Honda Financing Glossary

Whether you're new to Honda financing or just want a refresher, it's helpful to get to know some of the key terms involved in buying or leasing a vehicle. After all, the more you know, the more comfortable you'll be when you finalize your finance package. The team at Heritage Honda Westminster has put together this glossary to give you a head start.

Co-Signer

A friend or family member who will assume the legal responsibility for your lease or loan. A co-signer might be required if you have little or poor credit.

Credit Score

Also known as your credit rating, this number shows your lender or lessor your credit history and habits. The higher your score, the more favorable Honda financing terms you'll get. 

Depreciation

The anticipated decrease in a vehicle's value. Depreciation is one factor determining your monthly payments when you lease a new Honda model.

Down Payment

Cash payment toward the vehicle you're buying, which you'll pay the day you finalize your Honda financing offer. This is usually 10%-20% of the sticker price. Leasing doesn't usually require a down payment, but there are other upfront costs.

Interest Rate

A percentage of your loan principal that's added to your monthly payments. Interest rates fluctuate with the economy based on the prime rate. Your credit score will also impact the interest rate on your Honda financing offer; the lower, the better.

Mileage Allowance

The maximum number of miles you can drive the car during the life of your lease. If you go over that number, there may be an additional mileage charge.

Pre-Approval

A review of your credit to identify the ideal terms of your finance package. Just fill out the online Honda financing application at your convenience. It'll help you understand what you can afford and what your monthly expenses will be, and let our finance center get started on creating your offer.

Principal

The total dollar amount of your loan. The principal decreases every time you make a monthly payment. The closer the principal is to zero, the closer you are to owning the vehicle outright.

Meet With the Experts in Honda Financing in Westminster, MD

Our Honda financing professionals are happy to walk you through the entire lease or loan process. Just consider us friends who happen to be experts in auto leases and loans. Visit our Westminster, MD Honda dealership for a custom offer on your favorite vehicle!