The Loans Canada team sits down with Gary Schwartz of the Canadian Lenders Association to talk about open banking.
Financing For Tires
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Driving is often seen as one life’s small pleasurable, especially for many Canadians who are fortunate enough to live in scenic locations. But what isn’t pleasurable, is the cost of owning and maintaining a car. Among many other costs, good quality tires are not only a requirement but also extremely expensive. For Canadians, there is the added pain of using summer and winter tires to prepare for the change of seasons. Since tires are one of the pricier components of car maintenance, you may need to finance the purchase. Read below for everything you need to know about financing tires.
How to Find Financing for Tires
Fortunately, when it comes to tire financing, there are plenty of options for you to choose from. Tires are a common cost for most Canadian consumers, so it’s relatively easy to find a lender that suits your needs. Below are the different types of lenders to consider when finding financing for tires.
Some tire companies offer in-house financing to their customers to facilitate their purchases. Other auto companies may offer this type of financing as well. Either way, reach out to the vendor to determine if they offer in-house financing and what the loan conditions look like. Using in-house financing can be advantageous because you can complete the whole transaction in one place.
Watch of for these car dealership fees.
Bank or Another Traditional Lender
When in doubt, the bank will always be there for your lending needs. Other traditional lenders, such as credit unions, are a good option as well (do you know the difference between a bank and a credit union?) One drawback to using banks and traditional lenders is you usually need to have good credit. If you don’t, it can be challenging to secure financing and you may need to explore other options.
Check out what credit score you need to get a car loan.
In towns or cities that are substantial in size, there are typically local private lenders that are willing to work with virtually anyone. A benefit of using private lenders is they don’t consider credit or other traditional lending factors heavily. On the other hand, private lenders can be unreliable or unconventional, be sure to do your research on the lender before sealing the deal.
Credit cards are a good way to finance things in the short term, given that you have enough credit to cover the cost. Before using a credit card to finance a tire purchase, consider how long it will take you to pay off the credit card balance. If it will take you an excessive amount of time, another financing option might be better.
In addition, you could look for a credit card product that has an introductory period with no interest. Using one of these cards would allow you to finance your tires without interest, so long as you pay off the balance within the introductory period. Typically the introductory period is around six months.
Finally, you can use an online lender to finance the purchase of your tires. Online lenders tend to be very flexible with who they extend credit to. Also, their terms and conditions can be adjusted to best suit the borrower. Loans Canada works with a wide variety of lenders in the auto industry and can help find you the right match so you can purchase the tires you need.
Tire Financing Requirements
Every lender has unique requirements for their applicants. That being said, you can expect the following minimum requirements from any lender:
- Be the age of majority in your province
- Stable, steady income
- Financial and creditworthiness assessment (for example, credit checks or proof of income)
To find out more detailed information about a lender’s minimum requirements, reach out to them directly. Usually, lenders can provide the minimum requirements you need to be considered for a loan before you apply.
Are you also looking to finance a new set of rims? We can help with that as well.
What Tire Brands Can I Finance?
In general, you should be able to finance any type or brand of tire that you want. Brands that you may come across while shopping include: BF Goodwrench, Nitto, Michelin, Firestone, Pirelli, and Continental. Whether the tires are seasonal, summer or winter shouldn’t matter for financing purposes. When shopping, be sure to select tires that work well with your car but are also affordable, and always make sure you stick to your budget.
Should you repair your car or purchase a new one?
How to Save on Your Next Tire Purchase
Tires can be expensive, especially on top of all the other costs of maintaining a car. Costs can rack up quickly too if you need both summer and winter tires. To save money, you can keep an eye out for monthly specials, buy tires on the “off-season”, or find rebates from manufacturers.
Can I Get Tire Financing if I Have Bad Credit?
How much do tires cost?
Finding The Right Tire Financing
Summer in Canada is just around the corner! Every year, Canadians welcome the warm, sunny summers after the long, cold winters. To start your summer off right, consider getting your summer tires early, you may even be able to snag a deal if you purchase them before the busy season.
Loans Canada can help you finance your tire purchase by matching you with an excellent lender and financial product. Reach out today to secure tire financing!
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