Why Are Millennials Choosing to Finance over Leasing Cars?
Some of life’s most stressful moments for millennials in Ontario involve finances.
Think about everything that revolves around it; your rent/mortgage, retirement, your kids and their future, your parents, and of course, your sweet ride.
Cars play a vital role in the day-to-day operations of modern society, and especially for the generation of thrill-seeking, travel-loving millennials. There are three tried and tested ways to purchase a vehicle:
- The all-cash method
- Leasing a car in Ontario
- Getting a Car Loan in Ontario
We’ve chosen to not go into depth on the all-cash method as it’s not applicable to many lifestyles and financial situations. Basically, it’s expensive in the short-run and there are few millennials that budget to spend huge quantities (in the tens of thousands of dollars!) all at once.
So, let’s get into two of the more realistic options for Millennials in Ontario.
The Difference between Leasing and Financing
If you’ve ever chatted about the car world with friends, you may have either heard “lease your vehicle”, or “financing is the way to go!. It can be confusing to hear so many contrasting ideas, but we’ve analyzed both sides of the debate for your benefit.
Who actually owns the vehicle?
- Lease: You don’t own the car. Instead, you pay to use it for a period of time that was agreed upon between you and the dealer. Once your borrowing term has ended, you have a few options. You can either walk away and return it, turn it in for another vehicle, or you can just buy the vehicle.
- Finance: If you choose to get a car loan in Ontario, you are officially the owner of the vehicle and it’s yours for the keeping (as long as you make your payments on time). Considering that you own it, there are no limitations for how or where you use the car, or whether you’re “allowed” to add custom features.
How much will I pay?
- Lease: This is dependent on a predetermined agreement between dealership and the buyer, however, it is usually includes the first month’s payment, a security deposit that is refundable, your down payment, taxes, registration fees, and depending on which dealership you’re with, additional fees.
- Finance: Financing is sometimes quite simple, what is included is usually the cash price or a down payment, standard taxes,interest, registration fees, and potentially other fees. The upside on getting a car loan in Ontario is that you can always refinance your car to better suit your budget.
Hey, what if I want to end my payments earlier than planned?
- Lease: Leasing does offer an “early termination fee” but don’t get too excited– it’s unfortunately just as costly as sticking with the rest of the lease’s term.
- Finance: There are few options when it comes to terminating your vehicle’s financing, which includes selling or trading the vehicle.
I’m concerned about Depreciation!
- Lease: If you choose to lease, you don’t have to worry about the future value of the car. Since the car is not under your ownership, simply because that is not your concern as the leaser, but on the flip side, you do not get any equity from the car.
- Finance: As you know, a car is a depreciating asset and naturally the vehicle will depreciate in value. However, one big plus of getting a car loan in Ontario is that the equity is yours and you can do whatever you please.
Is there a limit on the miles I put on a car?
- Lease: With most leases, you have to go through the process of negotiating with your dealership on how many months and miles you can drive the vehicle. If you go above, you may experience repercussions from them.
- Finance: On the flip side, you can drive as often and as far as you want, but the trade off is that the value of the vehicle will decline as your miles increase.
There’s no doubt that getting a car through leasing or financing involves a considerable amount of analysis on many factors, and while leasing cars seem to be the glamorous route, financing cars offers a realistic approach that allows the buyer a bit more freedom in how the car is used.
Buying a car through financing seems to be the better option for many millennials on a multitude of levels. Some of the benefits include:
Pay less over the long term
Always look at the long term, the big picture. Leasing may look good and while the monthly payments are lower than financing, there is a significant trade off. Each car loan payment in Ontario builds up equity, which is crucial for selling or trading your vehicle in the future. As a car owner, having that flexibility offers a sense of reassurance- you’re never locked into a fixed ownership period like one would be with a car lease.
Have control over where you go
Leasing offers little autonomy over how and where you travel, and that can be annoying for the adventurous millennial. Having a fixed mileage forces you to constantly be weary of how much you drive, and that’s certainly not fun. Additionally, if you were to accidentally go over your allocated mileage, you’d have to face significant fines. To fully enjoy your vehicle without worrying about external forces dictating your every move (or drive), your best bet is to finance your car.
Ultimately, millennials these days face two options when it comes getting a car: leasing, or getting a car loan in Ontario. Financing offers flexibility, and that stems to having options for every form of financial situation. No matter how you’re leaning, it’s important to weigh your options and make the best decision for you.
If you’re looking to get a car loan in Ontario, contact Auto Loans Canada, where we make the decision-making process easy.
Do I Need A Down Payment For My Car Loan?
If you’ve decided to take the plunge and invest in a new car, there are a lot of things to take into consideration, from why you’re getting the car, to how much you’ll use it and everything in between. Ultimately, the most important variable of the car-acquiring process narrows down to how much you’re willing to, and are actually able to spend on your new set of wheels.
For many individuals looking to get a new car, fully paying upfront simply isn’t achievable. People have additional responsibilities and recurring costs in their lives, and paying several thousands of dollars all at once could affect both their lifestyles and their bank accounts! As a result, it’s common for several buyers to take on a car loan in Toronto.
Within a car loan itself, there are a lot of choices to be made that could either be detrimental or beneficial to your financial health. As mentioned earlier, most people can’t afford to pay off a car fully– but they may have some cash saved up to go towards it.
Spending a good amount of money initially (on something bought with credit) is known as down payment. We’ve created a guide to help you navigate through the down payment process.
Determining If You Need A Down Payment
To answer the question at hand: you don’t necessarily need a down payment if you go to the right credit lender.
Obviously, we recommend putting down whatever you’re able to spend initially as it will reduce your loan amount and therefore your interest rates. Here at AutoLoans.ca, we understand that everyone has different financial situations, and sometimes your credit score may not be a true reflection of your financial management. Things like missed payments, or sudden recurring medical costs can significantly impact your credit score.
Many lenders will be quick to turn down your application without taking personal circumstances into consideration. For that reason, AutoLoans.ca will accept zero down payment loans–no questions asked.
Calculating How Much Of A Down Payment You Can Afford
Take a look at your finances, your expenses, and any new costs that you predict may appear in the new future.
Make sure you’re comfortable with your understanding of your finances, and then decide on how much you’re willing to pay for the total car of a car first. Even the difference between a $20,000 car and a $25,000 car can make a big impact in terms of how much of an interest rate you’ll pay, and how long you’ll have your car for.
Traditionally, people have looked at the 20% rule for guidance before spending big bucks on a purchase like a new vehicle. This means that if you’re looking to buy a $20,000 car, it’s not a bad idea to put down $4,000 as your down payment.
Again, down payment “rules” aren’t applicable to everyone, and it’s important to understand what is a realistic and healthy goal. Some people don’t have the finances to afford a down payment at all, and there are creditors who will work with them to finance a car without a down payment.
