How to finance a Honda
Plus, find out how much a new Honda will cost you and what kind of warranty coverage is available.
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 new or used Honda, you have several options available. And you may even be able to score a special discount, depending on what dealership you’re buying from.
How can I finance a Honda?
There are multiple ways to finance your next 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 could also put you in a better position to negotiate your car’s price. Another option is to take out a personal loan, though this typically comes with higher APRs since your loan won’t be secured by the car you’re buying.
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. In the past, such deals included 2.49% financing for 84 months on 2019 Honda Civic Sedan DX models, which would mean weekly payments of $59.03.*
- 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. In the past, you could lease a 2019 Honda CR-V Touring for 24 months with $0 down for 0.99% interest, which would mean weekly payments of $116.89.*
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.
*Rates as of May 13, 2019.
Compare car loans to finance a Honda
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.
Do new Honda vehicles come with a warranty?
Honda offers a 3-year, 60,000-kilometre limited warranty on all its new vehicles alongside a 5-year, 100,000-kilometre powertrain limited warranty.
Honda’s warranty also covers the following components:
- 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
Additional coverage is available if you’re willing to pay for it, with prices ranging from hundreds of dollars a year to over a thousand dollars a year. With the Honda Plus Plan, you can choose from a number of options that upgrade the limited warranty to make it last between 4 and 8 years long and between 80,000 km and 200,000 km. The Plus Plan also extends all the warranty components listed above to 7 years or 160,000 km, whichever comes first.
If you’re leasing a Honda, you can pay to extend the warranty that comes with your agreement to either 4 years/100,000 km or 5 years/120,000 km. Towards the end of this first period, you can top up your extended coverage, bringing it up to a total of 7 years/160,000 km or 8 years/200,000 km altogether.
You can also purchase the following advanced coverage. Visit Honda.ca for more details and conditions.
- Appearance. Options include interior (fabric, vinyl or leather), paint, corrosion, undercoating and rust.
- Payment Protection. Covers payments or even the outstanding balance of your car loan in the event of death, critical illness, unemployment or difficulties due to being disabled.
- Tire and rim protection. For damage from potholes, ice chunks, nails, screws, glass, broken road surfaces from freezing and thawing, lost cargo and other road conditions.
- Total loss protection (you may know this as “gap coverage”). Covers the difference between your insurance payout and the balance of your loan in the event that your car is stolen or totaled, so that you’re not left paying for a car you don’t even drive anymore. You may even be able to get your vehicle replaced.
- Owner comfort. Offers dent and ding protection, windshield repairs, key fob replacement and rip, tear and burn protection.
- Roadside assistance. Extends to match the length/distance of your upgraded warranty. Additionally, you get up to $45 per day towards a car rental for max 5 days if a covered vehicle breakdown lasts more than 5 hours or if Honda Canada doesn’t have the parts to fix it. You’ll also get coverage for flat tires.
- Lease guard. Covers you for simple stains, dents and dings while you’re leasing a Honda vehicle, and gives you up to $7,500 coverage for damages found when you turn in your vehicle for inspection at the end of your lease term.
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.