If you've improved your credit score, you may be able to renegotiate your loan rate and terms with your lender. Find out how to renegotiate your loan.
While alternative methods of transportation are becoming more common for commuters in Toronto, driving is still one of, if not the most popular method. While some who live in the heart of Toronto may be able to get away with not having a car, for anyone who lives in a suburb or even on the outskirts of the city, a car is almost always a necessity.
Buying a used car through a private sale in Ontario? Read this first.
The need for a reliable vehicle in Toronto (and the rest of Canada, for that matter) is huge, especially for those who commute into the city for work. Of course, while a reliable car is important, you want to make sure that you aren’t spending more than you can afford on a car. In a city as large as Toronto, you will surely be able to find a vehicle that works for you, at a solid price point.
What Type of Vehicles Can You Get in Toronto?
While some people in Toronto prefer a large truck capable of towing, others want a small and fuel-efficient car. Thankfully, most auto loans will allow you to get nearly any type of vehicle you want. This includes:
You also have your choice of manufacturers from the likes of BMW, Audi, Chevrolet, Mazda and more. Of course, the type of car you can get will also depend on the supply and selection that your local car dealerships have in stock.
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Also, just because you can essentially get any car you want, doesn’t mean you should. A car is a huge purchase and you should think a lot about what you need, what features you want, what you may need in the future, as well as your price point.
Thankfully, a lot of this research can be done online as there are many resources that can help you find the right car for you in Toronto.
Click here for everything you need to know about car financing.
Common Reasons Consumers in Toronto Will Need a Car Loan
Car loans are common across the country and really, across the world. But what are some common reasons a consumers in Toronto will need a car loan? In order to clear the air, we’ll take a look at a few of them now.
Owning a Car in Toronto is Expensive
First and foremost, even the cheapest reliable cars are likely going to cost you a few thousand dollars. Moreover, you have to think about the extra costs of associated with owning a car like car insurance, registration, gas, and more. Unfortunately, this is money that most people simply don’t have to spend on a car. As a result, car loans provide consumers a great way to own and use a vehicle, without having to drop thousands of dollars at a time.
Wondering how much car you can realistically afford? Check this out.
You Want an Upgrade
If you have an older vehicle and are in the market for a new one, a car loan can be a great way to get that upgrade without breaking the bank. Also, if your old car still has some value you could potentially trade it in and get a slight discount on your new one.
Your Needs Have Changed
As we get older and our priorities start to change, what we need from our vehicles also changes. Whereas we used to love small sports cars, if you have kids on the way, an SUV or sedan might be a better call. Perhaps you moved and your car is your only mode of transportation to get to work in Toronto. A car loan opens up the possibilities of what you can get and gives you some flexibility that you simply would not have if you had to buy a car in cash.
Your Old Car No Longer Works
If you have been riding an old car into the ground, it isn’t uncommon for it to just stop working, typically at the most inconvenient time. In this case, a car loan can be a lifesaver as it can get you a vehicle very quickly and stop you from being stuck without one.
Should you buy a new car or a used one? Take a look at this infographic.
Can You Get a Car Loan With Bad Credit in Toronto?
While it would be great if everyone had spotless credit and could be approved for any loan they needed in Toronto, that isn’t how it works. Having bad credit is incredibly common and even if someone has questionable credit, they still need a car. In Canada, bad credit is generally a credit score of 300-580, but it can vary from lender to lender.
The good news is that those with bad credit are still able to get a car loan in Toronto, but it might be a little more difficult. If you want to secure a bad credit car loan, you need to make sure to save up for a hefty down payment to mitigate the risk for your lender in Toronto. In addition to that, you should be sure to search around for a variety of different lenders to find one that is willing to work with you, despite your bad credit.
If you want to improve your credit before getting a car, in order to get a better deal, you can do things like:
- Make sure all of your bills are paid each month
- Keep a low credit utilization rate
- Increase your credit limit
- Open a secured credit card account
For more information about getting a bad credit car loan in Canada, look here.
The Best Car Loan For Your Needs in Toronto
In search of a new or used vehicle in Toronto and need a loan to pay for it? If so, be sure to reach out to Loans Canada, as we are confident we can find the right car loan for you in Toronto.