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Discussion Starter · #1 ·
Now that I've done so much research on the Honda I want and wanting to purchase before the month is over, I'm wondering if anyone know about the credit tiers for Honda Financial Services? One of my credit score is low 700's, while the others are high 600's. Should I get my own financing done first? Or should I just let the sales manager try with Honda Financial?
 

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How much down? Amount financed might play a factor.....

Try with Honda Finance..... I have never been with Honda finance before, and I was worried because all of my scores were sub 700, lowest about 640. I was approved no problem at 1.9% for 60 months. However I will have it paid off well before that.
 

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Try with Honda Finance.....
I don't really think it is up to us to chose. I mean we can chose, but - from my experience with Honda, after closing on a deal, the finance guy runs your numbers with different lenders and will offer you the best rate. Could be Honda Finance or another bank.
 

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Even My Mower Is a Honda!
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From what I know, if you want the best shot at getting thru with American Honda Financial do not get pre approved elsewhere first. It hits your credit score if your credit is run multiple times.

If I were you I would tell the dealer that you are authorizing them to run your credit with Honda Financial and Honda financial only. If it does not work then you make a decision on having them shop you around, or you do it yourself.

Good luck.

Jay
 

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I think its better if you go there with a pre approved check like credit union. in my area i was able to get 1.75. if you go to the honda dealer without a pre approved check, you will be under there mercy and will take advantage in any way they can get money from you. my advice is go there with a pre approved check and do not tell them which financing institution because they will know the APR. then negotiate an out the door price. once you get the out the door, that's when you ask for their financing if they can beat your pre approved check. you will not get the price that you want if you finance under honda. you can get the .9 percent but they will get you somewhere to compensate for their loss.
 

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I think its better if you go there with a pre approved check like credit union. in my area i was able to get 1.75. if you go to the honda dealer without a pre approved check, you will be under there mercy and will take advantage in any way they can get money from you. my advice is go there with a pre approved check and do not tell them which financing institution because they will know the APR. then negotiate an out the door price. once you get the out the door, that's when you ask for their financing if they can beat your pre approved check. you will not get the price that you want if you finance under honda. you can get the .9 percent but they will get you somewhere to compensate for their loss.
You mean well but your info is bad.

If you force the dealer to negotiate without Honda financing then you are likely forcing them not to give you all of the factory cash available that is tied to low rate Honda financing
 

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You mean well but your info is bad.

If you force the dealer to negotiate without Honda financing then you are likely forcing them not to give you all of the factory cash available that is tied to low rate Honda financing
Exactly, negotiate price, then negotiate financing. One at a time. Don't stop dealing until they pull out the $500 Honda Cash. Once that happens the price isn't going any lower. Then you agree to have your credit run. Even if the Honda interest is slightly higher, factor in the Honda cash.

Jay
 

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You did not say what you're looking for , so I'll assume a Accord . Right now Honda is 1.9 x 60 so im not sure getting any better than that is possible. I just bought my 14 EXL V6 and got 2.75 x 72, also I'm a tier 2 credit. Even if you can get better rate than 1.9 i would still go with HF over anyone else. Honda's loans are not front loaded like most others such as capital one etc.

Front loading meaning all the payment or the majority of it goes to interest first not principal, thus taking forever to get it payed down.

I have financed all my Honda's w/ HF since 1994 and have Financed at least 12 cars with them.

Your score of 700+ is great , but if you're a first timer Honda Finance will look you over harder than normal.

GL
 

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@ intrepid
what do you mean my info is bad?
No credit union is going to give you a loan check unless you have all the dealer papers to show them. You can get pre-approved but the CU/bank is not giving you a check.

Jay
 

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Discussion Starter · #11 ·
You did not say what you're looking for , so I'll assume a Accord . Right now Honda is 1.9 x 60 so im not sure getting any better than that is possible. I just bought my 14 EXL V6 and got 2.75 x 72, also I'm a tier 2 credit. Even if you can get better rate than 1.9 i would still go with HF over anyone else. Honda's loans are not front loaded like most others such as capital one etc.

Front loading meaning all the payment or the majority of it goes to interest first not principal, thus taking forever to get it payed down.

I have financed all my Honda's w/ HF since 1994 and have Financed at least 12 cars with them.

Your score of 700+ is great , but if you're a first timer Honda Finance will look you over harder than normal.

