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How to finance a Honda

Learn about the different types of Honda financing and choose the best option for your needs.

From humble beginnings in a 1940s Japanese garage to a multi-trillion dollar company operating around the world, Honda has come a long way and has become known manufacturing reliable vehicles. If you’re looking to finance a Honda, whether new or used, you have several options available.

How can I finance a Honda?

While it may be tempting to go straight to the dealership, you could save money by comparing your car loan options first. Visiting different banks, credit unions and online lenders could not only help you score a lower rate — after all, you don’t have to pay the middleman — but it could also put you in a better position to negotiate your car’s price.

Here is a breakdown of the different types of car financing.

Bank car loan

Banks are a decent option for Honda financing if you have good to excellent credit score.

  • Competitive rates. Banks can offer competitive rates since they are major financial institutions with strong lending power.
  • Fixed or variable rate. You also have a choice between a fixed or variable rate. A fixed rate means your interest rate (and therefore your loan repayments) will stay consistent throughout, while a variable rate means your interest rate will shift with the markets, which can increase or decrease your repayments.
  • Unsecured or secured. A car loan from a bank may come as unsecured or secured. If it is secured, your Honda will act as collateral. If it is unsecured, then the loan has no collateral. Before accepting the offer, make sure you know what kind of car loan it is.
  • Loan terms. Loan terms are usually up to 6 or 7 years, but try to make your loan term as short as possible so you pay less interest overall.

Credit union car loan

Just like banks, credit unions are a solid option for Honda financing if you have good to excellent credit.

  • Competitive rates. Credit unions can also offer some of the lowest rates.
  • Fixed or variable. Just like banks, a credit union car loan may have a fixed or variable interest rate.
  • Unsecured or secured. The car loan may come as secured and unsecured.
  • Loan terms. Loan terms are usually up to 7 years.
  • Membership may or may not be required. Credit unions sometimes require a membership to access their products, but not always.

Get a quote from a credit union

Coast Capital does not require a membership in order to get their car loan.

1 - 1 of 1
Name Product Loan Amount Interest Rate Loan Term Min. Credit Score Requirements
Coast Capital Car Loan
$10,000 - No Max.
Varies
18 - 84 months
650
Able to service debt payment of $300/month
Competitive rates and flexible terms.
Finance new and used vehicles from one of Canada's largest credit unions. No credit union membership required. Available across Canada except SK, QC, NT, NU, YT.
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Compare up to 4 providers

Online car loan

Online car loans are available to all credit types, good or bad. They are a strong option for Honda financing if you want to compare rates and terms from multiple lenders. Online car loans are usually secured with fixed interest rates, and they have more flexible eligibility criteria than bank or credit union car loans.

Compare car loans to finance a Honda

1 - 8 of 8
Name Product Loan Amount Interest Rate Loan Term Min. Credit Score Requirements
CarsFast Car Loans
$500 - $75,000
4.90% - 29.90%
12 - 96 months
300
Min. income of $2,000 /month, 3+ months employed
Get a new or used vehicle delivered to your door.
Browse thousands of vehicles from dealers across Canada and get matched with financing that meets your needs.
Loans Canada Car Loans
$500 - $35,000
0% - 31.99%
24 - 120 months
300
Min. income of $1,800 /month, 3+ months employed
Compare rates from 60+ lenders.
Complete a single application to get quotes from different lenders. Bad credit, CERB and EI borrowers considered. 0% APR for new cars only, used car rates start at 7.99%.
Coast Capital Car Loan
$10,000 - No Max.
Varies
18 - 84 months
650
Able to service debt payment of $300/month
Competitive rates and flexible terms.
Finance new and used vehicles from one of Canada's largest credit unions. No credit union membership required. Available across Canada except SK, QC, NT, NU, YT.
Clutch Car Loans
$7,500 - No Max.
From 3.90%
12-96 months
580
3+ months employed, Max.1 bankruptcy
Pre-qualify for a loan in under 2 minutes with no impact to your credit score.
Get approved for financing in under 24 hours for the used car you want. No hidden fees. Get the vehicle delivered to your door.
Canada Drives Car Loans
$7,500 - $99,999
4.75% - 29.99%
12-84 months
400
Min. income of $1,800 /month
Buy a used car online and get it delivered to your door in under 24 hours.
Get pre-approved for financing in 3 minutes with no impact to your credit score. No fees or penalties for early loan repayment.
Carloans411 Car Loans
$500 - $50,000
1.90% - 19.99%
Up to 72 months
300
Min. income of $1,600 /month, 3+ months employed
High application approval rate.
Get connected with suitable lenders to finance your next car, van or truck. Check eligibility for this loan through LoanConnect.
Canada Auto Finance
$500 - $45,000
4.90% - 29.95%
3 - 96 months
300
Min. income of $1,500 /month, 3+ months employed
Get financing from partnered local lenders.
Financing for a new or used car is available for borrowers with bad credit, no credit, CERB, EI or bankruptcy.
Splash Auto Finance
$10,000 - $50,000
9.90% - 29.90%
24 - 84 months
300
Min. income of $2,200 /month, 3+ months employed
Apply with any credit score.
Get financing for a new or used car. Auto loans for borrowers with fair credit, bad credit, no credit or bankruptcy.
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Compare up to 4 providers

Personal loan

With a personal loan, you have a choice between a secured or unsecured loan. A secured personal loan involves putting up collateral such as your house or investments, while an unsecured personal loan involves no collateral. Unsecured tends to have higher interest rates since the lender is taking on more risk without the collateral.

You can get a personal loan through banks, credit unions or online lenders. Just like with car loans, online lenders of personal loans are more likely to approve borrowers with bad credit. Learn more about secured personal loans or unsecured personal loans.

