Truths About Car Loans

When it comes to car loans, many people have reservations. There are a lot of misconceptions out there about vehicle financing. Owning a car can be a big step. With a purchase of that magnitude, it’s important to look at all of your options. After all, you want to get your money’s worth without breaking the bank. Financing options can be more beneficial than paying off a car at once. Here are three truths about car loans that you should know.

Easy Application Process

If you apply for a car loan, the process is often more simple than a standard bank loan. Not only is it easier to apply, but the rate of acceptance is also higher. If you don’t have a high credit score, it isn’t usually a problem.

Low Risk Option

With standard loaning options, your assets can be at take if you default on your payments. This can affect your home. With a car loan, often, your assets are better protected.

Fixed Loans

Most people fear loans because of the APR rate. On standard loans the interest rates can go up and your payments may turn out to be higher than you hoped for, months or years down the line. With car loans, the rate is often fixed. Your payments will be the same throughout the life of the loan.

Dealership Perks

If you go with a bank loan, then odds are you won’t be offered many benefits from the dealership in the same way that you might if you take out a loan with them. Sometimes this may come in the form of an inspection or road service that adds value to the loan.

Purchasing a new car can be a big commitment. Often though, it is more than worth it. How you decide to finance your vehicle is important. When people think about loans, sometimes it’s a daunting concept. However, car loans tend to be easier, lower risk and help car owners understand exactly where they stand with the loan.

Top 5 Reasons to Get a Car Loan When You Buy Your Next Car

At our dealership, we’re very familiar with car loans in the Lower Mainland. In fact, we offer car loans to our clients on a daily (even hourly) basis. Therefore, we are able to answer just about every question you could possibly have about how to get a car loan, when to get a car loan, what good car loan rates are, and more. Still, many of our customers are not sure whether or not they should get a car loan when they buy their cars.

Car loans are a safe and convenient way for our customers to easily afford their cars. Here are the Top 5 reasons to get a car loan in the Lower Mainland that we’ve compiled based on our experience giving car loans on a daily basis:

1. They allow you to have some flexibility. When you go to buy a car, you can either spend all of the money that you have on the car or you can get a car loan and only spend some of your savings (if applicable) on the car. When you are able to keep some of your money for an emergency fund, then you will have more flexibility down the road. Plus, you never know when you might actually need that savings.

2. Low interest rates. Sure, when you buy a car through car financing, you will have to pay an interest rate on the amount of money that you take out. It may seem like this interest rate is unnecessary and simply designed to make the car more expensive. However, consider the fact that you are actually in a car and not having to rely on friends or family for rides. That small interest rate pays for the convenience of having reliable and safe transportation. Plus, we can show you cars that have such low gas mileage that the interest rate pays for itself.

3. You’ll improve your credit. Whenever you take out a loan, you will improve your credit if you are able to repay the loan in a timely manner. Therefore, taking out a loan now will increase your credit and allow you to get even lower interest rates down the road.

4. You’ll get the car you can afford – and that suits your needs. Especially if you use dealer financing, your dealer will make sure that you get a car that not only suits your needs, but also that you can easily afford for years to come.

5. Low monthly payments. Instead of paying one junk of change up front, we’ll arrange for you to make low monthly payments that fit your budget and lifestyle. Affording your car will be easier than ever with the right financing options.

Contact us today to learn more about why car financing is a great option when it comes time to buy your next car.

How to Pay for a Used Car Without Breaking the Bank

Sometimes it seems like cars break down at the worst times. You might not be in a great place financially when your car becomes inoperable, and buying a new car is not always possibly. When you need a car, and you have limited funds, a good used car might be the best thing for you. There is a wide-variety of used cars on the market. With a little bit of research, you might find a used car will work well with your current lifestyle.

Know Your Budget Before You Begin

Before you start your travels to dealerships, you need to consider how much money you can afford to spend on a used car. You could save a lot of money, if you pay for the car in full. If this is not possible, consider making a large down payment. Obviously, when you finance your car, the cost is more because you are paying interest each month when you make your payment. Traditionally, when you purchase a used car, rates are higher and the financing periods are usually shorter compared to purchasing new cars. One tip most financial experts offer is to never spend more than 20 percent of your take-home pay on a car.

Estimate Future Expenses

Always do research on the car you want to purchase to see if certain parts need to be replaced more frequently. You might have a particular car in mind that you’d like to buy, but if the water pump in that model has a history of failing, than you might want to consider another car. When you purchase a used car, there’s always a chance you will have to forgo funds for maintenance and upkeep. An older car obviously has more wear and tear on it than a new car. Having savings put aside is important, since you don’t want your car to cause you unnecessary debt.

