If I Pay Extra On My Car Loan Does It Go To Principal?
Find out if your extra car loan payments will go straight to your principal and how these payments will affect your car loan.
Buying a new car can be awesome but there are many different factors and expenses to consider beforehand, like features and add-ons. Do you want tinted windows? What about the latest safety and anti-theft technology? Some cars come fully loaded, others require you to pay for upgrades.
You may also want an extended warranty, which many dealers offer. The problem is, salespeople can be tricky and good at misleading customers into warranties that aren’t the right fit for them.
Learn how to negotiate the price of a new car.
A car warranty is a binding agreement between you and the manufacturer or dealership that covers the cost of specific issues with the car during a specified period of time. Generally, all new cars come with a 1 to 5-year manufacturer’s warranty, however, there are additional types of warranty for more coverage.
Dealerships offer different warranties for different vehicles. Cheaper warranties usually cover basic issues for several months. However, if you don’t mind paying more, you can buy a warranty that lasts for years and covers a whole range of issues.
Buying a car? Don’t forget to check your credit score first.
Common types of car warranties include:
Many cars have a manufacturer’s warranty included with the price, which covers factory defects and simple mechanical problems for a limited period (some brands offer longer warranties than others).
Also called service or maintenance agreements, extended warranties typically cost extra but cover different parts of your car, such as its engine or transmission, for longer than a manufacturer’s warranty.
Some dealers sell vehicles “as is”, meaning you’re buying the car at your own risk and any necessary repairs or services aren’t covered. Luckily, there are provincial and territorial laws that can protect you against defective products. If you buy a lemon car, you might be able to sue the dealer.
Not all warranties are bad. Many can protect you when your car experiences various problems. That said, some dealers pull sneaky tricks to manipulate you into paying more than you should for a useless warranty. Because of this, warranties have gotten a bad rap.
Here’s what you should know about car warranties in Canada:
While a warranty may cover a number of potential issues with the car, there are a number of things that can void your car warranty. As the car owner, there are certain things you must do and must not do in order to keep the warranty agreement intact. Here are some things that can cause your car warranty to be void:
Before you buy any vehicle, here are some important questions to ask the dealer:
Find more questions you should ask your dealer before buying a car.
Thankfully, there are ways to spot and protect yourself against fraud and also agreeing to purchase an unnecessary warranty.
Buying a car can be expensive and annoying, especially if you purchase a warranty that’s not worthwhile. Don’t worry, you can easily avoid warranty fraud if you’re careful and know where to look. For more information about warranty fraud and how to protect yourself against them, contact the Canadian Anti-Fraud Centre.
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Find out if your extra car loan payments will go straight to your principal and how these payments will affect your car loan.
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