You can finance a Honda with a loan from Honda Financial Services (HFS) or from a credit union, bank, or online lender. Financing with HFS is simple, but unless you have excellent credit, you may get a better deal by securing a loan elsewhere.

Hondas tend to be well-priced and reliable, making them some of the most popular cars in the United States. Honda-buyers should keep their standards high for an auto loan, as well. Shop around to make sure you’re getting the best terms possible.

Jerry, the car insurance comparison and loan super app, is here with everything you need to know about how to get a Honda loan.

How to get a Honda car loan

To finance your car through HFS, you’ll need to buy your car from a Honda dealership. If you’re purchasing your Honda through a different seller, you’ll have to get a loan from an online auto lender, a bank, or a credit union.

Whether you’re keeping it simple with a Honda Accord or you’re going a bit bigger with a Honda CR-V, the steps for finding a loan are the same:

Check your credit score
Compare loan rates and terms from a few different lenders
Get preapproved for a loan, if possible

Check your credit

The first step in getting a car loan is checking your credit, as your credit score helps determine your loan options, terms, and interest rate. To qualify for financing through HFS, you’ll need a minimum 610 credit score. You’ll start seeing better terms and lower interest rates if your credit score is at least 660.

With excellent credit, you might even net 0% APR financing through HFS. This can apply to both new and used Hondas.

The table below outlines average APRs and monthly payments for various Hondas based on credit score:

Credit Rating

Car Make	Average Annual Interest Rate	Average Monthly Payment
HONDA	8.2	$360

MORE: How to get a cosigner for a bad credit car loan

Compare lenders

Compare loan options from HFS (if you qualify), your bank or credit union, and online auto lenders. We recommend considering at least three lenders before pursuing a car loan.

The best auto loans have the following terms:

They are 60 months long or less
The APR is 4.93% or less
The monthly payment is no more than 10–15% of your income

If you find a promising lender, make sure to read customer reviews. Your lender should provide strong customer service and be easy to reach if you have questions or concerns.

Get preapproved

Once you’ve narrowed down your lender options, apply for preapproval to compare offerings and make a final decision. HFS allows potential buyers to get preapproved for their loans online. Most online auto lenders offer this option, as well.

If you want to get preapproved for a car loan, you must first apply for the loan, which involves providing the following details:

Your Social Security number
Valid photo ID (e.g., driver’s license)
Evidence of employment and income documents (e.g., paystubs)

It’s a good idea to apply for preapproval from multiple lenders. For example, you might apply for preapproval from both HFS and an online auto lender.

The preapproval process entails a hard credit inquiry, which may temporarily lower your credit score by a few points. But if you apply for preapproval from multiple lenders within a 14-day period, this is usually treated as a single hard inquiry by credit scoring models.

Key Takeaway Check your credit score and apply for preapproval for a Honda car loan. Compare offerings to pick the loan with the best terms and rate.

Average loan term for a Honda car loan

The average new car loan in the U.S. is around 70 months, or just under six years. Average APRs range from 2.58–19.85%, depending on the buyer’s credit score and whether the car is new or used. Borrowers should always aim for the best terms possible.

Try to keep your auto loan to 60 months or less if possible. Shorter loans typically accrue less interest overall, and they take less time to pay off. On the flip side, your monthly payments will be higher. If you’re purchasing your car through a Honda dealership, HFS offers loan terms ranging from 24 to 72 months. You might score 0% financing, too, if you have stellar credit. HFS may also offer the following deals:

Cash rebates
College graduate rebates
Loyalty benefits
Military discounts
Mobility assistance reimbursement for qualified adaptive equipment

Keep in mind that special deals from HFS change often.

The table below can give you a picture of your potential monthly payment and interest rate depending on your loan terms:

Credit Rating

Loan Terms	Average Annual Interest Rate	Average Monthly Payment
24	11.03	$695
36	8.44	$469
48	7.9	$361
60	7.79	$299
72	8.12	$260

MORE: Should you get a 72-month car loan?

Finding a Honda car loan in your state

The terms of your auto loan partially depend on your state of residence. Keep this in mind when comparing and applying for preapproval from potential lenders.

See the table below for average car loan interest rates and monthly payments by state:

Credit Rating	Average Annual Interest Rate	Average Monthly Payment
Fair	15.73	$408
Good	8.16	$359
Very Good	5.05	$340
Excellent	3.87	$333

MORE: What is a prepayment penalty on your car loan?

Honda car loans: new vs. used

As a general rule, interest rates on loans for new cars are lower than those on loans for used cars. And if you’re buying used, your financing options might be limited. HFS only finances certified pre-owned (CPO) Hondas, which are typically recent models with low mileage.

CPO Hondas have their benefits, including warranties, free oil changes, and roadside assistance. They also qualify for low-APR deals through Honda Financial Services. But these cars tend to have higher price tags than your run-of-the-mill used vehicles.

If you’re planning to finance an older used Honda, you might have to do so through your bank or credit union instead. But if you’re buying a brand-new Honda, you’ll probably score lower interest rates across the board. On the other hand, you’ll have to pay a higher sticker price for a new car.

The table below demonstrates how your car’s age can affect your monthly payment and APR:

State

Car Year	Average Annual Interest Rate	Average Monthly Payment
2021	7.42	$303
2020	7.66	$306
2019	7.85	$306
2018	7.82	$306
2017	7.98	$307
2016	8.13	$308
2015	8.31	$309
2014	8.28	$378
2013	8.35	$378
2012	9.26	$510
2011	9.26	$510
2010	9.26	$510

MORE: Car insurance for used cars

How to calculate the costs for a Honda car loan

It’s hard to keep track of all the factors involved in a Honda car loan. Jerry’s loan calculator can help you estimate potential loan terms.

State

Credit Rating

Loan Terms

Loan Amount

Average Annual Interest Rate	Average Monthly Payment
8.2	$360

Save money on Honda insurance with Jerry

Once you’ve secured a loan for your new Honda, it’s time to find car insurance. If your goal is to save money on insurance, the Jerry app is a great place to start.

Jerry is a licensed broker that finds quotes from over 50 top insurance companies—all it takes is 45 seconds of your time. The app can also help you cancel your old insurance policy.

When you’ve secured a policy through Jerry, the app will send you new quotes whenever it’s time to renew. This helps you keep your rates dirt cheap while you enjoy stellar coverage. The average Jerry customer saves $887 per year on car insurance.

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