and certified-pre-owned Honda vehicles
- Motorcycles and power sports products (ATV, scooters, off-road vehicles, etc.)
- Power equipment (lawn mowers, snow blowers, generators, etc.)
- Marine vehicles (boats, motors)
Terms can vary depending on the type of vehicle you purchase. After applying, you will find out the rates and terms for which you are qualified.
If you agree to them, you will pay the down payment (if required) and the monthly payments for the remainder of the term.
When the contract ends, you will own the vehicle.
Leadership Purchase Plan From Honda Financial Services
In addition to the standard financing structure, Honda Financial Service also offers the Leadership Purchase Plan.
The plan enables little-to-no down payment and small monthly payments for 24 to 48 months. The payments only cover the depreciation of the vehicle and finance charges.
At the end of the term, you can purchase the car at a pre-determined price, return the vehicle and walk away, or return the vehicle and purchase a different one.
When you purchase a vehicle, Honda Financial Service offers vehicle service contracts (VSC) to help you protect it.
VSC options include:
- Pre-Owned Vehicle Coverage
- New Vehicle Coverage
- Powertrain Coverage (Pre-Owned Vehicles Only)
- Certified Additional Coverage
The New Vehicle, Pre-Owned Vehicle, and Certified Additional Coverage options cover the drivetrain, electronics, chassis, heating and cooling systems, and Honda Genuine Accessories.
The Powertrain Coverage covers the engine, front and rear drive axle, transmission, seals, gaskets, and fluids.
They also come with the following benefits:
- Rental car reimbursement
- No interest payment plan
- Roadside assistance
- Trip interruption benefit
- Concierge emergency services 24/7
Additionally, Guaranteed Asset Protection (GAP) is available.
If your vehicle is stolen or totaled, GAP coverage will waive the difference between what you owe the lender and what your insurance covers (up to $50,000).
Honda Financial Services’ Special Programs
Looking for ways to save? Honda Financial Services offers the following programs:
- College Grad Program: Qualifying college graduates who have proof of employment, can save $500 when buying or leasing a new Honda. This program also extends to students who will graduate within the next six months and those who have a firm offer from a prospective employer.
- Military Appreciation Program: Qualifying military members and their spouses can also save $500 when leasing or buying a new Honda.
- Honda Maintenance Program: Pre-pay for your Honda’s routine maintenance for a set term. This can also save you money in the long run.
- Customer Loyalty Program: Repeat Honda Financial Service customers who lease within 30 days of a previous lease may qualify for an extra $1,000 Excessive Wear-and-Use or damage waiver. Additionally, repeat customers may qualify for a turn-in fee waiver if applicable.
- Offers: Lease and financing specials are always running for specific car configurations and selected dealers. Check the current offers page to see if any deal suits your needs.
Honda Financial Services’ Customer Support
Next, let’s take a look at how Honda Financial Service fares in its customer service. Honda Financial Services’ website offers some shopping tools and the ability to get pre-approved online, which is a plus.
Once you’re a customer, you can call the Honda Financial phone number to speak with customer service representatives from Monday to Friday, 9 a.m. to 5 p.m.
To clarify, Honda Financial Services has regional offices, so the number you call will depend on where you live. You can look up the phone number information here based on your location.
Additionally, you can get account information 24/7 by calling the automated line or registering your account online.
An online account enables you to:
- Sign up for paperless billing
- Make payments
- View your Honda Financial statements
- Receive email and SMS alerts
- Update account information
If you have questions about your vehicle, lease, or vehicle service contract, each department has a dedicated phone line. Further, you can always contact your local dealership for support.
As for payments, Honda Financial’s payment options include:
- Online: Pay online through their website using a checking or savings account
- EasyPay: Automatically pay your bill each month from a checking or savings account
- MoneyGram: Pay at a retail location using cash (fees apply, and debit cards are accepted at some locations)
- Mail: Mail in your payment (the Honda Financial mailing address you send your payment to will vary depending on your state and product which you can find here.)
