Whether the wheels on your car are getting old, have been damaged, or are simply no longer attractive to you, replacing them might be a good idea. A new set of wheels can really ramp up the look of your vehicle and even help it perform better on the road.
But, like any other component of a car, wheels are expensive. While some consumers might have a few hundred or thousand dollars handy to cover the full cost of a new set of wheels, others might not. For those who may have trouble coming up with the funds needed, several car financing products are available.
Key Points
- Instead of paying for your wheels in full upfront, you may be able to finance this purchase.
- Wheel financing allows you to spread out the cost over time, making this purchase easier to manage financially.
- You can get wheel financing through wheel retailers, banks, credit unions, or online lenders.
How To Finance Your Next Wheels
If you’re in need of some financial help to fund the purchase of your car’s next set of wheels, here are a few options available to you.
In-Housing Financing
Many dealers that specialize in wheels, tires, and rims may offer their own in-house financing to help their customers purchase the products they want. If you meet certain criteria, you may be able to get approved for this type of financing.
With this option, both you and the dealer sign into a contract together whereby you agree to pay the full amount for the wheels over a certain period of time, in addition to interest and fees.
Dealers will generally sell these types of loan contracts to a bank, lender, or financial institution that will then service the account. It’s this party who you will actually be making your monthly payments to until the full loan amount has been paid off.
Traditional Financial Institutions
You can always head over to your bank to take out a personal loan to fund your car wheel purchase. Personal loans are installment loans that can be taken out and used for just about any purpose.
You would need to supply some documentation for the lender to look at before determining whether you’d be capable of repaying the loan amount. Your credit score will also be checked, and your income and debt load will be verified. Usually, consumers must have a good credit score, make a decent income, and not have too much debt on their plate to get approved.
Online Alternative Lenders
These days, there’s a plethora of lenders in the online sphere for consumers to work with when money is tight. Rather than having to physically visit a bank or credit union, consumers can simply submit the information required, fill out an application, and even have the funds deposited into their account if approved – all online.
The entire process is usually much faster than the traditional route, and it’s typically easier to get approved with online lenders. In fact, many consumers who don’t have stellar credit or lack the financial strength to get approved for a loan with banks or other conventional lenders often look to online alternative lenders to get the funds needed.
Alternatives To Traditional Financing
Loans from lenders may be a great way to help you cover the cost of funding your wheel purchase, but there may be other alternatives available to consider:
Buy Now, Pay Later (BNPL) Services
BNPL services such as Sezzle and Afterpay let you divide your purchase into smaller payments spread out over a period of a few weeks, usually with no interest. You can get approved right at the point of sale. However, the retailer will need to provide this service for you to take advantage of it.
Credit Cards
If you have a credit card, you may consider making this big purchase on credit, as long as your credit limit allows for it. Just keep the interest charges in mind, especially if you won’t be able to pay off your bill in full and will be carrying over a balance into the next month.
Otherwise, you may consider applying for a balance transfer credit card that offers a low-interest rate or a promotional 0% interest period for a limited time to finance your wheel purchase. Just be sure to repay the balance in full before the promotional period ends to avoid high interest rates.
Learn more: Best Balance Transfer Credit Card In Canada
Credit Card Cash Advance
A credit card cash advance lets you withdraw cash from a bank machine using your credit card. Then, you can use the money to fund your wheel purchase. The amount you withdraw will be added to your credit card balance, usually with a higher interest rate compared to the purchase rate. It’s a convenient but expensive way to get access to cash quickly.
Choosing The Right Option For Your Needs
Before you decide which loan route you want to take, it’s important to ask yourself some key questions first. Committing to a loan will require you to be dedicated to making monthly payments, so you’ll want to make sure you’re ready to take on such a commitment.
Here are some questions you may want to ask yourself first:
- What is your budget?
- Do you have any other debt or important financial commitments?
- What is your credit score like? Will you be able to qualify for the financing you want?
- What type of vehicle do you have and what condition is it in?
The answers to these questions will help you determine how much you can afford to spend and what financing option may be best suitable for you.
What Types Of Wheels Qualify For Financing?
There are so many different types and brands of car wheels available, and just about all of them can qualify for wheel financing, including the following:
- Vossen
- Ion
- Konig
- Advanti Wheels
- Fairway Alloys
- Asanti
- RSSW
- Replika
Financing For Wheel Packages
A wheel package typically includes a set of wheels and tires for your vehicle. These packages are typically pre-mounted and balanced, which simplifies installation. They’re available from various retailers, both in-store and online.
Depending on your situation, you may want to invest in a wheel package, which could save you a little money compared to buying each component separately. But even still, these packages can be quite costly, which may warrant financing.
The good news is that you may also get financing to fund this type of purchase. Dealers will usually offer financing for package deals, as will online alternative lenders, and banks. Plus, it would be much easier to apply for one loan to pay for everything rather than to have to go about the loan process all over again when you decide to buy new rims at some point in the near future.
Advantages Of Financing A Wheel Package
There are several perks of financing a wheel package, including the following:
- Affordability: Spreading the cost over time by financing makes it financially easier to cover the cost of your wheels without paying in full upfront.
- Flexible Payment Plans: Many financing options offer flexible payment terms, including the amount of time you have to repay the loan and the frequency of your loan payments.
- Access To Better Wheels: Rather than allow price to deter you from getting yourself high-quality wheels, financing can help you afford better products that may otherwise be out of reach if you had to pay in full.
Can I Get Wheel Financing With Bad Credit?
As already mentioned, securing a loan from a dealer or from a traditional lender – such as a bank – typically requires a good credit score, as well as a solid income and manageable debt. But what if your credit score is currently suffering? What if these lenders turn you down for wheel financing because of your low credit score?
For those with bad credit who are in need of new wheels for their car, the good news is you have options. Loans Canada can match you with a lender in your area who will consider more than just your credit score before approving you for a loan.
For instance, your income, most recent payment history, and assets will be assessed and given more weight than your credit score. So, if you have a steady job, earn a sufficient income, and have collateral to back your loan, you may still be able to secure financing, despite having bad credit.
Final Thoughts
By financing your wheel purchase, you’ll be better able to afford good-quality wheels and wheel packages. This allows you to benefit from new wheels while spreading the cost over time. With flexible payment plans and access to higher-quality products, financing allows you to boost your vehicle’s performance and appearance without overwhelming you financially.
