Frequently Asked Questions
Find answers to common questions about finance products, applications, agreements and support.
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Finance Products
What is an Optional Final Payment, Guaranteed Future Value or GFV?
It applies to Personal Contract Purchase (PCP) only. You select a term and an annual mileage and based on this, we’ll calculate what we think your car will be worth at the end of this term. This amount is the Guaranteed Future value (GFV) and is deferred to the end of your agreement. Your monthly payments are worked out on the difference between the GFV and the original purchase price of the car. This means you typically have lower monthly payments than with Hire Purchase. At the end of the agreement you have the flexibility of three options; to keep the vehicle and pay the GFV and option to purchase fee (£10), to part exchange the vehicle and the retailer will settle the GFV or to return the vehicle to Honda Financial Services in lieu of the GFV.
How long can I take to repay the finance?
Hire Purchase (HP) contracts are from one to five years. Personal Contract Plans (PCP) are from two to four years (for used cars, this may depend on the age of the vehicle). RUL can be from one to three years.
Will the interest rate change?
The interest rate and monthly payments are fixed at the time of application and won’t change, allowing you to budget accurately.
Can I have PCP or HP for the motorcycle and RUL for accessories and clothing?
Yes, if this suits your personal circumstances best, you can have two separate finance agreements running together. We will assess two different credit applications, there will be two different finance agreements to sign and two separate monthly repayments.
What can I finance using an RUL?
RUL can be used to buy your motorcycle, associated accessories and clothing, training school fees, service plans and other Honda approved products through a Honda dealer.
Can I end PCP, HP and RUL agreements early?
Yes. You can make lump-sum repayments as often as you like or pay off the whole amount early. This could reduce the amount of interest due – in which case, you’ll get a rebate based on a statutory formula set out in the Consumer Credit Act 1974 (CCA). You can request a settlement quotation at any time during the term of your agreement at no cost.
If you want to make a lump-sum payment, but not settle in full, we can quote you for this too.
If you have a Personal Contract Purchase agreement you have three options: reduce the final amount due at the end of the agreement, reduce the term of the agreement, or reduce your monthly payments. If you have a Hire Purchase or Restricted Use Loan agreement and make a lump sum payment, you have two options: reduce the term of the agreement or reduce your monthly payments.
There is no penalty for settling, or partially settling, early. Please call Customer Support on 0345 128 8908 and we will be happy to give you a settlement quotation.
Are all your finance products available for new and used vehicles?
Yes, you can use our Personal Contract Purchase and Hire Purchase products to buy a new or used car or motorcycle. In addition, Restricted Use Loan is available for motorcycles, accessories and clothing. Different maximum terms and mileages may apply to used vehicles depending on their age and mileage at point of purchase.
Applying for finance
Who is eligible for finance with Honda Financial Services?
- Anyone who has lived in the UK for at least 3 years
- Over 18 years old
- Holds a valid driving licence
- Has an email address and mobile number
- Holds a UK personal current account for the purposes of making the monthly repayments by direct debit
- Has a regular income to cover repayments
- Will be the registered keeper of the vehicle
Please note that the vehicle is only allowed to be used for personal purposes and not business
The following customers are ineligible for finance with Honda Financial Services:
- Taxi drivers
- Couriers
- Delivery Drivers
- Driving School instructors
- Single Hire Operators
How much deposit will I need?
You can pay as much deposit as you like provided it is within the minimum and maximum deposit limits that we set for Hire Purchase (HP) and Personal Contract Purchase (PCP). Because there is a lump sum to pay at the end of the agreement on PCP, the maximum deposit on a PCP is set much lower compared to HP.
If you have a part exchange, you can add some or all of the value of this as your deposit, up to the maximum deposit that we set.
How long does the application process take?
Your Honda retailer can guide you through the application process and if you have all the relevant information to hand, it shouldn’t take longer than 20 minutes to complete.
How long does it take to get a credit decision?
