Why Finance a Used Car in Canada in 2018

Why Finance a Used Car in Canada in 2018

Posted on November 22, 2018

With more and more people leasing their vehicles
nowadays, more and higher quality used cars hit the market every day. Smart
shoppers often score used cars that look and run like new, for less than half
the price of the original sticker. However, even though these vehicles sell at
big discounts, most people still need to finance some or all of their purchase.
That's not a bad thing, however. Financing the purchase can help people get the
car, truck, or SUV they really wanted, without breaking the bank. Timely loan
payments can also help buyers establish or repair credit. Plus, with interest
rates at record lows, it makes perfect sense to finance a used car purchase.

Get the Right Vehicle

Financing their used car purchase allows buyers
to drive a vehicle they might not otherwise be able to afford. Most people
don't have enough cash on hand to buy a late model used vehicle outright. But, with
a reasonable down payment, and favourable loan terms, many buyers can get into
a vehicle they thought of as "out of reach." Depending on the loan's
terms, the car they really want might only cost another twenty or thirty
dollars per month.

Financing helps to Establish or
Repair Credit

For those just starting out who have no credit,
or those who've had a few financial mishaps along the road of life, financing a
vehicle can help build good credit or repair poor credit. Of course, the
payments do need to be made on time. Most financial institutions nowadays offer
automatic deductions for monthly payments. So as long as the borrower has the
money in their checking account on the designated payment date, they will never
be late.

Auto Loans can be Renegotiated

If interest rates go down, the loan can always
be refinanced. Also, if a buyer finds they took the loan for too short of a
term, they may be able to refinance for a longer period to reduce payments. On
the flip side, auto loans generally do not have prepayment penalties. If the
borrower finds that they're able to handle higher monthly payments, they can
always pay the loan off early.

Securing Finances is Easy and Most
People Qualify

Baring a recent bankruptcy, most people will
qualify for some sort of financing. The general rule of thumb is that
the better their credit score, the more options available to them. People with
poor credit scores, however, will usually find some option but it may cost a
little more a monthly. Securing financing is also quite simple. Most car
dealers are happy to help a buyer through the process and make it as simple and
painless as possible.

At Faraz Auto Sales we work with our customers
to get them the best possible loan terms and into the car, truck, or SUV that
they really want. Whether they're just starting out, or have perfect credit,
Faraz Auto Sales makes getting car financing in Canada a breeze.