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London Car Loans

London Car Loans

Buying a car is an exciting experience, but it also involves a major financial commitment. According to recent statistics, over 86% of new cars purchased in Canada involve some form of financing or loan. With the average new car price exceeding $42,000 in 2022, taking out a car loan is the only way most buyers can afford the vehicle they want.

Whether you have good credit or bad credit, you’ll want to make sure you find the right auto loan or financing option in London, Ontario. With so many lenders and variables to consider, the process can seem overwhelming to navigate.

This comprehensive guide covers everything you need to know about getting a car loan in London and the rest of Ontario. We’ll walk through the major factors that impact your loan, where to find the best rates and terms, and tips for improving your chances of getting approved.

If you’re in the market for a new or used car and need financing, you’ll find all the key information needed to make a confident, informed decision right here.

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Why Get A Car Loan?

Getting a car loan allows you the flexibility to purchase the vehicle you want, even if you can’t afford to pay the full price upfront. With a car loan, you can spread out the cost over months or years with a predictable monthly payment. Here are some of the top reasons to consider financing your next car purchase:

Get the car you want: Financing gives you the ability to buy a more expensive vehicle than you could pay for in cash, allowing you to get the make, model, and features you really want.

Build credit history: Making regular on-time loan payments shows lenders you can responsibly manage debt and will help improve your credit score over time.

Lower monthly costs: Borrowing spreads the cost out over time so your monthly payments are lower compared to paying the full price upfront.

Manage money: Using a loan allows you to keep money free for other needs rather than depleting your savings to buy a car.

Get lower rates on future loans: By taking out a car loan and paying it back responsibly, you can qualify for better interest rates on future loans for a home, another car, etc.

Overall, a car loan provides the flexibility to get the vehicle you want while keeping monthly costs affordable. It also helps you build your credit history over time.

 

Types of Car Loans

There are several main types of car loans to consider when financing your next vehicle purchase.

 

New vs Used Car Loans

New car loans typically have lower interest rates and longer repayment terms than used car loans. This is because new cars depreciate less quickly than used cars. New cars may also qualify for additional manufacturer incentives and rebates that can lower your loan’s interest rate. However, new cars also have higher sticker prices, so your total loan amount will be greater.

Used car loans usually have higher interest rates but you’re borrowing less money overall since the car has already depreciated in value. Used car loans tend to have shorter repayment terms of 2-5 years. The age of the used car will impact your loan terms and interest rate.

 

Lease vs Finance

Leasing a car means you pay for its expected depreciation during the lease term, plus fees and interest. You make lower monthly payments compared to financing, but you must return the car at the end of the lease. Leasing makes sense if you want a new car every few years.

Financing is taking out an auto loan to buy and own a vehicle. Your monthly payments go towards paying off the loan principal plus interest. Once the loan is paid off, you own the car free and clear. Financing is better if you want to drive the car long-term.

 

Secured vs Unsecured Car Loans

A secured car loan uses the vehicle as collateral for the loan, meaning the lender can repossess it if you default. Most car loans are secured loans. An unsecured car loan does not use the car as collateral, but these are rare.

 

How Do Car Loans Work?

Getting a car loan is a straightforward process that involves applying, getting approved, and making payments over time. Here are the key steps:

Apply for a Loan

To start, you’ll complete a car loan application with a lender, either at the dealership or bank. You’ll provide information like income, employment, credit score, down payment amount, and the car you want to purchase.

Get Approved

The lender will review your application and make an approval decision based on your creditworthiness. This determines the loan amount, interest rate, and terms you qualify for.

Choose a Car

If pre-approved, you can now start shopping for the car you want. If not, the dealer will submit your application after you’ve chosen a car. With approval, you can purchase the car.

Make Payments

Once all the paperwork is signed, you’ll start making monthly payments as outlined in your loan agreement. A repayment schedule breaks down each payment and how they are applied to interest and principal.

Pay Off the Loan

You’ll make payments until the loan balance is paid in full, at which point you’ll own the car free and clear. The loan term affects your monthly payment and how long it takes to pay off.

 

What Credit Score Is Needed For A Car Loan?

Your credit score is one of the most important factors lenders consider when approving a car loan. The minimum credit score needed for most auto loans in Canada is around 650. Borrowers with scores below 650 will likely face higher interest rates or get declined altogether.

In general, the higher your credit score, the better the loan terms will be. Here’s an overview of typical credit score requirements:

 

  • Excellent Credit (720+): The best rates and loan terms. Likely eligible for 0% financing deals.
  • Good Credit (650-719): Qualify for competitive interest rates from most lenders.
  • Fair Credit (620-649): May be approved but pay higher rates. Limited lender options.
  • Poor Credit (Below 620): Hard to get approved for traditional loans. Must seek out subprime lenders.

 

Along with your score, lenders examine your overall credit history including late payments, collections, bankruptcies or other red flags. Having limited credit history can also negatively impact your interest rates. The longer your established credit, the better.

Improving your credit score before applying for an auto loan can help you secure more favourable terms. You may consider getting a credit report to review your standing across areas like payment history, credit utilization, credit age and new credit inquiries.

With a higher score, you’ll have more financing options and could potentially save thousands over the term of the loan. Check your credit well in advance and take steps to boost your profile if needed.

 

Car Loan Interest Rates

Interest rates on car loans can vary widely in Canada based on factors such as your credit score, the lender, loan term, down payment amount, and more. Getting the lowest interest rate possible on your auto financing can save you thousands over the term of the loan.

The current average interest rate on new car loans from banks is around 5-7%, while used car loans tend to be a little higher at 6-9%. Rates from dealerships and other lenders may be even higher. However, it’s possible to get much lower rates below 5% with excellent credit scores above 720.

Here are some of the key factors that affect car loan interest rates:

 

  • Credit score – The higher your credit score, the lower rate you can qualify for. Aim for 720+ for the best rates.
  • New vs. used – New cars tend to have lower rates than used since they hold value better.
  • Down payment – Larger down payments can lead to lower rates since the loan amount is smaller.
  • Loan term – Shorter terms often have lower rates. Opt for 4-5 years if possible.
  • Lender – Banks and credit unions offer the lowest rates on average.

 

It’s a good idea to check your credit score and get pre-approved with multiple lenders before visiting dealers to negotiate the lowest rate on your next auto loan. even a small difference of 1-2% on your interest rate can save $1,000+ over the life of the loan.

Getting Pre-Approved

Getting pre-approved for a car loan can make the car buying process much smoother. Here are some of the key benefits of getting pre-approved:

 

  • You’ll know your budget – When you get pre-approved, you’ll know exactly how much the lender is willing to lend you. This allows you to narrow your car search to vehicles that fit your budget.
  • Stronger negotiating position – If you have a pre-approval letter, it shows dealers that you’re a serious buyer. This puts you in a better position to negotiate the vehicle price and financing terms.
  • Faster financing process – With a pre-approval, the dealership simply needs to confirm your details rather than submitting a full application. This can shave days or weeks off the financing process.
  • Wider selection – Dealers know you’re pre-approved for financing, so they may show you more vehicle options without worrying about your credit or income.

 

Getting pre-approved is relatively straightforward. Here are the basic steps:

 

  1. Check your credit – Review your credit report and score so you know where you stand. This will allow you to target lenders most likely to approve you.
  2. Research lenders – Compare options like banks, credit unions, and online lenders. Consider their rates, terms, fees, and pre-approval processes.
  3. Gather documents – You’ll need documents like your driver’s license, proof of income, and possibly bank statements.
  4. Complete application – Fill out the pre-approval application with your personal and financial details.
  5. Get pre-approval letter – If approved, you’ll receive a pre-approval letter stating the loan amount and terms.

 

With some preparation and research, getting pre-approved can make your auto financing experience much smoother.

 

Choosing Between Dealer Financing vs Bank Loans

When it comes to getting a car loan in London, Ontario, you have two main options – going through the dealership (dealer financing) or going through your bank or credit union (bank loans). Both options have their pros and cons.

Dealer Financing Pros:

 

  • One-stop shop – you can purchase the car and get financing all in one place
  • Incentives – dealers often offer special rates or cash incentives when financing through them
  • Convenience – the dealer handles all the loan paperwork and approvals
  • Faster approvals – dealer financing decisions are usually made quickly, often the same day

 

Dealer Financing Cons:

 

  • Higher interest rates – dealer financing typically has higher rates than banks
  • More fees – there are often extra fees rolled into dealer financing
  • Upselling – dealers may encourage you to borrow more or buy add-ons
  • Limited terms – dealer financing terms are usually shorter (3-5 years)

 

Bank/Credit Union Loans Pros:

 

  • Lower rates – banks/credit unions often offer lower rates than dealers
  • Flexibility – banks provide more options for loan terms and structures
  • No pressure – you aren’t pushed to borrow more or buy extras
  • Established relationship – easier to get approved if you have accounts/history

 

Bank/Credit Union Loans Cons:

 

  • Pre-approval required – you must get approved before purchasing the car
  • Slower process – bank approvals can take days or weeks, not same-day
  • No special offers – banks don’t offer the discounts and incentives dealers do
  • Separate processes – you have to handle the loan and purchase separately

 

When deciding, look closely at the rates, fees, and terms offered. Also consider your own financial situation and preferences. Are fast approvals or lowest rates more important? Do you want to handle financing separately? Weighing the pros and cons of dealer vs bank financing will help you make the best choice.