Once your application has been submitted, we often give you an immediate decision, but we always aim to respond within two hours. Sometimes we may request additional information to support your application and this may mean it takes slightly longer. Proposals submitted on evenings, weekends and Bank Holidays may take a little longer.
Where do I sign my finance documents?
We will normally send you an email to enable you to sign at home with our remote digital signing facility. As an alternative, you can sign at your chosen Honda Retailer.
How long is my finance quote valid for?
Your Honda Financial Services quote is valid on the date of issue. After this date, the figures may change, and you may need a new quotation. We would ask that you complete and submit your finance application within 14 days of your order. Once the application is completed and accepted it will become a confirmed offer. If you are happy with your quotation, you will need to pay a holding deposit to secure the vehicle order and this will secure your finance offer.
How long is my finance offer valid for?
After 90 days from acceptance, your finance offer will expire. If your finance offer expires, the Retailer will contact you within 21 days of the estimated delivery of your new vehicle, and they will be required to resubmit your application. When the Retailer contacts you, they will update the application and record any changes for the following two circumstances:
- Where your personal information has changed since you made your original application
- Any changes to the financials resulting from a change to the part exchange value, change to outstanding finance or changes requested by you
If your personal circumstances or the financials change, it is possible that these changes could adversely affect your credit rating or ability to repay your agreement, and therefore, could result in Honda Financial Services declining your finance application at this point. If this were to happen, a full refund of holding deposit would be made.
It is important to note that even though the finance offer expires after 90 days, we will protect the price of the vehicle and the terms of the original finance offer. This means that if you are reaccepted for finance, it will be on the original terms that you agreed when you made your first application. As before, we will provide you with a finance offer, and this will be valid for 90 days.
What is Open Banking?
Open banking is used in financial services to check that customers can afford the monthly payments they have applied for, without asking for copies of bank statements. Honda Financial Services may use this service during the application process and we will always ask for your consent first.
Will applying affect my credit score?
When you apply for finance, we will complete a hard search of your credit file. There are no exact formulas, but it may cause a minimal reduction in your credit score. It would likely have a more significant impact if you were to apply for finance several times with the same or different lenders in a short period of time.
Can I apply for used car or used motorcycle finance?
Yes, we offer finance for used motorcycles and cars sold through Honda retailers. Your Honda retailer will be able to guide you through the process. We even offer a loan for motorcycle accessories and clothing.
During your agreement
What documents will I receive from Honda Financial Services?
When you sign the finance agreement, you will receive an agreement pack by email which will include:
- Pre - Contract Credit Information (“PCCI”)
- A copy of your agreement
- A copy of our privacy notice
- Consent to payment of commission (if applicable)
After you collect your new vehicle, if you have provided us with your email address, you will also receive a welcome letter and a personalised welcome video.
During your agreement you will receive an annual statement, showing payments made and the outstanding balance. We will write to you before the end of your agreement and provide details of the end of contract options available to you.
When all payments have been made (including any applicable fees), we’ll write to you again to confirm the agreement has ended.
I’d like a copy of my agreement, a payment schedule, or more information on fees and charges
Please contact Customer Support on 0345 128 8908 and we will be happy to arrange for this to be provided.
What is the difference between my total outstanding balance and my settlement amount?
The total outstanding balance includes all capital, interest and fees that you will pay if you continue to pay your agreement monthly as scheduled until its end date. An early settlement amount includes a rebate of interest which you may be entitled to for paying off your agreement early.
Can I access my Honda Financial Services account online?
At the moment we don't offer this service. Please call Customer Support on 0345 128 8908 and we will be happy to help. Our opening times are Monday to Friday 09:00 to 17:00 (excluding Bank Holidays)
Is it possible to extend my agreement?
Your agreement cannot be extended. However, if you are experiencing financial difficulties, please call our team on 0345 128 8909 and we will be happy to assist you.
How do I update my personal details on my agreement?
Please call Customer Support on 0345 128 8908 or email us at hfe.customerservice@honda-eu.com and we will be happy to assist you and make any updates to your account that you require.
How do I update my bank details for my agreement?
