There are tons of ways to personalize your vehicle, and getting a new set of rims is just one of them. In fact, an upgraded set of rims can make a major difference in the look and feel of your vehicle. But like any other components of a car, rims can be extremely expensive, making it financially difficult to come up with the funds needed to pay for them outright.
Fortunately, there are loan options to help car owners buy the rims of their dreams to transform their cars into luxury models. Here is everything you need to know about financing for rims.
Key Points
- Rims can be very expensive, costing upwards of $2,000 or more.
- Given the high cost, rim financing may be a good option to consider.
- Just about all types and brands of rims can be financed.
- Financing for rims is available from various sources, including conventional lenders, online lenders, and in-house financing sources.
- To maximize your chances of loan approval, consider boosting your credit score, making a sizable down payment, and doing some comparison shopping with lenders.
What Type Of Financing Can I Get to Purchase New Rims?
There are a handful of different loan options that you may consider to help you finance your new car rims:
Personal Loans
A personal loan may be a good option to help you gain access to the money needed to purchase new rims for your car. With these types of loans, the lender would supply you with a lump sum of money requested, after which you would be responsible for repaying the full amount over a specified period of time through installments. You can opt for either a secure personal loan (backed by collateral), or an unsecured personal loan (with no collateral).
In order to get approved for a personal loan, you would need a decent credit score (about 650 and over), earn a sustainable income, and have the ability to make your loan payments on time.
In-House Financing
Many rim dealers may offer their own in-house financing options, similar to how car dealers typically offer their own vehicle financing products and programs. If the place that you’re getting your rims from offers in-house financing, consider the terms and conditions of their loans and compare them to those with your bank’s personal loan options. You’ll want to make sure you’re getting the lowest rate possible, which will impact the overall cost of the loan.
Learn more: In-House Car Financing, Is it Right For You?
Alternative Lenders
If you have bad credit, you may have difficulty getting approved for a loan from a bank or a dealership. In this case, you may have better luck getting rim financing from an alternative lender. These types of lenders are easier to get approved with because their loan criteria are typically less stringent than traditional lenders.
Alternative online lenders can help you secure financing for rims on your car, even if your credit score is less-than-perfect. Their loan application process is also rather simple and straightforward, and the funds required are typically supplied rather quickly. Loans Canada can quickly and easily match you with one of these alternative lenders to help you purchase a brand new set of rims for your car.
Buy Now, Pay Later (BNPL) Services
Buy Now, Pay Later (BNPL) is a financing option that allows consumers to cover the cost of a big purchase upfront without having to come up with the full price at the point of sale. With BNPL services, the full purchase price is typically split into bi-weekly or monthly installments made over time.
Many BNPL providers, such as Afterpay and Sezzle, offer interest-free payments if repaid on time within a set term. These services typically require no credit checks, making them accessible to low-credit consumers.
Learn more: The Real Cost Of A Buy Now Pay Later (BNPL) Service
Credit Cards
If you already have a credit card with enough available credit, you may choose to use it to buy rims and repay the balance over time. Alternatively, you can consider applying for a balance transfer credit card with a 0% promotional period. This allows you to pay down a large balance over the course of a few weeks without having to wait to save up. Choosing a rewards or cashback credit card can also help you earn points on a bigger expense, like rims.
Just keep in mind that you should be able to pay off the cost of the rims in full by the next billing period, otherwise you’ll carry the balance forward and pay a high interest rate.
Factors That Affect Financing For Rims
When you apply for a loan to finance the purchase of rims for your vehicle, the lender may look at several factors to determine your eligibility for the loan and the interest rate you may be offered. Such factors can include the following:
- Credit Score. A higher credit score improves your approval chances and lowers your interest rate.
- Income. Lenders check if you have a steady job and sufficient income to repay the loan.
- Employment Stability. Lenders want to make sure your job is reliable so you’re at low risk of being laid off too soon before the end of the loan term.
- Debt-To-Income (DTI) Ratio. Your DTI ratio is a measure of your monthly debt relative to your monthly income. With a low DTI, you have more money left over each month after your current bills have been paid, which is favourable in the eyes of lenders.
