Representative example: Ramon buys a Lamborghini
Ramon, a resident of B.C., has come into financial success as a major investor in an enormously profitable tech startup. He wants to fulfill a lifelong dream of owning a Lamborghini and finds a private buyer who’s willing to sell him a gently used 2017 Aventador SV with a Blu Cepheus exterior for $545,000.00. Ramon provides the seller with a 20% deposit of $109,000.00 to hold the vehicle while he secures the rest of the financing.
Ramon applies for a loan from a private lender to cover the outstanding amount ($436,000.00) plus 20% GST/PST on the selling price (expensive cars are taxed at a higher rate in BC). Thanks to his solid credit history and high income, he is approved. Ramon also pays around $50.00 to register his car with the Insurance Corporation of British Columbia (ICBC) – this includes the cost of a license plate, insurance decal, vehicle permit and registration fee.
| Cost of new vehicle | $545,000.00 |
| Loan type | Auto loan (term loan) |
| Loan amount | $545,000.00 |
| Interest rate (APR) | 5.90% |
| Loan term | 8 years |
| Additional fees | 3.00% origination fee ($16,350.00) $0.00 application fee (waived by dealership) |
| Payment | $6,804.32 monthly or $3,137.21 biweekly |
| Total loan cost | $653,214.72 with monthly payments or $652,539.68 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.