You often hear about financing solutions tailored to your needs and are told that they will benefit you no matter what your situation is. While these statements often contain certain advantages, they deserve to be clarified to help you make a wise choice.
Financement Auto Laval, near Terrebonne, Sainte-Thérèse, Boisbriand, Saint-Eustache and just minutes from Montreal, knows what it’s talking about when it comes to car financing. In business for decades, its advisors are well acquainted with the different forms of financing on the market. Today, we’ll tell you all about two options available to you when it comes to car loans.
Car Financing: What You Need to Know
First of all, you will be able to obtain a car loan from your financial institution with a loan guarantee. However, you should know that banks and credit unions are making fewer and fewer car loans and asking a lot of questions before giving you the green light. They tend to protect themselves and lend only under certain conditions; these days they are quite cautious and don’t like to venture out too much.
Then, you have the financing obtained from the merchant, who is often well equipped to offer you flexible solutions according to your budget. In fact, most merchants will offer you their own financing programs; it’s a practical solution that many people choose. They are on site, the retailer sells certified products and at the same time offers practical solutions in terms of financing; in the same place, the customer gets the price of the vehicle and its financing quickly.
The financing obtained from the dealer also allows you to discuss your current situation with the advisor. Always keep in mind the maximum amount you can pay each month and your monthly payments should correspond to your financial capacity. The advisor will take the time to discuss your obligations and present you with various options.
Don’t hesitate to ask questions about current interest rates, the loan period, monthly payments (including taxes) and the terms and conditions of your loan. Once again, home financing advisors will be able to give you a complete picture and make sure to explain the terms of your financing.
Even more interesting, Financement Auto Laval, who has specialized in car financing for decades, can grant you flexible loans adapted to your situation. With interest rates negotiated downward for you, it can also offer you weekly, bi-weekly or monthly payments. It can also offer to extend or shorten your loan according to your preferences; it is able to be flexible because it knows your situation and knows how to negotiate skillfully with financial institutions.
On the other hand, it is important to know that today’s consumers have access to 6, 7 or 8-year financing offers. New cars come immediately to mind, but such offers also exist for used cars. However, experts from several consumer organizations advise you to avoid exceeding 5 years: their study on the subject shows that otherwise, losses are to be expected, especially if a buyer sells his car before the end of a term of 72 months or more.
Why? Because a car depreciates at a much faster rate than the rate of capital repayment. After four years, a car has lost about 40% of its value, and this depreciation tends to continue. When financing is extended and you want to change your car, the final amount due usually exceeds its market (or residual) value. You should therefore be cautious on loans that exceed 5 years.
In closing, financing obtained from the dealer is a good option and is simpler than financing obtained directly from your financial institution. It is important to keep in mind that you must ask the right questions and be able to consult the right people.
Financement Auto Laval: The One for You!
In business for years, Financement Auto Laval, near Terrebonne, Sainte-Thérèse, Boisbriand, Saint-Eustache and just minutes from Montreal, has served thousands of customers and knows how to take the right measure. Not only will it save you big, you’ll be in good hands.