You know that you want a new Honda vehicle, but do you know how you’re going to finance it? Purchasing a new Honda is a financial commitment, which is why you need to understand the financing process. These tips for financing your Honda should help you better grasp how to move forward in purchasing your brand-new car from Love Honda.
Set Your Budget
Before you begin shopping for your dream Honda, it’s important to understand how much you can afford. Look at your monthly expenses and consider how much you can spend on your vehicle each month. This should extend beyond the monthly payment for your new car: You need to also consider the costs of fuel, maintenance, and insurance, since those will be extra expenses associated with your vehicle. Once you calculate the amount you can afford each month, make sure you stick to it as you shop for your Honda.
Decide Your Term Length
Automotive loans tend to range between 5-6 years, though longer terms are available. When you opt for a longer loan, you will reduce the amount of your monthly payment, but you will also have to pay more interest in the end. This is something to consider when you’re considering the term length that will be best for your financial needs. Also keep in mind that zero-percent financing will typically come with shorter term lengths, giving you higher monthly payments but less total money spent.
Understand Your Credit Score
Every time you apply for a loan, your credit score and credit history will be taken into account. The better your credit score, the more likely you will receive a good loan with a solid interest rate, since your credit score is a reflection of how responsible a lendee you will be. Understanding what your credit score is will prepare you as you go into the auto loan process.
For great financing terms and flexible options, talk with a representative at Love Honda.