Representative example: Sergei buys a BMW
Sergei lives in Ontario and recently got a new job in another city, so he wants to buy a car that he can use for the daily commute. Sergei finds a luxury vehicle at a dealership for $53,000.00. After putting a 15% down payment of $7,950.00 on the car, he heads to his local bank where he applies for an auto loan to cover the remaining cost.
Because Sergei has a solid credit history, he is approved for a loan to cover the outstanding amount plus $5,856.50 HST on the purchase price. Along with the cost of his loan, Sergei also pays approximately $180.00 to register his vehicle with the province of Ontario — this includes the cost of licence plates, a sticker and a vehicle permit.
|Cost of new car||$45,050.00 ($53,000.00 less $7,950.00 down payment)|
|Loan type||Auto loan (term loan)|
|Interest rate (APR)||5.90%|
|Loan term||7 years|
|Additional fees||3.00% origination fee ($1,558.20)|
|Payment||$756.28 monthly or $348.68 biweekly|
|Total loan cost||$62,263.32 with monthly payments or $63,459.76 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.