CarsFast Car Loans

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CarsFast Car Loans
Interest rates from 4.9%
Ben lives in Ontario and decides to buy a car so he can drive to his new job in another city. He finds a 2017 Hyundai Elantra in good condition with low mileage for only $14,500.00 at a dealership. He makes a 20% down payment of $2,900.00 and gets an auto loan at his local bank to cover the remaining $11,600.00 + $1,885.00 HST.
Ben gets approved for a $13,485.00 auto loan, and also pays approximately $180.00 to register his vehicle with the province of Ontario (including the cost of license plates, a sticker and a vehicle permit).
Cost of used car | $14,500.00 |
Loan type | Auto loan (term loan) |
Loan amount | $13,485.00 |
Interest rate (APR) | 4.90% |
Loan term | 5 years |
Additional fees | 4.00% origination fee ($539.40) |
Payment | $253.86 monthly or $117.05 biweekly |
Total loan cost | $15,231.67 with monthly payments or $15,216.50 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.
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Compare car loans nowIn addition to your monthly payment, this calculator shows how much you’d pay on your loan’s principle amount and how much you’d pay overall in interest. The principle amount is the amount that you borrowed and should be equal to your loan amount. Total interest is the amount you would pay on top of the principle — the cost of having your loan.
There are a few options available for financing a used car, all of which have pros and cons. The right option for you will depend on your financial situation and preferences. Here are your 3 used car finance options:
You can get financing directly through the dealership where you’re buying your used car. Dealership financing can be quick and convenient, but it’s often more expensive than finding financing through a third-party lender. However, because dealerships have a relationship with their lending partners, there’s usually room for negotiation. You can typically get a 3-7 years term car loan from a dealership.
Many major banks offer used car financing, including CIBC, Scotiabank, TD Canada Trust, RBC and BMO. You can also get used car financing through a credit union. Going through a bank can be straight forward if you already have an account with it, but you should still shop around for the best deal, as competing banks will offer different used car loan rates.
There are many legit online car loan providers willing to finance used cars. Even if you end up going with dealership or bank financing, getting pre-approved for multiple offers online saves time compared to visiting multiple dealerships or banks, and gives you leverage to negotiate and lock in the best rate. You also get to chose from a range of competitive car loan options, ranging from 1-7 years.
Generally, you’ll have a few options when it comes to the types of car loans available for used cars. These include:
Find out more about using a personal loan to finance a used car in our comprehensive guide.
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Lenders typically have minimum and maximum loan amounts, and often set limits to the age and mileage of vehicles that qualify for loan approval. Your credit score will also affect your chances of getting a car loan. A score of 630 or more gives you a good chance of securing a loan. But if your score is below 630, it will be difficult to gain approval. Find out how you can improve your credit score here.
Here’s what you can expect from some popular used car loan providers.
Loan Provider | Max. age of car | Min. loan amount | Max. loan amount | |
---|---|---|---|---|
CarsFast Car Loans | Varies by lender | $500 | $75,000 | Go to site |
Car Loans Canada | Usually 7 years old | $7,500 | $55,000 | Go to site |
Loans Canada Car Loans | Varies by lender | $500 | $35,000 | Go to site |
Carloans411 Car Loans | Varies by lender | $500 | $50,000 | Go to site |
LoanConnect Car Loans | Varies by lender | $500 | $50,000 | Go to site |
Auto Arriba Car Loans | 10 years old | $500 | $100,000 | Go to site |
Fairstone Secured Personal Loan | Not specified | $5,000 | $35,000 | Go to site |
Some lenders might request a deposit. This usually happens in three situations:
In any of these cases, it may be necessary to leave a deposit for your used car, but that doesn’t mean you have to settle for the dealer’s terms. Every step of a car purchase can be negotiated, and that includes your deposit.
Securing the right financing is as important as finding the right car. Here are the main components of a loan you should consider:
Used cars might be cheaper, but used car loans tend to come with higher interest rates. That’s because car loans are secured by the value of the vehicle you’re buying. Since used cars have less value, your collateral isn’t worth as much. This makes lenders see you as more of a risk than a new car buyer, who has higher collateral.
