Honda Financial Services Information

Honda Financial Services Information

Overview

Honda Canada Finance Inc. (HCFI), o/a Honda Financial Services, was established in 1987 to provide financing and leasing options for Canadian consumers. We offer financing and leasing options for Honda and Acura automobiles, motorcycles, ATV and power equipment through Honda dealers across Canada.

At Honda Financial Services, our goal is to always ensure your complete satisfaction.

We offer competitive rates and flexible terms and we are your preferred financing and leasing partner available at all Honda dealerships.

We make it easier to make it yours.

Lease Options

If you enjoy driving a new vehicle every two to four years, want lower monthly payments, protected under warranty, drive an average number of kilometres, and can properly maintain your vehicle, then you should consider lease as an option.

As a lease customer, you pay only a portion of a vehicle's cost, which is the part that you "use up" during the time you're driving it and you pay taxes only your monthly payments vs. the full vehicle price. Signing a leasing contract means that you agree to make regular monthly payments, keep appropriate insurance, pay any vehicle taxes and licensing fees, and take good care of the vehicle for the duration of your contract.

  • The benefits of leasing your vehicle with Honda Financial Services are:
    • A new car more often: With lower monthly lease payments over a shorter period of time, you can drive a new vehicle more often.
    • Low monthly payments: Lease payments are traditionally lower than retail payments on the same vehicle.
    • Closed end lease: You can choose to purchase the vehicle for a pre-determined price shown on your lease contract plus applicable taxes or return it without further obligation. If you decide to return your car, all you have to do is make sure you have not exceeded your kilometer limit, that any outstanding fines have been paid, and there is no excess wear and tear on the vehicle.
    • Automatic GAP Protection: If your leased vehicle is involved in an accident, vandalized or stolen the vehicle may have to be written off. To insurance companies a "write off" means fair market value minus your deductible. Your insurance settlement may not always satisfy your monetary obligation. Our Future Value Lease offers you protection against these situations. The monetary GAP between your insurance settlement less your deductible and your lease obligation is covered automatically by our GAP (Guaranteed Asset Protection). Some conditions may apply. See your local dealer for details.
    • Flexible terms
    • Keep more cash to use or invest
  • Things to be taken into consideration:
     
    • Insurance responsibility: You are responsible for insurance coverage. Required coverage typically is detailed in your lease agreement.
    • Lease down payments: Down payments are not required on a lease. In a lease situation, you may choose to make a down payment in order to reduce the monthly lease payments. Down payments on lease cannot exceed 30% of the Total Lease Price.
    • Cash due at delivery: Most lease agreements require a first monthly payment on delivery of the vehicle. A refundable security deposit and other miscellaneous fees.
    • Maintenance responsibility: You are responsible for maintaining the automobile. A maintenance schedule is outlined in the owner's manual.
    • Excessive wear and tear: Determined at end of a lease ie: dents, paint damage, missing equipment that was part of the vehicle, cracked or chipped glass, mechanical damage, holes, tears or burns to upholstery.
    • Allowable kilometers: The yearly kilometer allowance with Honda Canada Finance Inc. is 24,000. At lease inception, you can purchase additional kilometers.
    • Leased vehicle price (total vehicle price): Gives you the transaction price and is also used to calculate your lease payment. While taxes are not included in this price, it does include all equipment, accessories, freight and dealership fees.
    • Lease rate and charges: The lease rate and associated charges are disclosed on our full disclosure contract.
Your Lease End Options:
Option 1: Return your vehicle and lease a new one.

This option is convenient, easy, and best of all, you get to drive off in a brand new Honda! Through our loyalty program, we may be able to offer you special rates and terms when you enter into a new lease.

Remember, you will still need to schedule a free vehicle inspection during the last two months of your lease. You will also be responsible for any outstanding payments, excess wear and use, excessive mileage, and any other end of term obligations specified in your lease agreement.

Option 2: Purchase your leased vehicle.

Buying your leased Honda is a great way to continue benefiting from its reliability, performance, and high resale value. If you decide to buy your vehicle, there is no need to have it inspected, since there are no excess wear and use or excess mileage charges to worry about. To find out your purchase amount, you can get a payoff quote 24 hours a day, 7 days a week through our Owner’s Website [www.myhonda.ca] in the My Finance section. Be sure to ask your dealer for a Honda Financial Services loan to help purchase the vehicle.

