The second-largest purchase of their lives for many Canadians, buying a car is a major investment. Few people can save up enough money to purchase their wheels outright, so they need to finance it through a car loan. That’s why it’s a smart move to explore your auto financing options well before you start vehicle shopping. It is vital to ensure you pick the best option for your needs and budget, not only for today, but for several years ahead.
Where Can I Find Reasonable Auto Financing in Nova Scotia?
Most car buyers sign up for auto financing with a bank, a credit union, a dealership, or an online lender to pay for their new or used vehicles. These car loans must be repaid promptly each month over an agreed length of time. If you miss a couple of payments, you’ll be charged interest and possibly a fine or penalty; once you’re ninety days [...]
Well, that depends on who’s asking! If you’ve got a good credit score (at least 650), you may qualify for a rate between 1% and 7% for a new car, depending on the make. For a pre-loved model from Laneway Auto Loans used car lot, you could be looking at 6% to 8%. But if your credit score isn’t so good, your interest rate could soar to over 45%. Averaged out across the market nationwide, interest rates on car loans in Canada generally hover around 7%.
Where Do I Find the Lowest Interest Rate in my Area?
Your next step is to check out auto financing interest rates in New Brunswick. The easiest source of financing is the dealership where you buy your car, cutting back on the time and paperwork needed to close the deal. This is also where you can bargain for extra perks (like undersealing, a set of snow tyres, or even [...]
You want to buy a car, and now you’re thinking about your credit score, right? You’re aware it’s important – but do you know exactly what a credit score is? As explained by the consultants at Laneway Auto Loans and Sales, this is a figure between 300 and 900 on the bottom line of a report on your financial track-record, calculated by authorised credit bureaus. When you apply for vehicle financing, these institutions measure your creditworthiness through five key factors (which are weighted differently) as percentages of your total score:
- 35% – Bill Payment History lists all your prompt and late payments, together with any debts currently under collection;
- 30% Credit Use shows how much of your credit you’re using, which should ideally be less than a third of your ceiling amount;
- 15% – Credit History, with a longer good record scoring higher, as this predicts your spending habits and repayment ability;
- 10% – Credit [...]
Five times more likely to take out long-term auto loans than Americans, Canadians are buying more cars than ever – but taking longer to pay them off. Today, well over half of all new car loans are financed over seven years, or even longer. Well aware that the old industry standard of sixty months is vanishing, Laneway Auto helps consumers cram fancier rides into tighter budgets. This shows how the old industry standard of sixty months is being stretched out by consumers determined to cram fancier rides into tighter budgets.
According to automotive expert Robert Karwel, who works for market research firm J.D. Power, “long-term financing has exploded in Canada.” The problem is that seven, eight, or even nine years are very long terms for paying off assets that are steadily depreciating in value while becoming more expensive in terms of upkeep and repairs.
Longer-Term Vehicle Financing in New Brunswick
The appeal of [...]
At first glance, leasing seems the obvious choice for business owners, especially in Atlantic Canada. A new vehicle every three to five years with an equally new warranty, and lower monthly payments seems like a great deal, right? And it is, for buyers reluctant to spend time on selling or trading-in their used cars, or worrying about rising maintenance and repair costs.
On the other hand, vehicle financing through Laneway Auto is a better option for buyers in New Brunswick who want to own their own wheels, becoming a personal asset once that final instalment has been paid. Other advantages include personalizing a car in any way its owner chooses, as well as driving it for as many kilometres as needed. The purchase option is ideal for businesses whose drivers cover longer distances than average, who have the facilities for maintaining vehicles over the longer term, and whose corporate requirements are relatively stable.
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 [...]
Not everyone dreams of a brand-new car. Many drivers prefer to buy relatively new second-hand models at lower prices and with easier consumer financing. As a useful costly option between under-warranty new and buyer-risk second-hand cars, some dealerships offer certified pre-owned vehicles.
Typically less than five years old and with 800,000 kms on the odometer, these smart buys are often trade-ins from lease customers upgrading to a new model. This is a great choice for anyone wanting all the advantages of a used-car, without too many of the drawbacks.
Used Car Financing Options
Generally speaking, there are two ways for Canadians to finance better-quality used cars with less than 80,000 kilometres on the clock, and under ten years old. The easiest way is through the car dealership, or else through a bank, particularly for account-holders.
Either way, auto financing approval depends heavily on your credit history. However, auto financing is basically available to [...]
Famed for being environmentally friendly, electric vehicles are also becoming the best friends of your wallet. However, it’s not easy to dump the gas-fuelled mindset that fuelled the expansion of the auto industry for well over a hundred years.
That’s why New Brunswick is actively encouraging its residents to take the leap and invest in electric vehicles. These steps range from tax credit incentives to steadily expanding network of charging stations. This means borrowing less to finance EV purchases, often under special conditions.
Are you Worried about Charging your EV?
A huge country famed for its wide-open spaces, Canada is driving ahead steadily towards its 2035 zero-emission target for light-duty vehicles. Notable for its progressive stance, New Brunswick stands out among Canada’s provinces for its electric vehicle charging station network.
With only some 65 kilometers between each charging station, and more than 200 service points, drivers can top up their electric vehicles easily, [...]