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Flamborough Car Loan Financing - Everything to Know

Flamborough Car Loan Financing - Everything to Know

Car buying has evolved, during the 1960s the majority of people bought their cars with cash they had saved or took out a modest auto loan. As cars became more complex their prices rose to a point where you will need to finance the car purchase of many years to repay it in full.


Our auto loans team helps you navigate through the increasing expense of driving to secure a great deal on Flamborough car loan financing.


Are you buying or leasing your car?


One key question to address is whether you are buying or leasing your car. The amount of interest you pay will be influenced by that decision.


Leasing is great if you do not drive much since there is a yearly kilometre driving limit that you cannot exceed. You must return the car at the end of the lease or take the option to buy it at the current fair market value which will be defined in your lease agreement.


With lease agreements, the dealership can forecast the exact amount of depreciation and use that when setting the interest rate for the loan.


If you want to buy the car outright, then the auto loan will be for the entire price of the car which ranges from 5-8 years depending on the amount being financed.


How to qualify for an auto loan/lease


You will need to have a stable source of income that is generated from employment. If you are on social assistance or some other type of government benefits, you would not meet the income requirement.


Salaried employees should have been in their job for at least 6 months and preferably 2 years.


If you are self-employed, you will need to provide your income tax assessments for the last 2 years and bank statements for the last 90 days.


You may feel that this is a massive amount of paperwork but lenders want to be sure you can repay the Flamborough auto loan going-forward.


Reviewing your credit score


The lender will need to see your credit score to determine what interest rate they should charge.


Your score is 3 digits and can range from 300-900, but as a general rule, any score over 680 should qualify for prime lending rates. In the past, you would need to pay a premium to access your credit score but that is no longer the case, Equifax and TransUnion do provide free access.


You can get quotes online from Flamborough car loan financing providers but you will need to do all of the paperwork and negotiations which can be time-consuming. A simpler approach would be to let your local car dealership do all the paperwork for you.


Your local dealership already has existing relationships with all of the lenders, so they can easily get a written commitment from the lender in a matter of minutes instead of days. Once the lender has approved your application based on your credit profile, you can start going for test drives to try and find the car you like the most.


The interest rate that the dealership can secure may be slightly higher than what you found online, the customer service experience being provided by the dealership is well worth it.  What you should do is speak with your local car dealerships sales rep and fill out an application, this is the first step in the Canadian car buying experience so why not schedule an appointment.


We will use all our skill and experience to deliver the lowest possible Flamborough auto loan rates, guaranteed. Contact Car Nation Canada Direct to learn how we can help.


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Categories: Auto Loan

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