How does financing a car work in Canada?By Kijiji Autos
One of the most important steps in buying a car is figuring out how to pay for it. Car financing is one of the most popular options in Canada as it allows you to purchase a car in affordable installments. But car finance can be a bit confusing, especially if it's your first time buying a vehicle. At Kijiji Autos, we want you to feel confident when purchasing a vehicle, so we've made the process of applying for financing as easy and stress-free as possible. Let's start by answering some common questions:
What's the difference between car financing online vs. at the bank?
The main difference between car financing at the bank vs. online is that bank loans require you to visit the branch in person while Online Financing can be done from the comfort of your home or office. For both in-person bank financing and online car financing, there is a set payment, payment term and interest rate. Another, and often more affordable, option is leasing a car. Learn about the difference between leasing and financing here.
How does car financing work?
When buying a car through a car dealership, the dealer typically helps arrange a car loan. After choosing a car, you will need to fill out paperwork, provide documents including proof of income and undergo a credit check. The dealer will then use these details to try and arrange a car loan for you by submitting your application to lenders. Once your application has been approved, you can then decide whether to finalize the deal. One way to speed up this process is by applying for financing on Kijiji Autos before heading to the dealership.
Who qualifies for car financing in Canada?
The typical requirements to qualify for car loan financing in Canada are a valid driver's license; a minimum monthly income starting around $1,500 to $1,800 per month, depending on lender's requirements; a minimum age of 18 or 19, depending on provincial rules; and a credit check.
While banks generally require an excellent credit history to approve a car loan, car dealerships and car financing specialists might be a bit more flexible. If you're a younger driver or new to Canada, a limited credit history could make financing more difficult. (Please check with your lender/dealer/bank to verify their loan requirements. These details are meant as information only.)
Can I finance a used car in Canada?
While we tend to associate car financing with new cars, it is possible to finance a used car. Used car financing options include applying for a car loan from your bank, using a line of credit or financing the car through a dealership. When shopping for a used car on Kijiji Autos, choose the Online Financing filter to find cars for sale by dealers that offer financing applications.
What are my payment options?
When buying from a dealer, you can apply for financing or leasing online or at the dealership. Online Financing gives you options for choosing your payment frequency, term and down payment. Applying for financing with Online Financing through Kijiji Autos is not only convenient, but it also puts you in the driver's seat of the deal. You can get an idea for what your payments will be with our Payment Estimator, get a trade-in estimate for your current vehicle and customize the payment terms to match your budget.
Check out our Online Financing listings: we'll connect you with dealers in your area that offer convenient online financing applications, saving you time and stress.
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How to save money for your first car
Buying your first car in Canada is an exciting milestone and the good news is that financing or leasing your first car may be more attainable than you think. Let's look at some practical ways to save, budget and pay for a vehicle in Canada:
How to calculate car finance?
Gone are the days of jumping through hoops to finance a vehicle and get it on the road. Financing has never been more straightforward and can now be done entirely online. Kijiji Autos offers Online Financing Listings, in which finding the perfect vehicle and coming up with the funds to buy it can be done through one site.
How does trading in a vehicle work?
Trading in your current car is a great way to get a fair deal on your next vehicle. But the trade-in process may seem a bit confusing, especially if it's your first time doing it. Luckily, trading in your car can be fairly straightforward, even if you're still paying it off.
Is it time to trade or sell your car?
Browsing for a new car? With Online Financing, shopping for a car online has never been easier, giving you the confidence and control you need to make the best choice for your budget and lifestyle.
How to find amazing online car deals in Canada
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Thanks to trusted listings sites like Kijiji Autos, online car shopping is easier than ever. You can take virtually the entire car-buying process online—from browsing for your dream car to getting the estimated trade-in value of your current vehicle.
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