Category: Economy

Posts related to Economy

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 [...]

Vehicle financing is a competitive market – which is a plus for prospective car buyers. Rated right after purchasing a home in terms of lifetime importance, an automobile is more than just a convenient way of getting around. It’s a major investment, with car loans deserving as much attention as mortgages.

Where to Look for Auto Financing in Canada

Although most lenders use the same criteria to define your desirability as a borrower (and thus the interest rates they offer you), they often weigh them differently. Traditional financial institutions (like banks) tend to be more conservative, preferring customers with higher credit scores. In contrast, credit unions often offer car loans at lower interest rates, particularly to their account-holders.

Meanwhile, Canadian dealerships are eager to turn over their inventories. Many of them provide in-house loan facilities with less stringent conditions and longer terms of up to 96 months. Finally, online auto financing agencies [...]

Choosing a new (or new-to-you) car is fun, right? Marques and models, trims and tricks, gimmicks and gadgets must all be weighed and analysed against personal preferences and family budgets, whittling down the options into a shortlist of front-runners.

Smart buyers follow the same painstaking selection process for their auto loans. Seeking the most competitive terms, they check not only the monthly repayments, but also interest rates, durations, fees, and total costs.

Shop Around for Your Vehicle Financing

Thanks to the Internet, it’s easy to gather multiple car loan offers, compare them, and then negotiate with at least three lenders. But before applying for pre-qualification, it’s important to make sure you’re an attractive auto financing candidate.

The cornerstone of your reputation in the loan market is your credit score. This should be at least 670, and preferably higher. As conditions vary by lender and even region, shopping around is the best [...]

New arrivals soon realize that they need their own transport to get around comfortably in Canada. However, accessing auto loans can be a tricky process, where a helping hand can make all the difference. Some car financing firms have teams of specialists who can steer you smoothly through the loan approval process. But before reaching out for financial assistance, make sure you have the necessary documentation lined up, for faster financing approval. 

Here’s what you need to know:

  • A Canadian citizenship card, which is issued by the Government to confirm your residency status. It may take over a year to process your request (which is not an application for citizenship), which must be properly completed and supported by the correct documentation. This may include a copy of the personal data page of your passport or travel document, a permanent residency permit, a health insurance card, and a senior citizen ID, as well as your [...]

With gasoline prices surging nationwide, Canadians are rethinking their transport options. In Nova Scotia, provincial rebates are showcasing the appeal of electric vehicles, as petrol pump prices rise.
Research shows that most people thinking about going electric are being nudged towards this decision by soaring gas prices. In fact, hundreds of Nova Scotians have already benefited from a Province-wide Electric Vehicle Rebate programme. In simple terms, this program offers three generous benefits to Nova Scotia is trying to lower their transportation costs:

  • $3,000 rebate on the purchase of a new electric vehicle; 
  • $2,000 rebate when buying a second-hand electric car; 
  • $500 rebate for some e-bikes.

The purpose of this initiative is to help Nova Scotians in all income brackets hop aboard this trend in transportation. To do so, it offers point-of-sale rebates on new and used electric vehicles, plug-in hybrids, and even pedal-assisted electric bicycles (e-bikes). 

Double Benefit

New electric vehicle purchasers qualifying for the [...]

Following in the footsteps of its company-wide commitment to electric vehicles, Stellantis filed an application with the United States Patent and Trademark Office (USPTO) in late January that hints at the name of its forthcoming electric truck: Ram Revolution. Covering motor vehicles in the passenger truck segment, it offered no design hints, with no indications of fonts or logos.

Furthermore, a recent presentation spotlighting the planet-protective plans of Stellantis offered very little specific information on this environmentally-friendly truck, as a key player in its overall EV strategy. By playing its cards close to the chest, Stellantis leaves its production and marketing options wide open and fully flexible. 

Global Leader Goes Green

The outcome of a 2021 merger between France’s Groupe PSA (Peugeot, Citroen etc.) and the Italian-American FCA (Fiat-Chrysler Automobiles) conglomerate, Stellantis plans to invest well over CAD 40 billion (€30 billion) in going electric by 2025. Its sales targets for low-emission vehicles [...]

When most Canadians decide to buy a car, they also start looking for the best deal in car loans. This financing usually lets them pay for their wheels over a set period of time, with monthly installments that remain unchanged for the term of the loan. 

Borrowing many thousands of dollars is a heavy commitment, particularly as buying a car is the second-largest purchase that most of us make in our lifetimes. That’s why it’s important to figure out exactly how much you can afford to pay back each month, calculating exactly how much you’ll have to pay out and then making sure this fits into your budget.

How Auto Loans Work

Although the world of finance might seem complicated, financing a car is a transaction that is easy to understand, once you master the basic terminology:

  • term is the length of time for which you wish to borrow the money, which can [...]

There’s good news and bad news for Canadian buyers shopping around a new car. The good news is that there’s no threshold credit score for taking out a car loan. The bad news is that borrowers with low credit scores pay higher interest rates, meaning that their vehicles cost considerably more by the time they pay off the principal amount of the loan and interest.

Learn About Credit Scores 

When buying a new or used car, your credit score is a major factor in these transactions. For instance, dealerships will check your credit score before financing a vehicle in your name, while financial institutions define the terms of your loan, based on your credit score.

Although a low credit score wouldn’t stop you from buying a car, you might have to pay a higher-than-average interest rate on your loan. However, once you build up your credit score by making sure every instalment [...]

Just over a year after he was elected to office, President Joe Biden welcomed his neighbours – Canada’s Justin Trudeau and Mexico’s Andres Manuel López Obrador – to the White House. The first North American Summit since 2016, this ‘Three Amigos’ get-together nevertheless got off to a rough start. 

Despite the bulging grab-bag of issues facing this region, a single issue outstripped them all, in terms of discussions. Clogged supply chains, volatile energy costs, the migration crisis, and even the pandemic lagged behind a proposed $ 12,500 tax credit for electric vehicles made in the USA. 

This relatively insignificant clause in the Biden Administration’s Build Back Better Act caused sparks to fly in the West Wing. Approved by the Lower House on November 30, this $ 1.5 trillion plan is seeking fast-track approval from the US Senate, before returning to the President for confirmation. 

The Next Step

In the US Senate, Majority [...]

A perfect storm of adverse factors is driving an upsurge in gas pump prices, which may soon see Canadian gas stations charging prices close to a twoonie. For drivers all over North America, higher pump prices are becoming a significant pain point. 

However, local gas stations are only now starting to catch up with the rest of the world, where energy prices have been skyrocketing for months. At the international level, surging oil prices and the foreign exchange rate for the Canadian dollar are pumping up pressures. 

Global Fuel Prices Soar

Experts believe there’s a good chance that oil will top a $ 100 a barrel in the next few months: up 20% from current levels of around $ 85. There are also forecasts that gas prices might top two dollars a litre in some areas of Canada during 2022. 

Places like Labrador and Newfoundland – which already have of the highest [...]

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