Auto Loan in Toronto
How to Get an Auto Loan in Toronto
A car is one of the biggest purchases people regularly make, aside from a home. Financing a car can seem complicated, but with a little knowledge about auto loans, you can shop for a car with confidence.
Auto Loan Information
There are three important aspects to an auto loan: principal, term, and interest rate.
Principal is the total loan amount that you’re borrowing. If you aren’t putting any money down, the principal will be the total cost of the vehicle plus any fees and other add-ons.
The loan term is the length of the loan, over which time you’ll make regular payments. For auto loans, terms generally range from 36 to 84 months. The longer the term, the lower your monthly payment, but the more you’ll pay in interest overall.
The interest rate on your loan will depend on several factors, including whether the vehicle you’re buying is new or used, the term of the loan, and your creditworthiness.
What You Need to Apply for a Car Loan
There are a few important documents you’ll need to have with you when you apply for an auto loan in Toronto:
- Photo ID – be sure to have a valid driver’s license as well as another form of ID with you, so that you’re correctly identified on your application.
- Proof of Income – this can be your two most recent pay stubs, a notice of assessment, or your recent bank statements; lenders need proof that you’ll be able to make your loan payments.
- Bank Information – you should bring a voided cheque or a pre-authorization form so that the lender will be able to set up your payment plan.
Where to Get an Auto Loan
There are a few different options available to you if you’re looking for an auto loan. Whether you choose to work with a traditional bank, go through the dealership, or get a loan from an online lender, all the above information applies.
Your bank or credit union likely offers auto financing, and you can often get a good rate by going through them if you have good credit. You’ll need to make an appointment to speak with a loan manager, who will help you through the process of filling out your application. They’ll consider your income and your credit score to determine how much they can offer you and the term and interest rate.
A common way to get financing is to go through the dealership. Car dealers work with a variety of lenders, including their own in-house financing department as well as other banks and lenders who work exclusively with dealers. This can be helpful if your credit isn’t great, as they often can work with you to find a solution. However, be careful that your credit isn’t pulled multiple times, as this can cause a drop in your credit score.
An online lender is another option for an auto loan. The application process is fast and you can be approved quickly as well. Here’s what the process looks like:
1. Submit Your Application
You’ll need the same information as you would in person, and then the lender goes to work getting you a preapproval for a certain amount. This gives you your budget so you know what to look for when you head out to look at possible vehicles.
2. Wait for a Call Back
After you’ve submitted your application, you’ll hear back within 24 hours from a coordinator who can match you with a dealership that has options in your price range. No matter your situation—bad credit, bankruptcy on your record, no credit—there are options out there for you.
3. Go Find Your Vehicle
Once you get your approval, you can go ahead and visit your dealership to sign your paperwork and drive your new vehicle home.
When you work with Lend for All, we make sure that your bank account has the money you need to get the job done. We also ensure you have the money accessible to you when you need it most. It doesn’t matter what you need the money for. It could be for a wedding gift, to fix a broken window, to pay for a kitchen renovation, to help you meet payroll in your business during a slow month – it doesn’t matter!
If you have poor credit and maxed-out credit cards, we can get you back on the right track by providing loans and interest rates that work for you. We are an alternative financing solution, and along with our Artificial Intelligence-enhanced platform, our optimized process will help you qualify no matter your credit score.
Learn more about Bad Credit Loans in Canada by calling us toll-free at 1-800-532-4505. Or, if you prefer, simply start the process off right away by filling out our easy-to-use form! Before you know it, you could have the money you need in your bank account, and you can focus on what’s important: living your life!