Most domestic economies do not have that money to pay cash and, in order to be able to pay, the best option is financing. This was the alternative chosen by 61% of buyers in 2018 , according to the aforementioned study. Of this percentage, 32% formalized the financing with their own point of sale, followed by 17% who did it in a specialized financial institution, while 12% signed it with their usual bank. In this way, financing is the most chosen alternative to be able to have a vehicle. To choose the loan method that best suits each driver, you just have to have the necessary documentation prepared and take these nine keys into account.
Set a budget Limit:
No matter how much the car is going to be financed, each buyer must be aware of his indebtedness capacity so as not to enter into a sum of money that is impossible to pay, even if financing is used. Being a realist ensures that the established installments can be paid since, otherwise, the financing contract is breached, something that may involve default or delinquency interests, and even the completion of the loan and delivery of car.
Pay the entrance:
How much more can be paid at the beginning, better since the amount of money to be financed will be lower and, therefore, less interest and less large fees. It is advisable to pay 20% of the price of the car as entry.
Know all the financing options:
As with, banks are the platforms that grant it. In the automotive sector, the dealers themselves have financial institutions to carry out these procedures. The latter tend to be more willing to negotiate because their goal is to sell.
Study interest rates:
Once the entity with which the loan is to be formalized is decided, it is convenient to know the interest rates, since a new vehicle can be financed with a fixed interest rate, variable or flexible. There is also the so-called selective credit, only used by car manufacturers, in which a part of the total cost is financed in a short period and the rest is reserved for a final payment that the customer can face or change the car.
Set short deadlines:
In the vehicles there are also interests. That is why, the shorter the loan lasts, the fewer these will be. So it is convenient to establish a financing that does not lengthen excessively in time.
Study the clauses of the credit:
Pay attention to the conditions in which the financing is formalized. Among them, the opening commission, the early repayment (in case some of the loan is suddenly advanced), the cancellation of the loan and the Nominal Interest Rate.
Study the clauses of the credit:
Pay attention to the conditions in which the financing is formalized. Among them, the opening commission, the early repayment (in case some of the loan is suddenly advanced), the cancellation of the loan and the Nominal Interest Rate (the interest they charge for transferring the money).
In the past few years, a number of online loan companies have appeared in Canada. For example, Kingston, Ont.-based SkyCap Financial offers loans of up to $10,000 with a quick and easy approval process. It’s true that most online personal loans are based on your credit score and income and do not require any type of security or collateral. With an electronic transfer, your funds can be accessed rapidly, without the wait required by other lenders, such as the big banks.