Financing Options for Owning A Car
Most rely on a vehicle to get to school or work; the primary difference is that everybody is living under different financial circumstances. Those that can pay for their vehicle in full won’t have to rely on financing plans to help support them. Understandably, life is hectic, and not everyone has $5,000- $10,000 to outright pay for their vehicle. Financing plans and alternative options are available to individuals in need of a car as an accessible way of owning a car without the expensive down payments. Here are some financing options that are available to individuals in need of a vehicle:
Leasing a Vehicle
Leasing a vehicle has become an increasingly popular choice amongst consumers for a variety of reasons. Leasing a car permits you with the opportunity to come to a financial agreement with a car dealership that outlines a monthly payment plan, which will require you to also pay for any necessary repairs and insurance on the vehicle. Leasing a vehicle puts all the decision-making in the hands of the leaser, and at the end of the leasing term, the leaser can decide if they wish to fully purchase the car, choose a different vehicle to lease or end the leasing agreement altogether. If you are looking for a short-term agreement, and only drive a low amount of kilometres daily, leasing may be right for you.
Financing a Vehicle
Financing a vehicle involves you being approved for a loan from a financial institution (i.e. bank or credit union) or from the dealership itself. Depending on how much of the vehicle you can afford to pay for a down payment, the outstanding balance would be paid through a series of payments, until you eventually fulfill the purchase. For example, if you were to finance a vehicle that costs $12,000 to purchase and you only had $6,000 to put down, you would be financing your vehicle for the remaining $6,000. Financing is the process of owning a vehicle which means there are no kilometre restrictions or customization limitations; you can do whatever you want to your vehicle! You can also pay off your car in full whenever you’d like, so if you ever want to get the payment out of the way, you can do so without any repercussions or hidden fees.
If You Have No Credit
Establishing your credit is an important part of becoming a responsible adult. Your credit score will reflect your reliability to different institutions if you ever decide to take out a mortgage for a new home, or even if you want to register for a cell phone plan. You can help yourself out by opening a line of credit at your banking institution and making small payments on time and in full. This will establish your credibility and ensure your trustworthiness.
Please speak to our customer service representatives for more information or if you have any questions or concerns about your current situation. We will do all we can to help you get approved for a loan and get you back on the road!