Compare Honda financing
Since its introduction to Australia in 1969, Honda has built a reputation as a reliable, affordable and innovative car manufacturer. Its range of vehicles meets the needs of many, from zippy hatchbacks to roomy eight seaters and everything in between.
If you’re in the market for a new car and there’s a Honda model you’re interested in, you can visit one of the 100+ Honda dealerships nationwide.
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What car models are available in Honda’s range?
Honda’s highly regarded range of passenger vehicles include:
Packed with technological features, the Jazz is a hatchback designed to maximise its use of available space.
- Models offered: VTi, VTi-S, VTi-L
- Prices from: $20,775
Labelled as a light sedan, the Honda City was created for urban living and driving.
- Models offered: VTi, VTi-L
- Prices from: $19,230
Offering both hatchback and sedan options, the Civic has a bold and innovative design with sleek lines and refined features.
- Models offered: VTi, VTi-S, VTi-L, RS, VTi-LX
- Prices from: $25,878
Honda Civic – Type R
A high-performance version of the Civic, the Type R was designed to challenge what’s possible in a compact hatch.
- Prices from: $57,674
A deceptively roomy sedan with interiors inspired by a concert hall, the Honda Accord features a sporty look and luxurious design.
A high riding, compact yet spacious SUV to suit an urban lifestyle, the Honda HR-V bridges the gap between urban and off-road performance.
- Models offered: VTi, VTi-S, RS, VTi-LX
- Prices from: $29,380
The ultimate adventure-ready family SUV of the Honda vehicles, the CR-V was designed to provide safety, storage, and connectivity.
- 2WD models offered: Vi, VTi, VTi-E7, VTi-S, VTi-L7
- AWD models offered: VTi-S, VTi-LX
- Prices from: $31,749 for 2WD, and $40,359 for AWD
A people mover available in both seven or eight-seater options, the Honda odyssey prioritises space, connectivity and safety features. It comes in two models:
- Models offered: VTi, VTi-L
- Prices from: $43,090
Developed under the concept of a "human-centered supercar", the Honda NSX is an exclusive, state of the art performance vehicle.
How can I get car finance for my Honda?
If you’re looking to borrow money to buy your Honda, there are a variety of loan options available for both new and used cars, so you don’t have to always settle for dealer finance. Making a comparison on RateCity will allow you to look at different types of Honda car finance and decide which interest rates, fees, charges, features and benefits may best suit your needs.
If you factor the following details into your car loan comparison, you’ll likely be better equipped to work out which car loan best suits your needs.
1. Interest rates
Comparing interest rates tends to be an important first step in comparing loans. Be sure to take note of both the advertised rate and the comparison rate.
Car loan fees can often significantly impact how much money you have to pay out over the life of your loan. Some examples of the types of fees you could be charged include application fees, monthly fees, other ongoing fees early exit fees and redraw fees. Different lenders will generally charge different fees to boost their bottom line, so it can be a good idea to ask about all of them.
Car loans can vary quite a bit in terms of what they offer. It’s a good idea to consider asking about all of a loan’s features, as they can affect how much you will need to pay over the life of your loan. Some of these features include:
- Fixed or variable interest rates
- Additional payments
- Redraw facilities
4. Loan term
Some lenders are very flexible in how much time they’ll give you to pay off the loan, while others will limit your options.
5. Loan type
Some lenders will allow you to choose between a secured car loan and an unsecured car loan. Lenders will typically charge higher interest rates for unsecured car loans because they regard them as riskier than secured car loans. Securing your loan with your new Honda could allow you to access more competitive interest rates.
6. The lender
Consider the lender’s reputation and customer services offerings before applying for your Honda car finance.
What types of Honda car finance are available?
There are a number of different options on the market when it comes to Honda car finance, each of which meet specific requirements. Generally speaking, there are seven different ways to finance your Honda:
- Unsecured Car Loans: car finance where you don’t provide collateral
- Secured Car Loans: car finance where you do provide collateral, usually the car you are purchasing
- Chattel Mortgage: a specialist car finance option specifically for business finance use
- Operating Lease: more like a long-term car rental arrangement, involving a company leasing a car for an extended period
- Commercial Hire Purchase: closer to a rent-to-buy arrangement, generally involving a finance company buying a car on your behalf and letting you use it in return for regular rental payments. After a number of payments, you may own the car
- Car Finance Lease: similar to a commercial hire purchase, but with more options. You rent the vehicle for a set period and at the end of the lease, you either return the car or buy it
- Novated Lease: like a car lease, but with a more complicated ownership structure, as you acquire the car from a second party (usually an employer) which in turn leases it from a third party (a finance company)
How much can I borrow to finance my Honda?
