Honda of North Hollywood Finance FAQs

Lenders consider your entire credit profile—score, report, income and debt—to determine loan terms. There’s no fixed minimum score; higher scores generally qualify for lower rates, but borrowers with less‑than‑perfect credit may still be approved for a Honda loan, possibly at higher rates.

A co‑signer with good credit can sometimes help you obtain a better rate. Lenders cannot require a co‑signer unless you’re applying for joint credit.

• Factors reviewed: Credit history, debt‑to‑income ratio, employment stability in the North Hollywood area
• Prime borrowers: Tend to qualify for the most favorable rates, including captive lender programs from Honda Financial Services
• Co‑signer option: May improve approval odds and rates

There’s no hard rule, but many experts suggest putting 10–20% down. A larger down payment reduces the amount financed, which may lower your monthly payment and total interest paid over the life of your Honda loan.

If you have a trade‑in, its value can count toward your down payment. Our finance specialists will help you run numbers with different down‑payment scenarios for the Honda model you want.

• General guideline: 10–20% of the vehicle’s price
• Benefits: More equity, lower monthly payment and potentially better rates
• Trade‑in credit: Can substitute or supplement cash down

APR—annual percentage rate—is the yearly cost of borrowing money. It includes the interest rate plus lender fees and is expressed as a percentage. APR allows you to compare different Honda loan offers on equal terms.

Your APR is influenced by factors such as your credit score, loan term, amount financed, the Honda vehicle’s age and current market rates. A lower APR means you’ll pay less interest over the life of the loan.

• Interest rate: Base cost of borrowing
• Fees included: Lender fees, points or administrative charges
• Determining factors: Credit, term, loan amount and vehicle age/type (e.g., new Honda Pilot vs. used Honda CR-V)

Leasing a Honda typically results in lower monthly payments and allows you to drive a new model every few years, but you won’t own the car at the end of the term and you’ll have mileage restrictions. 

Buying builds equity and comes with no mileage limits, but monthly payments are higher and terms are generally three to seven years. Consider your driving habits, budget and how long you plan to keep the Honda when choosing between leasing and buying.

• Lease benefits: Lower payments, frequent Honda upgrades, and factory warranty coverage
• Buy benefits: Ownership, unlimited miles and equity accumulation
• Considerations: Annual mileage, down payment and long‑term plans

Your trade‑in’s appraised value is applied toward your purchase price, reducing the amount you finance for your new Honda. This can lower your monthly payment and overall interest. Negative equity (owing more than your car is worth) may carry over into your new loan.

• Loan reduction: Trade‑in value lowers the principal you need to finance
• Equity impact: Positive equity reduces financing; negative equity may be rolled into new loan
• Online estimates: Use our trade‑in tool to value your trade before visiting our North Hollywood dealership

Yes. Pre‑approval shows you what loan amount and rate you qualify for and can help you understand your buying options and set your budget before you start shopping for a Honda.

• Benefits: Know your budget and estimated interest rate before shopping
• Compare offers: Use pre‑approval as a way to gauge your price range
• Credit impact: Multiple inquiries for auto loans within 14–45 days typically counts as one hard inquiry

Yes. A co‑signer with stronger credit can help you qualify for a Honda loan or receive better terms. The CFPB notes that while co‑signers can improve your approval chances and interest rate, lenders cannot require one unless you are applying for joint credit.

Both applicants share responsibility for the loan. Make sure you and your co‑signer understand the obligations before proceeding.

• Shared liability: Both parties are responsible for repayment
• Potential benefits: Better rates or approval odds, especially for first-time buyers
• Documentation: Co‑signer needs the same documents as the primary borrower

Often, yes. Honda Care Extended Service Plans, GAP insurance, and maintenance packages can typically be rolled into your auto loan. Doing so increases your total loan balance and monthly payment but spreads the cost over the life of the loan.

These products are optional. Consider factors like your driving habits, vehicle reliability, and budget before adding coverage. Your finance manager can explain each option and help you decide.

• Coverage options: Honda Care, GAP coverage and prepaid maintenance
• Financing impact: Adds to your loan balance and monthly payment
• Voluntary: Only purchase if it aligns with your needs

Zero‑percent or low‑rate financing promotions are occasionally offered by manufacturers (Honda Financial Services) on select new Honda models. Availability depends on the vehicle, current regional promotions, and your credit qualification. These deals are limited in duration and subject to approval.

Ask our finance team about current offers. We’ll help you determine if a zero‑percent program is available and beneficial for your specific situation.

• Eligibility: Based on credit and specific Honda model/trim level
• Limited term: Promotional periods may range from 36 to 60 months
• Subject to change: Offers can expire or change without notice

The lender (e.g., Honda Financial Services, or a partner bank) will offer several payment methods. You can set up automatic debit from your bank account, pay online through a web portal or mobile app, or mail a check. Automatic payments help ensure you never miss a due date.

Ask your lender which options are available and whether discounts are offered for auto‑pay enrollment.

• Auto‑debit: Monthly payments drafted automatically
• Online portal: Log in to pay via transfer or card
• Mail payments: Send a check to the address on your statement

Yes. Honda Financial Services and some of our partner lenders offer first‑time buyer programs aimed at people with limited credit histories. These programs may feature flexible approval criteria and competitive rates to help you build credit while purchasing a reliable Honda.

Our finance team in North Hollywood will explain the eligibility requirements and work with you to secure the best option for your budget and credit goals.

• Flexible approval: Designed for those with little credit history
• Credit education: Guidance on building and maintaining good credit
• Competitive rates: Often comparable to standard financing

To expedite the financing process at our North Hollywood dealership, bring the following documentation:

• Identification: Valid driver’s license or state ID
• Income Verification: Pay stubs (2-3 most recent) or tax returns (if self-employed)
• Insurance: Proof of current auto insurance
• Trade-in: Title or registration for your trade-in vehicle

If you have a co-signer, they will need to provide the same documentation.

• Required documents: ID, proof of income, and insurance
• Trade-in paperwork: Title/Registration (if applicable)
• Expedite the process: Having these ready saves time