Representative example: Ash buys a Kia
Ash, an Ontario resident, is looking for a new car. He visits a dealership where he finds a 2020 Kia Optima Ex priced at $30,500.00. After trading in his old car for $2,800.00 and putting a 20% down payment of $5,540.00 on the Kia, Ash heads to his local bank where he applies for an auto loan to cover the remaining cost ($22,160.00) plus 13% HST. Because of his solid credit history, he is approved for loan. Ash also pays approximately $150.00 to register his vehicle with the province of Ontario – this includes the cost of a license plate sticker and vehicle permit. (Fortunately, he can reuse his old plates and doesn’t need to buy new ones.)
| Cost of new car | $29,245.00 |
| Loan type | Auto loan (term loan) |
| Loan amount | $22,160.00 |
| Interest rate (APR) | 5.50% |
| Loan term | 5 years |
| Additional fees |
|
| Payment | $462.78 monthly or $213.46 biweekly |
| Total loan cost | $27,766.80 with monthly payments or $27,749.80 with biweekly payments |
*The information in this example, including rates, fees and terms, is provided as a representative transaction. The actual cost of the product may vary depending on the retailer, the product specs and other factors.