Obtaining Car Loans in Canada

November 25, 2014, 9:25 pm
Obtaining Car Loans in Canada

There is no best time to obtain a loan, but there are loans that are better and easier to obtain than others. A car loan falls into that category, where a loan is given in exchange for the borrower's request or asset. With this loan, sometimes the vehicle or the trust on the borrower is held as collateral. Doing so allows the lender to offer quality loans - with better interest rates - irrespective of the borrower's credit history.

An indicator of how well car loans are working for the borrowers in Canada is its preference since more than two decades. Everyday is a bargain, deal-of-the-century day for new customers opting for car loans. If it is a car title loan, it also known as pink slip loans or auto equity loans and establish the lender - lienholder or financial institution - as the owner of the vehicle. The equity of a vehicle is determined by the wholesale value of it minus the loan balance. It represents the market price or worth of the borrower's car. The loan that is issued is based on this amount, and the best part of this type of loan is, almost everyone qualifies if the car's value is equal to or more than the loan.

Car loans are different from payday loans in that car loans make monthly payment affordable and easy. Moreover, loans are issued with much cheaper interest rates than payday and other types of loan for qualified buyers, the maximum amount of which is predetermined by their ability to repay or the value of the collateral. People with bankruptcy can also get this loan as long as the bankruptcy has been discharged. Obtaining a car loan in Canada takes less than an hour in most cases. You can either apply online or call the customer service representative for pre-approval, complete the required paperwork and check out your vehicle. The cash is in your hand the same day. For paperwork, you may need a few documents, that include a copy of your ID or passport, proof of address and recent bank statement.

Industry auto loans entitle the borrower to benefits and perks apart from cash depending on the state where the lender is based. A borrower can seek advice and loan packages online or at the designated lender center. After the loan is approved, the representative will finalize the deal at a convenient time. Almost all car loans do not have penalty fee for paying off the debt early. The first payment is normally due in 30 days after the loan is issued and the average term can be 1 year or 5 years depending on the agreed upon terms and conditions. The APR for the loan depends on the amount, duration, fees, renewal actions and other factors. The related finance charges are not APR, not included in the monthly payment, but calculated and disclosed during the loan closing. It is the responsibility of the borrower to carefully review the terms of loans that will take a little extra work on his or her part.

TOP