Shopping for a pre-owned vehicle also often means shopping for a car loan. At Autoteck, you will find all of this under the same roof, and under the most advantageous conditions in Quebec!
Good or bad credit score, we can help you obtain a car loan for your vehicle; come out and meet us today!
What is a car loan?
Car financing, or a car loan, is a loan that is given to a consumer for him or her to purchase a new or used car. The same way a personal loan can be obtained with a financial institution, a car loan is a loan that is repaid over the course of a pre-determined period, long or short, combined with an interest rate that will be higher or lower depending on several factors, like the financial institution you are dealing with and the risk you represent as a borrower, amongst other things.
Once your loan has been approved, the financial institution pays the merchant or dealership for the purchase of the vehicle, while the buyer must reimburse the bank both the capital and the pre-agreed upon interest, as stipulated in the contract for the car loan.
Why get a car loan?
A car loan allows buyers who don’t necessarily have access to the full amount to cover the total purchase price for their vehicle (which really means most buyers) to purchase the vehicle anyway, but with higher or lower monthly payments, according to the total amount of the loan and the length of the contract.
But even buyers who have a comfortable amount of available funds get financing for their cars!
Obviously, you could always choose to purchase your vehicle with a personal loan directly with your financial institution. But you should know that a car loan, contrary to a personal loan, generally offers more flexibility as well as a lower interest rates, and this is true in most cases. This means you can also choose the length and the frequency of your payments –weekly, every two weeks or even monthly- depending on what is best for you and your needs.
How to obtain a car loan?
Nothing could be simpler: fill out a financing request form online and one of our financing specialists will contact you quickly to help you complete your file. You can also come and visit us directly and fill out the form with one of our financing specialists in person.
Then, the specialist will send your request to different financing institutions who will analyse your file and offer different reimbursement plans.
Finally, all there will be left to do is to determine the reimbursement plan that suits you best, provide your financial information for preauthorized debits and sign the loan agreement and the purchasing contract!
This example is the perfect scenario, the one everyone dreams of, since it is completed without a glitch. However, that is not always the case and sometimes buyers have their request denied by financial institutions for different reasons:
- Too high of a debt ratio;
- Insufficient or unstable funds;
- Bad credit;
- Past overdue payments;
- Etc.
In such cases, is everything lost? Not at all! In fact, there are 2nd and 3rd chance credit financing programs that allow buyers with a poor or inexistent credit record to still have access to a car loan.
Moreover, some buyers who have a positive credit record sometimes still have to opt for this type of financing, because of rules and restrictions made stricter by financial institutions.
What does this mean? It means that the principle remains basically the same as for a so called “regular” loan, except that the criteria are more flexible. This way, a higher debt ratio will be considered and so will particular circumstances like:
- First credit
- Loss of a job
- Separation or divorce
- Self-employment
- And, in certain cases, consumer proposals and bankruptcy
Several of these car loans are offered by renowned financial institutions or even other alternative sources, when it is not by the dealer himself. These loans, often referred to as 2nd or 3rd chance credit, will allow buyers to finance a vehicle at a slightly higher interest rate, depending on everyone’s situation.
Some buyers can then go back to a traditional financing plan –provided that the reimbursement plan has been respected- in order to bring interest rates down.
At Autoteck, we work with you to help you find the perfect financing plan that is most adapted to your financial situation and your needs, while respecting your capacity to make payments.
That is why our financing specialists will carefully analyse your situation in order to bring it to the lenders that are the most likely to offer you favorable conditions for your reimbursement, according to your situation.
Would you like to find out more about car loans, the amount you could get for your loan, or would you like to apply for a car loan? Come and visit us at Autoteck and choose the perfect vehicle for you amongst our wide selection, while taking advantage of the expertise offered by our financing specialists!