Buying a car is a huge investment and is usually a person’s second biggest purchase next to buying a home. With great credit options and rates, more and more people are getting credit by financing or leasing cars.
After you select the car that best fits your lifestyle, you then have to decide how you are going to pay for it - whether you have already arranged financing privately or if you want to do the paperwork at the dealership.
We represent several different banks when requesting financing for cars including: Ford Credit, Scotiabank, TD Canada Trust, RBC Royal Bank, General Bank of Canada, and Credit Union.
Getting credit for a car purchase is easier than ever. Filling out an application only takes minutes, and approval times can vary.
Payments are calculated on the specific term that is selected and the available rate. We always do our best to get you the best rate. When choosing a credit term, it is good to consider how long you plan on keeping the vehicle and payments with which you are comfortable.
Finance Vs Lease
Buying a car can be challenging for some people, especially to those with limited budgets and those who have never had credit. We do not discriminate with past credit, no previous creidit or poor credit. Our main goal at Royal Ford Finance is to help customers find the car that meets their needs and with payments that they can afford.
As financial services advisors, we are responsible for setting up buyers’ financing and ensuring that they understand their finance terms. We present them with the options for financing, such as rate, term (length of the loan) and options for cash down, if required, and allow our customers to decide what payment they want based on those terms. There is no pressure from us for customers to choose a shorter or longer term to finance their vehicle. However, we do encourage buyers to choose a payment that they are comfortable with and a term that suits their driving habits.
Before buying a vehicle, here are some questions that we would like customers to ask themselves:
1. How long do I intend to keep the vehicle? This may influence how long you finance the vehicle that you are buying.
2. What payment am I comfortable with for the entire term of the loan? This can impel the frequency of your payment as well as the length of your loan.
3. How much down payment should I put on the loan? This affects the payments on the loan. The more money you can put down, the lower the payment is.
4. Should I finance the vehicle or pay cash? Financing may be a great option for you, especially if you are purchasing a new vehicle.
So what happens when a customer like you enters the Finance Office of Royal Ford?
When you apply for a loan, we do our best to get you the best interest rate for the vehicle for which you are applying. We also go through the different options to protect yourself, as well as your new vehicle. Following are some of the options that you can consider:
a. New vehicle purchase - Ford Maintenance Protection Plan, Premium Care Plus, Diesel Care, or Lease Care
b. Used vehicle purchase - Limited Maintenance Plan and Premium Care
c. Vehicle Protection Options - Undercoating, Paint Protection and Interior Protection, to lengthen the life of your vehicle.
d. Life and Disability Insurance is always an option to secure your loan.
Know what is the best part? We are commission-free; thus, we are presenting these options so YOU can choose what is best for you, with no added pressure from us. Being commission-free and giving our customers a full disclosure experience is Royal Auto Group’s way of doing business. Our customers can leave our office, with the keys of their new vehicles, understanding exactly what they are paying for.
Leasing is something that a majority of people don’t consider when purchasing a vehicle. It is an option that can be greatly beneficial. Some of the main benefits are:
1. Lower payments
You are not financing the full amount of the car; you are only paying the portion for which you are going to use the car. If you like to get a new car every two to five years, this is a great option.
Making payments for shorter term allows you to continuously upgrade your car. This is great if you don’t want to have any issues with more major maintenances.
3. Purchase Option
If you absolutely LOVE the car you are leasing and want to buy it, you can purchase the car by getting credit and financing or paying cash.
When you start the lease, you know exactly how much you need to purchase the car at the end of term.
You are not paying all taxes up front.
Warranty on a new car is usually five years powertrain which allows your leasing to be within the warranty.
With that being said, there are a few cases when leasing might not be for you. One is driving distances. If you are driving over 24,000 km a year, leasing might not be the best option as there are kilometre restraints.
If you have had troubles with credit in the past, it might be a good time to try and rebuild your credit. Having a perfectly paid car loan can be a way to restart your credit journey. Getting approved for credit can be a huge fear of customers, and we want customers to know that we always try our best to get them approved for the car that suits their needs. If you have had credit troubles, the best thing to do is to be upfront with the finance advisors so they can work with you to make sure your application is completed properly. The more they know, the better they can assist.
When putting customers into car loans, we always try and get the best possible rate even if they have poor credit history. We work with prime bank rates before trying higher interest options.
Things that can help if you have poor credit score is cash down, long term at the job, pay stubs, and getting payments below your budget. Having a strong co-signer is also a good asset.
Customers With No Credit History
Another big thing is customers with no credit. If you have never financed a car before, the best thing to do is aim to have a payment that is below your means. The bank usually approves up to 25% of your monthly income for a car payment. However, if you can put some money down to reduce the payment, it definitely helps with the approval. Another option is to save up and put a down payment in the loan; this shows the credit source that you have saved up for this purchase. A car loan is great way to start building your credit if you are thinking about a mortgage in the future.