Representative example: Omar buys a Corvette
Omar, a B.C. resident and classic car collector, visits a local car show and meets a private seller offering a 1960 Ermine White Chevrolet Corvette in great condition with all original parts. The asking price is $70,000.00, which Omar agrees to pay, offering a 20% deposit ($14,000.00) to secure the sale while he searches for a loan to cover the rest.
Because of his strong credit history and good income, it doesn’t take long for Omar to find a reputable lender specializing in classic car loans who’s willing to lend him the money to pay the amount owing on the car plus 12% PST ($56,000.00 + $6,720.00). Omar also pays approximately $50.00 to register his vehicle with the Insurance Corporation of British Columbia (ICBC) – this includes the cost of a license plate, insurance decal and vehicle permit as well as a registration fee.
| Cost of new vehicle | $56,000.00 ($70,000.00 less $14,000.00 deposit) |
| Loan type | Auto loan (term loan) |
| Loan amount | $64,400.00 |
| Interest rate (APR) | 6.90% |
| Loan term | 7 years |
| Additional fees | 4.00% origination fee ($2,576.00) $0.00 application fee (waived by dealership) |
| Payment | $968.82 monthly or $446.61 biweekly |
| Total loan cost | $81,380.88 with monthly payments or $81,283.02 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.