- Phone: Pay over the phone using the 24-hour automated system
- Western Union Quick Collect: Pay at a Western Union retail location using cash (fees apply, and debit cards are accepted at select locations)
- Western Union SpeedPay: SpeedPay allows you to pay over the phone using cash or a debit card (fees apply)
Honda Financial Services’ Online Pre-approval Process
If you’re interested in purchasing or leasing a Honda through Honda Financial, pre-approval is the first step. You can apply at a participating dealership or online.
To clarify, the process will hurt your credit score.
What you’ll need to apply:
- Know the Honda model you want
- Social Security number for each applicant
- Savings and checking account numbers
- Employment information
- A down payment amount (when applicable)
Here’s how the online application process works:
Visit our Honda section and click “Apply Online.”
Choose the selections that apply to you or the vehicle you’d like to purchase/lease.
Provide your personal information.
Enter your employment information.
Provide your income and vehicle/finance details.
Review all of the information you entered. Also, you can print off the page for later as it will help you check the status of your application.
Agree to the terms and conditions and submit your application.
That’s it! You will typically get an email within one business day that says your application status is ready. You can also check the status online with your credit application number.
Upon approval, you will take the pre-approval notice to the Honda dealer to finalize the deal.
The verdict: Is Honda Financial right for you?
So is Honda Financial Services a good fit for you?
Compare the pros and cons to make a better decision.
- Easy online pre-approval
- Dealer inventories available online
- Special programs can help eligible customers save
- Build your own model online
- Purchase additional mileage upfront (for leases)
- Specializes in Honda vehicles
- Helpful online presence
- Competitive interest rates
- Pre-approval process hurts your credit
- Must buy or lease from a participating dealer
- May not offer the best overall value
- Restrictions on which vehicle you can buy or lease
- Poor reviews from past customers
FAQ on Honda Financial Service
Is Honda Financial Services is a bank?
Honda Financial Services, a DBA of American Honda Finance Corporation (AHFC), helps to satisfy the financing needs of consumers of Honda products including automobiles, sport utility vehicles, minivans, motorcycles, powersport products, marine engines and power equipment.
How long does it take to get a title from Honda Financial?
The usual time to receive your title or lien release is 2-3 weeks, depending on the state and how the title is held.
Can I pay off my Honda loan early?
Yes, you can. However, Honda Financial Services charges a prepayment fee if you pay your auto loan early. This fee could reduce or eliminate the savings from paying the auto loan early.
Does Honda Financial give a grace period?
Honda Financial give a 10 day “processing” period (they don’t call it a grace period, because interest is still being charged), after the due date, and then they charge the late fee. After 30 days, they report it to credit bureaus as late.
Can I pay Honda Financial with a credit card?
They don’t accept credit cards. You can call HFS customer service to make a payment using your debit or ATM card or by using Western Union speedpay at 1-800-366-8500 (Western Union assesses a processing fee), or pay online using your bank account.
The bottom line
Honda Financial has been in the business of financing and leasing Hondas for almost three decades. Certainly, it has a wide variety of offerings, programs, and support channels.
To find out what rates and terms you qualify for, click here to visit the website and apply.
But, keep in mind, many other lenders exist that may be able to offer you a better deal. Beyond that, they may offer other benefits such as more freedom when choosing your vehicle, pre-approval without hurting your credit score, and better customer service.
Therefore, to ensure you’re making the right decision, you’ll want to shop around and compare rates before settling.
Start by getting pre-approved offers from various lenders here. By doing so, you’ll be able to find your best option easily without hurting your credit in the process.
Jessica Walrack is a personal finance writer at SuperMoney, The Simple Dollar, Interest.com, Commonbond, Bankrate, NextAdvisor, Guardian, Personalloans.org and many others. She specializes in taking personal finance topics like loans, credit cards, and budgeting, and making them accessible and fun.