One great resource to calculate down payments and their associated interest payments is with a car loan calculator.
Consider Cash Alternatives
Did you know that you don’t always have to make a down payment with an all-cash or monetary form?
There are two other common ways to ensure your down payment is accepted: through a vehicle trade-in, or with cash rebates on your car’s purchase. Trade-ins obviously can only apply to those that have previously owned a vehicle, but it has definitely proven to be advantageous in acquiring new cars.
The old car’s value (that is mutually agreed upon between the dealer and buyer) will be directly deducted from the new car. That way, people either don’t have to spend a large lump sum on a down payment, or they can add some of their savings to build a hefty down payment without breaking the bank.
A cash rebate involves cash–but not yours. Rebates are essentially a marketing tactic to reduce cost of cars and increase sales. Rebates are often covered by the manufacturer of the vehicle. For example, a manufacturer may offer a $5,000 rebate on a car in order to double the sales of the cars. Rebates can work well in your favour if you use it to your advantage and stick to your budget. Many people unfortunately get trapped by deals that sound incredible, but are on more expensive cars. If a $30,000 car has a $7,500 rebate, and your budget is $20,000, you shouldn’t get the car because it’s “only $2,500 more”. If you’re taking the rebate route, try to find a deal within your means and you’ll be good to go!
Zero Down Payments
The greatest advantage to zero down payment financing is getting into your ride without having to save for several months and with live without difficulty from not having a car. The not-so-glamorous aspects of getting approved for a zero down payment plan is higher monthly payments, finance charges and interest rates.
Many people share the belief that an individual’s credit health must be in excellent shape to be approved for a zero down payment car loan. Unfortunately, that is the case with many credit providers, but certainly not all of them. Here at Auto Loans Canada, we will provide zero down payment bad credit car loans to anyone as we understand that financial stability can be difficult to achieve in this economic climate. If you are going to take the zero down payment route, we recommend pairing it with a good insurance plan.
Used Cars Versus New Cars
Calculating down payments differ between used cars and new cars.
The aforementioned 20% rule generally applies to newer cars but there is flexibility within the down payment range. With used cars, we recommend trying to pay the 20% as the car’s value has likely already depreciated significantly. For example, if you’re looking to purchase a $20,000 car, you should aim to pay $4000 as a down payment and finance the other $16,000.
Vehicles have always been considered a depreciating asset, and it’s been reported that many cars can lose up to 20% of their value the second they drive off a dealership lot. Depreciation in the auto world is so drastic because cars are always in production, and always improving. For example, a 2017 model and a 2019 model may have technological features that seems worlds apart despite being built relatively recently.
Benefits Of Minimal Down Payments
Zero down payment financing plans allow the buyer to hold onto some of their cash for additional fundamental expenses. At the same time, it provides some cushion in case there are repairs to be made on the car. Repairs and damage are obviously less likely to occur with new cars, but depending on what used car you may get, having the additional cushion may help.
Working with a reliable credit provider is key to ensure you’re entering a risk-free bad credit car loan in Toronto. While shopping around, only look for dealerships or loan providers that offer certified used cars. Some offer a warranty, and they will only sell vehicles that have passed a series of safety screenings, so you can be sure that the car you get is less likely to have significant repair within your first few years of owning the car.
Car Insurance is something that many people tend to overlook, but it does add a good amount to your total cost.
If you are entering a zero down payment plan, ensure you’re accounting for the cost insurance as well. By initially making a down payment, many people find themselves overwhelmed with car-related bills. If your insurance payment seems to be too much on top of your monthly payments, you may want to reconsider your financing plan and either extend your loan period, or choose a new vehicle entirely.
Benefits of Large Down Payments
We’ve already briefly touched on the largest benefits of large down payments, but it’s important for you as a buyer to understand and consider deprecation, your finances, and calculate your total interest paid over the course of your car loan in toronto. Traditionally, people would finance their car anywhere from three to five years. Now, with the standard of living on the rise and people increasingly finding themselves in financial hardship, it’s more difficult to meet the time-tested 20% rule. That said, the rule has evolved over time.
Many car loan providers accommodate the new rates of financial health amongst consumers and adjust accordingly. It is possible to finance a car for longer than 5 years, but make sure you compare and contrast your cars depreciate so that you avoid paying more than the car’s value in the future.
The largest advantage of paying the 20% down payment is that it reduces all associated costs: finance costs, monthly payments, and overall interest paid. If you take on a zero down payment loan initially and find yourself saving a bit of extra cash, you can always refinance your loan to shorten your loan term and ultimately your total car cost in the long run. Remember, the ultimate goal is to avoid entering a negative equity situation.
Our hope at Auto Loans Canada is to ensure that consumers don’t feel helpless for not being able to spend on a down payment. It is possible to get a car loan without a down payment. At the same time, it’s crucial to understand all of the aspects involved in determining how much of a down payment you will pay. To get step by step assistance and explanations through the process of acquiring a car loan in Toronto, contact us today.
Do I Have To Pay To Access My Credit Score?
Your credit score is undoubtedly one of the most important numbers in your life.
This single figure is a numerical representation of your credit history and a potential indicator for your future credit trustworthiness in the eyes of lenders. It can indicate to them the kind of risk you might present when it comes to being approved for a car loan in Toronto, and it will be used to determine what interest rate you might be offered should you be approved.
Such an important piece of knowledge like your credit score is protected by numerous laws that ensure you can access it not matter your financial situation.
So do you actually have to pay to access your credit score?
We’ve put together a handy guide to fill you in on everything you need to know about accessing your credit score and where you can do so. Read on to find out more!
To Pay or Not To Pay?
The short answer to whether you need to pay to access your credit score is: No.
In most countries around the world, the governing bodies have laws surrounding your credit file that ensure you have access to it no matter whether you have money in the bank or not. This means that every Canadian is entitled to access their credit score for free at least once or twice per year without any penalty or obligations. Low income Canadians who would struggle to pay to access their credit score are often the ones who would benefit the most from viewing their credit files, and so this system gives them the tools they need to improve their situations.
The longer answer to the question is that while checking your credit file and score is free, there are a range of credit related products and services that companies do charge for that can help you avoid identity theft or other undesirable outcomes. These include credit monitoring and alerts to suspicious activity, which can stop you from suffering serious credit damage should your information be stolen. However, care should be taken to not assume you have to buy into these services in order to access your credit file. Many credit bureaus and companies will make their websites purposefully vague and confusing so that customers simply hand over their money in order to get a straight answer. If in doubt, simply Google “free credit score” and you’ll be presented with a direct link to access your credit score without spending any money.
So know that we know you can access your credit file for free, how exactly do you go about doing that?
If you want your credit information straight from the horse’s mouth, you can always go to Equifax.