In order to determine your borrowing power – or how much money you can borrow – lenders will typically assess your income, spending habits and credit score. Before you apply for a loan, it’s a good idea to work out the amount that fits comfortably into your personal budget.
To make this simple, you might like to consider using RateCity’s Car Loan Calculator to get an estimate of what your Honda car finance repayments might look like depending on your loan amount, preferred loan term and potential interest rate.
Having a clear understanding of what car you want to buy can make this even easier, as you can enter the cost of the car straight into the ‘I’d like to borrow’ field. The calculator can also give you an idea of how much total interest you might pay over the life of the loan.
For information and advice specific to your personal financial situation, consider talking to a financial advisor.
Georgia Brown is a journalist and content writer for RateCity. Before venturing into the world of personal finance, she worked as a reporter for realestate.com.au and Smart Property Investment. She now works truly amongst personal finance, while also writing about other areas, such as sustainable finance and super.
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Frequently asked questions
What is a secured car loan?
A secured car loan is a loan that is connected to a form of security, or collateral. Generally, the security for a car loan is the car itself. If you fail to repay the loan, the lender might seize your car, sell it and then use the proceeds to recover their debt.
How do you get a car loan?
There are four different ways you can get a car loan. You can go straight to a lender. You can get a finance broker to organise a car loan for you. You can get ‘dealer finance’ – which is when the car dealer organises a car loan for you. Or you can organise your own car loan through a comparison website, like RateCity.
Whichever method you choose, you will need to provide proof of identification, proof of income and proof of savings. So you may be asked for any combination of passport, driver’s licence, bank statements, payslips, tax returns and utility bills. You might also be asked to provide proof of insurance.
How to find a great car loan
Historically, finding a great car loan would require excess research ranging from visiting an excess of websites or making phone calls, but technology has moved on. Using RateCity, Australia’s leading financial comparison service, you can check out great deals from a range of lenders on the one site.
To start, select the amount you want to borrow and the length of the loan, narrowing your search to show just fixed or variable interest rate results.
Once you’ve indicated your search criteria, you’ll see an immediate list of lenders, ranked by interest rate or application fees. You’ll also be able to view the monthly repayment amount for each result, helping you to know what you can afford.
Up to six products can be compared side-by-side, complete with more information about each car loan, giving you more information about your options.
When comparing your car loan options, it’s ideal to keep in mind some points find a great car loan for your needs. Consider the following:
- Choosing a low interest car loan can reduce costs
- Selecting an option with low fees and charges is ideal, because these can really add up
- Be aware of penalties, such as early exit penalties if you pay off the loan sooner than expected
- Consider the features that best suit your situation
There are many ways to ensure that you get a great car loan. Ultimately, you’ll end up with the best deal by doing your research and selecting the most suitable product for you.
Can I get a car loan with poor credit?
Poor credit doesn’t necessarily mean you won’t be able to get finance for your car purchase, though your options aren’t likely to be the same as someone with good credit.
In fact, a number of specialist lenders exist offering car finance for customers with poor credit, able to provide access to bad credit car loans.
However having a history of poor credit will likely mark you as a potential risk to lenders, so your car financing needs could see higher fees and interest rates. Alternatively, consider a secured car loan, which is a type of loan that uses the car you purchase as collateral, reducing the risk.
Other options include getting someone close to act as a guarantor for your car loan, or to talk to a broker about a personalised rate specific to your circumstances.
What is dealer finance?
Dealer finance is a car loan organised through a car dealer – as opposed to car loans organised by a finance broker or directly by the lender.
Where can I get a student car loan?
Student car loans are not a necessarily a product in and of themselves, but what you may be looking for is a guarantor car loan.
A guarantor car loan has a third-party act as a form of guarantee for your loan application, telling the bank or lender that if you default on your loan, someone will pay the loan repayments.
Going guarantor on a car loan is no new thing, and before internet-based credit scores, guarantor car loan applicants would apply for loans with a guarantor or property owner who could vouch for the person borrowing the loan.
To get a guarantor car loan, you’ll need someone willing to act as a guarantor for your car loan.
What is a car loan?
A car loan, also known as vehicle finance, is money that a consumer borrows with the express purpose of buying a vehicle, such as a car, motorbike, van, truck or campervan. Car loans can be used for both new and used vehicles.
What is a guarantor car loan?
A guarantor car loan is a type of loan that features a guarantor on the agreement. The guarantor is a third-party individual, often a friend or relative, who guarantees the loan will be repaid if the borrower defaults on the car loan.
