It looks as though pressures on the Canadian vehicle market may start to ease up in 2023. As demand stabilises and inventory expands, prices could drop by up to 20% for pre-owned vehicles, and 5% for new models. This could also lead to cheaper auto financing in Atlantic Canada. However, with an economy still stumbling through the post-pandemic landscape, wise buyers are taking advice from the financial experts at Laneway Auto Loans and Sales and checking their finances before diving into a multi-year commitment like getting a car. Here are some pre-purchase points to ponder:
- make sure your job is stable, with enough financial headroom to pay off such a major investment, taking into account unpredictable factors such as inflation and interest rates that could eat into your monthly budget;
- check your credit score, as this is a major factor in the interest rates offered you by lenders, saving (or costing) you thousands of dollars [...]
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 [...]
Famed for its focus on value, Hyundai continued its winning streak with its 2017 Accent, which continues largely unchanged since 2012. A great example of the brand’s strategy of providing high quality cars at affordable prices, this attractive sedan offers pleasant driving dynamics, with plenty of useful amenities. Launched in 2017, its new Value Edition trim included features like four-wheel disc brakes, 16-inch alloy wheels, and cruise control. Available as a five-door hatchback (SE and Sport models, with up to 47.5 cubic feet of cargo capacity) or a four-door sedan (base SE and Value Edition, with up to 13.7 cubic feet of trunk space), the sub- compact 2017 Hyundai Accent seats five passengers in comfort.
Under the Hood
Its 1.6L four-cylinder engine is also one of the few in its class with direct injection, helping it reach 138 hp and 123 lb-ft of torque. For urban driving, its suspension is more than adequate for [...]
There’s plenty of good news for car buyers in Halifax and nearby Provinces. As reputable dealers like Laneway Auto Loans and Sales grant auto loans at fixed rates in Canada, your monthly payments don’t increase in parallel to rising interest rates. Instead, all your fixed loan payments remain unchanged throughout their repayment periods. But (and there’s always a but…) if you decide to renegotiate or renew your fixed-rate auto loan, there’s a chance your monthly payments could be higher, if interest rates have risen since you closed the deal. That’s because interest rate hikes announced by the Bank of Canada are applicable nationwide, generally keeping pace with inflation.
Will my Auto Loan Repayments Go Up if Interest Rates Rise?
As prices soar across the board for services and goods, the purchasing power of the Canadian dollar shrinks, and higher interest rates are imposed to keep the nation’s economy running smoothly. Luckily, vehicle owners [...]
Sure you can! But it’s more complicated than selling a car you actually own – which is already a tricky and time-consuming task. There are plenty of good reasons why you might want to sell your car before the end of your loan term: your family has grown (or shrunk), so you need more (or less) seating room for passengers and storage room for stuff; you’re moving house and no longer need your own wheels; you got a raise (or took a pay cut), so you want to splurge or need to economise.Can I Sell My Financed Car by Myself?
You can certainly handle the entire process yourself. Or you can save yourself a lot of time and hassle by seeking guidance from the auto loan experts at Laneway Auto Loans and Sales. In their considerable experience, there are three ways of selling a financed car in Canada:
- A private sale means you’ll [...]
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 [...]
It might seem counterintuitive, but borrowing money actually helps Canadians improve their credit records. According to experienced consultants at Laneway Auto Loans & Sales, making all those routine payments on time, every time, shows lenders they can trust you to stick to your repayment schedule.
Detail: A whopping 35% of your overall credit score is based on your payment history.
How Does an Auto Loan Build My Credit Score?
Financing a car purchase is a transaction that slots into your credit score. This is a record of how much debt you are carrying, for how long, and how promptly you are paying it all back. Another factor in your payment history is the kind of credit you hold, either revolving (like a credit card) or regular instalments (like a mortgage). Consequently, paying back your auto loan regularly upgrades your payment history, which in turn boosts your credit score.
Detail: A solid [...]
Sure you can! Many Canadians decide to do this, for a wide variety of reasons: they’re selling their car and the buyer wants to take over the loan; they can no longer keep up with the monthly repayments; or they simply want to switch lenders. However, before you decide to follow this path, you should check your original loan agreement. Some contracts charge early repayment fees, or may impose constraints on this option. If you’re in doubt, ask the financial advisers at Laneway Auto Loans & Sales for help.
What Are the Easiest Ways to Transfer Auto Financing?
Most auto financing vendors are happy to work with sellers transferring car loans to somebody else. However, a word of warning: the buyer must comply with the lender’s requirements – particularly income and credit score – in order to qualify for approval. There are two main ways of passing your car loan over to somebody else [...]
For decades, Canadians have rocked, rumbled, and rolled through a nationwide love affair with SUVs and pickups. In fact, light truck sales topped 80% of new light vehicle purchases in 2021 confirmed by the experienced staff at Laneway Auto Loans & Sales. But now there are signs that inflation-bumped prices for groceries and gas are slamming the brakes on this passion. In parallel to surging inflation, price hikes for vehicles both old and new are forcing many Canadians to park their dream drives, at least for the foreseeable future.
Cash-Strapped Buyers Seek Fuel Efficiency
In historical terms, buyers have always opted for smaller and more efficient wheels when prices rise at the pump. Today, this downsizing trend is underpinned by a host of new and environmentally responsible EV options. In a post-pandemic world that’s also striving to be more eco-friendly, Canadians have been retooling their approach to how they get around. In a recent [...]
Brimming with character, the Kia Soul is a multipurpose compact that’s close to a subcompact crossover (but lacks an all-wheel-drive). But with its towering height, it’s not quite a hatchback either. This kinda-sorta SUV heads up a segment that blends the practicality and convenience of a compact car, with the cargo capacity of an SUV. Thanks to its reputation for reliability, vehicle financing from Laneway Auto is a simple process for a Kia Soul.
Who Buys a Kia Soul?
More than half Kia Soul owners are women, averaging out at 16 years of age, and with lower median household incomes of around $60,000. Two other striking characteristics are that solar owners want a vehicle with responsive handling and powerful acceleration, while also admitting that they like a vehicle that stands out from the crowd. Their favourite things about this snappy drive are its quirky exterior styling, tasteful interior design, smooth driving dynamics, comfortable [...]