One of the two main credit bureaus used in Canada, Equifax is the preferred option for many credit providers, from banks to credit unions. Equifax uses the FICO credit-scoring model, which is developed and maintained by the Fair Isaac Corporation. This credit-scoring model focuses on 5 key metrics to determine your credit score:
- Payment history: your previous repayments on any credit products you have taken out, specifically whether they have been on time or missed.
- Accounts owed: how much you currently owe to your credit providers, ie. how much outstanding balance you have on your credit cards.
- Length of credit history: how long you have been a credit user for. Most people will have started their credit histories with their first independent cell phone bills or credit cards.
- Credit mix: the types of credit accounts you have and the ratios of them. Good credit score customers tend to have a mix of credit cards, mortgages, and car loans.
- New credit: whether you have applied for any credit recently. A string of new credit applications in a short period of time can indicate risk and lower your credit score.
Equifax offers a free credit file service as dictated by Canadian law. You can request one through their website or by mail, however, it will take 10 days to be sent to you in either case. This is inconvenient but legal, as the law does not state that access to your credit score needs to be immediate. Equifax likely puts this delay on free credit scores to encourage users to pay for their premium service tiers.
Equifax premium services offer the usual suite of credit monitoring services for $20 per month. Some people may be able to afford this, or deem it necessary enough to pay for the membership. It will depend on your situation and concerns around identity theft.
The other credit bureau consumers can access in Canada is TransUnion.
The main competitor to Equifax, TransUnion uses a different credit-scoring model known as VantageScore. This model was actually developed as a joint effort by Equifax, TransUnion, and Experian, and is now maintained and administered by a separate entity, VantageScore Solutions. VantageScore looks at six key areas to determine a credit score:
- Payment history: similar to the FICO model, this is a record of your past payments, indicating whether you paid on time or you were late.
- Age and type of credit: referring to the age of the credit account (not your actual age), this takes into account the kinds of credit you have and how long you’ve had them for.
- Credit utilization: this is defined as the amount of credit you owe divided by the total amount of credit you are approved for. If you have maxed your credit card, you would say you have a 100% credit utilization.
- Balances: the most recent balances reported by your current credit providers. This will change every month assuming you are spending or making payments on accounts.
- Recent credit: any new credit applications you have submitted will appear on your file and have a varying impact on your score.
- Available credit: how much credit you have been approved for overall. If you have been approved for a lot of credit but haven’t used much, this can be a good sign for potential lenders and can boost your score.
TransUnion similarly offers a free consumer report to every Canadian. Unlike Equifax, they allow instant access to the report through their website. However, this will not sure a single specific number as a credit score. It will provide a more thorough overview of your credit health compared to what a potential lender will see, which can be a good and bad thing depending on why you are accessing your credit file.
There are also premium services offered by TransUnion, such as credit monitoring and fraud protection. Again, this will depend on your circumstances and budget in deciding whether this is worth your money or not.
Credit Karma is another credit score checking option catering more to the internet generation.
With the rise of the internet and the expectation of instant access to information, companies like Credit Karma have gained significant popularity. This service allows for immediate access to your TransUnion credit score, using a variation of the VantageScore model known as the CreditVision Risk scoring model. This model looks at trends and data over the past 24 hours as opposed to the moment-of-query data used in other more traditional models.
The benefits of Credit Karma are obviously its immediacy and ease of use. The sign up process is quick, simple, and doesn’t require credit cards or any other kind of payment information. Your score is calculated straight away, and you can get a basic overview of your credit file. This can help you get an idea of what potential credit providers will see when they access your TransUnion credit file and help you gauge whether you will be approved for a new line of credit or not.
Another extremely popular tool in Canada is Mogo.
This company is based off the same business model as Credit Karma and allows consumers to access their credit scores quickly and easily for free. Completely Canadian owned and operated, Mogo bases its scores off Equifax, giving customers access to the other main credit score used by credit providers. You will be able to see what your score currently is, how it has changed over the past 6 months, what credit accounts are currently reported on your account, and basic account balance information.
The Mogo web portal is extremely well designed and easy to use, requiring just some basic personal information to get started. Once you have signed up for their free service, you can then choose to pay for their premium products if you so wish. These are the same as those offered by the other credit bureaus, however, the Mogo interface is definitely the slickest and most geared towards Millennials. Whether this option is right for you will depend on your circumstances.
Another convenient option for Canadians looking to access their credit score is through LowestRates.ca.
This website is actually a comparison tool that aims to collect offers and deals from different financial institutions into one easy to read place. This allows customers to easily compare different options to find the best deal that works for them. This can save you time and money if you’re in the market for a new line of credit.
LowestRates.ca also offers a free credit score checking service built right into their website. It’s free, easy to use, and pulls data from Equifax to generate your score. The added bonus of doing this through LowestRates.ca is that your score can then be used to tailor the comparison tool to display deals and bonuses that would only be available to customers with your level of credit. This can be a great option if you have good credit and are in the market for a new credit card or car loan in Toronto, as you can see what the competing companies are willing to offer to someone with a good score.
Improve your credit score
Once you have access to your score, you might be shocked to see that it isn’t where you had hoped. All is not lost, however, as there are many things you can do to improve your score. Keeping your credit utilization ratio to under 30%, maintaining unused credit accounts with zero balances, and having a good mix of credit accounts can all boost your score over time.
Another fantastic way to improve your credit score is through a car loan. Autoloan.ca is the leading provider of car loans in Toronto, specialising in car loans for customers with bad credit. We utilise our wide lender network to secure the lowest possible interest rates, and we even deliver your new car anywhere in Ontario – all for free! If you’re ready to get into the car of your dreams, contact us today.
What Is Your Credit Score Used For?
Very few numbers in your life matter as much as your credit score.
This single, all-important score is used to determine many things in your life, especially in the financial realm. A good credit score can open many doors, while a bad one can limit your ability to do what you want.
So what exactly is your credit score actually used for?
There are a variety of reasons someone might want to check your credit score during an application process; sometimes in unexpected situations! Read on below to find out all the different ways your credit score is used.
Applying For Credit
As the name might suggest, your credit score is used extensively when applying for new lines of credit, such as a credit card.
Your credit score is essentially a numerically expressed symbol of your credit trustworthiness. It is based on your previous credit history through all different forms of credit, and is used by potential credit providers to determine the amount of risk of defaulting on credit that you represent. The aim for all credit providers is to earn money through interest repayments and merchant fees, so someone who has a history of not paying back credit will be a warning sign for potential loss of income.
When you apply for a credit card, you will almost always be asked for your credit score. These kind of credit checks are known as “hard” checks, as they will appear on your file and actually cause a slight dip in your score. This process is an unfortunate necessary evil, but the dip is only temporary.
