Representative example: Leon buys a hybrid car
Leon runs a successful cleaning business in Ontario and wants to buy a hybrid car to travel between sites. After doing some research, he finds a Ford Fusion Hybrid SE priced at $37,290 ($33,000 + 13% HST).
He puts a deposit of $6,600 down on the car and requests a loan to cover the rest. He is approved for a loan of $30,690 with a 5.50% interest rate over 7 years. This is what his loan will look like:
Cost of new vehicle | $33,000.00 |
Loan type | Auto loan (term loan) |
Loan amount | $30,690.00 |
Interest rate (APR) | 5.50% |
Loan term | 7 years |
Additional fees | 4.00% origination fee ($1,227.60) |
Payment amount | $441.02 monthly or $203.34 biweekly |
Total loan cost | $37,045.68 with monthly payments $37,007.88 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.