Option 3: Return your leased vehicle to the dealer.

If you select this option, your lease concludes when you turn in the vehicle to a Honda automobile dealer. You will need to schedule a free vehicle inspection during the last two months of your lease.

For more information about your options at the end of your lease contract, please contact our Customer Care Group at 416-754-2323 or toll free at 1-800-387-5399.
 
 

Finance Options

If you like the idea of having ownership of your car, prefers paying off your loan, and don't like the risk of possible lease-end charges, then you should consider finance as an option.

As a finance customer, throughout the term of your finance contract, your payments will consist of part principal and part finance charges. Each payment you make increases the amount of equity you've built up in your vehicle.

  • The benefits of financing your vehicle with Honda Financial Services are:
    • You are the owner of the vehicle.
    • All retail loans are open and you may pay out the finance contract at any time without prepayment penalties.
    • Simple interest method to calculate interest charges.
    • No kilometer charges.
    • No wear and tear charges.
    • Build equity.
    • Flexible terms.
    • Once all the payments have been made, you own the automobile.
  • Things to be taken into consideration:
    • Monthly finance payments are typically higher than monthly lease payments as you are financing the total cost of your vehicle.
    • You are responsible for insurance coverage. Required coverage typically is detailed in your financing agreement.
    • You are responsible for maintaining the automobile. A maintenance schedule is outlined in the owner's manual.
  •  

End of Your Finance Contract - What’s Next?

After making your payment each month for the duration of the financing contract, the vehicle is all yours. So what comes next? Negotiating a trade-in with your dealer may be a great way to come up with a down payment for your next Honda. You can also sell your vehicle privately or keep driving it for years to come - it's your decision to make. For more information about your options at the end of your finance contract, please contact our Customer Care Group at 416-754-2323 or toll free at 1-800-387-5399.

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Graduate Program

Honda Financial Services is making it easier for university/college graduates to qualify for lease on our total automotive product line. This program is designed to provide leasing for recent graduates that have little or, in most cases, no credit history.

  • Graduate Eligibilty
    • Graduates of an accredited minimum 3 or 4 year university program
    • Graduates of an accredited 2 or 3 year nursing school program
    • Graduates of a police or military school
    • Graduates of an accredited community college (minimum 2 year program)
    • Must have graduated within the last 12 months of an application date
    Maximum Advance
    • The maximum amount finance includes current MSRP plus freight/PDI, taxes, plus Honda Plus extended warranty (amount exceeding this limit will require a down payment)
  • Credit Criteria
    • No Adverse credit history
    • Verifiable proof of full time employment and income, or written commitment from employer with a start date within sixty days of application date
    • Monthly income sufficient to cover current obligations, expenses, and vehicle payment
    • Payment cannot exceed 20% of graduate’s gross income.
    Documentation
    • Copy of diploma or letter from Registrar’s office confirming graduation.
    Down Payment
    • Not required

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Owner's Website

We're committed to providing you with the ultimate Honda experience.

Honda Canada Inc. has developed the integrated My Honda/My Finance website as an exclusive owners' website designed to provide you with specific information about your vehicle including product specifications, tips, warranty and maintenance information, service history, Honda events and promotions.

My Honda

Log on to www.myhonda.ca today and
click on “Register Now” to:

  • View your service history
  • Connect with your Dealer, Honda Canada, or Honda Financial Services via the Message Centre
  • Request a dealership appointment
  • Read through your vehicle specifications and owner’s publications
  • View the latest Honda News!
  • And more…!
 

My Finance

Next, click on the “My Finance” tab to begin managing your financial account online:

  • Make online payments to your account
  • View your transaction history
  • Obtain a payoff quote
  • Update your mailing or billing address
  • Modify your Easy Pay banking information
  • Manage multiple HFS accounts
  • View frequently asked questions
  • And more…!
 
 
 
 
 
 
 
 
 
 
 
 

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Frequently Asked Questions

Lease Options

What are the benefits of leasing?

Leasing is like renting, you only pay for what you use. Payments are based on the difference between the lease end value and the vehicle cost plus lease finance charges. Taxes will be included in the monthly payment rather than the full cost of the vehicle.