Do keep in mind though that credit checks for credit cards or personal loans will remain on your credit file for five years before they are expunged. It is wise not to apply for many credit cards at once, as this will show up as a string of credit enquiries which can present some concern for potential lenders as it appears as though you need a lot of credit to survive.
Applying For A Car Loan
If you are applying for a car loan in Toronto, your credit score will invariably have an impact on whether you are approved or not.
Car loans are second only to mortgages in major credit decisions that people will make throughout their lives. These are loans between you and your credit provider with the intent of purchasing a vehicle, and work much the same way as any other personal loan. Your credit score will be used to determine whether you are approved for a particular vehicle and the interest rate that will come with that loan. Generally speaking, good credit scores will attract easy approvals and low interest rates, while bad credit scores will struggle to be approved and will be given the highest interest rates.
If you have bad credit and are in need of a car loan in Toronto, choosing to go with a car loan company that specialises in bad credit car loans can save you thousands. Autoloan.ca is highly experienced in securing bad credit car loans for our customers with reputable lenders. After a year of making regular repayments, your credit score will be better and we will be able to negotiate an even better rate for you, guaranteed.
Applying For A Mortgage
Another major area where your credit score will play a huge role in your life is when you apply for a mortgage.
Mortgages tend to be the single largest and longest lived form of credit anyone takes out over the course of their lives. These are essentially personal loans from a financial institution that is used to cover the cost of purchasing property, with a downpayment and the property itself used as collateral to secure the loan.
Mortgage applications are where you will really feel any negative impacts from a poor credit score. Minimum lending requirements for mortgages tend to be exceptionally high, as they are seen as some of the risker forms of credit in the eyes of the bank. Typically, banks will only consider someone with a credit score in the high 700s or 800s for a mortgage.
If you have poor credit, all is not lost. You can repair your credit in a number of ways if you are looking to apply for a mortgage in the future. Paying off your credit cards and leveraging your credit utilisation ratio are great ways to improve your score. Taking out a bad credit car loan in Toronto is another ideal way to improve your score. Autoloan.ca specialises in supplying cars and car loans to people with all levels of credit. We negotiate with the big banks to secure you the lowest possible interest rate, and will even deliver your new car anywhere in Ontario. With regular, on time repayments on your car loan, your credit score will reap the benefits and you’ll be eligible for your dream home in no time.
Determining Your Interest Rate
Once you have been approved for a credit card, car loan, or mortgage, your credit score will then be used to determine your interest rate.
Your loan interest rate can be the difference between easily affording your repayments and struggling to make ends meet. Especially when it comes to mortgages, even a few fractions of a percent in your interest rate can mean tens of thousands of dollars over the course of your term in money owing to your creditor. Your interest rate will be determined by a variety of factors such as the prime interest rate, whether you are choosing a fixed or variable rate, and the size of your down payment.
Your credit score will also factor in to the interest rate calculation, as your lender determines what kind of risk you represent in not making your repayments. In general, people with extremely good credit scores will be offered the lowest interest rates, as credit providers compete for their business. This is because they represent low risk investments and can be relied upon to generate a return for the lender. Conversely, customers with bad credit scores will be given high interest rates, to mitigate some of the risk the lender faces in potential defaults on the loan.
When you apply for a bad credit car loan, your initial rate may be a little higher than you would ideally like to pay. However, after a year of making regular, on time repayments, your credit score will have improved and you can renegotiate your rate to a significantly lower one. This is the incentive behind the credit score system; good scores give your perks, while bad ones can hamper you.
Leasing A Property
One scenario where you might not expect your credit score to play a role is when you apply to rent a property.
Many lease applications in Toronto and Canada involve a credit score component. This helps the landlord to determine how likely the applicant is to be able to meet their rent payments based on their score. Landlords will usually request a full credit report, which lists every financial obligation an applicant has so the landlord can get a full picture of their credit situation. If they see a lot of credit owed to various lenders, that may be a warning sign that this applicant will struggle to pay rent while owing repayments to others.
On the other hand, a clean credit report can give applicants a leg up on the competition in extremely competitive markets like Toronto, as it shows the applicant will easily make rent payments and is financially responsible. Rebuilding your credit score after a few past mistakes takes some time but is ultimately one of the smartest things you can do for your future. Having a bad credit car loan that you pay off consistently and to a reputable lender is a great way to improve your credit history and reap the benefits of a higher credit score.
Applying For Certain Jobs
Your credit score isn’t done yet! One more area your score could help or hurt you is when you apply for certain employment opportunities.
While most jobs won’t ask for a credit report during the application process, jobs in the financial industry may request it for potential applicants. The thinking behind this is, if you are being hired to provide financial advice or handle other people’s money in some way, your employer likely wants to know that you are capable of following your own advice and managing your money smartly. If the employer sees a bad credit score with lots of outstanding credit, they would likely be wary of hiring the applicant as it would appear they are not the most qualified to offer advice to others on finances. Applicants with good credit scores, on the other hand, will be viewed more favourably and have a higher chance of being successful in the job hunt.
Improving your credit score is vital if you plan on working in the financial industry in the future. In some ways, having poor credit and rebuilding it will make you uniquely qualified to provide financial advice, as you will have experienced the mistakes and consequences of mismanaging your money and can advise your clients to avoid these situations. A bad credit car loan in Toronto is a great way to start your credit rebuild process. As you make repayments, your credit report will reflect this and your score will steadily increase. After a long enough period, your score will put you in equal footing with the other applicants and in with a good chance of landing your dream job.
If you are looking at ways to repair your credit, a bad credit car loan could be an ideal solution for you. Contact Autoloan.ca today and let us get you into a car you’ll love at a rate you can’t beat.
The Ultimate Guide To Autonomous Vehicle Technology?
Finally, after what seems like decades of promises and dreams from Hollywood and science fiction, the age of the fully autonomous vehicle is almost upon us.
Our fantasies of being driven around by a completely self-driving car are almost a reality, with new groundbreaking leaps in technology happening seemingly every day.
Several big automotive and technology companies have taken the lead in trying to bring the first commercially viable AI car to market, with some every collaborating to gain an advantage.
There are so many things to understand about the future of driving, so we put together a comprehensive guide to all things autonomous vehicle related so you can know when exactly you can take one of them for a spin.
Autonomous vs Automated
The first thing we need to clear up is what exactly an autonomous car is and how it is different from being automated.
When something is automated, it means it has been programed to operate within clearly defined boundaries without human intervention. Many things in our society could be considered automated; your toaster is an automated toasting machine; your kettle is an automated water boiler; your fridge is an automated cooling device. These things all do their jobs without us interfering, but they can only function in their very specific areas and to very specific stimuli.
