Are you planning to purchase a Honda car but unsure about the financing options available? Look no further! In this guide, we provide expert advice and a range of financing options to help you make the right decision.
Whether you're eyeing a sleek Honda sedan or a versatile SUV, we've got you covered. Get ready to navigate the world of car financing and embark on your journey to owning your dream Honda vehicle.
Researching Honda Car Models
To secure financing for acquiring a Honda automobile, start by researching various Honda models available in the market, including hatchbacks, sedans, and SUVs. Consider your own preferences and the needs of your household.
Look into Honda models such as the Civic, Accord, CR-V, and HR-V to find the one that best suits your tastes and requirements. Take note of the model year and any potential variants, as newer models often offer more advanced features.
Honda Car Finance
Honda opened its car finance wing, which has helped reach out to a wider set of customers over the past few years. The Honda Car Finance is extended to all types of Honda cars.
Features of Honda Car Finance
Attractive and Competitive Interest Rates: Honda Car Finance offers competitive interest rates on their loans, making it an appealing option for customers looking to finance a Honda car.
Flexi-Payment Option: Honda Car Finance provides a flexi-payment option, allowing borrowers to repay the finance according to their convenience. This flexibility can help customers manage their payments more effectively.
Loan Amount: Honda Car Finance extends finance up to 85% of the car's ex-showroom price. The remaining 15% of the car's value is expected to be paid as a down payment by the buyer.
Interest Rates and Tenures: The finance options available through Honda Car Finance come with various interest rates and tenures. These rates and tenures may vary depending on the specific car chosen by the buyer/borrower.
Tenure Range: The tenure for Honda Car Finance can range from 12 months to 60 months. This range provides flexibility for borrowers to choose a repayment period that suits their financial situation.
Honda Assure Insurance Program: Honda Car Finance also offers the 'Honda Assure' insurance program to its buyers. This car insurance program provides coverage for cashless transactions and easy claims, offering peace of mind to customers.
Honda Finance Car Loan Interest Rates
Honda Finance offers highly competitive car loan interest rates, typically ranging between 10% and 15%. These rates are determined based on factors such as the loan tenure, car type, and loan amount.
While the interest rates are based on market rates, there is usually some room for negotiation, and Honda Finance aims to provide borrowers with the most competitive rates.
Factors Influencing Interest Rates
Several criteria play a role in determining the interest rate for car loans.
Income Levels
First and foremost is the borrower's income level which not only determines their eligibility for a particular car loan but also influence the competitive rates offered. Higher-income levels indicate a greater ability to comfortably repay the Equated Monthly Installments (EMIs).
Credit Score
Another crucial factor is the borrower's credit score, which reflects their past loan and credit card payment history. A higher credit score increases the likelihood of loan approval and also helps in negotiating favourable interest rates with Honda Finance.
Debt-to-Income Ratio
The debt-to-income ratio is also considered, as it evaluates the borrower's existing loans and their net earnings. This analysis helps determine the individual's creditworthiness. If the borrower has a high level of existing debt or if a company has significant leverage, it may lead to higher interest rates due to the increased risk associated with the loan.
New vs. Used Car
Honda Finance provides loans for both new and used cars. For new cars, the loan value is typically set at 85% of the car's value, while for used cars, it may be slightly lower. Generally, more competitive interest rates are available for new car loans.
Used car loans may have slightly higher interest rates due to the potential rapid depreciation of the mortgaged asset, making it more challenging for Honda Finance to recoup the outstanding loan value.
Eligibility Criteria
Honda Car Finance has minimal eligibility criteria. Potential borrowers should consider the following basic requirements before applying for a loan:
Age Range: 18 years - 65 years
Monthly income requirement: Minimum Rs. 10,000 per month
Type of employment: Salaried / Self – employed
Documentation
Salaried
Identity Proof: PAN Card, Aadhar, Driving License, Passport, Voter ID Card
Income Proof: Latest 3 salary slip with Form 16 / ITR
Address Proof: Aadhar/Voter ID/ Driving license / Passport copy / Utility Bills: Max 3 months old (Telephone / Electricity /Water /Gas bill) / Ration card / House tax Slip / Registered Rent Agreement
Other documents: Salary Bank Statement for 6 months
Self-Employed
Identity Proof: PAN Card, Aadhar, Driving License, Passport, Voter ID Card
Income Proof: Latest 2 ITR with computation of Income
Address Proof: Aadhar/Voter ID/ Driving license / Passport copy / Utility Bills - Max 3 months old (Telephone / Electricity /Water /Gas bill) / Ration card / House tax Slip / Registered Rent Agreement
Other documents: Business Bank Statement (income Credit) for 6 months; proof of businesses
Financing Your Honda Car Made Easy with Park+
Navigating the world of car financing can be overwhelming, but with the expert advice and financing options provided in this guide, you are now equipped to make informed decisions when purchasing your Honda car.
Download the Park+App
To further enhance your car ownership experience, download the Park+ app. With the Park+ app, you can enjoy a range of convenient services tailored specifically for car owners. Reserve parking spaces in advance, stay on top of your car's service and maintenance schedules, access exclusive offers and discounts, and easily locate authorized Honda service centers.