Bad Credit Car Loans In Ontario at Georgian Chevrolet Buick GMC
We want to help you afford the car you need. That’s why we offer bad credit car loans to those who need them. Keep reading to learn more.
HELP WITH CAR LOANS
Buying a vehicle is one the biggest purchases you will make. Our Finance and Lease professionals work with Canada’s bank and financial institutions to secure the best possible rates and terms for your loan.
It’s important that you have all the facts when it comes to deciding how to pay for your new or used vehicle, so let us help.
SUB-PRIME AUTO FINANCING
Bad credit shouldn’t stop you from financing a vehicle. No one is perfect, and we know that not everyone has the good fortune to have a perfect credit score. Everyone deserves a second chance, which is why we do everything we can to make it easy for most people to acquire an auto loan through our Finance Department. Complete the form below and a Sub-Prime specialist will be in contact with you shortly.
HOW DO VEHICLE LOANS WORK?
Purchasing a car typically means taking out an auto loan. If you’re in the market for a new vehicle you’ve probably spent a lot of time researching your options. When you take out a car loan from a financial institution you receive your money in a lump sum, then pay it back (plus interest) over time. How much you borrow, how much time you take to pay it back and your interest rate all affect the size of your monthly payment.
Three major factors that affect both your monthly payment and the total amount you’ll pay on your loan:
The loan amount – It can be significantly less than the value of the car, depending on whether you have a trade-in vehicle and/or making a down payment
The annual percentage rage – Usually referred to as the APR, this is the effective interest rate you pay on your loan.
The loan term – This is the amount of time you have to pay back the loan, typically 36-72 months.
WHAT IF I HAVE BAD CREDIT?
However, it is not impossible to buy a car when you have bad credit or no credit. You can improve your credit situation by opening a bank account, getting a credit card, or taking out a smaller loan and then making all your payments on time. This shows that you are trustworthy and can make your payments on time.
If you still have bad credit, we can offer Subprime leases and loans if you need a vehicle. These types of leases and loans will have more restrictive conditions and higher interest rates because you are still considered a risk, but we will work with you to make sure you find a vehicle that you can still afford.
Subprime auto loans are loans given to customers who would be ineligible for regular car loans for reasons like having a low credit score or not having a high enough income.
FINANCE VS. LEASE
LEASING A VEHICLE IN ONTARIO
When you lease a vehicle, you enter into a contract with a dealership or leasing company that provides you with use of the car for a set period of time. In exchange, you have a set monthly lease payment for the duration of the lease and you are responsible for the insurance and maintenance. At the end of the lease, you can choose to buy the vehicle or return it to the dealer and then lease or buy something different.
Benefits of Leasing
Lower Monthly Payments – you only pay for the depreciation in value of the car not its full value
Shorter Terms – leases usually don’t last as long
Newer Vehicles – because you don’t buy the car you can choose instead to lease another new vehicle at the end of the term
However, there are restrictions on what you can do with the vehicle that come with extra penalties if you do not adhere to them.
FINANCING A VEHICLE IN ONTARIO
When you finance a vehicle you are getting a loan directly from a bank, dealership or credit union to buy the full value of the car. You can negotiate the length of time required to pay off the loan, the interest rate and monthly payments.
Benefits of Financing
No Restrictions – because you’re buying the car you own it and have no restrictions on how you use or customize it
Early Loan Termination – at any point you can pay off the full remaining value of the loan with no extra penalty fees
Flexibility – you can get a car loan for used vehicles rather than just new ones and you resell and use the value to pay off your loan early