Conversely, something that is considered autonomous is something that is completely self-governing and capable of making rational decisions based on changing situations. An autonomous machine would be able to respond to uncertain stimuli and assess the different actions available to it through logic and then arrive at the best conclusion based on the evidence provided. Most sentient animals, including humans, would be considered autonomous as they are capable of interesting with the world independently of outside intervention and making their own decisions.
Thus, we have a clear difference between automated and autonomous. An automated car would only be able to follow a single, clearly defined route and would not be able to respond to things like other cars or changes in the road condition. An autonomous vehicle should be able to handle any road situation a human could, including changing lanes, parking, avoiding collisions, and adjusting for different weather.
The Levels Of Autonomous Vehicles
The Society of Automotive Engineers (SAE) have established a heirarchy of autonomous intelligence when referring to vehicles. This is a way of gauging exactly how intelligent a car is, and how far away we are from achieving the dream of a fully self-driving car.
The base level of autonomous vehicle would allow for automated systems warnings and momentary control over the vehicle. Many standard cars could now be considered at least Level 0 on the scale.
Level 1 autonomy is known as “hands on” autonomy, which means the driver and the car share control over the car. Examples of Level 1 technology would include Land Departure Assist, Adaptive Cruise Control, and Parking Assist, where either the steering or speed is controlled by the driver and the other is controlled by the car. Most new vehicles include some degree of Level 1 technology.
Level 2, also called “hands off”, is characterised by the car taking full control of the vehicle and responding to changing conditions. However, a human driver is still required to monitor the vehicle’s progress and may have to take over in certain situations. Very few cars can claim to have an active Level 2 product in their cars actually on the road as of 2019, with the exception of Tesla and their Autopilot mode.
Level 3 is the next goal for many manufacturers and is known as “eyes off” capabilities. A Level 3 car would take control of all driving situations, including emergency braking. The driver is able to turn attention away from the road and text or watch a movie. They must still be prepared to take control over the car again should an unforeseen situation arise. So far, only one vehicle has claimed Level 3 autonomy in the 2018 Audi A8 Luxury Sedan, which can reportedly take full control of the car in slow moving traffic.
This level is similar to Level 3, however, the driver is never expected to take over the car for safety reasons. This “mind off” autonomy means the driver is able to leave the driver’s seat and go to sleep for instance. This level requires a car to be able to abort the trip by parking safely should the driver not take control back. No commercially available cars have yet reached Level 4 autonomy.
The Holy Grail of autonomous driving, a Level 5 vehicle would be considered completely self-driving. In this level of car, the steering wheel would be optional, as the driver would never be expected to control the car themselves. This would completely change the nature of transportation and promises many advancements in travel and society.
Key driving technologies
To help us reach this lofty goal, many new technologies have had to be invented or expanded upon. Fully autonomous driving requires an unprecedented level of information be collected and analysed in a split second to ensure proper functioning of the vehicle.
To help an autonomous car “see” the environment around it, many companies have turned to LiDAR. This is a form of navigation that uses pulsed lasers that bounce off the surrounding environment and then the reflected light is picked up by a highly sensitive sensor on board the car. This allows the car to build a digital map of its surroundings so that it can be aware of all cars and pedestrians around it.
Due to the highly data intensive nature of autonomous driving, new computer algorithms have had to be developed to process all of this information rapidly and efficiently. Many current autonomous cars are being built not by car manufacturers, but by Silicon Valley technology companies who specialise in writing highly advanced computer code. These algorithms process all the car’s decisions and situational awareness, allowing it to navigate and make the right decision when it comes to an emergency situation.
Another technology that will likely play a crucial role in the future of self-driving cars is live communication between all autonomous vehicles. With the rolling out of 5G cellular networks, speeds previously considered outside the realm of possibility are now within reach. If every AI car was equipped with 5G communication capabilities, they could all share their location information with each other and avoid collisions with ease. This would also improve navigation and safety.
Many modern cars already use cameras in some of their best features including rear parking assist, forward collision avoidance, and lane departure detection. In autonomous vehicles, cameras could be used to further enhance their awareness of their surroundings and improve their driving capabilities. They could be further enhanced using infrared LED lights, allowing for accurate night vision as well.
The buzz word everyone has heard a million times by now, artificial intelligence will obviously play a huge role in a fully autonomous vehicle. AI is any machine that is capable of making decisions based on evidence and logic, as well as learning from past experiences and being able to predict likely outcomes. This will act as the “brains” of a self-driving car, as it will ultimately be making the thousands of decisions necessary to get a car from point A to point B.
How Far Off Are We From Truly Autonomous Vehicles?
This question on everyone’s lips is when will be finally be able to live out our scifi dreams of being driven around by our robotic chauffeur!
This is a difficult question as there are many variables in play that will affect the rollout of self-driving cars around the world. Governments are still grappling with the legalities surrounding who would be at fault during a crash, whether drivers would still need a license, and how traffic would work with autonomous vehicles at the wheel. Similarly, ethicists are arguing over what the ethical choices would be in an emergency situation when the vehicle is the one in charge. Finally, there are the obvious technological hurdles that need to be jumped in order for a truly autonomous vehicle to become a reality.
With companies like Tesla and Audi already pushing the boundaries in 2019 for Level 3 autonomy, however, self-driving cars will probably be on the road sooner than you expect. ABI, a marketing firm based in the UK, recently estimated that by 2025 over 8 million Level 3 or higher vehicles will be on the road. Some other analysts are even calling this estimate conservative, saying the figure could be much higher. Some estimates say that by 2050, almost every car on the road worldwide will be fully autonomous and manual driving will be a thing of the past.
How car ownership will work in the age of self-driving cars is also likely to change. Many experts predict that the first autonomous cars we will interact with will be part of larger fleets of “for hire” taxi services, similar to Uber or Lyft, but without a driver behind the wheel. This makes sense, as to begin with, autonomous cars are likely to be extremely expensive and only really affordable to the mega-rich or multinational corporations. In a hundred years, its possible that no one will really “own” a car, as they all operate on a shared basis and drop people off where they need to go and then move onto the next person. This would eliminate the costs of owning a car, decrease congestion, allow for reclamation of huge amounts of space previously required for parking, and help protect the environment.
The 2020s will likely see the widespread adoption of autonomous vehicles in most countries, as people look to take back the time spent behind the wheel and spend it interacting with their families or catching up on work. This new driving economy will completely revolutionise the nature of travel, and could put extra pressure on airlines and trains who will now have a new competitor for longer distances. In any case, the rise of AI cars can only be a good thing for the consumer, and for the environment.
Is It More Cost Effective To Get An Electric Vehicle In Ontario?
Quite a few people in Ontario have and currently are considering an electric vehicle. Thanks to the growing popularity of electric cars, it’s understandable why anyone would wonder if now is a good time to jump on the trend.
There are several cost variables with electric vehicles which you definitely need to know about before making the transition. While some help justify the cost of buying an electrified model, others actually work against it.