Finance through Honda

If speed is your biggest priority and you don’t want to spend your free time comparing lenders, Honda has two financing options that might suit you:

  • Purchasing through Honda Canada Finance. Honda offers financing directly through its authorized dealers to save you time and paperwork. An example of an offer by Honda is 0.99% APR for up to 84 months on all 2021 CR-V models (subject to credit approval).*
  • Leasing through Honda Financial Services. If you want to change up your car every few years, then leasing through Honda Financial Services may be a solid choice. For example, you can lease the 2021 CR-V from 0.99% APR for 36 months with $0 down payment (subject to credit approval).*

Depending on where you live, your local dealer may offer their own special promotions, like cashback bonuses or low down payment deals. The rates and terms you qualify for will depend on your credit history and personal financial situation.

*As of June 2021

Can I get 0% financing on a Honda?

Zero-interest financing is not available through banks, credit unions or online lenders since they have nothing to gain by offering it, but it is sometimes available through dealerships. At least with a dealership, you are moving their inventory. There are key points to consider about 0% financing:

  • 0% interest may only be offered for part of the loan term.
  • 0% interest is only available to certain models.
  • To be approved, you’ll need spectacular credit (above 700).
  • Negotiating the car price will be difficult, so you may end up paying more.
  • The loan structure will likely be set in stone.

Before signing the dotted line for 0% car financing, be sure to compare offers from other lenders so you can be confident you’ve found the right deal.

Representative example: Mandy buys a Honda

Mandy, a resident of Alberta, is looking for a new car. She visits a dealership and finds a 2020 Honda Civic Hatchback priced at $26,999. Mandy is able to get a $4,000.00 trade-in on her old car and pays an additional 20% deposit of $4,600.00 on the Civic. She applies for dealership financing to cover the outstanding amount ($18,399.00) plus 5% GST on the purchase price minus the trade-in. Thanks to her solid credit history, Mandy is approved. Along with the cost of the loan, she also pays around $85.00 to register her car with the provincial government.

Cost of new vehicle$22,999.00 ($26,999.00 – $4,000.00 trade-in)
Loan typeAuto loan (term loan)
Loan amount$19,548.95
Interest rate (APR)5.90%
Loan term6 years
Additional fees4.00% origination fee ($781.96)
$0.00 application fee (waived by dealership)
Payment $323.06 monthly or $148.94 biweekly
Total loan cost$23,260.32 with monthly payments or $23,234.64 with biweekly payments

*The information in this example, including rates, fees and terms, is provided as a representative transaction. The actual cost of the product may vary depending on the retailer, the product specs and other factors.

Does Honda offer special discounts or programs?

Honda does not offer special buyer discounts across the country. Rather, special discounts vary between dealerships. Below are some examples of discounts that have been offered by various dealers:

  • Canadian Military Personnel Rebate. $500 toward buying or leasing any new Honda model if you’re serving, or have served, in the Canadian military.
  • Graduate Program. Various discounts for full-time or part-time university students or recent university graduates. (Discounts vary by model.)
  • VIP Program. Submit and application and, if approved, enjoy extra discounts on Honda vehicles, added trade-in bonuses, family and friend referral bonuses and other perks.

Honda Canada does have a program that allows international students and post-secondary graduates to lease or finance a Honda vehicle.

International students must meet the following requirements:

  • Enrolled in an accredited program
  • Provide documentation, such as student visa, driver’s licence and proof of enrollment
  • Lease or finance term must not exceed the duration of the student visa

Post-secondary graduates must meet the following requirements:

  • Must be graduates of a 3- or 4-year university program, a 2- or 3-year nursing program, a police or military school or a minimum 2-year community college program
  • Must have graduated within the last 4 years or will graduate in the next 4 months
  • Must provide documentation, such as a copy of their diploma, proof of full-time employment, proof of income and driver’s licence
  • Must have no adverse credit history
  • Payment cannot exceed 20% of the graduate’s gross income

How much are Honda cars?

The price of your Honda will vary based on where you live, your negotiation skills, condition of the car and any add-ons you choose.

ModelPriceBodyCondition
2021 Civic$23,400 starting MSRPSedanNew
2021 HR-V$25,200 starting MSRPSUVNew
2021 Insight$28,490 starting MSRPSedanNew
2021 Accord$32,570 starting MSRPSedanNew
2021 CR-V$29,970 starting MSRPSUVNew
2021 Ridgeline$44,355 starting MSRPTruckNew
2021 Odyssey$43,105 starting MSRPMinivanNew
2021 Pilot$42,905 starting MSRPSUVNew
2017 Civic$13,810SedanCertified pre-owned
2016 CR-V LX$16,290SUVCertified pre-owned
2018 Civic$16,360SedanCertified pre-owned

Do new Honda vehicles come with a warranty?

Honda’s warranty also covers the following components:

  • Power train. 5 years, 100,000 km
  • Distributor’s warranty. 3 years, 60,000 km
  • Emissions systems. 3 years, 60,000 km (can be upgraded to 8-year, 130,000 km coverage)
  • Accessories. 3 years, 60,000 km
  • Rust perforation. 5 years, unlimited km
  • Surface corrosion. 3 years, unlimited km
  • Roadside assistance. 3 years, unlimited km (for vehicles from 2005 or later)
  • Battery. 3 years, unlimited km (100% coverage for the first 2 years, then 50% coverage + labour charges for the third year)
  • Audio components. 3 years, 60,000 km
  • Integrated motor assist system. 8 years, 160,000 km

Compare car loans

Bottom line

Whether you’re interested in driving a new or used Honda, you have a variety of financing options to choose from. If you want to hit the road faster, then financing directly through Honda Canada Finance might be the way to go. Otherwise, you may be able to score lower rates if you compare car loans from banks, credit unions and online lenders before visiting a dealer.

Frequently asked questions

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