Please contact Customer Support on 0345 128 8908 or email us at hfe.customerservice@honda-eu.com and we will be happy to update your details.
How do I update my vehicle registration number on my agreement?
Please contact Customer Support on 0345 128 8908 or email us at hfe.customerservice@honda-eu.com and we can update your new registration number.
What if my circumstances change?
We understand that personal and financial circumstances can change at any time during your agreement. If things feel difficult or you find yourself needing a little extra support, please know you’re not alone and that we’re here to help.
If you’d like to talk things through, Customer Support will take the time to listen, discuss your options and offer appropriate support.
Contact us:
Telephone: 0345 128 8908
Email: hfe.customerservice@honda-eu.com
Opening hours:
Monday to Friday, 9:00am – 5:00pm (excluding bank holidays)
You may also find it helpful to seek free and impartial advice from the organisations below, who can offer independent support with money worries and debt:
- Citizens Advice – www.citizensadvice.org.uk/debt-and-money
- StepChange – www.stepchange.org | 0800 138 1111
- National Debtline – www.nationaldebtline.org | 0808 808 4000
- MoneyHelper – www.moneyhelper.org.uk/en/money-troubles/dealing-with-debt/use-our-debt-advice-locator | 0800 138 7777
- Mental Health & Money Advice – www.mentalhealthandmoneyadvice.org
- Debt Advice Foundation – 0800 043 4050 www.debtadvicefoundation.org
What if I change my mind and want to cancel the finance?
You have a 14-day cooling off period in which you can change your mind about the finance. This is called the Right of Withdrawal period and begins the day after you sign the finance contract.
If you want to exercise your right to withdraw from the finance, please contact Customer Support on 0345 128 8908 who can generate a quote for you.
Please be aware that your withdrawal from the finance, does not cancel the vehicle purchase, only the finance used to pay for it. Before cancelling the finance, please check that there aren’t extra benefits associated with using the finance to fully or partially fund the vehicle purchase, such as a deposit contribution, or service plan.
My car has been damaged - what should I do?
Please report the damage to your insurance company in the usual way. If you would like to discuss this further, please call Customer Support on 0345 128 8908.
Can I sell my vehicle?
You will be the registered keeper (with a V5 document from the DVLA in your name) but the ‘legal title’ of the vehicle will belong to Honda Financial Services until you make the final payment (including any applicable purchase fees). This means that if you want to sell the vehicle before the end of your Personal Contract Purchase or Hire Purchase agreement, the outstanding amount will have to be settled in full.
Making payments to us
How can I make payments?
Your normal monthly payments will be paid by direct debit. If you wish to make a lump sum payment to the agreement, pay your arrears or early settle your agreement in full, you can pay by bank transfer or debit card over the phone. To do this, please call Customer Support on 0345 128 8908 and we will be happy to help.
Can I make a payment over the phone and by card?
We are happy to accept payments over the phone by credit or debit card. Please be aware that the maximum amount we can accept by Debit or Credit Card is £1,000 and the card must be in the customer’s name.
How do I change my payment date?
Please call Customer Support on 0345 128 8908 and we will be happy to discuss the options available to you. Please note that there are restrictions to how far out and when you can move your payment date.
Do you charge for me to change my details/payment date?
No, there is no charge for these amendments. Please call Customer Support on 0345 128 8908 and we will be happy to help. Please note that there is a limit to how far out and when you can move your payment date.
Can I pay off my finance agreement early?
Yes. You can settle your agreement at any time during the term. This could reduce the amount of interest due – in which case, you’ll get a rebate based on a statutory formula set out in the Consumer Credit Act 1974 (CCA). You can request a settlement quotation at any time during the term of your agreement at no cost.
If you want to make lump-sum payments, but not settle in full, we can quote you for this too.
If you have a Personal Contract Purchase agreement you have three options: reduce the final amount due at the end of the agreement, reduce the term of the agreement, or reduce your monthly payments. If you have a Hire Purchase or Restricted Use Loan agreement and make a lump sum payment, you have two options: reduce the term of the agreement or reduce your monthly payments.