Once you’ve read through the different variables, you’ll be able to make a more educated decision of whether or not to buy an electric car.
A growing number of Canadians, including residents of Ontario, are seriously considering an electric vehicle. As the technology advances, they seem like a more practical form of transportation. Electric cars don’t generate the noise you hear from traditional vehicles. There are also no tailpipe emissions, which could lead to less pollution in populated areas.
Still, electric vehicles are cutting-edge enough that it’s understandable why you would be hesitant. An analysis of the costs associated with buying and operating an electric car in Ontario will help you make an educated decision.
One of the first things anyone will notice about electric vehicles is that they tend to be more expensive than the equivalent models with an internal combustion engine. That’s off-putting to many people since they begin questioning if owning such a vehicle is just a financial burden.
It used to be that electric cars were playthings for the rich, but big leaps in the technology have changed that. Still, for some shoppers, the high cost of an electric car is something that will keep them from actually buying one.
Another way to cut down on the cost is to buy a used electric vehicle. Certain models depreciate in value quickly, so getting one that’s only a few years old translates into big savings.
Cost of Charging
When it comes to the cost of charging your electric vehicle in Ontario, things are complicated. What time of day you plug in your car has an effect on the price of the electricity. Exactly what those rates are depends on your provider.
Speaking of electricity providers, Ontario has more than other provinces in Canada. That means the cost of everything from just getting power to a building to what you pay for electricity service varies greatly.
Thankfully, Ontario has worked to reduce electricity rates in recent years. In 2017, the province cut electricity prices by 25 percent by eliminating the provincial portion of HST. Overall, if you live in a rural area versus an urban center in Ontario, your electricity rates are pretty high.
Despite those factors, consider that gas and diesel prices fluctuate constantly. Electricity rates stay pretty much the same, but changes at the pump can happen at any hour. While fuel costs have been low for some time, it wasn’t that long ago everyone was dealing with steep prices at the pump. Switching to an electric car helps keep these costs predictable.
Keep in mind that not all electric vehicles are equally efficient. Natural Resources Canada not only does fuel economy ratings, it also provides consumption ratings for electric cars. You should check out the different options you’re considering through the Natural Resources Canada website, so you have all the efficiency ratings. This will affect how often you plug in the car and how much electricity it will consume.
How much you drive has a big impact on the savings you enjoy with an electric car. The more you drive, the more likely going electric could translate into more money in your pocket, thanks to lower operational costs.
One important consideration to consider is the cold. Electric cars in general don’t perform well in the dead of the Canadian winter. Range and efficiency might be negatively impacted, which is a big drawback.
You might decide that charging your electric car at home is convenient, but the regular wall plug in the garage isn’t powerful enough. There is the option of having a home charger installed, which can dramatically decrease how long you need to keep your ride plugged in to fully replenish the battery.
The charger itself can cost several hundred or even a few thousand dollars, depending on the brand. In addition, you’ll need to pay an electrician to install the charger. Remember that the charger will need some maintenance in the future, like any home appliance.
If you really want to go green and get electricity through solar panels mounted to your house, that increases the initial cost. Like with the home charging station, a solar setup should be installed by a professional.
One area where electric vehicles really shine is maintenance. They actually require very little when compared to traditional cars, so that means you spend less to keep them running properly.
With electric vehicles you need to maintain the tires by having them rotated and balanced regularly, plus keeping the air pressure at the recommended level. You also need to change the brake pads and perhaps the rotors when they wear out. Windshield wipers are still something you have to swap out. You’ll need to refill the washer reservoir periodically, plus wash and wax the car as well as clean the interior often. Beyond that, there’s not too much else.
One big concern people have with electric cars is the batteries. While they are quite expensive, most automakers and electric vehicle owners report that the batteries rarely if ever need to be swapped from the cars. Keep in mind that with a traditional vehicle, blowing the engine and paying for a replacement is similarly expensive and a rare event.
You don’t need to do oil changes, worry about timing belts, or pay to have the valves adjusted. The electric motors have few parts, and they are usually incredibly reliable. That means fewer trips to the repair shop each year, which is a nice change of pace.
The technology around electric vehicles is changing rapidly, and that in turn could have a huge impact on the cost effectiveness. Just a few years ago, electric cars were pretty much out of reach for the average shopper, but today that’s no longer the case.
As an increasing number of drivers switch to electric vehicles, the cost of doing so should decrease even more. This is why it’s critical you do current research before taking the plunge and switching to an electric car, because the changes are coming rapidly at this point.
Top 8 Best Cars For First Time Buyers
A major milestone is many people’s lives is when they finally get to purchase their very own car.
Getting a hand-me-down from a relative is fairly common for your actual first set of wheels, but being a first time car buyer and actually picking out your own car by yourself is a special moment.
There are literally tens of thousands of options for you to choose from, both new and used, big and small, compact or people movers.
So which one is the best for a first time car buyer like yourself?
Narrowing down your options can take a while, so we have done the legwork for you and selected the top seven best cars for first time car buyers in Toronto. Enjoy!
The Subaru Forester is a fantastic compact SUV designed for the modern Torontonian.
Favoured by those who value versatility and flexibility above all else, the Forester comes jam packed with bells and whistles you wouldn’t normally see in a car that is fairly affordable. The small SUV comes with surprisingly spacious interiors that will have you forgetting you’re supposed to be in a compact.
Heated front seats will be a welcome addition for any Canadian that has suffered through a harsh winter without them. All the modcons you have come to expect are also on offer in the Forester including automatic climate control, touchscreen infotainment system, Apple CarPlay and Android Auto functionality, and more.
The Subaru Forester also has fantastic fuel efficiency, netting 11 km/litre on average. This gives it the distinguished “excellent” rating from Consumer Reports, and will be music to the ears of many first time car buyers as they won’t have to head to the gas pump as often.
Excellent safety features come as standard on the Forest as well, including advanced airbag setup, expanded crumble zones, and whiplash resistant headrests.
If you are after a ride that looks a lot slicker than its modest price tag, look no further than the Honda Accord.
This sedan has managed to emulate the sporty coupes of much more expensive cars without compromising on its core values. Recent models have come with upgraded entertainment systems including enhanced touchscreens and motion control, as well as more impressive sound systems. Of course, all the latest connectivity options come as standard so you can stream anything you want from your device in the few clicks of a button.
Fuel efficiency is one of the star features with the Honda Accord, offering a very impressive 14 km/litre. Coupled with high quality handling and modern interiors, the Accord quickly becomes an obvious choice for many first time car buyers in Toronto.
Another Honda to make it onto our list, the Honda CR-V is to SUVs as the Accord is to sedans.
