topic Re: How to get Honda Finance loan in Auto Loans

How to get Honda Finance loan

GTT — Fri, 17 Jan 2014 04:40:07 GMT

I heard if I finance through Honda, I can get 500 flex cash back.

I have fico score of 740+ but the history is 2 years and I just moved to a new address.

I know credit card companies sometime take your address change seriously but I don't know how would that impact the possibility of getting a car loan?

Re: How to get Honda Finance loan

bhenken08 — Sat, 18 Jan 2014 00:04:58 GMT

Banks care more about your debt to income ratio and your time on job more than you address change.

If you have a credit union you use I would recommend talking to them first.

Re: How to get Honda Finance loan

GTT — Sat, 18 Jan 2014 02:32:44 GMT

The dealer asked for my paystubs, drivers license photocopy, ssn car copy, two references, passport, visa ....

I think I have some problems here. I have been on employment for two years and finance wise I'm good.

But the thing is I'm on H1B visa which expires this Oct. and my employer is extending it though for another three years. The dealer said Honda Finance cound't finance me if the visa has less than 1 year on it but actually I just want to take a loan for 6 months ( I just want to get the 500 flex cash if I can finance through Honda), otherwise I could just pay in cash. Will I get other kind of rebates if I finance through other institutions?

I think the dealer submitted the application today and still waiting for the result. I tried go straight to Honda Finance website and tried to check the status of my application but found nothing. It looks like if I didn't file the application on its website, I cound't check the status there.

I planned to picked up the tomorrow morning but it looks like I have to wait.

Re: How to get Honda Finance loan

GTT — Sat, 18 Jan 2014 02:34:22 GMT

Financing through credit unions might not get me 500 flex cash back, right?

Re: How to get Honda Finance loan

Anonymous — Sat, 18 Jan 2014 19:12:49 GMT

Honda Finance's minimum loan term is 24 months. Also, Honda Finance's rule regarding you h1b visa is that , the loan must mature before the expiration date on your visa. So in order to finance at honda your visa must have at least 2 years left before the expiration date. The only time Honda will make an exception is if you have previous Honda Finance history. Hope this helps, check out my site for my car buying info-Modcut

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Shogun, myFICO moderator

Re: How to get Honda Finance loan

Anonymous — Sat, 18 Jan 2014 19:13:19 GMT

Also, you must finance with Honda finance in order to get the flex cash. Going to your credit union want help in that respect.- Modcut

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Shogun, myFICO moderator

Re: How to get Honda Finance loan

Anonymous — Sat, 18 Jan 2014 10:05:41 GMT

+1 to what car deal said.

To get the promo discount, it has to be financed by honda financial services.

Your best bet is to wait till October after your h1b is renewed. It's going to be very hard for you to get any auto loan with a visa that's about to expire.

Re: How to get Honda Finance loan

GTT — Sat, 18 Jan 2014 15:10:49 GMT

There are several things I don't understand.

One of my friends got a 3year loan while his i94(his visa expired already) had only 1 year valid. He lives in California, does Honda Finance have different policy in different states?

Any work visa has a maximum validity of 1 year if you check on immigration website, and after 1year, it's still legal to stay in the US as long as your H1 status is valid. But this is not listed on the visa itself.

Even my employer renews the visa for me, I won't get a new visa if I don't get out of the country and re-enter.

Kind of a dilemma for me.

I'm assuming if I get denied by HF at this dealership, any other dealers won't get me approved again, right?

Re: How to get Honda Finance loan

Anonymous — Sat, 18 Jan 2014 19:13:50 GMT

In respect to your question about other dealers getting you approved, you are right. If you are turned down at one Honda dealership, then Honda Finance will not approve you for another dealer. This is in the dealer agreement Honda Finance has with its dealers, it would show favoritism if they turned down the loan for one dealer and approved it for another. Honda does not have different policies for different states, was your friends loan through Honda Finance? Most other banks don't have this requirement. I have been a Honda sales and finance manager for 10 years, and the only time I have seen the visa issue slide throught the sytem is when a customer has tons of established credit, or previous Honda finance history. If your loan is Red Flagged due to an I94 issue, Honda Finance will not even listen to any explanation about your visa getting renewed after the expiration date. The reason is because Honda Finance feels that there is no guarantee that your vis will be approved and you will be allowed to legally stay in the US. What rate are you trying to get through Honda Finance? There may be a way to get you the same deal through another lender depending on the rate you re trying to accomplish. Modcut