 

Top Car Lenders in London Ontario

When shopping for a car loan in London Ontario, you have several options for lenders. Here are some of the top options:

 

Major Banks

The major banks in Canada all offer competitive auto financing, including:

 

  • RBC Royal Bank – One of the largest lenders in Canada. Offers loans for new and used vehicles.
  • TD Canada Trust – Competitive interest rates and flexible terms. Online applications available.
  • BMO Bank of Montreal – Preferred rates for existing BMO customers. Apply online or at a branch.
  • Scotiabank – Financing for cars, trucks and SUVs. Special discounts for Scotia Momentum members.
  • CIBC – Auto loans with fixed and variable rate options. Apply online, on the phone or in person.

 

Credit Unions

Local credit unions can also offer competitive rates, such as:

 

  • Libro Credit Union – Serving Southwestern Ontario with great rates. Apply at a branch.
  • Your Credit Union – Proudly local and member-focused. Apply online or at one of 18 branches.

 

Dealerships

Many dealerships offer in-house financing through relationships with banks and lenders. This allows you to finance your vehicle purchase directly through the dealer.

 

Online Lenders

There are also some online-only lenders like:

 

  • RateHub – Compare rates from over 20 lenders. Offers pre-approvals.
  • Car Deal Canada – Network of lenders with online applications.

 

So whether you’re looking to finance a new or used vehicle, London Ontario has plenty of options for lenders and competitive rates on auto loans.

 

Bad Credit Car Loans

If you have bad credit or no credit history, getting approved for an auto loan from a traditional lender can be challenging. However, there are some options for obtaining financing even with poor credit:

 

Subprime Lenders

Specialty subprime lenders work specifically with borrowers who have credit scores below 600. They may charge higher interest rates to offset the risk, but can still provide auto financing to those who may not qualify with prime lenders.

 

Co-Signers

Adding a co-signer with good credit can improve your chances of getting approved and potentially lower your interest rate. The co-signer takes on equal responsibility for repaying the loan.

 

Down Payment

Putting down a larger down payment shows lenders you are committed to the loan. Typically 20% or higher down payment will improve your chances of getting approved.

 

Secured Loans

Secured loans use the vehicle as collateral, so they represent less risk for the lender. Interest rates are higher but easier to qualify for with bad credit.

 

Buy Here Pay Here Dealers

Buy here pay here (BHPH) dealers provide in-house financing to borrowers with poor credit. They focus more on your income versus credit score when approving loans.

While having poor credit makes getting a car loan more challenging, focusing on improving your credit score and considering the options above can help increase your chances of getting approved.

 

Car Loan Calculators

Car loan calculators are useful tools to estimate your monthly payments. They take into account factors like:

 

  • Loan amount
  • Interest rate
  • Loan term
  • Down payment
  • Trade-in value

 

By inputting this information, car loan calculators can provide an estimate of what your monthly payments would be. This helps give you an idea of what you can afford before applying for financing.

Calculators also let you play around with different variables. For example, you can see how a larger down payment or longer loan term impacts the monthly payment. This allows you to customize the loan terms to fit your budget.

While these estimates are not guarantees, car loan calculators offer helpful guidance. They provide approximations of payments so you can assess affordability. You should still speak to a lender for exact rates and terms tailored to your specific situation.

 

Down Payment On A Car Loan

When taking out a car loan, most lenders will require a down payment. The amount of your down payment can have a significant impact on the overall loan terms. In general, the larger your down payment, the better terms you will receive on your loan.

For new cars, a typical down payment ranges from 5-20% of the vehicle’s purchase price. Most lenders like to see at least 10% down, but some may approve loans with as little as 0-5% down. Keep in mind that smaller down payments often mean higher interest rates and monthly payments.

On used car loans, down payments tend to be higher, averaging 10-30% in most cases. Again, larger down payments give access to lower rates. With bad credit, large down payments are especially important for getting approved.

You can use online auto loan calculators to estimate your monthly payments and see how different down payment amounts impact the interest charges over the loan term. Aim for the largest down payment you can comfortably afford based on your budget.

 

Co-Signing A Car Loan

Getting a co-signer on your car loan can help improve your chances of getting approved if you have little or poor credit history. A co-signer agrees to be equally responsible for repaying the car loan if the primary borrower defaults.

Lenders typically look at the co-signer’s income, assets, credit score and history when determining approval. Having a co-signer with a good credit profile on your application can offset factors like low income, limited credit history or past credit issues.

Co-signers don’t have to be relatives – they can be friends or other associates willing to vouch for your ability to repay. However, co-signers take on equal liability, so their credit score can be impacted if payments are missed. Make sure any co-signers understand the risks and are comfortable with their responsibility.

A car loan co-signer can be an option for first-time borrowers with no or thin credit files. Students or new immigrants are examples. Adding an established co-signer helps demonstrate you can handle the repayment obligations.

Overall, a co-signer provides the lender with additional assurance and security. Their good profile and willingness to take on liability shows the lender you are a viable borrower. If you have any associates with strong credit who can co-sign, it can significantly boost your car loan approval odds.

 

Refinancing Your Car Loan

If you currently have an auto loan, refinancing it can potentially help you save money each month. There are a few key reasons why refinancing your car loan could make sense:

To Lower Your Interest Rate

Interest rates fluctuate over time. If rates have dropped significantly since you first took out your loan, refinancing could lower your rate and monthly payment. This is one of the most common reasons to refinance a car loan.

To Shorten Your Loan Term

Refinancing gives you a chance to pay off your loan faster by shortening the repayment term. You’ll pay less interest over the life of the loan, though your monthly payments will be higher.

To Improve Your Credit

If your credit score has improved since you first got your auto loan, you may now qualify for better refinancing terms. Refinancing could help further boost your credit by creating a more positive payment history.

To Consolidate Other Debts

Some lenders let you roll other debts, like credit cards or personal loans, into your new car loan. Consolidating through refinancing can simplify repayment if done responsibly.

Before pursuing a refinance, crunch the numbers to make sure it makes financial sense based on your situation. Refinancing costs money upfront through fees, so factor that in. But for many borrowers, refinancing their car loan can provide notable savings over the life of the loan.

 

Special Car Loan Programs

While most car loans are available to anyone with good credit, lenders also offer special car loan programs designed for specific types of borrowers such as students, recent graduates, new immigrants and members of the military.

 

Student Car Loans

Students in need of a vehicle can apply for student car loans offered by some lenders. These loans typically have lower interest rates and down payment requirements than traditional auto loans. To qualify, you’ll need to be enrolled in school full-time or for a certain number of credit hours per semester.

 

Graduate Car Loans

Recent graduates may qualify for graduate car loan programs for a limited time after finishing their studies. Like student loans, these programs feature reduced rates and down payments and can help new grads establish credit.

 

New Immigrant Car Loans

New immigrants to Canada with little or no local credit history may have difficulty getting approved for financing. Some lenders offer special car loans for new immigrants with low down payments and interest rates to help establish their credit here.

 

Military Car Loans

Current and former military members may qualify for car loans with discounted rates through lenders that cater to service members and veterans. These loans offer easy approval and often don’t require a down payment.

 

Car Loans In London, Ontario

When shopping for a car loan in the London, Ontario area, you have several options for local lenders and financing. London is home to major banks and credit unions as well as auto dealerships that provide financing. Here’s an overview of your options:

 

Major Banks

Most major banks like RBC, TD, Scotiabank, BMO, and CIBC have branches in London that offer auto loans. Going through a bank you already have a relationship with can streamline the application process. Banks typically offer competitive interest rates to borrowers with good to excellent credit.

 

Credit Unions

Local credit unions like Libro Credit Union, FirstOntario Credit Union, and Your Neighbourhood Credit Union provide auto loan financing options. Credit unions may offer lower rates and more flexibility compared to banks.

 

Auto Dealers

Many car dealerships in London have in-house financing through ties with lenders like Ford Credit, GM Financial, Toyota Financial Services, etc. Dealer financing may be an option for those with poor credit who can’t get approved elsewhere.

 

Online Lenders

There are also national online lenders that operate in Ontario and can pre-approve you for a car loan right from your computer or smartphone. Online lenders like RateHub, Canada Drives, and CarLoans Canada provide quick loan decisions.

 

Tips for London, Ontario

When getting a car loan in London, it helps to:

 

  • Check your credit score so you know your rate range
  • Get pre-approved to strengthen your negotiating position
  • Compare multiple lenders to find the best rates/terms
  • Consider used car loans to get lower rates
  • Calculate the total loan cost including fees/interest

 

With many options available, make sure to research lenders thoroughly before committing to auto financing in London. Knowing your credit score, getting pre-approved, and comparing options will help ensure you get the best loan for your needs.

 

Conclusion

In summary, getting a car loan is one way to finance a new or used automobile. With the various options available, it’s important to compare interest rates, loan terms, lenders, and your budget to find the best loan for your situation. Having a good credit score and steady income will help qualify you for better rates. It’s wise to get pre-approved first so you know how much you can spend. Consider both dealer financing and bank loans to see which offers the best deal. There are also options for bad credit borrowers. Use online car loan calculators to estimate payments. Putting down a larger down payment lowers the amount borrowed. Co-signing may help those with little credit history get approved. Refinancing could potentially save money down the road. Compare all the tips in this guide when seeking a car loan in London, Ontario or anywhere else in Canada.

The auto financing process can seem complicated at first, but taking it step-by-step while evaluating all your options will set you up for success. With the right preparation and research, you can get a great car loan to drive home your next vehicle.

Questions About Car Loans in London?