Spacious yet compact, the refined exterior doesn’t look out of place next to the likes of Audi or Mercedes SUVs and yet the MSRP is considerably more affordable. The interiors feel roomy with high ceilings, and handling is tight and fluid. Add to that a solid fuel efficiency and reduced road noise and you’ve got yourself a winner.
There are a range of different additions and packages you can add to the base model, but even the standard edition comes with plenty of extra features. Remote engine start, heated seats, Apple CarPlay and Android Auto, LED lights, and enhanced safety features just to name a few.
If you’re looking for a luxury car on a lemon budget, the Subaru Legacy is just what you need.
With an MSRP of under $25,000, you’d expect to have to make some compromises on quality. However, Subaru have managed to package a lot of fancy extras into this zippy car to make it seem worth a lot more.
A generous 8” touchscreen allows for you to interact with all your favourite apps and settings without having to put your glasses on. Find the perfect position with 10-way power adjustment for the driver’s seat, as well as staying toasty warm with 3-stage seat heating. Need some extra room to help your friend move houses? The rear seats fold down in a 60/40 split to allow for extra space in the trunk in the flick of a switch.
Optional extras include Driver Assist Technology, Reverse and Rear Vehicle Detection, proximity key with push start button, and Reverse Automatic Braking.
The latest in driver assist technology and automation come together in the beautiful Kia Optima.
The tech that powers modern driving is getting smarter and smarter, and Kia has managed to cram as much brains as possible into the Optima. Lane keeping assist (LKA) helps you stay in the right line at the right time, warning you if you are drifting off course and correcting your steering if it senses you didn’t mean to change lanes. The car also comes with Forward collision-avoidance assist (FCA), which is another smart feature that helps to avoid crashes by intelligent braking when it realises you might crash before you do. To top it all off, you have the ubiquitous Apple CarPlay and Android Auto to get you where you need to go with all the music and entertainment you would expect on your smartphone.
The Optima is also ideal for Canadian winters as it comes with a 185 hp motor with plenty of grunt, and heated forward seats to keep you warm during that cold commute. Finish it all off with an 8” HD touchscreen display and a $24,999 MSRP and the Kia Optima certainly makes a lot of sense for many first time car buyers.
Sitting at the higher end of what could be considered for a first time car buyer is the ever loveable Toyota RAV-4.
Consistently voted as one of the top compact SUVs, the Toyota RAV-4 has safety features and style in spade. Advanced Toyota Safety Sense 2.0 allows for a greater sense of security when taking to the roads in this beauty, which handles cleanly and with minimal drag. You’ll have plenty of power to get you where you need to go with a 203 hp, 4-cylinder engine and 8-speed automatic transmission as standard.
Because you can’t just have a decent ride these days, Toyota has made sure to include all the creature comforts we have come to expect in a ride these days. Heated front seats for a cosy cabin, Apple CarPlay as standard, and Entune 3.0 Audio with 4.2” touchscreen turn this already luxurious economy car into a powerhouse of extra features.
The RAV-4 is more than just a pretty face too, as there are some serious smarts under the hood. Toyota has included the incredibly useful blind spot monitoring feature in the base model to ensure you never miss that car hiding just out of sight. To help those of us out who have trouble reversing out of parking spots, the Rear Cross Traffic Alert will be a huge help. It warns you when a car enters your backing out path and can help you prevent a crash.
At $27,990 MSRP, the RAV-4 might be a little too rich for some first time car buyers’ blood, but it is well worth the price considering the attention to detail Toyota has paid. Another thing to keep in mind is that Toyota’s are consistently voted the least depreciating cars on the market, so it may be a smart financial decision to invest big now so you can reap the rewards later.
When fuel efficiency and fun are the name of the game, the Chevrolet Sonic is the top of the class.
At 6.75 litres per 100 kilometres, the Sonic is by far the most fuel efficient entry on our list, allowing you to drive from Toronto to Montreal on a single tank of gas. But what are you going to do on that long drive? The Sonic has you covered with all the entertainment options you could ask for. From Apple CarPlay and Android Auto integration, to the 7” integrated touchscreen and available built-in 4G-LTE WiFi hotspot, you’ll be able to stream Netflix and crank your Spotify to your hearts content.
Safety is a big priority in the Sonic as well. It is the first car in its class with 10 airbags built in as standard. The Sonic also comes with rear vision camera as standard to help those people who struggle with reversing. For even more support, there’s the option to add rear park assist, which warns you of any stationary objects behind you using ultrasonic sensors. Other available options include forward collision alert and lane departure warning, bring a lot of intelligence to such a fun and compact ride.
The only electric vehicle on our list is the increasingly popular Nissan Leaf.
Electric vehicles are still relatively new on the scene, and so they tend to cost more than conventional internal combustion engines, which have had over 100 years to optimise and economise on their production. That being said, the $37,000 price tag could actually work out cheaper in the long run for many first time car buyers, as the cost of electricity is far lower than the cost of gas. You also get those warm fuzzy feelings from doing your bit for the environment, along with the silent running and instant torque EVs are known for.
Of course, it’s not enough to just be a slick electric car these days, you need to have some extras to entice people over. All your standard entertainment options are there including Apple CarPlay, Android Auto, bluetooth audio, 5” touchscreen and more. There’s even a SiriusXM radio trial on offer to get the tunes pumping. Remote start, 10 airbags as standard, and heated power outside mirrors will keep you moving and safe during the winter months.
Overall there are plenty of excellent options for first time car buyers in Toronto right now. These represent some of the best “bang for your buck” in terms of features, warranties, safety, and entertainment. If you are looking for a new or used car for your first car, but don’t have the established credit history to be approved for financing, contact Autoloan.ca. We specialise in getting people of all credit levels into the cars of their dreams from our fleet of over 7,000 new and certified used vehicles. We negotiate with the top banks and credit unions to secure you the lowest rates, and we don’t rest until your loan is approved.
Advantage of Buying Your Car From the Same Place You Get Your Car Loan
There’s no denying that trying to secure car loans in Toronto, as well as car shopping can be a frustrating and entirely consuming process. Everyone is looking for a way to make things easier and more manageable. Conveniences abound today, and some can really help make you life easier to manage.
Does that mean using the same location for getting a loan approval and purchasing the car is ideal?
We explore just what advantages come with such an arrangement. Armed with this knowledge, you’ll see why going with this kind of an option the next time you need a car is a good idea.
One Stop Destination
Long ago it used to be that people would go to a butcher shop to get their meat, a dairy to get milk and cheese, a separate market to buy fresh fruits and vegetables, the bakery to get bread, and so forth. Then grocery stores came into existence, offering all these food options and plenty more under one roof. That level of convenience helped shoppers to save time.
When it comes to getting car loans in Toronto, you might be wondering if buying a car in the same place where you get the financing is a good idea. While buying a vehicle isn’t the same as shopping for groceries, the idea can seem similar.