A New Car More Often

With lower monthly lease payments over a shorter period of time, you can drive a new vehicle more often.

Flexible Terms
Keep More Cash to Use or Invest
Low Monthly Payments

Lease payments are traditionally lower than retail payments on the same vehicle.

Is this an open or closed end lease?
Closed End Lease

At the completion of the lease, you can choose to purchase the vehicle for a pre-determined price shown on your lease contract plus applicable taxes or return it without further obligation. If you decide to return your car, all you have to do is make sure you have not exceeded your kilometer limit, that any outstanding fines have been paid, and there is no excess wear and tear on the vehicle.

What happens if my vehicle is written off or stolen?
 
Automatic Guaranteed Asset Protection (GAP)

If your leased vehicle is involved in an accident, vandalized or stolen the vehicle may have to be written off. To insurance companies a "write off" means fair market value minus your deductible. Your insurance settlement may not always satisfy your monetary obligation. Our Future Value Lease offers you protection against these situations. The monetary GAP between your insurance settlement less your deductible and your lease obligation is covered automatically by our GAP. Some conditions may apply. See your local dealer for details.

Things To Be Considered

Do I have to insure the vehicle?
Insurance Responsibility

You are responsible for insurance coverage. Required coverage typically is detailed in your lease agreement.

Is a down payment required?
Lease Down Payments

Down payments are not required on a lease. In a lease situation, you may choose to make a down payment in order to reduce the monthly lease payments. Down payments on leases cannot exceed 30% of the Total Lease Price.

What is due at the time of picking up the vehicle?
Cash Due At Delivery

Most lease agreements require a first monthly payment on delivery of the vehicle, a refundable security deposit and other miscellaneous fees.

Am I responsible for maintenance?
Maintenance Responsibility

You are responsible for maintaining the automobile. A maintenance schedule is outlined in the owner's manual.

Am I responsible for wear and tear charges?
Excessive Wear and Tear

If you are returning your vehicle at lease end, your vehicle will be inspected by an independent company to determine if there is any chargeable damage. Chargeable damage can include: dents, paint damage, missing equipment cracked or chipped glass, mechanical damage, holes, tears or burns to upholstery. You are responsible for either repairing identified damage to acceptable standards prior to returning the vehicle or paying the amount indicated on the inspection report plus applicable taxes.

How many kilometers can I drive?
Allowable Kilometers

The yearly kilometer allowance with HFS is 24,000. At lease inception, you can purchase additional kilometers.

What is the total vehicle price?
Leased Vehicle Price (Total Vehicle Price)

Gives you the transaction price and is also used to calculate your lease payment. While taxes are not included in this price, it does include all equipment, accessories, freight and dealership fees.

What is the total cost of the transaction?
Total Cost of Lease Transaction

The total cost of lease is the total monthly payments plus any amounts paid to reduce the cost of the vehicle ie: cash down payment, vehicle trade-in plus applicable taxes, vehicle licensing and registration fees.

What are the lease rate charges?
Lease Rate Charges

The lease rate and associated charges are disclosed on our full disclosure contract.

Finance Options

Do I own the vehicle?
Vehicle Ownership

You are the owner of the vehicle.

Is this an open or closed loan?
Open Retail Loans

All retail loans are open and you may pay out the finance contract at any time without prepayment penalties.

Are there any fees?
Transparent Fees
  • Simple interest method to calculate interest charges
  • PPSA registration fee
  • No kilometer charges
  • No wear and tear charges
What is conventional financing?
Conventional Finance

With the Honda Financial Services regular program you can tailor your purchase to reflect your individual needs. Your equal monthly payments are determined using competitive rates and 24 - 84 (84 offered on new contracts up to 72 on used) month terms. Together with the dealer you can work out the financing arrangements that suit your budget and your needs best.

Finance Options - Things To Be Considered

Monthly Payments
Monthly Payments

Monthly loan payments are typically higher than monthly lease payments because you are financing the total cost of your automobile which includes all applicable sales taxes and purchase price.

Do I have to insure the vehicle?
Insurance Coverage

You are responsible for insurance coverage. Required coverage typically is detailed in your financing agreement.

Am I responsible for maintenance?
Regular Maintenance

You are responsible for maintaining the automobile. A maintenance schedule is outlined in the owner's manual.