Purchasing a vehicle, be it new or used, is a substantial purchase for many consumers. Vehicle financing is often used to aid in the purchase of a vehicle, typically in the form of 5-year fixed-term loans. Here we will look at some payment options for a loan that can save you money, as well as discussing how a down payment can save you money and options for people with no or bad credit.
Choosing a payment option
When looking at vehicle financing there are a number of options you can look at to save money.
Shortening the term of the loan from the standard 5-year term will make your monthly payments increase, but you will pay less interest over the entire term.
Increasing the frequency of the payments from monthly to bi-weekly will allow you to pay down the loan faster and save money on interest.
What down payment do I need?
The amount of down payment often depends on you. Some vehicle financing requires a down payment, but there may be “no money down” options at your car dealership. Paying a larger down payment does have advantages as it can save you money due to having to borrow less money. Paying a higher down payment will also give you a higher chance of financing approval, lower interest rates, and lower monthly payments.
Can I get a new car with no or bad credit?
With vehicle financing being very competitive in Canada, getting financing when you have little to no credit, or bad credit is not difficult. Make sure you can afford the regular payments, as this is an opportunity to establish or rebuild your credit history. After making your payments for a period of time you can look into refinancing your loan to take advantage of your newly established credit and get a lower interest rate.
Car dealerships who accept bad credit
Many car dealerships are happy to work with customers with bad credit and help them secure financing for their next vehicle. But because the lender will see you as a higher risk, be prepared for a higher interest rate. Many car dealerships also have dedicated personnel who specialize in financing for those with no or bad credit.
CRS Automotive is a family owned and operated business that has served the Hamilton and Cambridge, ON area of Ontario for over 18 years. In addition to selling premium pre-owned vehicles, we provide professional auto & truck repair and maintenance with exceptional customer service. We service all makes and models, new and vintage and our team is ready to help in any way we can. Contact us today to speak to a member of our team about your next car.