Is buying a car from the same place where you get the loan wise? It’s a good question that’s definitely worth answering thoroughly.
If you haven’t ever been car shopping or it’s been a while, you might not realize just how much time the process consumes. It’s one of the reasons why people don’t look forward to getting a new vehicle, even when its’ a necessary thing to do.
When you plan on getting car loans in Toronto, that can involve physically going to several different banks or credit unions. Once there, you must fill out long forms that ask for all kinds of information, which you hopefully have on hand.
If you have some experience, then you knew in advance what the lender wanted you to bring, or you thought to call and ask beforehand. If not, you might need to leave, gather some paperwork together, and return later. That means even more time spent on the task.
Once you’ve submitted everything necessary for the loan application, you might need to wait a while before being approved for any car loans in Toronto. Sometimes the approval comes through immediately, but if your credit isn’t perfect or there are any questionable items in your application, the lender might want to spend more time reviewing everything thoroughly. That means more time spent waiting to find out if you’re approved or not.
Then there’s the process of finding the right car. Once you’ve been approved for car loans in Toronto, you’ll know just how much you can realistically spend. Until then, shopping for a car would be like shooting in the dark. You might end up falling in love with an optional which is well beyond your approval amount from a lender, meaning you must start completely over on the process.
Because cars are sold at dealerships, which are scattered around the area, you can spend quite a long time just traveling from one dealer to the next.
Dealerships usually don’t have the goal of getting you in and out in a hurry. They’ll offer you a drink, maybe a snack, help you get comfortable, and then proceed to drag their feet. That can include taking a ridiculously long time just to get the keys for a specific car, the sales associate you’re working with constantly need to talk to the manager about your requests or questions, and so on.
As you can imagine, you might spend days upon days just to find the right car at the right price. That’s after going through the process of getting one of the car loans for Toronto shoppers. Your time has value, so spending it in this way can be frustrating beyond belief.
You don’t have to settle for the runaround when it comes to buying a car. Some people think enduring hassles is just a part of getting a new or used car, but it doesn’t need to be.
It’s possible to get car loans in Toronto at the same place where you buy the actual vehicle. Going that route can change everything about your car shopping experience. You might even wonder afterward why you didn’t use that method for all your previous purchases.
One of the biggest advantages to this approach is that you save time. Just like going to the grocery store for all your food, showing up at a single location for a car and the loan to purchase it means less time spent on the process.
We all lead busy lives, so everyone can stand to save some time. Considering how much energy car shopping can consume, this is a smart decision. What would you do with an extra day or more? Maybe enjoy more relaxation? Take a short trip? Be around family?
Instead of having to line up the right loan with the right car, it all comes together at once. In some situations you might get approved for the loan and finalize the sale of the vehicle in the same day.
Going to a place where you can buy a car and get car loans for Toronto shoppers can lead to a much more streamlined approval process. That efficiency can translate into less time spent on the process, less worry on your end, and the ability to get back to your normal life much sooner.
The one-stop shop for all your needs comes with some nice conveniences, to be sure. One is that the company can help you to put together a strong application for credit, instead of you just filling out the boring, long forms all by yourself.
Since these professionals work with car loans every day, they’re familiar with the process on a level you’ll likely never achieve. Leaning on their expertise can help you to include everything necessary to make the approval process move faster, so you’re waiting less time. That by itself can really cut down on your anxiety, making the whole car shopping process that much more pleasant.
Motivation for Approval
When you buy a car from the same place where you get the car loan, the likelihood you’ll be approved usually increases dramatically. After all, dealerships make money by actually selling cars. While following laws and regulations, they will do what it takes to ensure you get a car. It’s also in their best interest that you get the best car possible, ideally the one you really want, because they can potentially earn your repeat business.
Since most people don’t have enough cash sitting to purchase a car outright, that means each vehicle sold at a dealership needs to be financed. Perhaps you’re one of the lucky few who does have the kind of savings to just buy a car. If not, this really impacts your decision.
Going directly to a lender like a bank or credit union doesn’t come with that same level of motivation to get you approved. While lenders make money off issuing car loans in Toronto, they don’t enjoy any of the benefit of actually selling the car. Sometimes it even feels like certain lenders are looking for any reason to not extend credit to applicants, which can be a truly disappointing thing to deal with.
Buying your car where you get the loan usually means the company works with an array of lenders. Some dealers have working relationships with dozens of different banks and credit unions. Their finance specialists might be on a first name basis with people who work for the lender, so there’s a level of trust you simply don’t enjoy.
Dealers often are so acquainted with the lenders they use, they know which ones are more willing to work with you and your situation. That means instead of wasting time trying to line you up with a lender which won’t line up with what you need, they can go straight to the ones which likely will.
In addition, dealers also know what kinds of cars these lenders are more comfortable approving loans for, including the age and condition of the vehicle. The retailer will work their hardest to line you up with the ideal situation for a specific lender, dramatically increasing your chances of an approval. It’s a great way to speed up the whole car shopping process, instead of waiting for approvals which don’t come through and looking at a dizzying number of options in an attempt to gauge which will work best for you.
You might not realize it, but places that sell cars and arrange for financing have access to resources you don’t even know exist.
The retailer has relationships with lenders which don’t deal with the public directly. These aren’t banks or credit unions you can go visit. If you find out their names and look them up online, there’s zero option for you to apply for credit. They like working with dealerships and other retailers for their business model for any number of reasons. The kinds of deals available through these exclusive lenders might be better suited for your situation, leading to superior terms on your car loan.
Dealerships and other car companies often establish solid relationships with lenders. They’re able to leverage those to get an approval which otherwise might not have come through. If you have a unique situation which requires a fair amount of explaining, the place selling you the car has a vested interest in making sure the lender understands everything thoroughly. Its’ a good way to hedge your bets when it comes to getting car loans in Toronto.
Those special relationships with lenders mean the place where you buy your car could have access t exclusive lending programs. Not available to the public at large, even if the lender deals with the consumers directly, these programs might address your specific situation, especially if you’ve had credit problems in the past and are looking to rebuild.
Leveraging resources you can’t find elsewhere can reduce quite a bit of the anxiety you feel about buying a car. If there are ways to secure a better deal on car loans for Toronto shoppers, why wouldn’t you take advantage of that opportunity?
It might not seem like the way to do it when you first set out, but getting cars and car loans in Toronto at the same place can really make the shopping process so much easier. You’ll spend less time on finding the right situation and the right vehicle, plus you’ll feel less anxiety about getting approved for the loan.
In addition, your chances of not being rejected for a loan go up, so all your efforts aren’t for nothing. It’s a great way to avoid the disappointment and feeling of loss when you pour so much into something that doesn’t provide the desired result.
Car shopping can be a lengthy, consuming process. Anything you can do to genuinely make it easier and quicker is a definite advantage.