- Loan Amount. The requested loan amount affects your ability to get approved and the terms you’re offered.
- Collateral. If you’re applying for a secured loan, using a valuable asset to secure the loan may be required. Secured loans are typically easier to get approved for and can help you get a lower rate since the lender’s risk is reduced.
Getting Prepared To Finance New Rims
Before applying for rim financing, it’s important that your finances are in order and that you’re fully prepared to take on a loan. You’ll be adding more debt to your finances, so you’ll want to make sure you’re capable of making these additional loan payments on top of what you already might owe.
Here are some tips to get ready to finance new rims.
Set A Budget
Coming up with a workable, realistic budget is usually the first step that all borrowers should take before they decide to apply for a loan of any type. The loan will eventually need to be paid back, so you’ll want to make sure you’ve accounted for that extra payment every month and that it fits in comfortably with the rest of your financial obligations.
Find The Right Lender
Not all lenders are created equal, nor are they all well-suited to work with every type of borrower. Depending on your specific financial situation, you’ll want to shop around with different types of lenders to make sure you choose the right one that is able to offer you the terms that you’re comfortable with. Use an online loan comparison site like Loans Canada to simplify the process of finding and comparing lenders in Canada.
Meet The Necessary Criteria
Lenders usually look at typical factors when assessing a borrower’s ability to make good on their loan payments. Be sure to find out exactly what these requirements are for the lender you are thinking of working with in order to make sure that you meet the criteria and are able to get approved for rim financing.
Check Your Credit Score
Higher credit scores can lead to better loan offers. It’s helpful to understand what your credit score is before you apply for a loan to finance your rims. You can quickly check your credit score for free using Loans Canada’s CompareHub tool.
Save For A Down Payment
A bigger down payment can reduce the total loan amount and interest paid. Plus, paying more upfront reduces the lender’s risk, making you more likely to get approved for the loan.
How Much Do Rims Cost?
The cost of rims varies greatly depending on the following factors:
- Size: Larger rims at least 20” or more are much more expensive than smaller ones.
- Material: Alloy rims are more expensive than cast steel.
- Brand: Luxury and high-performance brands are priced higher.
- Customization: Unique finishes, designs, and colours command a higher cost.
Here’s a general overview of the approximate cost of rims based on these factors:
- Steel Rims: $50 – $200 per rim
- Alloy Rims: $150 – $600 per rim
- Premium Brand Rims: $500 – $2,000+ per rim
- Custom Rims: $1,500 – $5,000+ per rim
What Type of Rims Can I Finance?
No matter what types of rims you’re looking for – whether they’re steel, alloy, chrome, or something more attention-grabbing – you should be able to finance all sorts of different rim styles and brands, including the following:
- Vossen
- Enkei
- BBS
- OZ Racing
- Konig
- SSR
- Forgiato
- TSW
- Fuel Wheels
- Focal
What If I Have Bad Credit?
As noted earlier, one of the factors that conventional lenders look at before determining whether or not a borrower will be able to get approved for a loan to finance a rim purchase is credit scores. Generally speaking, lenders like to see a credit score of no less than 650.
But what if your credit score is far less than that? Does that mean your hopes of buying rims with a loan are dashed?
Not necessarily. You may still be able to find rim financing, even with bad credit. In order to do that, you’ll need to find the right lender to work with. As mentioned already, your best bet in this situation is to work with an alternative online lender, which Loans Canada can help you with.
Just keep in mind that in exchange for getting rim financing with bad credit, you may have to accept a higher interest rate or a smaller loan amount.
Aside from that, your other option would be to hold off on buying rims and take some time to give your credit score a boost. You can do this by:
- Paying all bills on time
- Paying more than your minimum credit card balances
- Spending less than 30% of your credit card limit
- Keeping old credit accounts open
- Not taking out any new loans or lines of credit
Additional Reading
Final Thoughts
Rims can be very expensive, and many consumers might not have the financial goods to fully cover such a big purchase. That said, there are loan options available for consumers of all types, including those with bad credit. Loans Canada can help match you with the right type of financing so you can purchase the rims you want for your vehicle.
