The Loans Canada team sits down with Gary Schwartz of the Canadian Lenders Association to talk about open banking.
Cars with High Trade-in Value
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Having a reliable vehicle is a top priority for most Canadians and therefore it has become an important financial decision that needs to be carefully considered. When trying to decide what vehicle is best suited for you and your lifestyle ask yourself the following questions:
- Which auto manufacturer do you trust?
- What type/model of vehicle are you looking for?
- What size vehicle is the most appropriate for your needs?
- How much can you afford to spend?
- Do you need financing? And what kind do you want?
On top of these questions, we suggest that you consider trade-in value. This is a feature that most Canadian do not take into consideration before they purchase a new vehicle. By choosing a vehicle with a high trade-in value you’ll give yourself peace of mind that in a couple of years when your vehicle needs have changed you’ll be able to get a good trade-in price.
Top 5 Cars with the Highest Trade-in Value
Sub-compact car: The Honda Fit
The Honda Fit continues to top the sub-compact car category this year. While the Honda Fit might be a smaller compact car it is fairly roomy on the inside, which makes it a great choice for many drivers. It has a rather high fuel-efficiency for its size and is durable and reliable. The Fit is an overall great car and will retain its value which makes it both an excellent car to drive now and sell once you’re done with it.
Compact car: The Toyota Prius
The Toyota Prius is the only hybrid car to make the list, but with its eco-conscious power source and family-friendly size it’s no wonder why it did. The Prius continues to become a more common choice for all types of Canadian drivers and as its popularity raises so does its trade-in value.
Mid-size car: The Subaru Outback
Moving up one vehicle size, we have the Subaru Outback, this car has made the list for the past couple of years which has only added to its popularity. The Outback comes with a variety of features that appeal to all types of drivers and with its high trade-in value it continues to be a great option for many Canadian motorists.
Sports Utility Vehicle: The Toyota 4Runner
In the SUV category, the Toyota 4Runner makes its first appearance at the top of the highest trade-in value list this year. With the Toyota name behind it, synonymous with quality, reliability, and style, there’s no reason why the 4Runner wouldn’t top the list. With a focus on off-roading capabilities and family, this is the perfect vehicle for any anyone in need of a little extra room and power.
Minivan: The Honda Odyssey
Last but not least we have the minivan category; the Honda Odyssey takes home the recognition for the highest trade-in value. This minivan has come in first in this category for the past couple of years making it a great option for those looking for longevity and practicality in their vehicle. Additionally, the Honda Odyssey is the first of its kind to have a third row of seats to accommodate more passengers. It also provides enough storage for all your family’s needs.
Why You Should Choose a High-Value Trade in Car
Cars depreciate in value very quickly, but depending on the car you get, some retain its value better than others. While a car with a high trade-in value may not provide any immediate benefits, it does come with significant long-term advantages.
- Trade-in – When purchasing a new car, many people trade-in their old car to cut down on costs. The higher your car is worth, the more money you can end up saving. Moreover, you won’t have to finance the entire amount of the car, which in turn will further reduce your costs.
- Negative equity – If you ever get into an accident where you total your car, your insurance will pay you the current value of your car. If your car is worth less than what you owe your dealer, you will end up having to pay the difference.
- Sell your Car – When trading in your car, dealers will always offer you less than what your car is actually worth in order to make a profit. While it may be more convenient to trade in your car, you can opt to sell your car. High-value trade in cars are easier to sell and will allow you to control the amount you get for your car.
Looking to Purchase Any of These Vehicles?
If you’re currently in the market for a new or used vehicle but you don’t know how you’re going to afford it you need to consider all your financing options. Generally speaking, there are two types of financing you can choose from, in-house financing where you get your loan from the dealership or financing from an outside source like a bank or private lender.
In-house financing is often seen as just another way for a car dealership to make more money and while this is true it can also be a good choice for those who have no other options. Here are the pros and cons of in-house financing so you can make the best decision for your auto financing needs.
- Convenience – Rather than finding a different institution to finance your car, you can complete the entire buying and financing process through your dealership. This will save you time and often money, as car dealerships provide lower rates as they want you to finance with them as they make a greater profit that way.
- Bad Credit – Car dealerships want you to buy the car just as much as you do. As such, they will work hard to find you the financing you need to afford the car.
- Flexible Financing – Due to the flexibility in-house financing provides, you’ll be able to afford the car you really want.
- Closed Financing – With In-house financing, you won’t be able to pay off your loan ahead of schedule. As closed financing, you must pay according to the agreement, prepayments aren’t allowed.
- Credit – Some dealership may not report your payments to the credit bureau, as such you won’t be able to build your credit.
Outside Source for Financing
While some people may think that dealing with another company to get their car loan is not worth the effort, you’d be surprised at how easy it is to get preapproved for a car loan and then head to your dealership to pick out your car. Here are the pros and cons of choosing an outside source for your car loan.
- Bad Credit – Many alternative lenders accept individuals with varying credit scores. If you need a car loan, you’ll be able to qualify for one easily through an alternative lender.
- Get the car you want – Due to the flexible lending standards, you’ll be able to finance the car you want.
- Build your credit – With an alternative lender, you are guaranteed to build your credit as they will without a doubt report your payments to credit bureau.
- Longer Process – By using an external source for financing you’ll have to deal with more paperwork and a different representative.
If a new vehicle is on your mind then you probably are also thinking about how you’re going to afford it. If in-house financing isn’t your thing and you’re looking for an outside lending source to help you get the car of your dreams, you should consider Loans Canada. Contact one of our auto loan specialists today and get approved in less than 24 hours. Weigh your options, choose the best car for you and then get the financing you need.
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