There is no penalty for settling, or partially settling, early. Please call Customer Support on 0345 128 8908 and we will be happy to give you a settlement quotation.
How is the early settlement figure calculated?
We’ll take into account the amount outstanding, the interest rate, the option to purchase fee if applicable and the length of time left on the agreement. Any rebate of interest will be based on a statutory formula set out in the Consumer Credit Act 1974 (CCA). Contact us by phone or post or speak to your Honda retailer to ask for an early settlement figure. The figure will be valid for 28 days – if you don’t settle your finance within this time, you’ll need to request an updated figure.
How is interest calculated?
The rate of interest is detailed within your finance agreement. The monthly payments towards the beginning of the agreement include a higher proportion of interest than the later monthly payments.
What happens if another monthly payment is taken by direct debit after I have paid the settlement figure?
You won’t need to contact us or reclaim this amount. Any overpayments made will be refunded automatically to the bank account you pay your monthly payments through.
Do I get a refund if I made an overpayment in error?
Yes you will receive a refund for any unintentional overpayments made. Any overpayments made will be refunded automatically to the bank account you pay your monthly payments through.
Can I pay off all my instalments and leave just the Optional Final payment?
If you wish to discuss a lump sum payment, please call Customer Support on 0345 128 8908 and we can discuss the options available to you.
Can I increase my monthly payments?
This option isn’t available. However, you can choose to make payments in addition to your monthly direct debit amount as often as you like. Please call Customer Support on 0345 128 8908 and we can discuss the options available to you.
What if my ability to pay my payments changes?
If you are worried about making a payment, please contact us as soon as possible.
We understand that situations can change, and we are here to support you.
Depending on how much you have already paid, you may be able to return your vehicle early at no extra cost. You can speak to Customer Support on 0345 128 8908 to discuss your options. If payments are not made in full and on time, and after giving you any notice required by law, Honda Financial Services may need to end your agreement. If this happens, your account may be passed to a collection’s agency, and additional fees may be added to your balance.
We also share information with credit reference agencies. This means that missed payments can affect your credit rating and may make it harder for you to obtain credit in the future.
Speaking with us early gives us the best chance to understand your situation and work with you to find the right support.
My car has been written off/stolen and I am waiting for the money from the insurance company. Should I stop my monthly payments?
It’s important that you maintain your payments under the terms and conditions of the agreement until you have been able to settle your finance agreement in full.
You should contact us as soon as you know that the vehicle has been written off/stolen and we will provide you with a settlement quote for your insurance company. The sooner you notify us, the better.
End of contract
Will I receive anything once I have paid off my agreement?
You will receive a letter from us confirming that the agreement has come to an end.
Will I be charged for excess mileage if I return my vehicle to Honda Financial Services at the end of my Personal Contract Purchase (PCP) agreement?
Mileage allowances are agreed with you prior to entering your agreement. Where the mileage allowance has been exceeded and you chose to return the vehicle at the end of your PCP agreement, charges are applicable on a per mile [+ VAT] basis. This charge is due upon returning the vehicle. Please note, it is important to be as accurate as you can when setting your annual mileage for your PCP agreement. This will reduce the likelihood of incurring excess mileage charges.
Can I refinance my Optional Final Payment (GFV)?
This option isn’t currently available. You can discuss this option with your Honda Retailer. Please refer to the information in our Finance Product Guide for full information on the options available to you at the end of your agreement.
What counts as fair wear and tear?
Fair wear and tear occurs when normal use causes acceptable deterioration to the vehicle’s condition at the end of a contract or finance agreement. Fair wear and tear is not to be confused with damage, which occurs as a result of a specific event or series of events. These include impact, harsh treatment, negligent acts or failure to service the vehicle in accordance with the manufacturer’s recommendations and any applicable warranty. For full information please see our Fair Wear and Tear Guides for Cars and for Motorcycles.
What are my options at the end of my PCP agreement?
