Honda’s first-time buyer program allows drivers with limited credit history to get a $500 bonus while using proof of employment to qualify for financing. However, this program is only available at select dealerships and only applies to recent college graduates.
Applying for new car financing without a sturdy credit history can feel like an exercise in disappointment—especially if you know that you have the income necessary to make payments! That’s why some lenders and manufacturers offer special programs for first-time car buyers who don’t have the credit history necessary to qualify for alternative financing on a car loan.
In Honda’s case, first-time buyer discounts vary from dealership to dealership. Read our guide to understand what’s available, then contact your local dealer to ask about their financing offers.
What does the Honda First Time Buyer program offer?
At participating dealerships, the Honda First Time Buyer program offers a $500 bonus on a new car purchase for drivers who:
- Graduated college within the past two years or will graduate within the next six months
- Can make at least a 5% down payment on the full purchase price of the vehicle
- Can provide proof of employment (or a firm commitment) adequate to cover monthly payments
In other words, qualifying for the first time buyer program comes with two separate advantages: you get a small bonus on your first car purchase, and you don’t need to have a strong credit history.
The downside? Not every Honda dealership participates in the first time car buyer program, and terms and conditions may vary by location. If you’re a recent college grad considering a new Honda purchase, call your local dealership and ask to speak to the finance team about the financing options available to you.
Learn more: Car loans for Honda 2024
Tips for low-credit Honda financing if you don’t qualify for the First Time Buyer program
Unfortunately, not every first-time buyer will qualify for Honda’s First Time Buyer program. If you graduated college more than 24 months ago—or never went–you likely won’t qualify for a special offer. The same applies if you’re not able to make a 5% down payment, or if Honda decides that your income doesn’t meet their eligibility requirements.
If you’re in any of these positions, don’t despair. There are a few ways you can reduce your car buying costs and qualify for the financing you need without taking advantage of the first-time buyer program.
Pick a vehicle you can afford
Use a car loan payment calculator to estimate which Honda vehicles you can afford based on your income and credit score.
Buying a used car is one easy way to make financing more manageable when you’ve got a low credit score or income. Check your local Honda dealer’s used vehicle inventory—and if you’re concerned about reliability, consider buying a certified pre-owned vehicle to hit the sweet spot between low pricing and low mileage.
Compare loan offers from multiple lenders
Financing through the dealership might be convenient, but you’ll often pay a higher rate, especially if you don’t have access to any special incentives. Compare auto loan offers from your bank or a local credit union and get pre-approved for a loan before you head to the dealership.
Get an assist from a co-signer
If you’re not able to meet the financing requirements for a Honda car loan yourself, see if you have a family member or friend with a better credit score who would be willing to sign on as a co-applicant. This is an easy way to get improved odds on your first vehicle purchase—and if your credit or income improves after you buy, you’ll have a chance to take the co-signer off your loan and even refinance for a better offer.
Wait a bit
If you need a car right now, this may not be an option. But if there’s any wiggle room in your car-buying schedule, consider putting off the purchase for a few months or even a year to give yourself time to build your credit and save up for a down payment. While both those things are easier said than done, we’ve got tips to help you improve your credit rating and save on car-related expenses.
The best Honda models for first-time car buyers
Whether or not you qualify for special financing as a first-time buyer, make sure to pick the right Honda vehicle for you. While it’s hard to go too wrong with Honda’s super-reliable new vehicle lineup, these are our favorite picks for first-time car owners:
- Honda Civic: Starting at just $26,145 for 2023, the humble Civic is a tried-and-true compact superstar. It’s affordable, sturdy, and cheap to insure—and if you’re looking for a little extra fun, it even has a high-performance variant: the Civic Type R.
- Honda Accord Hybrid: If you’re trying to cut fuel costs without becoming a Prius person, the Accord Hybrid is a great pick. It starts at $32,990 and gets an EPA-estimated 48 mpg.
- Honda CR-V: It’s not the smallest Honda SUV (that honor goes to the HR-V), but it’s the most popular. Starting at just over $32,000, the 2023 CR-V is fuel-efficient, easy to drive, and a joy to live with.
- Honda Odyssey: The two-row Honda Passport and three-row Honda Pilot are great family SUVs, but they can’t measure up to the all-around utility of the Odyssey minivan, starting at $38,835.
If you’re interested in any of these models as a first-time buyer, get the phone number of the finance department at your local dealership to speak about available financing options before you take your desired Honda out for a test drive.
-
Licensed Insurance Agent
R.E. Fulton is an expert insurance writer specializing in car ownership topics from car shopping and loan advice to insurance and repair guides. R.E.’s mission is to create unique and accessible content that helps readers to become more successful and independent car owners. R.E. has written and edited over 900 high-performing articles for Jerry, with an average of 1 million+ views. As a senior writer on Jerry’s editorial team, R.E. draws on over 10 years of experience as a professional writer and digital publishing specialist. Prior to joining Jerry’s editorial team in 2021, R.E. worked as a writing coach at Columbia University, the Rochester Institute of Technology (RIT), and the University of Rochester. They serve as a managing editor for peer-reviewed history publication Nursing Clio, where their work has appeared regularly since 2015.
Kathleen Flear is an expert insurance writer and editor who previously lead up Jerry’s editorial team as director of content. Kathleen empowers drivers to make smart car ownership decisions through best-in-class articles on insurance, loans, and maintenance. Prior to joining Jerry in 2021, Kathleen served as managing editor for a team of SEO content marketing professionals at Article-Writing.co and worked as a freelance writer and editor for a range of digital publications, including Chicago Literati magazine and Golden Words. She earned a bachelor’s degree in English language and literature from Queen’s University, and a master’s degree in creative writing and fiction from Sierra Nevada University.