Guarantor car loans are often geared at people who might otherwise struggle being accepted for a secured car loan when purchasing a vehicle. Some of the reasons might include a lack of credit history such as with a student or young person, if there’s bad credit, or age as a factor such as with pensioners.
What is a car lease?
A car lease, also known as an asset lease or finance lease, is an arrangement by which a finance company buys a car on your behalf. You get to borrow the car in return for making regular payments to the financier. At the end of the lease, you can either buy the car or hand it back.
How much is your car worth?
If you already own a car, you could potentially bring down the cost by selling your car in the process. Before that happens, though, you’ll need to find out how much your car is worth.
One of the first places to find this value is to research the value of your current car, giving you an idea of roughly how much it’s worth in its peak condition.
There are plenty of websites that offer a free online valuation, allowing you to enter your car’s make, model, year, badge and description, with results listing a price guide based on both selling your car privately and through a dealership.
Of course, dealerships will try to profit on your trade-in by buying it for less than they can sell it, making it highly unlikely that you’ll get the same price selling a car to a dealer as you would selling a car privately.
However, private car sales can be costly and can take months to sell, making car trading more convenient with a guaranteed return, even if you may not be able to realise the total value of your car’s worth.
Remember that everything is negotiable. If the dealership is offering you less for your trade than you wanted, try to negotiate elsewhere to gain that money back. Start by negotiating on the price of the trade and then ask them if they can give you a further discount on your new car.
Can I buy a car as a student?
Buying a car is a huge financial decision, and shy of marriage and purchasing a house (or perhaps around the world travels), it may be the biggest financial decision you make. But if you’re looking at your empty pockets, don’t despair! Your dream of owning your own car could become a reality, if you look for and compare the right car loans for your circumstances.
What is a guarantor on a car loan?
A guarantor on a car loan is a third party, usually a relative or friend, who guarantees to meet the repayments of a loan for the purchase of a car, if the borrower/owner of the car defaults on the loan.
Guarantor car loans can be useful for people who would otherwise struggle in being accepted for credit to purchase a vehicle. These may include people with bad credit, students and young people who may have no credit history, as well as some pensioners.
Many lenders offer guarantor car loans, guarantor personal loans and guarantor home loans, because of the significantly reduced risk to the lender.
What is a finance lease?
A finance lease, also known as an asset lease or car lease, is an arrangement by which a finance company buys a car on your behalf. You get to borrow the car in return for making regular payments to the financier. At the end of the lease, you can either buy the car or hand it back.
Can I get a discounted student car loan?
Being a student is tough enough, and while you might find the odd student discount on movies and technology, the same can’t be said about car loans, as you can’t really get a discounted student car loan.
Lenders make money on the interest and fees that they charge with loans, and the lowest interest and fees are given to the most reliable credit holders: people with excellent credit history.
As a student, you are unlikely to have enough on your credit report to warrant an excellent history. There are however, ways of getting a lower interest car loan if you can’t get an interest-free loan from the bank of mum and dad. One way of doing this may be through getting a guarantor car loan, which can get you a secured car loan by setting your parents up as guarantors.
I’ve been denied a car loan before; can I still get car finance?
Even if you’ve been denied a car loan before, you might still be able to get car finance. The key is to make the right application to the right lender.
The ‘right’ application is one that makes you look like an acceptable risk, which might include things like improving your credit score, increasing your savings rate and accumulating a bigger deposit.
The ‘right’ lender is one that deals with borrowers like you. For example, while some car loan lenders only deal with good credit borrowers, there are others that specialise in bad credit or poor credit borrowers.
What is an asset lease?
An asset lease, also known as a finance lease or car lease, is an arrangement by which a finance company buys a car on your behalf. You get to borrow the car in return for making regular payments to the financier. At the end of the lease, you can either buy the car or hand it back.
Can I get car finance on a pension?
Yes, as long as you meet basic criteria set out by lenders you are eligible for car finance. Your interest rate will be determined based on your financial history which can be found in your credit report, your income and any property you may own.
Comparing car loans for pensioners before you settle on one is important though, if you want to secure the best possible loan for your circumstances.
Who provides bad credit car loans?
Lenders that provide bad credit car loans tend to be smaller challenger lenders rather than the bigger banks.
Bad credit car loans are a niche product. The bigger banks tend to focus on mainstream car loan finance for borrowers with better credit histories. That’s why smaller lenders tend to be the ones that provide bad credit car loans.
Bad credit car loans can have high interest rates and fees, so it’s important to compare options before submitting an application.
What is a dealership?
A dealership is a car yard or a place where cars are sold.