Answers to Honda Finance FAQ From Our Honda Dealer Near Kearny Mesa

If you’re looking to buy a car, financing could be your best option. And if you’re not sure exactly what this involves, our Honda finance department can answer any questions you may have.

What is Financing?

When you finance a vehicle, this just means that you will be borrowing money to pay for it. You’ll put up some money for a down payment, and the rest will come from a bank or other type of lender that you will need to pay back over time. The fee for the loan comes in the form of an interest rate.

Can You Only Finance New Cars?

The great thing about financing is that, while you can use this option for a new Honda, you can also finance a used Honda. And with a less expensive car, this means you won’t have to borrow as much and your monthly payments can be smaller.

What if My Credit Score is Low?

If you’re asking this question, you already know that credit plays a role when financing a car. Generally, this is related to the interest rate. In most cases, people with higher scores can get more favorable rates.

However, just because your score is low – or if you don’t yet have a credit history – this won’t necessarily preclude you from getting a loan. At Pacific Honda, we routinely work with customers who may not have the best scores and can find solutions that work for everyone.

Are There Ways to Get a Better Interest Rate?

Typically, if you go with a shorter loan term, the interest rate will be lower. However, this does mean that your monthly payments will be higher. It’s important to go with a loan that you feel confidant you’ll have little trouble paying off.

If your credit score isn’t great, paying off any debt ahead of time may be able to raise your score, which could lower your interest rate. Another way to do this might be to use a co-signer with a good score.

How Can I Get Pre-Approved for a Loan?

Our Honda dealership near Lemon Grove makes getting pre-approved for a car loan simple. All you need to do is fill out our online application. Someone from our financing department will then contact you to talk about all of the details.