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