Navigating Honda financial terms and tools doesn’t have to be overwhelming. When you come down to Pacific Honda, you’ll find the support of an expert financing team, here to help you on every step of the vehicle financing process. We’re putting the power back into your hands and sharing a look at essential Honda financing knowledge.
Honda Financing Terms at a Glance
The more you know about the new car purchasing process, the easier it will be to find the right car at the right price. These basic financing terms and phrases can help you to get started.
- Down Payment: The down payment is the amount of money
you can offer on the day you take your vehicle home. The larger your down
payment, the more quickly you can pay off your vehicle.
- Principal: The principal refers to how much you owe
on the vehicle before interest is accounted for.
- Credit: Your credit score plays an important
role in determining what vehicles are available to you. It tells the lender how
risky you are to lend money to, which can impact interest costs and term
length. Consider raising your credit before you buy.
- Interest: Interest is essentially the cost of the
loan. The more quickly you pay off your loan, the less you will pay in
interest.
- Term: The term is the length of the loan. When
you have a higher credit score, longer term lengths will be available to you,
but you still want to try to pay your car off as quickly as possible.
- MSRP: MSRP stands for manufacturer suggested retail price. This is typically where the pricing will start before you get into potential savings and discounts.
For more information on the Honda financing process and to find the right new Honda for all your driving needs, come down to Pacific Honda. Take a test drive in San Diego today.
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