The average interest rate on new car loans in London is around 6-8%, while used car loans tend to be 8-12%. The rate offered will depend on factors like your credit score, down payment, loan term, and the lender. With strong credit (scores above 700), you can qualify for rates as low as 0-4% at some lenders. Compare rates from banks, credit unions, and dealerships. A larger down payment and shorter loan term will also help secure a lower interest rate.

Most lenders in London require a minimum credit score between 600-650 to approve you for car loan financing. Scores above 700 will qualify you for the best rates, while scores under 600 make approval difficult. If your credit score is low, applying with a co-signer with good credit will improve your chances. There are also “second chance” financing companies that work with bad credit applicants. Improving your score before applying will open up better loan offers.

Some options for bad credit car loans in London include:

 

– Specialty subprime lenders like Auto Approvers, Carnation Canada, and EZee Credit

 

– Buy here pay here dealerships like 5 Star Dealers and Downtown Motor Products

 

– In-house financing at dealerships like Westgate Honda and Bart’s Used Cars

 

– Personal loans from alternative lenders like Fairstone Financial and Easy Financial

 

Having a steady income, down payment, and proof you can afford payments will help secure financing despite poor credit. Expect higher interest rates until you build your credit back up.

Typical documents needed for a car loan application in London include:

 

– Proof of income – Recent pay stubs, tax returns, bank statements

 

– Government-issued ID – Driver’s license, passport

 

– Proof of address – Utility bill, bank statement with address

 

– Down payment – At least 5-10% of the vehicle purchase price

 

– References – Names and contact details of 1-3 references

 

– Co-signer information, if applying with a co-signer

 

Having all documents ready speeds up the application and approval process.

Most lenders in London require a 5-10% down payment when financing a used car purchase. So on a $15,000 used car, you would need around $750-1,500 down. More is better – a 20% down payment allows you to finance less and can help you qualify for better interest rates. Putting less than 5% down makes lenders view you as higher risk. For bad credit buyers, larger down payments in the 20-30% range are typically expected.

The best way to get pre-approved is to choose 2-3 top lender choices, gather required documents, fill out online pre-approval applications, and compare offers. This allows you to shop like a cash buyer once pre-approved, while locking in financing ahead of time. Top lenders include banks (TD, RBC, Scotiabank), credit unions (Libro Credit Union, FirstOntario Credit Union), and third-party lenders (Carnation Canada, Rifco National Auto Finance).

Yes, going through the pre-qualification process before formally applying is highly recommended. Pre-qualification is a soft credit check that estimates the loan amount and rate you may qualify for without impacting your credit score. It’s a useful early indicator of approval odds and loan terms, allowing you to evaluate if it makes sense to move forward with a full application. The pre-qualification process is easy and gives you more confidence when applying for a car loan.

The most popular car loan terms in London are 36-month, 48-month, 60-month, and 72-month repayment terms. 36 and 48 months are common for new cars, while used cars are often financed for 60-72 month terms. The average loan term falls between 48-60 months. Shorter terms of 24-36 months have higher monthly payments but pay off debt quicker and cost less interest. Extended terms up to 84 months lower the payments but increase total interest costs substantially.

Tips to improve your auto loan approval chances in London include:

 

– Boost credit score above 650+

– Lower existing debt burdens

– Provide steady income proof

– Make a 10-20% down payment

– Bring a co-signer with good credit

– Apply at credit unions, finance companies

– Purchase older, less expensive vehicles

– Write a letter explaining past credit issues

 

Meeting more approval criteria makes lenders view you as lower risk, increasing the odds your application gets the green light.

In London, Ontario, lenders can legally repossess your car as soon as you default on your contract and fall behind on payments. No court order is required. The lender must send written notice 10-30 days in advance before repossession. They can retrieve the vehicle from any public location without breaching peace. You have the right to reinstate the loan up until the moment of sale. Once sold, you must pay any loan deficiency balance, fees, storage costs and get the rest back.

When trading in a car you owe more on than it’s worth (negative equity) in London, make sure to bring:

 

– Current registration for trade-in

– Outstanding loan payout statement

– List of any mechanical issues

– Copy of latest bill of sale

– Proof of regular payments made

– Copy of the original financing contract

 

Providing a complete trade-in picture allows the dealer to accurately appraise your vehicle and roll the negative equity into your new loan.

The top used car dealerships facilitating bad credit auto financing in London include:

 

– 5 Star Dealers

– Downtown Motor Products

– Bart’s Used Cars

– Westgate Honda

– EZee Credit

– Fast Action Finance

 

All of these used car lots work with various subprime lenders and some provide direct in-house financing to accommodate applicants with credit challenges. Higher interest rates will apply until you improve your credit profile.

As a general rule, you can afford 20-30% of your gross monthly income towards total vehicle expenses like car payments, insurance, gas and maintenance. So if your income is $4,000 monthly, aim for no more than $800-1,200 in total monthly vehicle spending. This includes the car payment, gas, insurance, etc. Spending above 30% makes lenders see you as higher risk for defaulting on the loan.

If you get denied traditional auto financing, alternative options in London include:

 

– Applying with a co-signer who has good credit

– Building credit history and re-applying in 6-12 months

– Working on debt-to-income ratio and saving a larger down payment

– Exploring in-house dealer financing that is more flexible

– Seeking a personal loan for vehicle purchase at higher rates

– Looking at private/personal sales listings instead of dealerships

 

Improving certain factors that caused the denial and exploring other financing avenues can still help you drive home your dream car.

Refinancing charges in London average $300-500 for administration fees when switching lenders. It’s worth refinancing if you can lower your rate by at least 2% while keeping loan terms the same. For example, dropping your rate from 8% to 5% could save over $1,000 in interest on a $15,000 loan. Refinancing works best for those with good credit and significant equity in their vehicle. Use online auto loan refinance calculators to estimate potential savings.

London and all of Ontario require drivers to carry a minimum of $200,000 in third-party liability coverage. This includes:

 

– $100,000 to cover bodily injury/death to one person

– $100,000 total limit for multiple people injured/killed

– $50,000 minimum for property damage

 

Additional recommended coverage includes collision, comprehensive, underinsured motorist protection and income replacement benefits in case of injury. Ontario insurance rates are among the highest in Canada – shop quotes regularly.

To lock-in an advertised interest rate:

 

– Get pre-approved for a guaranteed rate in writing

– Read all fine print and terms carefully

– Avoid major changes between pre-approval and purchase

– Review rates again just before signing contract

– Ensure no pre-payment penalties apply

 

What’s advertised is not always guaranteed. Protect yourself by getting all details in writing so there are no surprises later at closing time.

Common extra fees with dealership financing include:

 

– Documentation fees – $300-800

– Dealer preparation fees – $500-1,000

– Vehicle etching fees – $200-400

– Extended warranty fees

– Rust protection packages

– Lifetime oil change packages

 

These extra costs can add $1,000+ to your loan. Read contracts carefully and negotiate removal of unnecessary add-ons before signing. Get final pricing in writing first.

 

Why Get A Car Loan?

Getting a car loan allows you the flexibility to purchase the vehicle you want, even if you can’t afford to pay the full price upfront. With a car loan, you can spread out the cost over months or years with a predictable monthly payment. Here are some of the top reasons to consider financing your next car purchase:

Get the car you want: Financing gives you the ability to buy a more expensive vehicle than you could pay for in cash, allowing you to get the make, model, and features you really want.

Build credit history: Making regular on-time loan payments shows lenders you can responsibly manage debt and will help improve your credit score over time.

Lower monthly costs: Borrowing spreads the cost out over time so your monthly payments are lower compared to paying the full price upfront.

Manage money: Using a loan allows you to keep money free for other needs rather than depleting your savings to buy a car.

Get lower rates on future loans: By taking out a car loan and paying it back responsibly, you can qualify for better interest rates on future loans for a home, another car, etc.

Overall, a car loan provides the flexibility to get the vehicle you want while keeping monthly costs affordable. It also helps you build your credit history over time.

 

Types of Car Loans

There are several main types of car loans to consider when financing your next vehicle purchase.

 

New vs Used Car Loans

New car loans typically have lower interest rates and longer repayment terms than used car loans. This is because new cars depreciate less quickly than used cars. New cars may also qualify for additional manufacturer incentives and rebates that can lower your loan’s interest rate. However, new cars also have higher sticker prices, so your total loan amount will be greater.

Used car loans usually have higher interest rates but you’re borrowing less money overall since the car has already depreciated in value. Used car loans tend to have shorter repayment terms of 2-5 years. The age of the used car will impact your loan terms and interest rate.

 

Lease vs Finance

Leasing a car means you pay for its expected depreciation during the lease term, plus fees and interest. You make lower monthly payments compared to financing, but you must return the car at the end of the lease. Leasing makes sense if you want a new car every few years.

Financing is taking out an auto loan to buy and own a vehicle. Your monthly payments go towards paying off the loan principal plus interest. Once the loan is paid off, you own the car free and clear. Financing is better if you want to drive the car long-term.

 

Secured vs Unsecured Car Loans

A secured car loan uses the vehicle as collateral for the loan, meaning the lender can repossess it if you default. Most car loans are secured loans. An unsecured car loan does not use the car as collateral, but these are rare.

 

How Do Car Loans Work?

Getting a car loan is a straightforward process that involves applying, getting approved, and making payments over time. Here are the key steps:

Apply for a Loan

To start, you’ll complete a car loan application with a lender, either at the dealership or bank. You’ll provide information like income, employment, credit score, down payment amount, and the car you want to purchase.

Get Approved

The lender will review your application and make an approval decision based on your creditworthiness. This determines the loan amount, interest rate, and terms you qualify for.