GL
Yes exactly an EXL V6 13/14 whichever I can get the lowest price on. I have a car loan that's been paid off for 2years and never been late but it wasn't with Honda Finance. So I know what you mean about the front loading because my last lender was sub-prime and that's how they did my loan when I was paying extra on my car note every month.

No credit union is going to give you a loan check unless you have all the dealer papers to show them. You can get pre-approved but the CU/bank is not giving you a check.

Jay
Maybe he's talking about the blank check like capital one does. I don't know if CU do that but Capitalone does it frequently.

How much down? Amount financed might play a factor.....

Try with Honda Finance..... I have never been with Honda finance before, and I was worried because all of my scores were sub 700, lowest about 640. I was approved no problem at 1.9% for 60 months. However I will have it paid off well before that.
Wasn't putting anything down.
 

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@karfreek
when i applied for the car loan i did not have to show any papers. just went in and applied for the amount i wanted. after 24 hrs they gave me a check for the amount i applied for. i just think its better to have a pre approved check before buying a car. it gives you an advantage and this is based on my experience. it will give you a leverage in negotiation. the 500 flex cash is just a marketing strategy.
@autumnh
yes that's right about the check. you have nothing to loose if you have a pre approved check. this way the dealer will be forced to counter offer and they will know that you can walkout anytime and go to the next dealer.
 

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@ intrepid
what do you mean my info is bad?
If you go at the dealer and force dealer not to include (Honda) financing - BTW Honda has very low rates - while agreeing on price - this will not help you it will hurt you -

because - by doing so you will make sure that dealer is not passing along factory incentives on price that are tied to financing with honda
 

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@ intrepid
they do have low rates but bottom line is having a pre approved check gives you leverage. there are no good incentives with honda financing. flex cash and all factory incentives are marketing strategy. there is nothing to loose with having a pre approved check. it will serve as a bargaining chip. i dont trust the dealer regardless what angle you look at it. i beg to disagree that not financing with honda will hurt you.
 

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Hmmmmm, I was under the impression that when purchasing an automobile or home that all financing inquiries during a certain timeframe (typically 14 days) were considered as one "hit" on your credit score?
 

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@ intrepid
they do have low rates but bottom line is having a pre approved check gives you leverage. there are no good incentives with honda financing. flex cash and all factory incentives are marketing strategy. there is nothing to loose with having a pre approved check. it will serve as a bargaining chip. i dont trust the dealer regardless what angle you look at it. i beg to disagree that not financing with honda will hurt you.
How does having a pre approval check give you leverage?

There are good incentives tied to Honda financing, and its not just flex.

The marketing strategy you want to fight is there to retain financing, using monetary incentives off of the purchase price.
 

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I used a CU. They offered 1.74 for 60 months which beat Honda's special rate. Since I was getting my own financing, the finance guy put me on a temp contract thru Honda at 1.9 for 60 months.

My score was about 660 and after I bought the car, Honda finance sent me a letter saying the original term wasn't approved. I'm thinking you have to be 675+ for the 1.9.
 

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@karfreek
when i applied for the car loan i did not have to show any papers. just went in and applied for the amount i wanted. after 24 hrs they gave me a check for the amount i applied for. i just think its better to have a pre approved check before buying a car. it gives you an advantage and this is based on my experience. it will give you a leverage in negotiation. the 500 flex cash is just a marketing strategy.
@autumnh
yes that's right about the check. you have nothing to loose if you have a pre approved check. this way the dealer will be forced to counter offer and they will know that you can walkout anytime and go to the next dealer.
Ok, the flex cash is not marketing. You don't finance with Honda, you don't get it. Period. I even had to sign a waver to sign it over to the dealer and not get a check from Honda for it. Both Hondas I bought this year it was the same, no honda finance, no Flex Cash.

In NY no bank will give you a car loan with out the paper work from the dealership. If they give you a check for $28,000 and you walk out they door they just gave you an in secured loan. The financial institution needs a copy of the dealer paper work so they can get a Lien on the title. In NY the owner holds the title not the bank.

I bought two cars and a motorcycle this year, I played the banks against the dealer. It was the same story every time with my Credit Unions, we need the paperwork from the dealer before we can cut the check.

But this is New York so maybe that is the difference.

Jay
 

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No paperwork, no check. Same with every car I've ever purchased.
 
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