Honda Finance and loan options

In 2025, driveaway pricing starts from around $32,900 for the Honda hR-V and climbs to approximately $72,600 for the iconic Civic Type R. Here's how you can finance one.

How can you finance a Honda?

• Secured car loan: Get a lower interest rate by using your Honda as collateral. Loans typically range from $3,000 to $100,000. This suits new models like the ZR-V, HR-V or Accord.
• Unsecured personal loan: Suitable for older or used Honda vehicles, with fewer restrictions but higher interest rates (typically 8–18% p.a.).
• Dealership finance: Honda Australia offers finance for both personal and business customers. This includes fixed-term loans, novated leases and chattel mortgages through Honda Finance Solutions.
• Novated lease: Salary packaging through your employer using pre-tax income to cover car repayments and running costs. A smart option if your employer offers this benefit.
• Chattel mortgage: For business use. You own the car, but the lender registers a mortgage over it until the loan is paid off.

Honda e:HEV hybrid finance incentives (2025)

Honda's e:HEV hybrid models, like the HR-V e:HEV X (from $39,900 drive-away) and the Civic e:HEV L (from $49,900), blend performance with fuel efficiency.

While full EV incentives don't always apply, some state-based benefits may be available for hybrids:

• ACT: Stamp duty exemptions for new and used hybrid vehicles.
• Victoria: Discounted registration fees for low-emission vehicles.
• WA: Rebates of up to $3,500 on zero-emission vehicles under $70,000.

Some lenders also offer discounted 'green car loans' for hybrids - check eligibility before applying. Use a car loan calculator to estimate your repayments based on interest rate, loan term and fees.

Credit score impact & pre-approval checklist

Your credit score directly affects your loan approval odds and interest rate. The better your credit score, the more likely you are to get a better interest rate and be accepted for the loan.

Pre-approval checklist:

• Valid ID (e.g. driver's licence)
• Recent payslips or tax returns
• Employer and income details
• 3 months of bank statements
• Existing financial obligations

Getting pre-approved strengthens your negotiating power and helps set a clear budget.

Things to compare when choosing Honda finance

• Comparison rate: Don't just look at the advertised rate. The comparison rate includes fees and gives you a more accurate picture of the loan cost.
• Fees: Watch for application fees, monthly charges and early repayment penalties. Some lenders offer fee-free loans with higher rates - compare carefully.
• Repayment flexibility: Choose a loan that lets you pay weekly, fortnightly or monthly depending on your pay cycle.
• Balloon payments: Some loans have a lump sum due at the end of the term. This lowers monthly repayments but increases your final outlay.

End-of-loan options: Refinance, trade-in, or balloon buy-out

When your loan ends, you'll likely face one of three paths:

• Refinance: Extend your loan term and manage the remaining balance with a new loan.
• Trade-in: Use your current Honda's trade-in value towards your next one.
• Balloon payment: Pay a lump sum at the end of your loan. Options include:
  • Pay in full if you've saved enough
  • Refinance the balloon amount
  • Trade the vehicle in and roll the value into a new deal

It's important to plan for the end of your loan to avoid stress and make the most financially savvy choice.

Frequently asked questions about financing a Honda

Should I get a new or a used Honda?

Ultimately, that is up to you. There are benefits to buying used and buying new. If you buy used, it's cheaper and you can get a history of the car. If you buy new, you're the only person to have owned that car.

What loan provider should I go with?

Again, this is up to you. Make sure to compare your car loan options using the features outlined above and also check the eligibility criteria to find the right lender for you.

Can I get a used Honda on a secured car loan?

Some secured car loans will allow you to get a used car, but this comes with car age restrictions. For example, with some providers, you are able to get a vehicle that is up to two years old whereas others have a higher car age limit of five years. It varies from lender to lender.
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Written by

Alex Jeffs

Publisher

Alex Jeffs is the senior publisher for automotive content at Finder. He has tested vehicles everywhere from Tasmania to Oodnadatta. See full bio

Alex's expertise

Alex has written 47 Finder guides across topics including:

• Automotive industry
• Car finance
• Car insurance
• Personal finance