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Showing posts from June, 2019

What’s the point of a car loan?

To finance the purchase of a vehicle, unless you have the necessary funds, auto credit is the most frequently used solution. The term “auto ”   does not mean that credit is only used to acquire a car in the strict sense. The car loan can also be used to finance a motorcycle, a caravan or even a camper. Be aware, however, that when talking about auto credit, the loan is said to be “affected”. The money borrowed can only be used for the transaction for which the loan was made.What is a car loan?Auto loan, or auto loan, is a cash advance offered by a credit agency, a dealer or a bank, to finance a new or used vehicle when the buyer does not have the necessary funds for its purchase. It is therefore the lender that will pay the vehicle in its place, for him to repay a certain number of monthly payments previously defined by contract. Borrowing interest is added to the amount of the monthly payments.What is the purpose of auto credit?As the name implies, the auto loan is used to finance a …

Buying a car: what are the different financing solutions?

Changing your car is an increasingly important budget, especially with current technologies that continually drive up prices. And today few households can afford to buy cash for their new car. This is why more and more individuals are using auto financing, which is also the second largest line of expenditure after real estate. The funding allows to spread over several years the payment of the monthly payments, and at the same time to offer a vehicle generally more recent. Explanations.Auto creditIdeal finance solution for acquiring a new or used car, auto credit is an assigned credit. That is, the purchase is conditioned by obtaining the loan. Clearly, if you do not get your credit, the sale is automatically canceled. The auto loan is somehow more protective for the consumer, since the money is dedicated solely to the financing for which it is contracted. A car loan can be obtained directly from his banker on presentation of a quote or a purchase order, or from a credit agency. Be awa…

Buying a car on credit, what are the constraints?

Buying a car on credit allows you to spread your expenses over a number of years. Admittedly, this type of purchase is often considered a pleasure purchase, responding to a desire, a particular need. While it is relatively easy nowadays to obtain a car loan, know that this type of financing does not present only advantages.A commitment over several yearsWe do not always think about it at the moment, but a purchase on credit means that we commit to paying a certain number of monthly bills for many years. With an average of 48 to 60 months for auto loans, this is a medium-term commitment that can turn into a nightmare in case of difficulties. The credit binds the borrower to his creditor by a signed contract. When borrowing, we do not know what will be his financial situation in a few years.Good to know: To minimize the risks associated with non-payment of credit, it is strongly recommended to take out insurance, even if it is often optional. Additional feesWho says credit, says interest…

Buying a car: how to choose your credit?

While it is now relatively easy to get a car loan, it is still important to compare before starting. Some offers may seem enticing, but adding for example the fees and insurance, the monthly payment is not the same at all. It is therefore strongly advised to prepare your project by choosing the credit best adapted to your own situation.The duration of the loanTo reduce his monthly payment, one often chooses to extend the duration of a car loan. If this option can be interesting in case of acquisition of a new vehicle, it is advisable to remain vigilant when it is about an old vehicle and in particular kilometer. The risk is indeed to find yourself quickly with a car out of service, while the loan is still not refunded. If your budget also requires you to take out a loan again to change your car, you may have to use a loan consolidation, which will further increase your monthly payment. Some organizations tend to easily lend this kind of loan, so it’s best to think carefully before sub…

Buying a car: which type of credit to choose?

After real estate, the purchase of a car represents the second line of budget for which one generally subscribes a loan. Cars are more and more technological, better and better equipped, but also more and more expensive, which is why it becomes difficult nowadays to pay cash for such a purchase. Credit is the best way to finance a new or used car. Different options are available to us, which one to choose?Auto creditAuto credit is definitely the best financing solution for buying a car. It is a so-called “assigned” loan, which means that the money obtained can only be used to finance the purchase for which the loan is contracted. Generally lasting from one year to five years , the repayment period can be extended to seven years for new vehicles. Auto credit has several advantages. It provides some protection for the borrower because: – the borrowed money can only be used to finance the car in question; – the sale is canceled if the loan is not obtained; – it is not possible to borrow …

Buying a car: how to choose your credit?

While it is now relatively easy to get a car loan, it is still important to compare before starting. Some offers may seem enticing, but adding for example the fees and insurance, the monthly payment is not the same at all. It is therefore strongly advised to prepare your project by choosing the credit best adapted to your own situation.The duration of the loanTo reduce his monthly payment, one often chooses to extend the duration of a car loan. If this option can be interesting in case of acquisition of a new vehicle, it is advisable to remain vigilant when it is about an old vehicle and in particular kilometer. The risk is indeed to find yourself quickly with a car out of service, while the loan is still not refunded. If your budget also requires you to take out a loan again to change your car, you may have to use a loan consolidation, which will further increase your monthly payment. Some organizations tend to easily lend this kind of loan, so it’s best to think carefully before sub…

How to get a vehicle with bad credit?

2 nd  luck:The solution for people who have had significant delays in the past or even went bankrupt but who have been released. Also called “subprime” credit. Here, we are talking about rates ranging from about 8% to 28% (at the time of writing this article) depending on the credit rating and the vehicle being financed. Most of the time the financing is offered by our Auto Finance and Scotia Dealer Advantage. The majority of people who have had problems with their credit will fall into this category.3 rd  luck:This solution includes all special or exceptional situations that do not qualify for the 2nd chance. It is also known as “alternative credit”. For example, customers who are currently experiencing an undischarged bankruptcy, who have experienced a financial recovery on an old car or who simply can not demonstrate their income. There are many private companies that will “finance” automobiles by renting them to the customer, allowing them more control over the property. Be carefu…

Bad credit: getting a loan for buying a car