Lenders tend to give borrowers with more valuable collateral lower interest rates because they stand to gain something more valuable if the borrower can’t pay back their loan.
Depreciation is often cited as the single largest expense when buying a new car. With over 40% of a new car’s value being lost to depreciation in the first 3 years, you can often find a better deal on a slightly used model.
You can use websites like Canadian Black Book, Auto Trader Canada, and Kijiji Autos to research the average price of the car you’re interested in. You’ll be able to see its original value and its estimated used value, which will then give you an idea of how much you should be paying.
By keeping depreciation in mind, you can use it in your favor to score a good deal. You’ll also be able to see the car’s estimated rate of depreciation, which can help guide you toward a car that won’t lose its value while you drive it — meaning you can sell it for a better price once you want to upgrade to a new model.
Follow these 6 steps to buy a used car with financing.
Before you start shopping, calculate how much you can afford to pay each month. List out your monthly expenses like rent, groceries, insurance premiums and other recurring costs, then subtract that from your monthly income after taxes. You won’t want to use everything you have left toward your car loan payment though. Create a buffer for emergency expenses, too. And don’t forget to include upfront costs that come with purchasing a car, like a down payment, taxes and licensing fees, when setting your budget.
Your next step will be to compare your loan options. While dealership financing can be useful, you should still know what kind of rate you can expect and have a few backups just in case the dealership doesn’t come through. And if you’re buying through a private seller, finding financing beforehand is likely your only option to secure the sale.
If you don’t already have a car in mind, it’s time to start searching. Dealerships, online car-buying programs and private parties often have a variety of cars available for you to choose from. If you’re looking for a car with newer technology and swanky features, you might want to opt for a newer used luxury car.
When you find one you like, use resources like Canadian Black Book, Auto Trader Canada, and Kijiji Autos to determine its market value based on the year, make, model, mileage and condition. This can help when it comes to negotiating the price.
Get in touch with the seller. If it’s a private listing, a phone call or email should suffice. If you’re planning on going through a dealership, contact the sales manager to confirm the car is still available and to schedule a test-drive. There are a variety of questions you should ask when buying a used car, so go over those carefully before making a plan to inspect the car.
When you inspect a used car, you’ll want to review its vehicle history report and take it for a test-drive to see if it’s worth buying. Take note of any serious accidents that have occurred or any mechanical issues that might have been noted in its maintenance records. Buying a used car is riskier than opting for new, so take care to ensure the vehicle you select isn’t a lemon.
Once you’ve determined the car is worth buying, it’s time to start negotiating. Focus on the overall price of the car — rather than the monthly payments — to get the best deal possible. After, you’ll need to determine if you want additional products like gap insurance or an extended warranty. Then all that’s left is to pay for your car — including the down payment, taxes and fees — and finish signing all the paperwork.
Whenever you apply for a used car loan, take the time to read the terms and conditions. It’s important to be aware of all fees and charges, as well as any restrictions on the vehicle or loan.
A used car can be a reliable option when you’re looking for your next set of wheels — as long as you make sure you get the right used car financing.
The amount of your down payment and your credit score will be major factors in calculating your interest rate. Whether the interest rate is fixed or variable is also very important. If the rate is fixed, it will stay the same throughout the entire period of repayment. If it’s variable, then the rate will fluctuate based on the prime lending rate, which is primarily set by the Bank of Canada and can go up or down at any given time.
When applying for a loan, the lender will do a hard pull on your credit to find detailed information about your history of borrowing and repaying. Hard pulls stay on your credit record for years and will temporarily drop your score. But as long as you’re not applying for multiple loans within a short period of time, your credit history should remain largely intact.
Some lenders and credit unions offer loan options specifically for those who have bad credit. You may also be able to use your car as collateral for an auto title loan. Additionally, many lenders offer short-term loans of up to $3,000, even if you have a poor credit history.
Matt Corke is Finder's head of publishing for rest of world and New Zealand. He previously worked as the publisher for credit cards, home loans, personal loans and credit scores. Matt built his first website in 1999 and has been building computers since he was in his early teens. In that time, he has survived the dot-com crash and countless Google algorithm updates.
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