How Lenders Decide to Finance Your Loan

At Honda World, our finance specialists know what it takes to get our customers the best loan rates available for their individual situations. We serve customers from all over Louisville. And many come from Southern Ohio and throughout Kentucky in large part because of our finance department’s reputation for getting great financing deals done.

It’s important to us that our customers are kept in the loop during the whole process – we want you to know and understand what’s going on with your financing. That way, you’re best able to make an informed decision from the options available to you.

There are a variety of factors that go into determining which financing options are available to and best for you, including:

• Your credit score/credit history. While we can and do help people with all kinds of credit situations, there’s no getting around the fact that your credit score determines which lenders will work with you and on what terms.
• The car you buy. Finance companies consider the make and model of the car you’re buying, in large part to determine how much it’s worth in terms of collateral. Fortunately, Honda vehicles tend to hold their value well, a fact that works in your favor when buying one.
• Trade in value. The greater the value of your trade in, the smaller the amount you need to finance and the more you appeal to the better lenders.
• Down payment. As with trade in, the more you are able to put down in cash, the more you show lenders that you are capable of making payments and the better your terms will likely be.
• Your personal information. How long have you lived at your current residence? How long have you been at your current job. Showing stability makes you more attractive to auto lenders, generally leading to more favorable auto loan terms.

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Monthly Payments

We all have to watch our bottom line. For most, keeping the car payment manageable is an important part of that. The finance department of Honda World understands that and will work with you to help you find a vehicle and a loan that will work with your budget – whatever your budget looks like.

There are three primary factors that go into determining the amount of your monthly payment. They are:

1. The amount you need to borrow. This is the total amount of the loan. The less you borrow, the lower the payment.
2. Your Annual Percentage Rate (APR). The better your credit situation, the lower the interest you’ll pay, generally. The lower your interest rate, the lower your payment.
3. The duration of your loan. Spreading your payments out over a longer period gives you a lower monthly payment.

How Your Payments Are Affected

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We Can Help with Challenging Credit

If your credit isn’t perfect, that doesn’t mean that Honda World can’t help you get a loan. In the majority of cases, we can help. There are lenders out there who specialize in helping people in your situation to get an auto loan and we have solid relationships with a number of them. Because we put a lot of business with specific lenders, we can often use our pull to get auto loans approved, even for people who have been turned away by other dealers. Whatever credit situation you find yourself in, chances are that we can help.