Honda Finance Corp

Honda Financial Services (HFS), a division of American Honda Finance Corporation (AHFC), provides financing options and related services to consumers purchasing Honda and Acura products in the United States. Its primary function is to support the sales of Honda and Acura vehicles by making them more accessible and affordable to a wider range of customers. HFS offers a variety of financing solutions, including retail financing (loans) and leasing options. Retail financing allows customers to purchase a vehicle and pay it off over a set period, typically with fixed monthly payments. These loans can cover the entire cost of the vehicle, or a portion, depending on the customer’s down payment and creditworthiness. Interest rates on these loans are competitive and are influenced by factors such as the prevailing market rates, the borrower’s credit score, and the loan term. Leasing provides an alternative to traditional ownership. Customers lease a vehicle for a specific term, usually two to five years, and make monthly payments for the use of the vehicle. At the end of the lease term, the customer has the option to purchase the vehicle at a predetermined price, return the vehicle to the dealership, or lease a new vehicle. Leasing often results in lower monthly payments compared to purchasing, making it an attractive option for those who prefer to drive a newer vehicle and are not concerned with long-term ownership. Beyond financing, HFS also offers a suite of additional products and services designed to protect customers and their vehicles. These may include vehicle service contracts, which cover certain repairs beyond the manufacturer’s warranty; Guaranteed Asset Protection (GAP) insurance, which covers the difference between the vehicle’s value and the amount owed on the loan in the event of theft or total loss; and tire and wheel protection plans, which protect against damage from road hazards. HFS plays a vital role in the success of Honda and Acura dealerships. By providing financing options, HFS helps dealers close more sales and maintain strong customer relationships. Dealerships can offer financing directly through HFS, streamlining the purchasing process for customers and making it easier for them to acquire a new vehicle. This integration between HFS and dealerships strengthens the Honda and Acura brands and contributes to their overall market performance. To ensure customer satisfaction, HFS emphasizes a customer-centric approach. This includes providing clear and transparent financing terms, offering competitive rates, and delivering excellent customer service. Customers can manage their accounts online, make payments, and access information about their loans or leases through the HFS website or mobile app. American Honda Finance Corporation, the parent company of HFS, is a publicly traded company with a strong financial foundation. This financial strength allows HFS to offer competitive financing options and maintain stability in the market. It also enables HFS to continually invest in new technologies and services to improve the customer experience. In summary, Honda Financial Services is an integral part of the Honda and Acura ecosystem, providing essential financing and related services that support sales, enhance customer loyalty, and contribute to the overall success of the brands.