Although British Columbia enjoys relatively mild weather most of the year, cities like Burnaby experience rainy winters and hot summers, often making it inconvenient to bike, walk, or take public transit. This is why owning a car is often a high priority for most Burnaby residents. Keep reading for everything you need to know about
Thinking of becoming an Uber driver? Read this first.
Other Reasons to Get a Car Loan
A car loan helps you purchase the vehicle you want and finance it over time through installments. However, besides the affordability, the ability to stay out of the weather and the convenience you can add to your various commutes, there are plenty of other reasons to apply for a car loan.
With a car loan at your side, you can:
- Upgrade to a more recent model vehicle
- Purchase a larger vehicle to transport family or extra cargo
- Purchase a more reliable vehicle when yours is unsafe or breaks down
- Finance a work truck or other more durable vehicle
- Save gas, money, and the environment by purchasing a fuel-efficient, hybrid, or electric model
Check out this infographic to see the cost of commuting to work in Canada.
Purchasing a Recreational Vehicle
Living in Burnaby means you’re in close proximity to many different environments, such as downtown Vancouver, cottage country, the ocean, and the Rocky Mountains. Although a car can be useful in most of those places, a recreational vehicle can also provide some much-needed entertainment. Luckily, this kind of financing doesn’t just apply to cars, vans, and trucks.
With the right loan product, you can also purchase:
- Campers and mobile homes
- Snowmobiles and all-terrain-vehicles
- Boats and jetskis
- Scooters and motorcycles
Trading In Your Old Car
If your current vehicle is still in good shape but you’re sick of the sight of it and want something better, the good news is that you don’t necessarily have to go through the hassle of selling it or letting it rust in your driveway.
Click here if you’re thinking of buying a car from a private seller.
Instead, why not trade it in at your dealership in exchange for a lower price on your next vehicle? Although some dealerships don’t perform this kind of transaction, if your current car retains some residual value, many will take it off your hands and attempt to resell it someday.
Before the trade can take place, however, the dealer will inspect your vehicle to determine what it would be worth on the open market. If there’s a profit to be made, they’ll give you a price quote, then knock it off your new vehicle’s final balance.
Set Your Expectations Appropriately
Nonetheless, it’s important to understand that all vehicles depreciate in value over time. In fact, even a brand new car can lose an estimated 11% of it’s worth as soon as you drive it off the lot. As a result, most lenders cannot give you top-dollar for your car when you trade-in.
If you want to get a few more bucks out of the deal, consider throwing some repairs or improvements into your vehicle to boost its value a little bit.
Don’t Get Hustled
Having said that, it’s also essential to do lots of prior research to ensure that you’re getting a decent price, as not all dealerships will treat you fairly. Check out what other cars like yours are going for on the market, then get an outside mechanic to inspect it to give you a quote of their own.
Can you trade in a vehicle that isn’t fully paid off? Look here for the answer.
Bad Credit Car Loans
When applying for a loan of any kind, your approval chances and interest rate will usually hinge upon your ability to make payments as agreed. So, before a lender can offer you any money, they’ll typically inspect your income, employment status, current debt levels and, more often than not, your credit.
In fact, one of the first factors many lenders check is your credit score, which ranges from 300 to 900 and represents how responsible you are with credit products. Having a score within the 300 – 560 range typically means you have ‘bad credit’ due to defaulted payments or other financial problems. As a result, many lenders, especially prime sources like banks will be unwilling to approve you for a larger loan or a lower rate.
Unfortunately, this might be the case for some dealerships as well. However, with a bit of extra effort, you should be able to find lenders and dealers who will gladly approve your car loan, albeit at a higher interest rate and less negotiable payment plan.
To be approved with bad credit, you may need certain elements, such as:
- A sizable down payment
- One or more assets to offer as collateral
- A stronger borrower to cosign your application
- A healthier income and net worth
Can’t decide between a new or used car? Take a look at this infographic.
Vehicle Title Loans
Speaking of loan security, did you know that there’s another kind of financing you can secure with your existing vehicle? It’s called a vehicle title loan and it can be helpful in ways that a traditional car loan cannot.
Essentially, if you own your current car outright and it has some value left, you can offer it up as collateral in exchange for an installment-based loan. The more valuable your used car is, the more money you can potentially secure and the more favorable your interest rate will be.
Rather than helping you purchase a vehicle, that loan would be a lump sum of liquid cash deposited directly into your bank account. You can then use it to deal with your everyday expenses and pay it back over time, similar to a common personal loan.
Wondering if you can get a car title without a clear title? Find out here.
Don’t Default On Your Payments
Now, before you go using your car as leverage, make sure you understand the potential consequences of asset-based financing. When you offer any kind of collateral, including your car’s title, your lender will retain temporary ownership over it. That means they will have the legal right to sell your vehicle if you default on too many payments.
Do not risk your vehicle or any other form of loan security unless you’re financially stable and can afford all the costs associated with the title loan!
Click here to learn more about car title loans.
Financing the Car You Want
Decided that a car loan is the best option for you? If so, you’re in luck, because this kind of financing comes in all amounts and can, therefore, help you purchase almost any make or model of vehicle, whether big or small, economic or luxurious.
Car brands that a loan can help you finance include, but aren’t limited to:
- And much more!
Car Loans, Made Easy
If you’re searching for the right car loan in Burnaby, remember that Loans Canada is always here to help you find it. We can connect you with the best lenders, dealerships, and rates in your area.