Choose a Car

If pre-approved, you can now start shopping for the car you want. If not, the dealer will submit your application after you’ve chosen a car. With approval, you can purchase the car.

Make Payments

Once all the paperwork is signed, you’ll start making monthly payments as outlined in your loan agreement. A repayment schedule breaks down each payment and how they are applied to interest and principal.

Pay Off the Loan

You’ll make payments until the loan balance is paid in full, at which point you’ll own the car free and clear. The loan term affects your monthly payment and how long it takes to pay off.

 

What Credit Score Is Needed For A Car Loan?

Your credit score is one of the most important factors lenders consider when approving a car loan. The minimum credit score needed for most auto loans in Canada is around 650. Borrowers with scores below 650 will likely face higher interest rates or get declined altogether.

In general, the higher your credit score, the better the loan terms will be. Here’s an overview of typical credit score requirements:

 

  • Excellent Credit (720+): The best rates and loan terms. Likely eligible for 0% financing deals.
  • Good Credit (650-719): Qualify for competitive interest rates from most lenders.
  • Fair Credit (620-649): May be approved but pay higher rates. Limited lender options.
  • Poor Credit (Below 620): Hard to get approved for traditional loans. Must seek out subprime lenders.

 

Along with your score, lenders examine your overall credit history including late payments, collections, bankruptcies or other red flags. Having limited credit history can also negatively impact your interest rates. The longer your established credit, the better.

Improving your credit score before applying for an auto loan can help you secure more favourable terms. You may consider getting a credit report to review your standing across areas like payment history, credit utilization, credit age and new credit inquiries.

With a higher score, you’ll have more financing options and could potentially save thousands over the term of the loan. Check your credit well in advance and take steps to boost your profile if needed.

 

Car Loan Interest Rates

Interest rates on car loans can vary widely in Canada based on factors such as your credit score, the lender, loan term, down payment amount, and more. Getting the lowest interest rate possible on your auto financing can save you thousands over the term of the loan.

The current average interest rate on new car loans from banks is around 5-7%, while used car loans tend to be a little higher at 6-9%. Rates from dealerships and other lenders may be even higher. However, it’s possible to get much lower rates below 5% with excellent credit scores above 720.

Here are some of the key factors that affect car loan interest rates:

 

  • Credit score – The higher your credit score, the lower rate you can qualify for. Aim for 720+ for the best rates.
  • New vs. used – New cars tend to have lower rates than used since they hold value better.
  • Down payment – Larger down payments can lead to lower rates since the loan amount is smaller.
  • Loan term – Shorter terms often have lower rates. Opt for 4-5 years if possible.
  • Lender – Banks and credit unions offer the lowest rates on average.

 

It’s a good idea to check your credit score and get pre-approved with multiple lenders before visiting dealers to negotiate the lowest rate on your next auto loan. even a small difference of 1-2% on your interest rate can save $1,000+ over the life of the loan.

Getting Pre-Approved

Getting pre-approved for a car loan can make the car buying process much smoother. Here are some of the key benefits of getting pre-approved:

 

  • You’ll know your budget – When you get pre-approved, you’ll know exactly how much the lender is willing to lend you. This allows you to narrow your car search to vehicles that fit your budget.
  • Stronger negotiating position – If you have a pre-approval letter, it shows dealers that you’re a serious buyer. This puts you in a better position to negotiate the vehicle price and financing terms.
  • Faster financing process – With a pre-approval, the dealership simply needs to confirm your details rather than submitting a full application. This can shave days or weeks off the financing process.
  • Wider selection – Dealers know you’re pre-approved for financing, so they may show you more vehicle options without worrying about your credit or income.

 

Getting pre-approved is relatively straightforward. Here are the basic steps:

 

  1. Check your credit – Review your credit report and score so you know where you stand. This will allow you to target lenders most likely to approve you.
  2. Research lenders – Compare options like banks, credit unions, and online lenders. Consider their rates, terms, fees, and pre-approval processes.
  3. Gather documents – You’ll need documents like your driver’s license, proof of income, and possibly bank statements.
  4. Complete application – Fill out the pre-approval application with your personal and financial details.
  5. Get pre-approval letter – If approved, you’ll receive a pre-approval letter stating the loan amount and terms.

 

With some preparation and research, getting pre-approved can make your auto financing experience much smoother.

 

Choosing Between Dealer Financing vs Bank Loans

When it comes to getting a car loan in London, Ontario, you have two main options – going through the dealership (dealer financing) or going through your bank or credit union (bank loans). Both options have their pros and cons.

Dealer Financing Pros:

 

  • One-stop shop – you can purchase the car and get financing all in one place
  • Incentives – dealers often offer special rates or cash incentives when financing through them
  • Convenience – the dealer handles all the loan paperwork and approvals
  • Faster approvals – dealer financing decisions are usually made quickly, often the same day

 

Dealer Financing Cons:

 

  • Higher interest rates – dealer financing typically has higher rates than banks
  • More fees – there are often extra fees rolled into dealer financing
  • Upselling – dealers may encourage you to borrow more or buy add-ons
  • Limited terms – dealer financing terms are usually shorter (3-5 years)

 

Bank/Credit Union Loans Pros:

 

  • Lower rates – banks/credit unions often offer lower rates than dealers
  • Flexibility – banks provide more options for loan terms and structures
  • No pressure – you aren’t pushed to borrow more or buy extras
  • Established relationship – easier to get approved if you have accounts/history

 

Bank/Credit Union Loans Cons:

 

  • Pre-approval required – you must get approved before purchasing the car
  • Slower process – bank approvals can take days or weeks, not same-day
  • No special offers – banks don’t offer the discounts and incentives dealers do
  • Separate processes – you have to handle the loan and purchase separately

 

When deciding, look closely at the rates, fees, and terms offered. Also consider your own financial situation and preferences. Are fast approvals or lowest rates more important? Do you want to handle financing separately? Weighing the pros and cons of dealer vs bank financing will help you make the best choice.

 

Top Car Lenders in London Ontario

When shopping for a car loan in London Ontario, you have several options for lenders. Here are some of the top options:

 

Major Banks

The major banks in Canada all offer competitive auto financing, including:

 

  • RBC Royal Bank – One of the largest lenders in Canada. Offers loans for new and used vehicles.
  • TD Canada Trust – Competitive interest rates and flexible terms. Online applications available.
  • BMO Bank of Montreal – Preferred rates for existing BMO customers. Apply online or at a branch.
  • Scotiabank – Financing for cars, trucks and SUVs. Special discounts for Scotia Momentum members.
  • CIBC – Auto loans with fixed and variable rate options. Apply online, on the phone or in person.

 

Credit Unions

Local credit unions can also offer competitive rates, such as:

 

  • Libro Credit Union – Serving Southwestern Ontario with great rates. Apply at a branch.
  • Your Credit Union – Proudly local and member-focused. Apply online or at one of 18 branches.

 

Dealerships

Many dealerships offer in-house financing through relationships with banks and lenders. This allows you to finance your vehicle purchase directly through the dealer.

 

Online Lenders

There are also some online-only lenders like:

 

  • RateHub – Compare rates from over 20 lenders. Offers pre-approvals.
  • Car Deal Canada – Network of lenders with online applications.

 

So whether you’re looking to finance a new or used vehicle, London Ontario has plenty of options for lenders and competitive rates on auto loans.

 

Bad Credit Car Loans

If you have bad credit or no credit history, getting approved for an auto loan from a traditional lender can be challenging. However, there are some options for obtaining financing even with poor credit:

 

Subprime Lenders

Specialty subprime lenders work specifically with borrowers who have credit scores below 600. They may charge higher interest rates to offset the risk, but can still provide auto financing to those who may not qualify with prime lenders.

 

Co-Signers

Adding a co-signer with good credit can improve your chances of getting approved and potentially lower your interest rate. The co-signer takes on equal responsibility for repaying the loan.

 

Down Payment

Putting down a larger down payment shows lenders you are committed to the loan. Typically 20% or higher down payment will improve your chances of getting approved.

 

Secured Loans

Secured loans use the vehicle as collateral, so they represent less risk for the lender. Interest rates are higher but easier to qualify for with bad credit.

 

Buy Here Pay Here Dealers

Buy here pay here (BHPH) dealers provide in-house financing to borrowers with poor credit. They focus more on your income versus credit score when approving loans.

While having poor credit makes getting a car loan more challenging, focusing on improving your credit score and considering the options above can help increase your chances of getting approved.

 

Car Loan Calculators

Car loan calculators are useful tools to estimate your monthly payments. They take into account factors like:

 

  • Loan amount
  • Interest rate
  • Loan term
  • Down payment
  • Trade-in value

 

By inputting this information, car loan calculators can provide an estimate of what your monthly payments would be. This helps give you an idea of what you can afford before applying for financing.

Calculators also let you play around with different variables. For example, you can see how a larger down payment or longer loan term impacts the monthly payment. This allows you to customize the loan terms to fit your budget.

While these estimates are not guarantees, car loan calculators offer helpful guidance. They provide approximations of payments so you can assess affordability. You should still speak to a lender for exact rates and terms tailored to your specific situation.

 

Down Payment On A Car Loan

When taking out a car loan, most lenders will require a down payment. The amount of your down payment can have a significant impact on the overall loan terms. In general, the larger your down payment, the better terms you will receive on your loan.

For new cars, a typical down payment ranges from 5-20% of the vehicle’s purchase price. Most lenders like to see at least 10% down, but some may approve loans with as little as 0-5% down. Keep in mind that smaller down payments often mean higher interest rates and monthly payments.