At the end of your Personal Contract Purchase agreement (PCP) you have the flexibility of three options:
- Retain - You can keep the vehicle. Pay the final payment (Guaranteed Future Value or GFV) and the £10 option to purchase fee, and you will own the vehicle outright.
- Return –You can hand your vehicle back to us without paying the final payment (Guaranteed Future Value or GFV) If you decide you would like to return your vehicle to us without paying the final payment, please contact us on 0345 128 8908. If you have exceeded your agreed mileage or the vehicle is not in a good condition, then there may additional charges to pay. Excess mileage charges will be explained before you sign the agreement, so you will know what these may be if you go over your estimated mileage.
and finally, your third option is,
- Renew - You can part exchange your vehicle and subject to market value, this should cover off the cost of the final payment (Guaranteed Future Value or GFV). Then together with your Honda retailer, you can start looking for your next Honda.
Other questions
I'm financing a brand new car - will my Honda retailer be paid commission?
New Cars
Honda Finance Europe plc does not make a payment and / or reward to the Honda Retailers or Honda Motor Europe Limited if you enter into a finance agreement with them for a new car.
Honda Retailers may introduce you to Honda Finance Europe Plc or to other finance providers. Where another finance provider is used, your Honda Retailer is required to inform you of any commission or reward paid to the Honda Retailer. You may request further information about these arrangements from your Honda Retailer.
Honda Motor Europe Limited and Honda Retailers are credit brokers, not lenders. Honda Motor Europe Limited or Honda Retailers are not authorised to provide financial advice or recommendations because they are not independent financial advisors.
I'm financing a used car - will my Honda dealer be paid commission?
Used Cars
If you enter into a finance agreement with Honda Finance Europe plc for a used car, the retailer may receive a commission or reward from us. Commission may be calculated based on either a fixed amount or a percentage of the amount you borrow. Any such amounts will not affect the amounts you pay to Honda Finance Europe plc under your finance agreement. Before proceeding, we will disclose the amount and basis of any such payment and obtain your consent prior to the completion of your finance agreement.
Honda retailers may introduce you to Honda Finance Europe plc or to other finance providers. Where another finance provider is used, your Honda retailer is required to inform you of any commission or reward paid to the Honda retailer. You may request further information about these arrangements from your Honda retailer.
If you are buying a used car, Honda retailers are credit brokers, not lenders. Honda retailers are not authorised to provide financial advice or recommendations because they are not independent financial advisors.
I'm financing a new or used motorcycle - will my Honda dealer be paid a commission?
New/Used Motorcycles
If you enter into a finance agreement with Honda Finance Europe plc for a new or used motorcycle, the retailer may receive a commission or reward from us. Commission may be calculated based on either a fixed amount or a percentage of the amount you borrow. Any such amounts will not affect the amounts you pay to Honda Finance Europe plc under your finance agreement. Before proceeding, we will disclose the amount and basis of any such payment and obtain your consent prior to the completion of your finance agreement.
Honda retailers may introduce you to Honda Finance Europe plc or to other finance providers. Where another finance provider is used, your Honda retailer is required to inform you of any commission or reward paid to the Honda retailer. You may request further information about these arrangements from your Honda retailer.
If you are buying a new or used motorcycle, Honda retailers are credit brokers, not lenders. Honda dealers are not authorised to provide financial advice or recommendations because they are not independent financial advisors.
What if I have more questions?
Contact your local Honda Retailer, who will be happy to help. Honda Financial Services is committed to lending responsibly. We are a member of the Finance and Leasing Association and subscribe to their lending code (fla.org.uk/consumer-information/lending-code).
How do I make a complaint to Honda Financial Services?
We take customer satisfaction very seriously. If you don’t believe our service has reached our usual high standards, contact your retailer or call Customer Support on 0345 128 8908 and we will be happy to help. You can also email us at hfe.customerservice@honda-eu.com or write to us at Honda Financial Services, Cain Road, Bracknell RG12 1HL.
Finance terms explained
Browse simple explanations of common finance terms and phrases used across Honda Financial Services.
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