No matter whether it’s new or pre-loved, buying a car is always an exciting time. However, it can also be stressful, as today’s decisions have financial effects that may extend way into the future. But there are ways of streamlining this process and lessening the risks. So let’s join the auto loan experts at Laneway Auto Loans and Sales and see what they have to say.
Exactly What Is an Auto Loan?
When you borrow money to buy a car, you’re signing up for what will probably be the second-largest commitment of your life, in terms of time and money. Car loans are secured, which means they are backed by collateral – the vehicle itself. Additionally, your personal credit score is used to measure your perceived ability to pay back your loan, which affects the amount of financing offered to you, and even how easy it is to get an offer.
In today’s hire-and-fire economy, plenty of drivers are finding it hard to keep up with their auto financing schedules. Plenty of jobs were lost forever during the pandemic, or maybe wages aren’t keeping up with the cost of living. With throttled supply chains still pumping up retail prices in Canada, inflation reached its highest point (8.1%) in almost four decades by mid-2020, according to Statistics Canada. The main culprit was gasoline, with pump prices almost 55% higher than they were a year ago. Reflecting the run-up to this situation, drivers have been battling to repay their car loans for many months. In fact, Equifax Canada reported a 14.7% surge in non-bank auto delinquencies in the final quarter of 2021, compared to the same period the previous year.
Is Refinancing My Car Loan a Smart Step?
Many lenders and dealerships – like Laneway Auto Loans and Sales – are happy to discuss ways of restructuring [...]
There are no legal requirements in Canada covering the early repayment of auto financing. However, the loan officers at Laneway Auto Loans & Sales are familiar with some of the quicksands that can trap unwary borrowers in never-ending cycles of spiralling debt. They know that it’s all too easy for car buyers to be swept away by the exciting possibilities opened up by auto loans. So here are some of their top tips on how smart buyers can save money by paying off their car loans ahead of schedule.
Will I Be Penalized for Paying off My Car Loan Early?
Although relatively rare, some lenders charge a payoff penalty, if you decide to exit your loan agreement by paying off your outstanding balance. The reasoning behind this is that they don’t earn as much money on interest as planned, if you had continued to pay each month for the full term of your loan. [...]
As new car prices continue to rise (up 17.3% in 2022 over 2021), cash-strapped Canadian families are looking for ways of saving money without sacrificing their quality of life. One of the easiest ways of saving thousands of dollars is to browse the used car lots at Laneway Auto Loans & Sales in Atlantic Canada. Other good places to find used cars are classified ad websites like Kijiji (which is segmented by province), specialised websites like AutoTrader.ca, and giants eBay and Facebook Marketplace. Within an even tighter radius, family and community groups offer less choice, but greater convenience.
Staying Smart When Going Private
When you buy a used car from a reputable dealership, you can be fairly confident that it’s been thoroughly checked. In fact, many dealerships certify the second-hand cars they sell as having been expertly serviced. But with a private seller, you may have no idea of a vehicle’s history. Here’s [...]
Few people can afford to pay cash for a car, even second-hand. This means joining the 84% of Canadians who are paying off their rides in instalments. When deciding on how to finance their second-largest lifetime purchases (after only their homes), smart buyers consider their loan options very carefully.
Depending on their personal situations, taking out a loan from a bank or a dealership could have very different financial consequences over the years ahead. Here’s a quick guide on the pros and cons of each option, and which one might be right for you.
Financing through a bank or credit union usually involves applying for a pre-approved loan. Once your application is accepted, the lender issues a letter of commitment that you can to the dealer, once you’ve found the vehicle of your choice. This is a great time saver, as the entire deal can [...]
When thinking about buying a car, many drivers wonder about how this huge amount of debt will affect their credit rating. Can it really build credit, or does it have a negative effect? The answer is: both! However, the dip in your credit score is very brief, rapidly offset by years of prompt repayments.
Every time you pay your auto loan on time, your credit score improves. The information added to your credit history includes payment promptness, amounts owed, duration, new loans, and your credit mix. These boosts usually appear in your score at milestone consolidation dates, like every six or twelve months.
What Factors Influence My Credit Score?
There are at least five factors that affect your credit score, each of them carrying a different weight. In very general terms, they are:
- 35% of your credit score comes from your payment history. For [...]
When you take out a loan to pay for a new or used car, you don’t actually own your wheels until the loan is fully paid off, together with all its ancillary charges. So if it’s stolen or damaged, you could be held liable for paying it off entirely, if it’s not covered by insurance.
That’s why most reputable lenders require you to present proof of full coverage before you drive out the door, as they must protect their investments by insisting on total protection for the vehicles they finance. From time to time, they’ll also check that you’re still carrying full coverage on your financed vehicle, until your loan is fully paid off. This is because liability insurance covers only damages to another driver, with no compensation for damage to yourself or your own vehicle.
In fact, you could even lose the car to [...]
Always excellent at hauling cargoes and carrying passengers, the 2019 Chevrolet Traverse Premier AWD RS continues this tradition. With its all-new look launched in 2018, Chevrolet addressed one of the weakest points of the earlier Traverse: its minivan look. With a bigger bowtie in the middle of its taller grill, it stands more upright, with strongly contoured shoulders and slim taillights that temper its rather boxy look. Generously sized to carry eight, its relatively flat roofline offers plenty of headroom for passengers, with generous legroom and easy access, even for the second and third rows.
This truck-like new version offers great visibility through its massive windows, standing square and solid, while losing none of its charm in the makeover. With a contemporary infotainment system that includes an eight-inch colour touchscreen and a ten-speaker Bose sound system, its cabin is a more refined, with available high-end features that drive it into the big three-row crossover category. [...]
The world of finance speaks a language of its own, and it’s often incomprehensible to many Canadians looking for the best auto loans in Halifax. So, with the usual Laneway Auto proactive approach to transparency, here’s a list of the main terms used on the auto loan market, with easy-to-understand definitions.
But before getting down to the nitty-gritty of each and every term you might hear during your used car purchase journey, here’s an overview of each step along the way.
Auto Loans Turn Dreaming to Driving
Does your dream car seem impossibly far away? Don’t despair – our vehicle financing experts are always happy to help you pick the best auto loans in Halifax. Even if you can’t afford your dream car right now, they can draw up a plan that steers you closer towards your ideal wheels with each successive purchase over the years. So here are the six simple steps that [...]
Buying a new car is a bittersweet experience for most of us Canadians. After dreaming about all those fancy trims and powerful engines, limited budgets pull us back to reality.
This is where an auto loan can help make those dreams come true. But that doesn’t mean you should plunge into debt without weighing the pros and cons of vehicle financing.
The Upside of Auto Loans
If your credit rating is fair to good (660 and up), you have a steady source of income (preferably a steady job), and a proportional debt load, you’ll have no trouble in finding an auto loan. Responsible borrowers also enjoy other benefits when they sign up for a car loan:
- timely repayments ramp up your reputation, because 35% of your credit score is based on your payment history;
- dealer incentives might save you thousands of dollars over the term of your loan, through 0% financing or [...]