American Honda Finance Corporation (AHFC) is a wholly owned subsidiary of Honda that provides automotive and related financing solutions in the U.S. and Canada, focusing on Honda and Acura products.

# Company Summary: American Honda Finance Corporation (AHFC)

## Overview
- **Type & Structure:** A wholly owned subsidiary of American Honda Motor Co., Inc. (AHM), which is itself wholly owned by Honda Motor Co., Ltd.
- **Incorporation:** California, February 6, 1980.
- **Headquarters:** Torrance, California, at 1919 Torrance Boulevard.

## Business Activities
- **Core Operations:** Provides financing solutions in the United States and Canada for purchasers, lessees, and authorized independent dealers of Honda and Acura products.
- **Product Focus:** 
  - Automobiles (Honda and Acura brands)
  - Motorcycles
  - Power equipment
  - Marine engines
- **Types of Financing Offered:** 
  - Retail loans (installment sale contracts)
  - Leases (closed-end vehicle leasing)
  - Wholesale financing (dealer flooring loans)
  - Commercial loans (dealership property, equipment, and facility financing)
  - Incentive financing programs (promotional rates supported by subsidies from AHM and HCI)
  - Specialty financing for Honda Aircraft (Honda Aviation Finance)

## Customer & Dealer Base
- **Consumers & Customers:** Finance retail purchases of Honda and Acura vehicles, motorcycles, and related products.
- **Dealerships:** Finances dealer inventory through wholesale loans, with post-default repossession and remarketing processes.
- **Canadian Customers:** Similar business in Canada, providing retail loans, leases, and dealer financing.

## Employees & Corporate Details
- **Employees (as of March 31, 2025):** 
  - 1,360 in the United States
  - 185 in Canada
- **Number of Shares Outstanding:** 13,660,000 (all held by American Honda Motor Co., Inc.)
- **Public Trading:** None (all shares are privately held, not publicly traded)

## Revenue & Financial Metrics (Fiscal Year Ended March 31, 2025)
- **Total Revenue:** $9.49 billion
  - Breakdown not specified, but includes income from retail loans, leases, dealer loans, interest, derivatives, etc.
- **Net Income Before Income Taxes:** Approximately $1.65 billion
- **Net Income (after taxes):** Not explicitly specified, but based on effective tax rate (~26%), approximately $1.22 billion.
- **Profitability Measures:** Income before income taxes showed a slight decrease from $1.67 billion in FY 2024 to $1.65 billion in FY 2025.

## Business Model & Focus
- Provides diverse financing products to support Honda and Acura vehicle sales and leasing.
- Operates through multiple service and processing centers in the U.S. and Canada to handle payments, collections, remarketing, and collateral management.
- Uses incentive financing programs with subsidies to enhance yields on financed transactions.
- Maintains extensive relationships with Honda and Acura dealers, facilitating inventory financing and commercial dealership loans.
- Funding sources include commercial paper, medium-term notes, bank loans, asset-backed securities, and related-party debt.

This detailed summary captures the company's specific functions, product offerings, customer base, employee count, revenue, and income for fiscal year 2025 based strictly on provided information.

American Honda Finance Corporation provides various financing options to customers and dealers for Honda and Acura products in the United States and Canada.

# American Honda Finance Corporation (AHFC) Overview

## Company Structure
- **Incorporated**: February 6, 1980
- **Location**: 1919 Torrance Boulevard, Torrance, California 90501
- **Subsidiaries**: 
  - Wholly owned subsidiary: American Honda Motor Co., Inc. (AHM)
  - Majority-owned subsidiary: Honda Canada Finance Inc. (HCFI)
  - Other affiliates: Honda Canada Inc. (HCI)

## Business Operations
AHFC provides various forms of financing for customers and dealers associated with Honda and Acura products in the **United States and Canada**. It supports sales and leasing while focusing on customer and dealer satisfaction.

### Main Financing Products
1. **Retail Loans**:
   - Acquires retail loans (primarily installment sale contracts) originated by Honda and Acura dealerships.
   - Loans cover new and used vehicles, motorcycles, power equipment, and marine engines.
   - Loan terms generally range from **24 to 84 months**, with 96-month loans offered starting April 1, 2024, in Canada.

2. **Retail Leases**:
   - Focuses on closed-end lease contracts for new Honda and Acura automobiles.
   - Lease terms typically range from **24 to 60 months**.
   - Residual values of leased vehicles are set at lease inception based on anticipated market values at contract end.

3. **Wholesale Flooring Loans**:
   - Provides loans to Honda and Acura dealers for purchasing inventory.
   - Loans finance new vehicles up to **100% of dealer invoice price**, and used vehicles up to **100% of market value**.

4. **Commercial Loans**:
   - Financing available for property, equipment improvements, and dealership operations.
   - Options include mortgage loans, term loans, and revolving lines of credit.

## Financial Information
- **Employees**: 
  - 1,274 employees in the United States
  - 186 employees in Canada
- **Revenue/Income**: Specific revenue and income figures are not provided in the summary, as they are typically included in detailed financial statements. Investors can refer to official filings for comprehensive financial data.

## Customer Base
AHFC directly services a diverse range of customers including retail buyers of Honda and Acura vehicles, lessees, and authorized dealerships. The precise number of retail customers and dealers financed is not specified, but the volume of transactions and contracts indicates a substantial involvement in the automotive financing market.

## Relationship with Affiliates
AHFC operates under incentive financing programs sponsored by AHM and HCI, offering promotional rates to facilitate financing for Honda and Acura products. These affiliate agreements are crucial to financing strategies, enhancing competitive offerings.

## Conclusion
American Honda Finance Corporation plays a vital role in supporting automotive sales by providing extensive financing options for both consumers and dealers. Its operations are critical to the broader Honda and Acura sales ecosystem in North America. The company aims to maintain robust customer and dealer satisfaction in a competitive marketplace.

AMERICAN HONDA FINANCE CORP

10-K / June 18, 2025

10-K / June 20, 2024

10-K / June 18, 2025

Company Summary: American Honda Finance Corporation (AHFC)

Overview

Business Activities

Customer & Dealer Base

Employees & Corporate Details

Revenue & Financial Metrics (Fiscal Year Ended March 31, 2025)

Business Model & Focus