Making the Right Financial Choice With Used Cars

When you do not have a great deal of money, but you are in desperate need of a vehicle, you might feel like your options are limited. This is especially true if you do not have the most ideal credit score. Luckily, there are many different ways for you to be able to get around these obstacles. Looking into used cars can help you to understand just how much you can save when you take time to do enough research.

Find Your Dream Car

There are hundreds upon thousands of different car types out there for you to explore. Most of these vehicles can be found used, which means that you are not going to have to worry about settling for a car that you do not like. Hunt down the right used cars for your needs and be impressed by how affordable the prices are. On average, most used cars sell for several thousand dollars, which can be a real boost to your confidence.

Find a Financial Plan

On top of the affordable prices of used vehicles, you might also be excited to learn that there are plenty of financing options available as well. The reason for this is quite simple: most lenders see financing used cars as a perfect reason for a short term loan. Whether or not you have great credit, you might be able to qualify for some of the more sensible financing options that are out there. Reach out and see who offers financing for the type of vehicle that you have been looking. Make contact and see what the terms and conditions of the financing might be. The more you learn, the easier it will be to feel like you are making the right moves.

If you are looking to drive a car, but are worried about your finances, you can do yourself a favour by looking into used cars. With enough research, you will easily be able to see all of the benefits of choosing this choice for your needs.

The ABC’s of Your Car Loan

If you are looking to buy a used car, chances are good that you will need to have a car loan in order to buy the car. We specialize not only in selling top-quality cars at affordable prices, but also in making sure our customers have affordable car loans in Coquitlam that make buying the right car easier than ever! If you are looking for a car loan to go along with your new or used car, here are a few things we want you to know:

How car loans work

It’s important that you understand how car loans in Coquitlam work before you take out a car loan. A car loan is an amount of money that a lender will lend you. That money needs to be repaid. Car loans generally come with interest rates. An interest rate is a percentage of the total car loan that is charged to the borrower in exchange for the loan. Interest rates vary based on the lender, economy, and the borrower’s credit history. The interest rate can also vary based on special deals that are currently going on here at DriveCo Motors.

Car loans also last for a longer period of time. You may take out a car loan to buy a car this year and still be repaying the loan in five years. Therefore, it is important that you are comfortable with the amount of the car loan – and that you are prepared to make that long-term commitment to repaying it.

Complete the credit application

Before you can get a car loan, you need to give the lender some important information about your financial situation and credit history. The way to get this information quickly is to complete a credit application. The credit application will allow us to run a credit check on you, which will help us to learn more about your spending habits and history, which will then help us to establish a loan program that is just right for your financial needs.

Speak with a lender

Once we have a general idea for what kind of car loan in Coquitlam you may qualify for, we will be able to advise you as to which loan options are right for you. It is then up to you to select the loan option that you are most comfortable with.

We look forward to helping each of our customers get the right loans for their needs – right when they need them. Speak with us today for more details about how to apply now!

Why Buying a Used Car From a Dealer Makes Sense

If you are in the market for a new used car, you have a couple of choices. The first choice is to buy from a private seller. This has many obvious disadvantages, including only getting to look at one car at a time. The second and we believe better choice is to buy from a dealer. The benefits to this approach for buying used cars are many and powerful.

Selection

Our lot is are filled with over a hundred great pre-owned cars for you to look for all in one place. It is like going to the candy store, with a large selection of desirable treats for you to drool over. You can consider sedans, trucks, crossovers, SUVs and other styles of vehicles, all in one convenient place. We also have a full assortment of price ranges, colors and ages. So if you are looking for a sports car that is bright yellow and priced under $10,000 we are likely to have it.

Convenience

Not only do we offer over a hundred cars for sale, we can also hook you up with financing. Our finance department can set you up with a loan that makes sense for your budget. We can work with you to get monthly payments that are affordable, and we can even take care of registering the car for you.

Relationship

When you buy one of our used cars, we hope to develop a lifelong relationship with you. Our goal is to take care of all of your car needs, now and into the future.

3 Car Loan Myths

If you have your eye on a new or used car, you may have to consider financing options. The problem that a lot of people face is that they don’t have optimal credit and may not think that they qualify. While many lenders offer bad credit car loans, there are still a lot of myths that circle the choice. You shouldn’t let these turn you away from the financing that could get you your dream car. Here are the three top myths when it comes to car loans.

A Low Credit Score Guarantees Rejection

This isn’t true at all. In fact, there are dealers and lenders that specialize in car loans for people with bad credit. Poor credit will not stop you from financing a car.

You Can’t Refinance if You Had a Poor Credit Score

When you’re approved of a car loan with a low credit score, you are given the opportunity to build your credit over again. After a while, as your score builds you will be given more options. It’s common for people to refinance their loan and come up with a cheaper rate after they have built up their credit score.