On used car loans, down payments tend to be higher, averaging 10-30% in most cases. Again, larger down payments give access to lower rates. With bad credit, large down payments are especially important for getting approved.

You can use online auto loan calculators to estimate your monthly payments and see how different down payment amounts impact the interest charges over the loan term. Aim for the largest down payment you can comfortably afford based on your budget.

 

Co-Signing A Car Loan

Getting a co-signer on your car loan can help improve your chances of getting approved if you have little or poor credit history. A co-signer agrees to be equally responsible for repaying the car loan if the primary borrower defaults.

Lenders typically look at the co-signer’s income, assets, credit score and history when determining approval. Having a co-signer with a good credit profile on your application can offset factors like low income, limited credit history or past credit issues.

Co-signers don’t have to be relatives – they can be friends or other associates willing to vouch for your ability to repay. However, co-signers take on equal liability, so their credit score can be impacted if payments are missed. Make sure any co-signers understand the risks and are comfortable with their responsibility.

A car loan co-signer can be an option for first-time borrowers with no or thin credit files. Students or new immigrants are examples. Adding an established co-signer helps demonstrate you can handle the repayment obligations.

Overall, a co-signer provides the lender with additional assurance and security. Their good profile and willingness to take on liability shows the lender you are a viable borrower. If you have any associates with strong credit who can co-sign, it can significantly boost your car loan approval odds.

 

Refinancing Your Car Loan

If you currently have an auto loan, refinancing it can potentially help you save money each month. There are a few key reasons why refinancing your car loan could make sense:

To Lower Your Interest Rate

Interest rates fluctuate over time. If rates have dropped significantly since you first took out your loan, refinancing could lower your rate and monthly payment. This is one of the most common reasons to refinance a car loan.

To Shorten Your Loan Term

Refinancing gives you a chance to pay off your loan faster by shortening the repayment term. You’ll pay less interest over the life of the loan, though your monthly payments will be higher.

To Improve Your Credit

If your credit score has improved since you first got your auto loan, you may now qualify for better refinancing terms. Refinancing could help further boost your credit by creating a more positive payment history.

To Consolidate Other Debts

Some lenders let you roll other debts, like credit cards or personal loans, into your new car loan. Consolidating through refinancing can simplify repayment if done responsibly.

Before pursuing a refinance, crunch the numbers to make sure it makes financial sense based on your situation. Refinancing costs money upfront through fees, so factor that in. But for many borrowers, refinancing their car loan can provide notable savings over the life of the loan.

 

Special Car Loan Programs

While most car loans are available to anyone with good credit, lenders also offer special car loan programs designed for specific types of borrowers such as students, recent graduates, new immigrants and members of the military.

 

Student Car Loans

Students in need of a vehicle can apply for student car loans offered by some lenders. These loans typically have lower interest rates and down payment requirements than traditional auto loans. To qualify, you’ll need to be enrolled in school full-time or for a certain number of credit hours per semester.

 

Graduate Car Loans

Recent graduates may qualify for graduate car loan programs for a limited time after finishing their studies. Like student loans, these programs feature reduced rates and down payments and can help new grads establish credit.

 

New Immigrant Car Loans

New immigrants to Canada with little or no local credit history may have difficulty getting approved for financing. Some lenders offer special car loans for new immigrants with low down payments and interest rates to help establish their credit here.

 

Military Car Loans

Current and former military members may qualify for car loans with discounted rates through lenders that cater to service members and veterans. These loans offer easy approval and often don’t require a down payment.

 

Car Loans In London, Ontario

When shopping for a car loan in the London, Ontario area, you have several options for local lenders and financing. London is home to major banks and credit unions as well as auto dealerships that provide financing. Here’s an overview of your options:

 

Major Banks

Most major banks like RBC, TD, Scotiabank, BMO, and CIBC have branches in London that offer auto loans. Going through a bank you already have a relationship with can streamline the application process. Banks typically offer competitive interest rates to borrowers with good to excellent credit.

 

Credit Unions

Local credit unions like Libro Credit Union, FirstOntario Credit Union, and Your Neighbourhood Credit Union provide auto loan financing options. Credit unions may offer lower rates and more flexibility compared to banks.

 

Auto Dealers

Many car dealerships in London have in-house financing through ties with lenders like Ford Credit, GM Financial, Toyota Financial Services, etc. Dealer financing may be an option for those with poor credit who can’t get approved elsewhere.

 

Online Lenders

There are also national online lenders that operate in Ontario and can pre-approve you for a car loan right from your computer or smartphone. Online lenders like RateHub, Canada Drives, and CarLoans Canada provide quick loan decisions.

 

Tips for London, Ontario

When getting a car loan in London, it helps to:

 

  • Check your credit score so you know your rate range
  • Get pre-approved to strengthen your negotiating position
  • Compare multiple lenders to find the best rates/terms
  • Consider used car loans to get lower rates
  • Calculate the total loan cost including fees/interest

 

With many options available, make sure to research lenders thoroughly before committing to auto financing in London. Knowing your credit score, getting pre-approved, and comparing options will help ensure you get the best loan for your needs.

 

Conclusion

In summary, getting a car loan is one way to finance a new or used automobile. With the various options available, it’s important to compare interest rates, loan terms, lenders, and your budget to find the best loan for your situation. Having a good credit score and steady income will help qualify you for better rates. It’s wise to get pre-approved first so you know how much you can spend. Consider both dealer financing and bank loans to see which offers the best deal. There are also options for bad credit borrowers. Use online car loan calculators to estimate payments. Putting down a larger down payment lowers the amount borrowed. Co-signing may help those with little credit history get approved. Refinancing could potentially save money down the road. Compare all the tips in this guide when seeking a car loan in London, Ontario or anywhere else in Canada.

The auto financing process can seem complicated at first, but taking it step-by-step while evaluating all your options will set you up for success. With the right preparation and research, you can get a great car loan to drive home your next vehicle.

Questions About Car Loans in London?

The average interest rate on new car loans in London is around 6-8%, while used car loans tend to be 8-12%. The rate offered will depend on factors like your credit score, down payment, loan term, and the lender. With strong credit (scores above 700), you can qualify for rates as low as 0-4% at some lenders. Compare rates from banks, credit unions, and dealerships. A larger down payment and shorter loan term will also help secure a lower interest rate.

Most lenders in London require a minimum credit score between 600-650 to approve you for car loan financing. Scores above 700 will qualify you for the best rates, while scores under 600 make approval difficult. If your credit score is low, applying with a co-signer with good credit will improve your chances. There are also “second chance” financing companies that work with bad credit applicants. Improving your score before applying will open up better loan offers.

Some options for bad credit car loans in London include:

 

– Specialty subprime lenders like Auto Approvers, Carnation Canada, and EZee Credit

 

– Buy here pay here dealerships like 5 Star Dealers and Downtown Motor Products

 

– In-house financing at dealerships like Westgate Honda and Bart’s Used Cars

 

– Personal loans from alternative lenders like Fairstone Financial and Easy Financial

 

Having a steady income, down payment, and proof you can afford payments will help secure financing despite poor credit. Expect higher interest rates until you build your credit back up.

Typical documents needed for a car loan application in London include:

 

– Proof of income – Recent pay stubs, tax returns, bank statements

 

– Government-issued ID – Driver’s license, passport

 

– Proof of address – Utility bill, bank statement with address

 

– Down payment – At least 5-10% of the vehicle purchase price

 

– References – Names and contact details of 1-3 references

 

– Co-signer information, if applying with a co-signer

 

Having all documents ready speeds up the application and approval process.

Most lenders in London require a 5-10% down payment when financing a used car purchase. So on a $15,000 used car, you would need around $750-1,500 down. More is better – a 20% down payment allows you to finance less and can help you qualify for better interest rates. Putting less than 5% down makes lenders view you as higher risk. For bad credit buyers, larger down payments in the 20-30% range are typically expected.

The best way to get pre-approved is to choose 2-3 top lender choices, gather required documents, fill out online pre-approval applications, and compare offers. This allows you to shop like a cash buyer once pre-approved, while locking in financing ahead of time. Top lenders include banks (TD, RBC, Scotiabank), credit unions (Libro Credit Union, FirstOntario Credit Union), and third-party lenders (Carnation Canada, Rifco National Auto Finance).

Yes, going through the pre-qualification process before formally applying is highly recommended. Pre-qualification is a soft credit check that estimates the loan amount and rate you may qualify for without impacting your credit score. It’s a useful early indicator of approval odds and loan terms, allowing you to evaluate if it makes sense to move forward with a full application. The pre-qualification process is easy and gives you more confidence when applying for a car loan.

The most popular car loan terms in London are 36-month, 48-month, 60-month, and 72-month repayment terms. 36 and 48 months are common for new cars, while used cars are often financed for 60-72 month terms. The average loan term falls between 48-60 months. Shorter terms of 24-36 months have higher monthly payments but pay off debt quicker and cost less interest. Extended terms up to 84 months lower the payments but increase total interest costs substantially.

Tips to improve your auto loan approval chances in London include:

 

– Boost credit score above 650+

– Lower existing debt burdens

– Provide steady income proof

– Make a 10-20% down payment

– Bring a co-signer with good credit

– Apply at credit unions, finance companies

– Purchase older, less expensive vehicles

– Write a letter explaining past credit issues

 

Meeting more approval criteria makes lenders view you as lower risk, increasing the odds your application gets the green light.

