How To Finance A Honda In Canada

How To Finance A Honda In Canada

Written by Lisa Rennie
Fact-checked by Caitlin Wood
Last Updated May 19, 2022

Honda is one of the most popular automakers in Canada thanks to the reliability and affordability of its models compared to other car brands. But whether you buy new or used, you’re still looking at spending a few thousand dollars to buy a new Honda. For many Canadians, financing is a must. Find out how you can finance your Honda in Canada. 

Types Of Honda Cars You Can Finance In Canada

There are numerous Honda car models you can finance in Canada. Whether you want to buy it new or used, these are some Honda cars you can purchase:

Honda Civic Sedan
Honda InsightSedan
Honda AccordSedan
Honda CR-VSUV
Honda HR-VSUV
Honda Odyssey Minivan
Honda RidgelineTruck

Cost Of Financing A Honda In Canada

In addition to paying the MSRP price for your new Honda, you’ll also have to pay some additional fees built into your financing. More specifically, the cost of your Honda financing will depend on the following factors:

The following table illustrates how much your Honda financing could cost you, based on the 5 more popular Honda models currently available, an interest rate of 4.99%, a $5,000 down payment, and a 60-month term:

Car ModelPrice Monthly PaymentTotal Cost
Civic Sedan LX $27,343$421.54$25,292.26
Accord Sedan SE$35,643$578.13$34,687.85
CR-V LX-2WD$33,613$539.83$32,389.89
Pilot Sport$49,063$831.32$49,879.28
Odyssey EX$47,733$806.23$48,373.72

How To Finance A Honda In Canada

If you need some financial assistance to buy a Honda, you’ve got a few options. Here are a few different types of auto financing possibilities available to you:

Can You Finance A Honda Through A Honda Dealership?

The most convenient option when it comes to financing a Honda would be to apply for a car loan directly through the dealership. This is the fastest option, however, it may be more expensive than other financing options. 

Buy A Honda

If you’re planning to buy a Honda, you can finance the purchase directly through Honda’s authorized dealers. This will save you the time and hassle involved in shopping around for a car loan.  

Lease A Honda

If you plan to lease your Honda, you can arrange a lease contract directly through Honda Financial Services.

There may be special offers advertised by your local Honda dealership, such as a low introductory rate, cashback bonuses, added features, or low down payment options. 

Can You Finance A Honda Through A Bank? 

When you need a loan to finance the purchase of a Honda, your bank might be the first place you think of. Keep in mind, however, that banks typically require that you have a healthy credit score and financial profile to get approved for a car loan.

If your finances and credit are in good shape, you can take advantage of competitive interest rates on your car loan when compared to what alternative lenders can offer. 

Can You Finance A Honda Through An Online Personal Loan?

While a car loan would be an obvious choice when it comes to financing a Honda, you can also take out a personal loan to get your hands on the funds needed to make this big purchase. 

A personal loan is a type of installment loan in which you’ll be given a lump sum of money that must be repaid — with interest — after a specified time. These loans can be either secured or unsecured and come in a variety of loan terms. 

You can apply for a personal loan from a bank, credit union, or online lender. The lender you choose will depend on your credit strength. If you have a good credit score, you’ll likely be able to get a loan from a bank. But if you have a bad credit score, you may have better luck with an online lender whose lending requirements are more flexible.

Tips On Choosing A Loan To Finance A Honda

Loan Terms

When choosing between short or long terms to repay your loan, choose one you can afford comfortably, rather than one with the longest term. The longer your term, the lower your monthly payments, but the more interest you’ll pay over the life of the loan. 

Secured Or Unsecured

Generally speaking, auto loans are considered secured loans because the vehicle you’re buying serves as collateral for the loan. If you get a secured loan, you may be able to snag a lower rate. 

An unsecured loan, on the other hand, means there is no collateral backing the loan. These are riskier for lenders, which means you’ll likely pay a higher interest rate. 

Fixed Or Variable Interest Rate

A fixed-rate loan means the interest rate will not change throughout the loan term, which means your payments will remain the same. This is a good option if you have a tight budget to follow. A variable-rate loan means the rate will fluctuate,  so your payments will increase or decrease accordingly. This can often lead to lower interest. 

How To Reduce The Cost Of Your Honda

Individual Honda dealerships may offer their own discounts and specials as incentives. Here are a few examples of the types of discounts that dealerships may offer to help lower the cost of a new Honda:

  • Canadian Military Personnel Rebate. If you’re a member of the Canadian military, you may qualify for a $500 rebate to be applied to the purchase or lease of any new Honda model.
  • Graduate Program. University students and recent graduates may be eligible for Honda’s Graduate Program, which offers discounts that vary by model.
  • VIP Program. You can apply for the VIP Program to receive extra discounts on Honda models, bonuses on trade-ins, and family and friend referral bonuses.

Honda Financing FAQs

Can I get 0% financing for my Honda?

Zero-interest financing may be available through Honda dealerships as an incentive to encourage more sales, particularly when they want to get rid of older models and make room for the upcoming year’s inventory. But 0% financing is typically not available through banks, credit unions, or online lenders, as there is no money to be made with no interest being charged. If you do find a 0% financing option available at a Honda dealership, keep the following factors in mind: 
  • Zero-percent interest may only be available on part of the loan term and with certain models 
  • You may need good credit to be approved for 0% financing
  • There may be little flexibility with the loan structure

Can I finance a used Honda?

Yes, you can get financing for the purchase of a used Honda through the carmaker’s Certified Used Honda program. To become certified for resale, the vehicle must pass a 100-point inspection first. The car will also come with a CARFAX vehicle history report, a powertrain warranty for 7 years or 160,000 km (whichever comes first), and the ability to return the vehicle within 7 days or 1,000 km (whichever comes first).

Does Honda have any warranty? 

Yes, there are several types of warranties that come with your Honda, such as powertrain, rust perforation, surface corrosion, roadside assistance, battery, and integrated motor assist system.

Final Thoughts

You have a few options when it comes to where to get a car loan to finance the purchase of a Honda. Depending on your credit profile and how quickly you want the financing process to go, you could either fiance your Honda through a car dealership, a bank, a credit union or an alternative lender. If you’ve got good credit and are willing to do a little comparison shopping to get the lowest rates, banks and credit unions may be great options. On the other hand, working directly with the dealership might get you on the road sooner. But if your credit score is poor, an online lender might be your best bet.  

Lisa has been working as a writer for more than a decade, creating unique content that helps to educate Canadian consumers in the realms of real estate, mortgages, investing and financial health. For years, she held her real estate license in Toronto, Ontario before giving it up to pursue writing within this realm and related niches. Lisa is very serious about smart money management and helping others do the same. She's used a variety of financial tools over the years and is currently growing her money with Wealthsimple, while stashing some capital in a liquid high-interest savings account so that she always has a financial cushion to fall back on. She's also been avidly using her Aeroplan TD credit card to collect as many Aeroplan points as possible to put towards her travels!

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