Cars

How Car Loans Work in Canada

Heidi Unrau 24 minute read Tuesday, May. 14, 2024

Have you seen the price of cars lately? You should sit down for this; the average price of a used car is over $35,000! The thought of credit checks, big money numbers, and financial commitments just went from exciting to terrifying, especially since we didn't learn how car loans work in school. And not all car loans are created equal either. Wait, they’re not? Don’t stress! Here's the lowdown on how car loans work in Canada so you can hit the open road with confidence.

How do car loans work?A car loan is a type of personal loan used to finance the purchase of a car without having to save up stacks of toonies yourself! In most cases, the borrower uses the vehicle they’re purchasing as collateral to secure the loan. The borrower then agrees to make payments over a specific period of time with interest.

Interest on a new loan for a car can range anywhere from 7.21% to 20% and repayment terms typically last anywhere from 1-7 years. Getting a car loan can be a cost-effective way to finance your ride to Tim Hortons - I mean work, or wherever you need to go. But for that statement to be true, you need to understand how car loans work and if you can actually afford one. 

Why are car loans important?Owning a car isn’t always a luxury, sometimes it’s a necessity. Not only is Canada a massive country, but not all of us can afford to live close to work or the amenities we need. And we can’t all walk to the grocery store or access public transportation. 

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The Ultimate Guide to Lease to Own Car Programs in Canada

Heidi Unrau 17 minute read Preview

The Ultimate Guide to Lease to Own Car Programs in Canada

Heidi Unrau 17 minute read Tuesday, May. 14, 2024

| How the hell did they afford that? The new and used car market is nutty right now. So if you’re wondering how your neighbour bankrolled their new whip, the answer might be a lease to own car program. Yes, you read that right. Canada's latest trend isn’t poutine-flavoured KD, it's car leasing. And one type of lease is particularly appealing to people with bad credit or unusual financial profiles. But is a lease to own car agreement a savvy or slippery way to get behind the wheel? Here’s what to know before you follow in your neighbour’s footsteps.

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Tuesday, May. 14, 2024

Car Repair Loans: What to Know Before You Apply

Heidi Unrau 18 minute read Preview

Car Repair Loans: What to Know Before You Apply

Heidi Unrau 18 minute read Tuesday, May. 14, 2024

Car repair loans are the furthest thing from your mind when you’re cruising down the highway, jammin’ to a 90s banger (Vanilla Ice, anyone?). Then BAM! Your engine blows and steam billows from under the hood. Too bad your wallet is too light for a trip to the mechanic. Wouldn’t it be nice if “Ice Ice Baby” could magically fix the damage to your overheated engine?  Unfortunately, the closest thing we have are car repair loans. The name might not top the charts, but it sure can give you a hit solution to your check-engine blues. Here’s everything you need […]

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Tuesday, May. 14, 2024

How to Get a Bad Credit Car Loan in Canada

Heidi Unrau 17 minute read Preview

How to Get a Bad Credit Car Loan in Canada

Heidi Unrau 17 minute read Tuesday, May. 14, 2024

You can almost feel the steering wheel under your fingertips, hear the purr of the engine, and inhale that new-car smell. But uh-oh, you have bad credit. Will you ever get to drive that dream off the lot? Enter bad credit car loans.  These are financial products tailored for people with less-than-stellar credit histories. Some lenders specialize in helping folks with bad credit get back in the driver’s seat. They understand that life happens and are willing to give you a boost. Here’s everything you need to know about bad credit car loans in Canada. What is a ‘bad’ credit […]

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Tuesday, May. 14, 2024

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