Monday, January 18, 2021

Honda Financing Options for Your Next Car Purchase


 Purchasing a car is a huge financial investment. In fact, for most people, it’s the biggest investment next to a house. This is where Honda financing near Sherman Oaks, CA comes in. Learn what financing options are at your disposal.

Dealership Financing

The most common option is financing directly with the dealership. This is the option we recommend simply because it’s the most convenient. You purchase or lease your car and get the finances out of the way – all from one location and usually on the same day. You kill two birds with one stone. 

Bank Financing

You may also get a loan from the bank much the same way you apply for a mortgage. This is actually a good way to build your credit if you fulfill your payment obligations on time. However, you won’t be able to take advantage of finance specials pertaining to a specific car model. It will also be harder to secure a loan if you don’t have the best credit.

Personal Loans

Personal loans come from credit unions or third-party lending institutions. These are general loans that can be used for any purpose and not for a car specifically. With a personal loan, though, you need a really good debt-to-income ratio, usually not exceeding 43%. Interest rates have been known to be as high as 35%. The industry is also notorious for predatory lending practices. In addition, there may be an origination fee, which can be as high as 6% of the loan amount and must be paid upfront.

Visit Keyes Honda; we may have financing specials on select purchases and leases for models like the Honda HR-V and more.

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