Although public transportation can help you get around town, owning a car in Burnaby makes it much easier to get to work, run errands and deliver your children to their many activities. However, paying the full price for a car is not a possibility for most of people. When it comes time to buy a new vehicle in order to replace an old one or to add an additional car to your family, you need to find car loans Burnaby residents rely on for their vehicle purchases. There are few tips and suggestions to consider before accepting a car loan, however.
If you are looking for a used car, choose one that is manufacturer-certified, even though it may have a higher price tag. Many times, manufacturer-certified vehicles were used as rental cars or were the demonstration models used by the dealer. Many have low mileage and are in much better mechanical shape than other used cars. Even though they may be slightly more expensive than non-certified cars, they are still significantly less expensive than new cars.
If you have bad credit or just starting out and have not built a good credit history, there are car loans Burnaby residents use to purchase a vehicle. Although your interest rate may be higher than for a traditional loan, you can build or repair your credit history by making on time payments. Sometimes, your credit score is low because you are not using it to its full utilization. A car loan can help you increase your utilization of credit and improve your score.
One benefit to purchasing a used car is car loans Burnaby dealers may offer. Often, dealers offer guaranteed auto loans even if your credit is poor. With a guaranteed loan, you don’t have to deal with a finance company or bank who may have strict credit requirements. Many times, dealers won’t require a significant down payment required by other types of financing. The interest rate may be higher than a traditional loan, but you may be able to extend your payment time so that your payments are actually lower than through traditional financing.
Getting Car Loans
You will need to apply for a car loan and you may be able to do so online in order to get preapproval before you even go to the car lot. You will need to provide personal information, including your home address, social insurance number and date of birth. You will also need to supply your employer’s name and the amount you bring home each month. Keep in mind that the car loan company may need to contact your employer to verify your employment or they may request that you provide recent paycheck stubs as proof. You will also need to provide photo identification and may be asked for proof of residency in the form of a utility bill, lease or mortgage document.
Terms of Loan
Most car loans have terms between two and six years. The longer the term, the lower your payments are. Before you apply for the loan, determine what how much you can afford to pay for a car loan. There are many online calculators that can help you determine the actual monthly payment and you can adjust the terms up and down to reach a payment you can afford. Consider how long you plan to drive the vehicle as well. If you are buying an older model car with no certification, you may not be able to keep it running for an additional six years while you pay it off. However, if you have mechanical abilities or the car is newer, a six-year term may work fine for you.
Buying a car can be stressful and finding adequate financing can be even more stressful. Contact us today online or by telephone to learn what products we may have that can get you behind the wheel of a car regardless of your credit situation.