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. [...]
Like all bargain offers and special offers, car loan promotions should be explored carefully before jumping in. The vehicle financing experts at Laneway Auto Loans & Sales some of the points that prudent buyers should watch, when looking for a new car in Atlantic Canada.
Marketing Tricks or Heaven-sent Solutions?
When browsing the Internet in search of the perfect car at an affordable price, buyers are often tempted by countless special offers that are hard to resist. Let’s take a look at the facts and figures behind these blaring headlines.
Yes, zero percent car loans are available in Canada, although reserved almost exclusively for buyers with excellent credit ratings interested in new models. However, as few prospects meet these criteria, this is often a make-and-switch tactic that draws hopeful borrowers into the sales centre. Once you’re actually on site, there’s a reasonable chance you’ll find a car you [...]
A refined contender among small luxury crossover SUVs, the 2018 Buick Envision is well worth a second look. Despite its somewhat generic exterior styling, it’s equipped with a generous wish list of features, with an upscale interior trimmed in high-quality materials. Slotting between the compact Encore and the three-row Enclave in the Buick portfolio, with decent amounts of cabin room and cargo space, this two-row crossover SUV is always a popular choice on the Laneway Auto Loans & Sales Used Car Lot.
Great Value for Money
Quiet, comfortable, and less eye-catching than some of its competitors, the 2018 Buick Envision Premium AWD delivers a lot of bang for a very reasonable buck. Churning out 252 hp and 260 lb-ft, its turbocharged 2.0-liter engine is a great fit for this small SUV, delivering fuel economy of 8.6 – 11.8 City/ highway combined. All Envisions are fitted with six-speed automatic transmission. Trim upgrades include 19-inch wheels, [...]
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 [...]
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 [...]
Famed for its trucks, Chevrolet has been building these heavy-duty vehicles for over a century. Just years after the first truck rolled out of its plant in Flint, Michigan, Chevrolet is certainly keeping up this tradition with its 2019 Colorado Z71 Crew Cab 4×4. Although not as tough as the latest ZR2 Colorado launches, Laneway Auto Loans & Sales confirms that this mid-size pickup has some impressive off-road chops, with the Colorado Z 71 package building on the features of the lower-tier LT trim. Offering a four-wheel-drive and locking rear differential with over eight inches of ground clearance, it’s an effective work vehicle. Fitted with knobbly 17-inch all-terrain tires, its rugged off-road suspension sails smoothly over the soft soils and muddy ruts of the Atlantic Seaboard, powered by a robust V6 engine.
Out the Back
Designed for both work and play, the rear end of the truck is planned just as carefully as [...]
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 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.