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Shogun, myFICO moderator

Re: How to get Honda Finance loan

GTT — Sat, 18 Jan 2014 19:15:25 GMT

@Anonymous wrote:
In respect to your question about other dealers getting you approved, you are right. If you are turned down at one Honda dealership, then Honda Finance will not approve you for another dealer. This is in the dealer agreement Honda Finance has with its dealers, it would show favoritism if they turned down the loan for one dealer and approved it for another. Honda does not have different policies for different states, was your friends loan through Honda Finance? Most other banks don't have this requirement. I have been a Honda sales and finance manager for 10 years, and the only time I have seen the visa issue slide throught the sytem is when a customer has tons of established credit, or previous Honda finance history. If your loan is Red Flagged due to an I94 issue, Honda Finance will not even listen to any explanation about your visa getting renewed after the expiration date. The reason is because Honda Finance feels that there is no guarantee that your vis will be approved and you will be allowed to legally stay in the US. What rate are you trying to get through Honda Finance? There may be a way to get you the same deal through another lender depending on the rate you re trying to accomplish. Modcut

Thanks for the reply. Yes my friend took the loan from Honda Finance. I don't care too much about the rate, but just the flex cash back.
But my question is, before the loan mature, I don't actually own the car as the title is not in my hand, right? So even I can't pay the money anymore, the bank/HF still has the car, so it doens't lose any money (or not that much).

Re: How to get Honda Finance loan

Anonymous — Sat, 18 Jan 2014 19:14:22 GMT

Yes, you are right about not owning the car, its not fully your until you pay it off. To answer your question about not be able to pay, a car is very easy to hide if you cant afford it, and Honda feels that there is too much risk associated with your type of loan. I go through this a lot as I am a Honda Finance/Sales manager at a dealership in Atlanta, GA and we have a lot of customers who are on a i-94. Most of them are from India and work in the computer/IT industry, and they usually have great credit, but Honda Finance will still not do the loan ecause of the i-94. Even though the customer has great credit, great income and jobs, and people from India are very good about paying bills on time....they still dont care. You need to get a Co-signer that has a valid 24 month visa in order to get approved at Honda Finance and get the flex cash. Modcut

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Shogun, myFICO moderator

Re: How to get Honda Finance loan

GTT — Sat, 18 Jan 2014 15:53:46 GMT

Is the approval from a person at Honda Finance or an automatic process? I thought it was like your credit car approval process that most of the applications would be processed by a machine.

But yesterday, what I learned from the dealer was it would be more like a manual process and he keeps contacting with some people at Honda Finance?

Because after I submitted the application online, he called me once asking for my previous addresses, and after about 1-2 hours, he called me again asking for my passport/visa/personal references/drivers license information ( I believe he got some kind of feedback from Honda Finance). then 3 hours later he called me the third time asking for a copy of my SSN card(I gave the number at the first place, but he asked for the card's photocopy).

Now he called me this morning saying he's still waiting for the approval. So how really does the approval process look like? It sounds to me a back-forth negotiation beteen dealers and HF?

Re: How to get Honda Finance loan

Anonymous — Sat, 18 Jan 2014 19:14:55 GMT

A machine (computer) approves the loan only if it is a definate yes or no. As I mentioned earlier the I94 issue could slide through if you have tons of established credit. This would be called an "auto-approval". If your loan doesnt auto approve or auto decline, then a person has to approve or decline the loan. Your loan didnt auto apporve for what ever reason, and somstimes Honda will auto-decline a deal based of the year the social security numer was issued, then the would ask for the i-94. Its kind of hard for me to know your exact situation without seeing your credit report. As far as the approval process, Dealers send over the app online at Honda fiannce's Interactive network website, the computer either approves the loan, declines it, or passes it through to an analyst. There are three levels of analyst. Level 1,2, and 3. Level one buyer will decline your loan and ask for a copy of the social security card, I-94 and all other documents. The dealer will fax them, the level 1 passes it up to level 2. If level 2 turns it down, then you have to speak with a level3 buyer, or senior Buyer. This is what takes so long and the dealer just has to wait until the senior buyer calls the dealer back, which is usally once a day at the most. Keep in mind its Saturday,and Honda is short staffed and busy, so it could take all day, but you probably want know anything until Monday. The only one who can approve you loans is a senior buyer, and even then, its gonna be tough.- Modcut

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Shogun, myFICO moderator

Re: How to get Honda Finance loan

GTT — Sat, 18 Jan 2014 16:12:31 GMT

Got it. Thanks.

My SSN was issue 2012/1 so it's 2 years old. Credit history is also 2 years and FICO scores are good enough I believe 740+.

But as you said, if the i94 > loan term is a hard rule, I will be definitly be denied, sooner or later..

That's sad.

Re: How to get Honda Finance loan

GTT — Mon, 20 Jan 2014 21:05:14 GMT

I finally got approved for 60 months wit apr 4.9%.

Will go and pay off in 6 months anyway so I don't loose too much interest.

Re: How to get Honda Finance loan

Anonymous — Tue, 28 Jan 2014 05:11:31 GMT

I am also on the same boat....60 months @4.9.....one quick question....were you asked for a copy of backside of SSN?

Re: How to get Honda Finance loan

GTT — Tue, 28 Jan 2014 13:20:09 GMT

Just the front side.

Re: How to get Honda Finance loan

Anonymous — Tue, 09 Sep 2014 23:38:40 GMT

How did you get rid of visa issue?

Did Honda Finance approve you or some other bank?