Honda Finance Terms in San Diego, CA to Know

We know when it comes to car shopping, the financing process can be overwhelming. Lots of drivers come to Pacific Honda with questions about their options and don’t know where to begin. We are highlighting some common Honda financing terms to help improve the process.

 

Honda financing in San Diego

Common Finance Terms

  • Financing – When shoppers are looking to buy new Honda vehicles, but can’t pay for the total investment upfront, they can finance their car, borrowing the money from a financial institution and making monthly payments to their lender until it is paid in full.
  • Leasing – Leasing is the option to “borrow” the car from the dealership. You have more affordable monthly payments and then after a predetermined term, the car can either be purchased or returned to the dealership.
  • Term – This refers to the length of your loan or lease, measured in months.
  • Credit Score – Your credit score is a reflection of your buying power. The score is between 300 and 850 and a higher credit score reflects a better credit history.
  • Interest Rate – Your interest rate is the direct fee you pay to your lender during the life of your loan. It is measured in a percentage. A higher credit score typically results in a lower interest rate.
  • GAP Insurance – GAP insurance helps to protect you if you damage your vehicle. It can help to cover the difference between what your vehicle is currently worth and what you still owe.
  • Trade-In Value – This is the estimated worth of your existing vehicle, which can be applied towards a new loan.

Our Honda Finance Center

Our Honda finance center is your best resource when you are shopping for a new car. Our financial experts will review your buying criteria and work to find you a competitive financing option from our circle of trusted lenders.

And we pride ourselves on finding options for everyone. Our Fresh Start Program specializes in loans for buyers with poor or no credit, bankruptcy, and repossession. We want to help everyone get into a new car.

Don’t be overwhelmed about financing your new vehicle. Our San Diego Honda dealership works to make the process as simple as possible. Visit our team to get started today!