To get a car loan, you can go to any bank or dealer and submit an application. These lenders are more used to receiving loan requests from people with certain credit history problems and can find ways to help you finance your purchase. The drawback of a fixed-rate car loan is that the interest rate charged is usually higher than that of variable-rate loans. On the other hand, dealer financing can help you take advantage of many benefits that banks don't offer, as well as lower or special rates for certain cars, even if you have bad credit or a low income.
But even if you have a bankruptcy in your credit history, you can still use a car loan to help you rebuild your credit rating and get a car. She is an award-winning personal finance writer and real estate expert who has spent nearly two decades helping Canadians make smarter money management decisions. He has been writing for Loans Canada for five years, covering everything related to personal finance, and his goal is to dedicate himself to the art of professional writing for many years. To keep things simple, we've compiled a list of the best car loans in Canada, based on interest rates, terms, and other crucial factors.
When you negotiate a variable-rate car loan, you'll be quoted an interest rate based on the lender's preferred rate, more or less depending on market conditions, your credit rating, your income and debt levels, and a few other factors. If your finances or credit aren't good enough, you can also reinforce your application by looking for a stronger borrower who will sign you as a co-signer. Auto loans with a 0% interest rate are usually reserved for borrowers with the best credit ratings, and the same applies to new cars. The benefit of a fixed-rate car loan is that your monthly payments don't fluctuate, giving you a predictable monthly loan repayment.
In addition, since Car Loans Canada is a company that connects loans, it does not grant the loans, BUT it will use your information to connect you with the right lender. The rate you end up paying may fluctuate depending on where you apply, the type of vehicle you're financing, and the strength of your finances. Remember that no car loan will be the best option for everyone, so compare your options before you apply for it. Unfortunately, not everyone considering refinancing auto loans is trying to take advantage of cheaper interest rates.
