Representative example: Leon buys a Dodge Ram
Leon, a resident of Ontario, is deciding between two 2020 Dodge Ram 1500 Longhorns. One has a 5.7L V8 gas engine and is priced at $68,000.00. The other has a 3.06L V6 diesel engine and is priced at $72,800.00. Leon knows diesel fuel is more expensive but figures the gas engine will cost more to maintain overall. Plus, the diesel truck will hold its value longer and can likely be resold for more than the gas truck.
Leon chooses to buy the diesel truck and makes a 15% down payment on it, which amounts to $10,920.00. He also gets an $8,000.00 trade-in on his old vehicle. Thanks to his solid credit history, Leon is approved for dealership financing to cover the remaining $53,880.00 plus 13% HST ($7,004.40). Additionally, he pays around $150.00 to register his vehicle with the provincial government – this includes a sticker for his license plate and a vehicle permit.
The table below shows how much a loan could cost for both vehicles:
| 2020 Dodge Ram 1500 Longhorn vehicle specs | Gas engine: 5.7L HEMI VVT V8 engine with FuelSaver MDS (8-speed automatic transmission, 4X4 drivetrain, crew cab) | Diesel engine: 3.0L V6 Turbocharged Diesel (8-speed automatic DFV transmission, 4X4 drivetrain, crew cab) |
| Purchase price of vehicle | $68,000.00 | $72,800.00 |
| Loan type | Auto loan (term loan) | Auto loan (term loan) |
| Loan amount | $65,920.00 | $71,344.00 |
| Interest rate (APR) | 5.90% | 5.90% |
| Loan term | 8 years | 8 years |
| Additional fees |
|
|
| Payment amount | $863.08 monthly or $397.33 biweekly | $934.09 monthly or $430.67 biweekly |
| Total loan cost | $82,855.68 with monthly payments or $82,644.64 with biweekly payments | $89,672.64 with monthly payments or $89,579.36 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.
