Financing through Honda

[Anonymous]

Hi all,

I'm planning to buy a new Honda in the next few months and was wondering if anyone here has experience with Honda financing.  

[Tuscani]

I have heard they are pretty lenient. I can't speak from personal exp though.

[Anonymous]

A co-worker of mine just financed through Honda but only managed a 6.99% APR on 60mo. with scores in the 720s.

[Mindnumb]

My experience is they don't have as much patience (reporting to CRA's) for late pays as GMAC, but Honda is still better than others I've read about on this board.

[Anonymous]

OK, next question.  On the Honda website they have a financing preapproval section.  How does that work?  If I obtain "approval" over the net, is that something tangible I can take into the dealership and avoid all the back and forth with the finance person?  

[Anonymous]

No, you'll still be going back and forth on the pricing.  Most pre-approvals will give you a response saying "You are pre-approved for a $32,000 car loan."  All it does, from my experience, is eliminate the need for the dealer credit application. 

[Anonymous]

So if I go to the dealership with a printout that says I'm preapproved for a certain amount, is there still back and forth as far as the interest rates or as far as the price of the car, or both?   I'm hoping that the preapproved means the interest rate has already been decided, and the only thing left is to agree on a price.

[Anonymous]

Both...but first get a negotiated price of the car. After you think you have a good deal, only then negotiate on the interest rate. My two cents, get a rate from a bank first( a credit union is a great place to nab a good rate). This way you have a baseline to test honda's competetiveness on lending.

[dilligaf_racing]

Just never be late on a payment, they will not budge on any GW requests. Ive always been approved for loans with them with not so great fico scores.

[emoticon]

In late 2007, I financed a 2007 Accord through Honda.  I applied online and was denied.  I got financing through BOA for a new car.  I went into the dealership and negotiated the price of the car.  They asked about my financing and said Honda could beat the rate (if I would tell them the rate, which I wouldn't).  I told them I was denied online for Honda financing. They looked up my info, said it was a mistake, and I was financed through Honda at 7.9%.  It beat BOA who wanted 8.6%.

The next day, I appled online with Nissan and was approved for financing.  I went to a Nissan dealership and was approved for a 2007 Altima at 2.9% through Nissan.

I felt insulted by BOA and overcharged by Honda, and, soon thereafter, refinanced the Accord though Penfed at 4.25%.

The points are, first, online denial (if it happens to you) doesn't mean Honda won't finance you; it's just an automated denial.  Second, you might be able to get a better rate somewhere else.  I recommend Penfed, of course.

Message Edited by emoticon on 08-11-2008 01:16 PM