Honda Financial Services Receives Highest Ranking in Non-Luxury Loan Satisfaction

Torrance, Calif. February 01, 2006

Honda Financial Services received the highest ranking in the non-luxury loan segment in the J.D. Power and Associates 2005 Consumer Financing Satisfaction Study(SM).

In addition to receiving high marks in payment/billing, provider offering and application/approval process, Honda Financial Services is one of the only captive finance providers to improve in the non-luxury loan segment compared to 2004. Honda Financial Services also now sets the benchmark in satisfaction with the competitiveness of non-luxury loan interest rates.

"We are honored and proud of this recognition as it is a testament to the hard work and dedication of our associates," said Stephen E. Smith, senior vice president of Honda Financial Services. "Since focusing on our customers is part of the worldwide Honda DNA, it's great to see that we are enhancing their ownership experience. Now we need to maintain this momentum."

With a score of 811 points (out of a possible 1,000), HFS was one of the only captive finance providers to improve in the non-luxury loan segment compared to 2004.

The study also finds that the proportion of leases to loans has increased for the first time in five years. Among non-luxury buyers, 22 percent leased their vehicles-which is four percentage points higher than in 2004.

"As interest rates increase and installment financing becomes more expensive, customers will naturally move to leasing," said Smith. "With attractive rates and residuals along with an excellent off-lease vehicle management process, we have the lease and loan programs to meet the needs of any customer."

About Honda Financial Services
Honda Financial Services, a dba of American Honda Finance Corp. (AHFC) and a wholly owned subsidiary of American Honda Motor Co., Inc., helps to satisfy the financing needs of consumers of Honda and Acura automobiles, sport utility vehicles, truck and minivans, Honda motorcycles, Honda power equipment and Honda marine products. Honda Financial Services currently has over 2.9 million consumer finance customers representing a $40 billion portfolio.

For more information about the study, see the J.D. Power and Associates press release at