Income Doesn’t Matter if You Have Bad Credit

Income absolutely matters! Income and the other debts that you owe play a big role in the size of the loan you can be awarded. While lenders do pay attention to your credit, your income also plays a large role in whether or not you’re approved. This can also affect the rates that you’re given.

Don’t allow myths to turn you away from car loans. Even with bad credit there are many options out there. While it can be a difficult choice for many people to decide whether or not they want to look into financing for a vehicle, it’s important not to be deterred by myths. Only the facts should be an influencing factor on your decision.

Our Straightforward Car Loans Make Car Shopping Enjoyable

Think of the car features that you definitely want in your next vehicle. Would you like leather seats and a moon roof, or do you want plenty of seats and cup holders? Do you think you have a short list of favourite vehicles or are you open to anything that fits your budget? Even if you are undecided on a car just yet, we can take the worries out of getting the best car loan for you.

Car Considerations

The first impression of a vehicle comes down to two factors, ergonomics and personal preference. You should have ample head and legroom, feel that the window layout gives you good visibility, and like how the gauges and controls are laid out. If members of your family have car seats, it is a good idea to bring them along to see if they work well with the cars you are test driving.

If you have a set color or feature combination in mind that does not come around every day, you may have to look longer to find what you want. But, if you know what your top three colour and make combos are, you may be pleasantly surprised by the number of cars available to test drive. Conversely, if colour is not important to you, you may get a great deal on a car in a less popular colour.

Financing the Transaction

When you have found the vehicle you want and are ready to make a purchase, we want you to know the total price of the used car you’ve decided to buy. We itemize any extended warranty and interest costs in all of our car loans. Of course we are always happy to consider your current vehicle as a potential trade-in, and we offer extended warranties for our used cars. This is a great way to handle any unforeseen repairs covered by the warranty.

Our financing staff are experienced in setting up a loan with terms that will fit your budget. Come visit us soon to see how enjoyable car shopping can be.

Can You Get a Loan for a Used Car?

If you are like many car buyers, you want to buy a used car instead of a new one. For many reasons, that makes a lot of sense. You might wonder, though, if car loans are available for used cars. Generally, the answer is yes. Here are some things to consider when applying for a used car loan.

Think About Purchasing at a Dealership

If you need to finance your used car purchase, you should consider buying the car from a dealership. Generally, dealers are in a better position to finance used cars than other institutions. In fact, many dealers routinely finance used car loans. While there are exceptions, banks, credit unions, and financing companies generally prefer to finance new cars. Because they have a better chance of realizing a return on their investment with new cards, traditional financing companies often have rigorous application processes for used car loans. While you might ultimately be successful, getting such a loan from a conventional lender can be extraordinarily stressful. Thus, if you want to finance a used car, you should probably buy your car at a dealership.

Know Your Credit Score

Like with financing a new car, you will be better able to negotiate beneficial used car loan terms if you know your credit score. Before you start shopping for your car, request your score from one of the credit bureaus.

Don’t Choose Too Old of a Car

The newer your used car is, the greater your odds of securing financing. While there is no absolute limit, generally cars older than four or five years are more difficult to finance. On the other hand, if you run into trouble financing your older used car, you might look for a new car. Often, those who are unable to get a used car loan have no problem with new car financing.

Before you shop for used car loans, consider the unique challenges of applying for one. By knowing what to expect, you will be in a better position to secure financing for your used car.

Borrowing Money for a Car Could be the Right Move for You

Car loans can be scary prospects for someone that has never been in debt or owned a car. At DriveCo Motors we do our best to make first time car buyers feel at ease with the process, and our lenders are some of the best in Canada. We can cater the loan terms to fit your situation and help you get into the vehicle that you need for your daily commute or weekend jaunts into the wilderness.

Credit should not be an obstacle when it comes to shopping for the car that you need. Our trained professionals work as a team to provide you with the best experience and the best vehicle possible. Our salesmen will listen to your needs and match you with the right car, while our lenders will help you with a loan that will assuage any doubts you may have with regards to affording the vehicle. Count on us to work with you whether you have bad credit, mediocre credit, or a perfect score.

The loan process is one that has become common place at most dealerships across Canada. It allows one to get into a vehicle that isn’t immediately available to them because of price barriers, but that may be necessary for them to get and keep a job or to enjoy the great outdoors to the utmost. Borrowing money and responsibly paying off the debt is the best way to build one’s credit. We are proud to help people build their credit with car loans and to help people become more mobile in the vehicle and manner that best suits them.

Fear not the uncertainty of debt. Let the lenders and our friendly staff be the solace you need as a new borrower or car owner. Comfort in your financial and vehicular decisions can be assured when working with us as we work with you to build connections between the buyer and the road and the great country of Canada.