Car Loan Financing Guide and FAQ
Frequently Asked Questions For Auto Loans
We all know that buying a new car is an exciting and important decision, but it can also be a little daunting. It’s important to consider all of your options before moving forward with financing or purchasing a vehicle. That includes comparing interest rates and loan terms, as well as researching insurance coverage and other fees that may come up along the way. Here you’ll find some of the most frequently asked questions regarding vehicle financing.
Frequently Asked Questions
We have a large network of dealership partners across Canada. To get you the closest dealership partner to you, we match you with one in your area as near as possible. Our dealer partners offer a wide range of new and used vehicles from various makes, models, and years. They have inventories for every vehicle conceivable. We’ll assist you in locating the most suitable dealership that can provide you with the financing you need and drive the vehicle that is best suited for you.
You will be contacted by a nearby dealership to complete the application process during regular business hours. The dealership would already have most of the information needed to finalize your loan and get you driving immediately. You may also contact us to have everything handled over the phone, and then you’ll be transferred to the dealership who will take care of things from there. This is can save you a lot of time.
That is all based on your financial situation. The good news is that we have several loan choices for different types of credit and any financial status. We’re committed to working with your finances to help you get the vehicle you want, at a fair price.
Our process takes a few minutes. A LendingArch loan specialist will contact you to go through your application, discover your requirements, and connect you with a dealership partner or lender that can get you approved and driving as soon as possible. Give us a call at (1-877-624-2781), and one of our loan specialists will take your information over the phone and connect you with the dealership immediately so that you can complete the transaction even sooner.
When it comes to being able to pay for your vehicle expenses should never exceed 10% of your income. If you make $42,000 a year, your monthly car payments should not cost more than $4,200 a year, which is $350 per month.
An Annual Percentage Rate, or APR, is a calculation of the cost of borrowing for your vehicle loan. This shows how much you’ll pay during the course of your car loan. Between dealerships and lenders, there will be differences in APRs.Another thing to consider is the amount of APR you will receive. The kind of automobile you’re purchasing, your credit score, and the lender’s prime interest rate are all factors that influence your interest rate. APR on auto loans differs from that of other forms of credit. Auto loan APR is calculated differently than mortgage APR. You don’t pay more interest than the principal when it comes to auto loan APR. So, if you traded or sold the car after 3 years, you would only have paid interest for the three years you had the loan, rather than for the whole five years.
Yes! Even if you still owe money on your current vehicle, our dealerships and lenders would work with it. We may be able to use your existing automobile as a down payment for your new car to help lower your monthly payments in certain circumstances.
You can qualify for financing if you haven’t previously financed a vehicle. If your current credit history prevents you from qualifying for other programs, such as those for recent college graduates, there are still options open to you. The conditions attached to student loans vary depending on the lender. We offer fantastic new initiatives that are specifically designed and geared towards first-time car buyers.
You must be of legal age: 18 or 19 years old, depending on your province. Be a Canadian citizen or permanent resident who can provide proof of residence, such as utility bills or tax return statements. Have a current and valid Canadian driver’s license (some lenders accept learner’s permits). Proof of insurance is also required. A co-signer may be used to help support the loan.Income verification is required. To authenticate your earnings, you must make at least $1,800 per month and provide pay stubs and bank statements. For self-employed individuals, you must provide two years’ worth of tax returns, as well as a year-to-date profit and loss statement if available.
Is it necessary? Not necessarily. If you can put down an amount, making your new loan payments lower and more affordable will be beneficial.
Anyone should be able to get dependable transportation regardless of their bad or limited credit histories. We work with any kind of credit and work with your finances to find the best loan and vehicle for you. Over 50% of our approvals are for Canadians with poor credit. Get auto loan pre-approvals in minutes, no matter what your credit score is!
The amount you pay per month on your automobile loan is determined by three things.
- PRINCIPAL-This is the total cost of the automobile, including fees, vehicle price, modifications, and taxes.
- TERM-This is the length of your car loan. LendingArch provides loans that last from 12 to 36 months. Even more savings are possible because the shorter the duration, the less interest you’ll have to pay.
- INTEREST RATE– The interest rate is the cost of borrowing money and is determined on a variety of criteria. Each applicant’s interest rate is calculated separately.If you have poor credit, your interest rate may be higher than someone with good or excellent credit, but as long as you make your payments on time each month, your auto loan will improve your credit score
Why Should You Choose Us for a Car Loan?
We can get you a loan with a lower interest rate, which means lower monthly payments. We compare several lenders in Canada to help you find the best deal. Our goal is to save you money! Maximize your savings with us. Apply today to see what you qualify for.