Do you have a car loan with Scotiabank or are thinking about financing a car with Scotiabank? Before you do it’s important to consider the consequences of a missed car payment with Scotiabank.
Cars are expensive to finance and can cause you to miss payments, especially when you run into financial hardships.
What Happens If You Missed A Car Payment At Scotiabank?
If you’re at risk of missing a car loan payment, contact Scotiabank Auto Financing right away. Otherwise, you may be subject to certain fees and penalties. In general, depending on how late your car payment is, the consequences will vary:
Missed A Car Payment At Scotiabank: Less Than 30 Days Late
Some car loans have grace periods that give you a few extra days to pay up. Once that period ends, Scotiabank will likely notify you of the late payment. If you don’t have a good explanation or you avoid their attempts to contact you, they may add a penalty fee and more interest to your loan balance.
Missed A Car Payment At Scotiabank: More Than 30 Days Late
After 30 days, Scotiabank may report your late payment to the credit bureaus, which may lower your credit score. If you keep dodging payments on a secured loan, where your car acts as collateral, they may repossess the car to recover what you owe.
Missed Car Payment At Scotiabank: Payment Support
If you can’t afford your car loan, Scotiabank offers financial aid solutions. To qualify, you must be experiencing a valid financial hardship but still have a way to pay your loan. Here are some of the main ways Scotiabank can help you avoid missed car payments:
Loan Deferral: Missed Car Payment At Scotiabank
A deferral allows you to postpone up to 1 Scotiabank car payment annually. If your request is approved and your loan isn’t in arrears (which happens when you miss multiple payments), your payment gets deferred until your next regular payment date.
After that date, the deferral continues for the amount of months you requested, unless your regular payment is scheduled in the proceeding 2 business days. In that case, your deferral term will begin with the next regular loan payment. Other things to know:
- During your term, each deferred payment gets added to your outstanding loan balance. When the term ends, you must resume your regular payment plan. Any extra interest accrued during the term will then be applied to your final payment.
- To be eligible for a car loan deferral with Scotiabank, you will need:
- The financial ability to cover your payments once the deferral term ends
- Good credit. Don’t know what your credit score is? Find out for free on Compare Hub.
- No claims against your vehicle, other than Scotiabank
- A signed deferral consent form
Loan Modification: Missed Car Payment At Scotiabank
You can also change the amount and/or frequency of your payment by:
- Logging into the Scotiabank Web Browser or Mobile App
- Log into your Scotiabank online banking account
- Go to your Accounts page and select your car loan
- Choose Additional Services and your desired loan modification
- Calling Scotiabank – For more information about car loans or help modifying your payment plan, call Scotiabank customer service at 1-800-472-6842.
What Should You Do If You Missed Your Car Payment With Scotiabank?
If your car loan goes into default, contact the Scotiabank loan department immediately to payout your balance, make other payment arrangements or get further information:
- 1-800-375-5872
Can You Refinance Your Car Loan At Scotiabank?
Refinancing involves getting a new loan to replace the old one. Essentially, you apply for a new car loan – preferably with lower interest and better terms. If approved, you use that loan to pay off your current car loan.
While you can always switch lenders if you find better conditions elsewhere, Scotiabank also offers flexible car loan refinancing options for qualified customers.
However, refinancing a car loan only makes sense when:
- Your credit score has improved since you started financing the car
- You’ve already been paying your original car loan for several months
- You’re getting a more affordable rate or term out of the deal
Want To Lower Your Car Payments?
Speak with a Loans Canada representative today and learn how you can refinance your car loan and save. Call us today at 1-877-995-6269 or click here.
Note: Program is currently not offered in Quebec.
Benefits Of Scotiabank Auto Financing
Scotiabank car loans come with numerous benefits, including but not limited to:
- Flexible Payments – A standard car loan gives you up to 96 months to repay your debt, with weekly, bi-weekly or monthly plans you can modify. Depending on your credit score and security, you can borrow up to $200,000 in financing.
- Wide Variety – As a qualified client, you can finance a new or used car that’s up to 7 years old, from over 4,000 Scotiabank partner dealerships across Canada.
- Fixed Or Variable Rates – Scotiabank offers fixed and variable-rate car loans. Fixed interest rates don’t change during your loan term, so your payments will be easier to budget. Variable rates change with Canada’s market rates, which means you can save money when the prime rate falls, or pay more interest when it climbs.
- Option To Skip A Payment – If you experience an acceptable financial hardship, you can defer up to 1 car payment a year or modify your loan term.
- Free Early Payments – You can also increase your payments by up to 200% or pay your entire loan off early, with no prepayment penalties.
- Newcomer Options – If you’re new to Canada and don’t have a credit history yet, you can qualify for up to $75,000 in car financing through the Scotiabank StartRight program. Afterward, making car payments will help you build credit.
Scotiabank Car Financing Overview
Here are some of Scotiabank’s most popular auto financing programs:
StartRight Auto Financing
As mentioned, the StartRight program offers car loans for newcomers for up to $75,000 in financing. That financing can be used to purchase a new or used vehicle up to 4 years old.
EcoLiving Auto Loans
If you’re buying an eligible electric vehicle, Scotiabank can offer you up to $200,000 in financing and special pricing through their 4,000+ partner dealerships. You also get flexible payments, free prepayments and payment terms of up to 8 years (96 months).
Grad Auto Loans (For Recent Graduates)
If you’ve recently graduated (or are about to graduate) from college or university, you can get enough financing to buy a car, up to 90 days before you start a full-time job. Through this program, you can finance new or used vehicles up to 3 years old with terms up to 5 years.
Motorcycle & Leisure Vehicle Loans
This program lets you finance leisure vehicles that are up to 5 years old, including motorcycles and All-Terrain Vehicles (ATV). Qualified borrowers can score competitive interest rates (fixed or variable), custom payment plans, and payment terms lasting up to 6 years (72 months).
How Do I Apply For A Scotiabank Auto Loan?
There’s no way to apply for an auto loan online but you can do it through any of Scotiabank’s partner dealerships. During the process, you’ll normally be asked for:
- Two pieces of government photo ID (passport, driver’s license, etc.)
- A utility bill as proof of your permanent address
- Your most recent payslips and/or a letter of employment
- Details about your existing assets, debts and other liabilities
Searching For An Affordable Car Loan?
Then maybe it’s time to consider joining Scotiabank because they offer lots of different options for every kind of Canadian car buyer. For more information about Scotiabank Auto Financing in your province or territory, visit your local branch, speak with a customer service representative or check out the Loans Canada website today.