In London, Ontario, lenders can legally repossess your car as soon as you default on your contract and fall behind on payments. No court order is required. The lender must send written notice 10-30 days in advance before repossession. They can retrieve the vehicle from any public location without breaching peace. You have the right to reinstate the loan up until the moment of sale. Once sold, you must pay any loan deficiency balance, fees, storage costs and get the rest back.

When trading in a car you owe more on than it’s worth (negative equity) in London, make sure to bring:

 

– Current registration for trade-in

– Outstanding loan payout statement

– List of any mechanical issues

– Copy of latest bill of sale

– Proof of regular payments made

– Copy of the original financing contract

 

Providing a complete trade-in picture allows the dealer to accurately appraise your vehicle and roll the negative equity into your new loan.

The top used car dealerships facilitating bad credit auto financing in London include:

 

– 5 Star Dealers

– Downtown Motor Products

– Bart’s Used Cars

– Westgate Honda

– EZee Credit

– Fast Action Finance

 

All of these used car lots work with various subprime lenders and some provide direct in-house financing to accommodate applicants with credit challenges. Higher interest rates will apply until you improve your credit profile.

As a general rule, you can afford 20-30% of your gross monthly income towards total vehicle expenses like car payments, insurance, gas and maintenance. So if your income is $4,000 monthly, aim for no more than $800-1,200 in total monthly vehicle spending. This includes the car payment, gas, insurance, etc. Spending above 30% makes lenders see you as higher risk for defaulting on the loan.

If you get denied traditional auto financing, alternative options in London include:

 

– Applying with a co-signer who has good credit

– Building credit history and re-applying in 6-12 months

– Working on debt-to-income ratio and saving a larger down payment

– Exploring in-house dealer financing that is more flexible

– Seeking a personal loan for vehicle purchase at higher rates

– Looking at private/personal sales listings instead of dealerships

 

Improving certain factors that caused the denial and exploring other financing avenues can still help you drive home your dream car.

Refinancing charges in London average $300-500 for administration fees when switching lenders. It’s worth refinancing if you can lower your rate by at least 2% while keeping loan terms the same. For example, dropping your rate from 8% to 5% could save over $1,000 in interest on a $15,000 loan. Refinancing works best for those with good credit and significant equity in their vehicle. Use online auto loan refinance calculators to estimate potential savings.

London and all of Ontario require drivers to carry a minimum of $200,000 in third-party liability coverage. This includes:

 

– $100,000 to cover bodily injury/death to one person

– $100,000 total limit for multiple people injured/killed

– $50,000 minimum for property damage

 

Additional recommended coverage includes collision, comprehensive, underinsured motorist protection and income replacement benefits in case of injury. Ontario insurance rates are among the highest in Canada – shop quotes regularly.

To lock-in an advertised interest rate:

 

– Get pre-approved for a guaranteed rate in writing

– Read all fine print and terms carefully

– Avoid major changes between pre-approval and purchase

– Review rates again just before signing contract

– Ensure no pre-payment penalties apply

 

What’s advertised is not always guaranteed. Protect yourself by getting all details in writing so there are no surprises later at closing time.

Common extra fees with dealership financing include:

 

– Documentation fees – $300-800

– Dealer preparation fees – $500-1,000

– Vehicle etching fees – $200-400

– Extended warranty fees

– Rust protection packages

– Lifetime oil change packages

 

These extra costs can add $1,000+ to your loan. Read contracts carefully and negotiate removal of unnecessary add-ons before signing. Get final pricing in writing first.

 

Why Get A Car Loan?

Getting a car loan allows you the flexibility to purchase the vehicle you want, even if you can’t afford to pay the full price upfront. With a car loan, you can spread out the cost over months or years with a predictable monthly payment. Here are some of the top reasons to consider financing your next car purchase:

Get the car you want: Financing gives you the ability to buy a more expensive vehicle than you could pay for in cash, allowing you to get the make, model, and features you really want.

Build credit history: Making regular on-time loan payments shows lenders you can responsibly manage debt and will help improve your credit score over time.

Lower monthly costs: Borrowing spreads the cost out over time so your monthly payments are lower compared to paying the full price upfront.

Manage money: Using a loan allows you to keep money free for other needs rather than depleting your savings to buy a car.

Get lower rates on future loans: By taking out a car loan and paying it back responsibly, you can qualify for better interest rates on future loans for a home, another car, etc.

Overall, a car loan provides the flexibility to get the vehicle you want while keeping monthly costs affordable. It also helps you build your credit history over time.

 

Types of Car Loans

There are several main types of car loans to consider when financing your next vehicle purchase.

 

New vs Used Car Loans

New car loans typically have lower interest rates and longer repayment terms than used car loans. This is because new cars depreciate less quickly than used cars. New cars may also qualify for additional manufacturer incentives and rebates that can lower your loan’s interest rate. However, new cars also have higher sticker prices, so your total loan amount will be greater.

Used car loans usually have higher interest rates but you’re borrowing less money overall since the car has already depreciated in value. Used car loans tend to have shorter repayment terms of 2-5 years. The age of the used car will impact your loan terms and interest rate.

 

Lease vs Finance

Leasing a car means you pay for its expected depreciation during the lease term, plus fees and interest. You make lower monthly payments compared to financing, but you must return the car at the end of the lease. Leasing makes sense if you want a new car every few years.

Financing is taking out an auto loan to buy and own a vehicle. Your monthly payments go towards paying off the loan principal plus interest. Once the loan is paid off, you own the car free and clear. Financing is better if you want to drive the car long-term.

 

Secured vs Unsecured Car Loans

A secured car loan uses the vehicle as collateral for the loan, meaning the lender can repossess it if you default. Most car loans are secured loans. An unsecured car loan does not use the car as collateral, but these are rare.

 

How Do Car Loans Work?

Getting a car loan is a straightforward process that involves applying, getting approved, and making payments over time. Here are the key steps:

Apply for a Loan

To start, you’ll complete a car loan application with a lender, either at the dealership or bank. You’ll provide information like income, employment, credit score, down payment amount, and the car you want to purchase.

Get Approved

The lender will review your application and make an approval decision based on your creditworthiness. This determines the loan amount, interest rate, and terms you qualify for.

Choose a Car

If pre-approved, you can now start shopping for the car you want. If not, the dealer will submit your application after you’ve chosen a car. With approval, you can purchase the car.

Make Payments

Once all the paperwork is signed, you’ll start making monthly payments as outlined in your loan agreement. A repayment schedule breaks down each payment and how they are applied to interest and principal.

Pay Off the Loan

You’ll make payments until the loan balance is paid in full, at which point you’ll own the car free and clear. The loan term affects your monthly payment and how long it takes to pay off.

 

What Credit Score Is Needed For A Car Loan?

Your credit score is one of the most important factors lenders consider when approving a car loan. The minimum credit score needed for most auto loans in Canada is around 650. Borrowers with scores below 650 will likely face higher interest rates or get declined altogether.

In general, the higher your credit score, the better the loan terms will be. Here’s an overview of typical credit score requirements:

 

  • Excellent Credit (720+): The best rates and loan terms. Likely eligible for 0% financing deals.
  • Good Credit (650-719): Qualify for competitive interest rates from most lenders.
  • Fair Credit (620-649): May be approved but pay higher rates. Limited lender options.
  • Poor Credit (Below 620): Hard to get approved for traditional loans. Must seek out subprime lenders.

 

Along with your score, lenders examine your overall credit history including late payments, collections, bankruptcies or other red flags. Having limited credit history can also negatively impact your interest rates. The longer your established credit, the better.

Improving your credit score before applying for an auto loan can help you secure more favourable terms. You may consider getting a credit report to review your standing across areas like payment history, credit utilization, credit age and new credit inquiries.

With a higher score, you’ll have more financing options and could potentially save thousands over the term of the loan. Check your credit well in advance and take steps to boost your profile if needed.

 

Car Loan Interest Rates

Interest rates on car loans can vary widely in Canada based on factors such as your credit score, the lender, loan term, down payment amount, and more. Getting the lowest interest rate possible on your auto financing can save you thousands over the term of the loan.

The current average interest rate on new car loans from banks is around 5-7%, while used car loans tend to be a little higher at 6-9%. Rates from dealerships and other lenders may be even higher. However, it’s possible to get much lower rates below 5% with excellent credit scores above 720.

Here are some of the key factors that affect car loan interest rates:

 

  • Credit score – The higher your credit score, the lower rate you can qualify for. Aim for 720+ for the best rates.
  • New vs. used – New cars tend to have lower rates than used since they hold value better.
  • Down payment – Larger down payments can lead to lower rates since the loan amount is smaller.
  • Loan term – Shorter terms often have lower rates. Opt for 4-5 years if possible.
  • Lender – Banks and credit unions offer the lowest rates on average.

 

It’s a good idea to check your credit score and get pre-approved with multiple lenders before visiting dealers to negotiate the lowest rate on your next auto loan. even a small difference of 1-2% on your interest rate can save $1,000+ over the life of the loan.

Getting Pre-Approved

Getting pre-approved for a car loan can make the car buying process much smoother. Here are some of the key benefits of getting pre-approved:

 

  • You’ll know your budget – When you get pre-approved, you’ll know exactly how much the lender is willing to lend you. This allows you to narrow your car search to vehicles that fit your budget.
  • Stronger negotiating position – If you have a pre-approval letter, it shows dealers that you’re a serious buyer. This puts you in a better position to negotiate the vehicle price and financing terms.
  • Faster financing process – With a pre-approval, the dealership simply needs to confirm your details rather than submitting a full application. This can shave days or weeks off the financing process.
  • Wider selection – Dealers know you’re pre-approved for financing, so they may show you more vehicle options without worrying about your credit or income.

