Getting a Car Loan in Ontario

Car buyers who are looking for auto credit in Ontario have different options to explore. Some finance companies offer loans to people who experience financial problems, have bad credit or no credit, or have gone through divorce or bankruptcy. For such borrowers, finding affordable auto financing can be a daunting task. People with good credit can choose from different lenders, including mainstream banks, credit unions, car dealerships, and finance companies. Borrowers with bad credit often apply for auto financing through a auto dealership or alternative sources of financing.

When looking for a loan to finance the purchase of a vehicle, the first step is to find out how much you can afford to put down, along with the interest rate and other factors. These will show you the true cost of ownership which includes insurance premiums, interest rate, depreciation, taxes and fees, repairs and maintenance, and fuel. Obviously, cars lose value with time, meaning that they are a depreciating asset. Fuel is another factor, and you should think of which grade of fuel the car requires. How much gas do you need a week, and how far are you driving? When it comes to taxes and fees, you will be paying annual property taxes in addition to sales taxes and fees. Maintenance costs vary depending on the vehicle, but you should factor in things like new tires and oil changes. If you plan to buy a new car, repairs are not an issue. Factor in repairs if you want to purchase a pre-owned vehicle.ontario auto loan

Keeping these in mind, the next step is to prepare and submit the documents requested by your loan provider. Most Ontario-based lenders require that borrowers present their personal and financial information. Financial information to present includes your employment status and type, position currently held, employment duration, employer, and gross monthly income. You will be asked to provide personal and general information such as your social insurance number, date of birth, marital status, and home, mobile, and work phone. Some lenders are interested in whether you have declared bankruptcy, and you may not qualify if you have had. In addition, you will have to sign a statement of consent certifying that the information provided is correct. With this statement, you authorize an investigation of your employment and credit history and your credit experience.

Once you have submitted the application form, along with the supporting documentation, you should wait for the financial institution to process your application. The time it takes depends on the loan provider and the amount you are applying for.

Before you apply for an auto loan in Ontario, it is a good idea to find the right vehicle for you and your family. You should inspect the vehicle and thoroughly examine the interior and exterior. Ask the seller or auto dealer questions like – Have you ever experienced any problems with the vehicle? Have you had an accident in Ontario? Why are you selling it? If you plan to buy an automobile from a dealership, inquire about any flows and the car’s history. Then take the vehicle for a test drive with the radio off and the windows up. You should listen for squeaking and odd noises. Test all features as well. After you do this, whether you are buying the car from a private or public seller, request a safety and history report. Do not buy the vehicle if the seller cannot provide any of these.