Buying a car with cash is a pretty straightforward process. Things become a little more complicated, however, when financing is involved. If this is how you’re planning to buy a Honda, our Honda financial services center answers some questions you may have.
What Does Financing Involve?
When you finance a car, you take out a loan to pay for it. This will come from a bank or other financial institution.
You will then have a set period of time – 36 months, for example – to pay back the money. In addition to the principal, which is the original amount borrowed, this will involve interest payments.
Are Only New Cars Eligible for Financing?
No matter which type of car your car you’re interested in – new or pre-owned – financing will be an option. Going with a pre-owned vehicle could be the smartest choice, as it will help you save the largest amount of money.
How Can I Lower My Costs?
If you do decide to go with a pre-owned car, right away you’ll be saving money. But even if you opt for a new model, there are ways to cut your expenses.
Putting up a larger down payment, for instance, results in not needing to borrow as much money. Going with a shorter loan term – while it will raise your monthly payments – will mean you won’t end up paying as much in interest.
How Can I Start the Financing Process?
Heritage Honda Parkville makes financing easy, and you can start the process now by filling out our online application. Once submitted, one of our financing professionals will be in touch to go over the details and discuss the next steps.
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