 

Getting pre-approved is relatively straightforward. Here are the basic steps:

 

  1. Check your credit – Review your credit report and score so you know where you stand. This will allow you to target lenders most likely to approve you.
  2. Research lenders – Compare options like banks, credit unions, and online lenders. Consider their rates, terms, fees, and pre-approval processes.
  3. Gather documents – You’ll need documents like your driver’s license, proof of income, and possibly bank statements.
  4. Complete application – Fill out the pre-approval application with your personal and financial details.
  5. Get pre-approval letter – If approved, you’ll receive a pre-approval letter stating the loan amount and terms.

 

With some preparation and research, getting pre-approved can make your auto financing experience much smoother.

 

Choosing Between Dealer Financing vs Bank Loans

When it comes to getting a car loan in London, Ontario, you have two main options – going through the dealership (dealer financing) or going through your bank or credit union (bank loans). Both options have their pros and cons.

Dealer Financing Pros:

 

  • One-stop shop – you can purchase the car and get financing all in one place
  • Incentives – dealers often offer special rates or cash incentives when financing through them
  • Convenience – the dealer handles all the loan paperwork and approvals
  • Faster approvals – dealer financing decisions are usually made quickly, often the same day

 

Dealer Financing Cons:

 

  • Higher interest rates – dealer financing typically has higher rates than banks
  • More fees – there are often extra fees rolled into dealer financing
  • Upselling – dealers may encourage you to borrow more or buy add-ons
  • Limited terms – dealer financing terms are usually shorter (3-5 years)

 

Bank/Credit Union Loans Pros:

 

  • Lower rates – banks/credit unions often offer lower rates than dealers
  • Flexibility – banks provide more options for loan terms and structures
  • No pressure – you aren’t pushed to borrow more or buy extras
  • Established relationship – easier to get approved if you have accounts/history

 

Bank/Credit Union Loans Cons:

 

  • Pre-approval required – you must get approved before purchasing the car
  • Slower process – bank approvals can take days or weeks, not same-day
  • No special offers – banks don’t offer the discounts and incentives dealers do
  • Separate processes – you have to handle the loan and purchase separately

 

When deciding, look closely at the rates, fees, and terms offered. Also consider your own financial situation and preferences. Are fast approvals or lowest rates more important? Do you want to handle financing separately? Weighing the pros and cons of dealer vs bank financing will help you make the best choice.

 

Top Car Lenders in London Ontario

When shopping for a car loan in London Ontario, you have several options for lenders. Here are some of the top options:

 

Major Banks

The major banks in Canada all offer competitive auto financing, including:

 

  • RBC Royal Bank – One of the largest lenders in Canada. Offers loans for new and used vehicles.
  • TD Canada Trust – Competitive interest rates and flexible terms. Online applications available.
  • BMO Bank of Montreal – Preferred rates for existing BMO customers. Apply online or at a branch.
  • Scotiabank – Financing for cars, trucks and SUVs. Special discounts for Scotia Momentum members.
  • CIBC – Auto loans with fixed and variable rate options. Apply online, on the phone or in person.

 

Credit Unions

Local credit unions can also offer competitive rates, such as:

 

  • Libro Credit Union – Serving Southwestern Ontario with great rates. Apply at a branch.
  • Your Credit Union – Proudly local and member-focused. Apply online or at one of 18 branches.

 

Dealerships

Many dealerships offer in-house financing through relationships with banks and lenders. This allows you to finance your vehicle purchase directly through the dealer.

 

Online Lenders

There are also some online-only lenders like:

 

  • RateHub – Compare rates from over 20 lenders. Offers pre-approvals.
  • Car Deal Canada – Network of lenders with online applications.

 

So whether you’re looking to finance a new or used vehicle, London Ontario has plenty of options for lenders and competitive rates on auto loans.

 

Bad Credit Car Loans

If you have bad credit or no credit history, getting approved for an auto loan from a traditional lender can be challenging. However, there are some options for obtaining financing even with poor credit:

 

Subprime Lenders

Specialty subprime lenders work specifically with borrowers who have credit scores below 600. They may charge higher interest rates to offset the risk, but can still provide auto financing to those who may not qualify with prime lenders.

 

Co-Signers

Adding a co-signer with good credit can improve your chances of getting approved and potentially lower your interest rate. The co-signer takes on equal responsibility for repaying the loan.

 

Down Payment

Putting down a larger down payment shows lenders you are committed to the loan. Typically 20% or higher down payment will improve your chances of getting approved.

 

Secured Loans

Secured loans use the vehicle as collateral, so they represent less risk for the lender. Interest rates are higher but easier to qualify for with bad credit.

 

Buy Here Pay Here Dealers

Buy here pay here (BHPH) dealers provide in-house financing to borrowers with poor credit. They focus more on your income versus credit score when approving loans.

While having poor credit makes getting a car loan more challenging, focusing on improving your credit score and considering the options above can help increase your chances of getting approved.

 

Car Loan Calculators

Car loan calculators are useful tools to estimate your monthly payments. They take into account factors like:

 

  • Loan amount
  • Interest rate
  • Loan term
  • Down payment
  • Trade-in value

 

By inputting this information, car loan calculators can provide an estimate of what your monthly payments would be. This helps give you an idea of what you can afford before applying for financing.

Calculators also let you play around with different variables. For example, you can see how a larger down payment or longer loan term impacts the monthly payment. This allows you to customize the loan terms to fit your budget.

While these estimates are not guarantees, car loan calculators offer helpful guidance. They provide approximations of payments so you can assess affordability. You should still speak to a lender for exact rates and terms tailored to your specific situation.

 

Down Payment On A Car Loan

When taking out a car loan, most lenders will require a down payment. The amount of your down payment can have a significant impact on the overall loan terms. In general, the larger your down payment, the better terms you will receive on your loan.

For new cars, a typical down payment ranges from 5-20% of the vehicle’s purchase price. Most lenders like to see at least 10% down, but some may approve loans with as little as 0-5% down. Keep in mind that smaller down payments often mean higher interest rates and monthly payments.

On used car loans, down payments tend to be higher, averaging 10-30% in most cases. Again, larger down payments give access to lower rates. With bad credit, large down payments are especially important for getting approved.

You can use online auto loan calculators to estimate your monthly payments and see how different down payment amounts impact the interest charges over the loan term. Aim for the largest down payment you can comfortably afford based on your budget.

 

Co-Signing A Car Loan

Getting a co-signer on your car loan can help improve your chances of getting approved if you have little or poor credit history. A co-signer agrees to be equally responsible for repaying the car loan if the primary borrower defaults.

Lenders typically look at the co-signer’s income, assets, credit score and history when determining approval. Having a co-signer with a good credit profile on your application can offset factors like low income, limited credit history or past credit issues.

Co-signers don’t have to be relatives – they can be friends or other associates willing to vouch for your ability to repay. However, co-signers take on equal liability, so their credit score can be impacted if payments are missed. Make sure any co-signers understand the risks and are comfortable with their responsibility.

A car loan co-signer can be an option for first-time borrowers with no or thin credit files. Students or new immigrants are examples. Adding an established co-signer helps demonstrate you can handle the repayment obligations.

Overall, a co-signer provides the lender with additional assurance and security. Their good profile and willingness to take on liability shows the lender you are a viable borrower. If you have any associates with strong credit who can co-sign, it can significantly boost your car loan approval odds.

 

Refinancing Your Car Loan

If you currently have an auto loan, refinancing it can potentially help you save money each month. There are a few key reasons why refinancing your car loan could make sense:

To Lower Your Interest Rate

Interest rates fluctuate over time. If rates have dropped significantly since you first took out your loan, refinancing could lower your rate and monthly payment. This is one of the most common reasons to refinance a car loan.

To Shorten Your Loan Term

Refinancing gives you a chance to pay off your loan faster by shortening the repayment term. You’ll pay less interest over the life of the loan, though your monthly payments will be higher.

To Improve Your Credit

If your credit score has improved since you first got your auto loan, you may now qualify for better refinancing terms. Refinancing could help further boost your credit by creating a more positive payment history.

To Consolidate Other Debts

Some lenders let you roll other debts, like credit cards or personal loans, into your new car loan. Consolidating through refinancing can simplify repayment if done responsibly.

Before pursuing a refinance, crunch the numbers to make sure it makes financial sense based on your situation. Refinancing costs money upfront through fees, so factor that in. But for many borrowers, refinancing their car loan can provide notable savings over the life of the loan.

 

Special Car Loan Programs

While most car loans are available to anyone with good credit, lenders also offer special car loan programs designed for specific types of borrowers such as students, recent graduates, new immigrants and members of the military.

 

Student Car Loans

Students in need of a vehicle can apply for student car loans offered by some lenders. These loans typically have lower interest rates and down payment requirements than traditional auto loans. To qualify, you’ll need to be enrolled in school full-time or for a certain number of credit hours per semester.

 

Graduate Car Loans

Recent graduates may qualify for graduate car loan programs for a limited time after finishing their studies. Like student loans, these programs feature reduced rates and down payments and can help new grads establish credit.

 

New Immigrant Car Loans

New immigrants to Canada with little or no local credit history may have difficulty getting approved for financing. Some lenders offer special car loans for new immigrants with low down payments and interest rates to help establish their credit here.

 

Military Car Loans

Current and former military members may qualify for car loans with discounted rates through lenders that cater to service members and veterans. These loans offer easy approval and often don’t require a down payment.

 

Car Loans In London, Ontario

When shopping for a car loan in the London, Ontario area, you have several options for local lenders and financing. London is home to major banks and credit unions as well as auto dealerships that provide financing. Here’s an overview of your options:

 

Major Banks

Most major banks like RBC, TD, Scotiabank, BMO, and CIBC have branches in London that offer auto loans. Going through a bank you already have a relationship with can streamline the application process. Banks typically offer competitive interest rates to borrowers with good to excellent credit.

 

Credit Unions

Local credit unions like Libro Credit Union, FirstOntario Credit Union, and Your Neighbourhood Credit Union provide auto loan financing options. Credit unions may offer lower rates and more flexibility compared to banks.

 

Auto Dealers

Many car dealerships in London have in-house financing through ties with lenders like Ford Credit, GM Financial, Toyota Financial Services, etc. Dealer financing may be an option for those with poor credit who can’t get approved elsewhere.

 

Online Lenders

There are also national online lenders that operate in Ontario and can pre-approve you for a car loan right from your computer or smartphone. Online lenders like RateHub, Canada Drives, and CarLoans Canada provide quick loan decisions.

 

Tips for London, Ontario

When getting a car loan in London, it helps to:

 

  • Check your credit score so you know your rate range
  • Get pre-approved to strengthen your negotiating position
  • Compare multiple lenders to find the best rates/terms
  • Consider used car loans to get lower rates
  • Calculate the total loan cost including fees/interest

 

With many options available, make sure to research lenders thoroughly before committing to auto financing in London. Knowing your credit score, getting pre-approved, and comparing options will help ensure you get the best loan for your needs.

 

Conclusion

In summary, getting a car loan is one way to finance a new or used automobile. With the various options available, it’s important to compare interest rates, loan terms, lenders, and your budget to find the best loan for your situation. Having a good credit score and steady income will help qualify you for better rates. It’s wise to get pre-approved first so you know how much you can spend. Consider both dealer financing and bank loans to see which offers the best deal. There are also options for bad credit borrowers. Use online car loan calculators to estimate payments. Putting down a larger down payment lowers the amount borrowed. Co-signing may help those with little credit history get approved. Refinancing could potentially save money down the road. Compare all the tips in this guide when seeking a car loan in London, Ontario or anywhere else in Canada.

The auto financing process can seem complicated at first, but taking it step-by-step while evaluating all your options will set you up for success. With the right preparation and research, you can get a great car loan to drive home your next vehicle.

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Questions About Car Loans in London?

The average interest rate on new car loans in London is around 6-8%, while used car loans tend to be 8-12%. The rate offered will depend on factors like your credit score, down payment, loan term, and the lender. With strong credit (scores above 700), you can qualify for rates as low as 0-4% at some lenders. Compare rates from banks, credit unions, and dealerships. A larger down payment and shorter loan term will also help secure a lower interest rate.

Most lenders in London require a minimum credit score between 600-650 to approve you for car loan financing. Scores above 700 will qualify you for the best rates, while scores under 600 make approval difficult. If your credit score is low, applying with a co-signer with good credit will improve your chances. There are also “second chance” financing companies that work with bad credit applicants. Improving your score before applying will open up better loan offers.

Some options for bad credit car loans in London include:

 

– Specialty subprime lenders like Auto Approvers, Carnation Canada, and EZee Credit

 

– Buy here pay here dealerships like 5 Star Dealers and Downtown Motor Products

 

– In-house financing at dealerships like Westgate Honda and Bart’s Used Cars

 

– Personal loans from alternative lenders like Fairstone Financial and Easy Financial

 

Having a steady income, down payment, and proof you can afford payments will help secure financing despite poor credit. Expect higher interest rates until you build your credit back up.

Typical documents needed for a car loan application in London include:

 

– Proof of income – Recent pay stubs, tax returns, bank statements

 

– Government-issued ID – Driver’s license, passport

 

– Proof of address – Utility bill, bank statement with address

 

– Down payment – At least 5-10% of the vehicle purchase price

 

– References – Names and contact details of 1-3 references

 

– Co-signer information, if applying with a co-signer

 

Having all documents ready speeds up the application and approval process.

Most lenders in London require a 5-10% down payment when financing a used car purchase. So on a $15,000 used car, you would need around $750-1,500 down. More is better – a 20% down payment allows you to finance less and can help you qualify for better interest rates. Putting less than 5% down makes lenders view you as higher risk. For bad credit buyers, larger down payments in the 20-30% range are typically expected.

The best way to get pre-approved is to choose 2-3 top lender choices, gather required documents, fill out online pre-approval applications, and compare offers. This allows you to shop like a cash buyer once pre-approved, while locking in financing ahead of time. Top lenders include banks (TD, RBC, Scotiabank), credit unions (Libro Credit Union, FirstOntario Credit Union), and third-party lenders (Carnation Canada, Rifco National Auto Finance).

Yes, going through the pre-qualification process before formally applying is highly recommended. Pre-qualification is a soft credit check that estimates the loan amount and rate you may qualify for without impacting your credit score. It’s a useful early indicator of approval odds and loan terms, allowing you to evaluate if it makes sense to move forward with a full application. The pre-qualification process is easy and gives you more confidence when applying for a car loan.

The most popular car loan terms in London are 36-month, 48-month, 60-month, and 72-month repayment terms. 36 and 48 months are common for new cars, while used cars are often financed for 60-72 month terms. The average loan term falls between 48-60 months. Shorter terms of 24-36 months have higher monthly payments but pay off debt quicker and cost less interest. Extended terms up to 84 months lower the payments but increase total interest costs substantially.

Tips to improve your auto loan approval chances in London include:

 

– Boost credit score above 650+

– Lower existing debt burdens

– Provide steady income proof

– Make a 10-20% down payment

– Bring a co-signer with good credit

– Apply at credit unions, finance companies

– Purchase older, less expensive vehicles

– Write a letter explaining past credit issues

 

Meeting more approval criteria makes lenders view you as lower risk, increasing the odds your application gets the green light.

In London, Ontario, lenders can legally repossess your car as soon as you default on your contract and fall behind on payments. No court order is required. The lender must send written notice 10-30 days in advance before repossession. They can retrieve the vehicle from any public location without breaching peace. You have the right to reinstate the loan up until the moment of sale. Once sold, you must pay any loan deficiency balance, fees, storage costs and get the rest back.

When trading in a car you owe more on than it’s worth (negative equity) in London, make sure to bring:

 

– Current registration for trade-in

– Outstanding loan payout statement

– List of any mechanical issues

– Copy of latest bill of sale

– Proof of regular payments made

– Copy of the original financing contract

 

Providing a complete trade-in picture allows the dealer to accurately appraise your vehicle and roll the negative equity into your new loan.

The top used car dealerships facilitating bad credit auto financing in London include:

 

– 5 Star Dealers

– Downtown Motor Products

– Bart’s Used Cars

– Westgate Honda

– EZee Credit

– Fast Action Finance

 

All of these used car lots work with various subprime lenders and some provide direct in-house financing to accommodate applicants with credit challenges. Higher interest rates will apply until you improve your credit profile.

As a general rule, you can afford 20-30% of your gross monthly income towards total vehicle expenses like car payments, insurance, gas and maintenance. So if your income is $4,000 monthly, aim for no more than $800-1,200 in total monthly vehicle spending. This includes the car payment, gas, insurance, etc. Spending above 30% makes lenders see you as higher risk for defaulting on the loan.

If you get denied traditional auto financing, alternative options in London include:

 

– Applying with a co-signer who has good credit

– Building credit history and re-applying in 6-12 months

– Working on debt-to-income ratio and saving a larger down payment

– Exploring in-house dealer financing that is more flexible

– Seeking a personal loan for vehicle purchase at higher rates

– Looking at private/personal sales listings instead of dealerships

 

Improving certain factors that caused the denial and exploring other financing avenues can still help you drive home your dream car.

Refinancing charges in London average $300-500 for administration fees when switching lenders. It’s worth refinancing if you can lower your rate by at least 2% while keeping loan terms the same. For example, dropping your rate from 8% to 5% could save over $1,000 in interest on a $15,000 loan. Refinancing works best for those with good credit and significant equity in their vehicle. Use online auto loan refinance calculators to estimate potential savings.

London and all of Ontario require drivers to carry a minimum of $200,000 in third-party liability coverage. This includes:

 

– $100,000 to cover bodily injury/death to one person

– $100,000 total limit for multiple people injured/killed

– $50,000 minimum for property damage

 

Additional recommended coverage includes collision, comprehensive, underinsured motorist protection and income replacement benefits in case of injury. Ontario insurance rates are among the highest in Canada – shop quotes regularly.

To lock-in an advertised interest rate:

 

– Get pre-approved for a guaranteed rate in writing

– Read all fine print and terms carefully

– Avoid major changes between pre-approval and purchase

– Review rates again just before signing contract

– Ensure no pre-payment penalties apply

 

What’s advertised is not always guaranteed. Protect yourself by getting all details in writing so there are no surprises later at closing time.

Common extra fees with dealership financing include:

 

– Documentation fees – $300-800

– Dealer preparation fees – $500-1,000

– Vehicle etching fees – $200-400

– Extended warranty fees

– Rust protection packages

– Lifetime oil change packages

 

These extra costs can add $1,000+ to your loan. Read contracts carefully and negotiate removal of unnecessary add-ons before signing. Get final pricing in writing first.

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