No matter where you live in Canada, having a vehicle would likely make your life easier. Unfortunately, cars are expensive, and many people can’t afford to pay for one outright. This is why getting an auto loan is possible. An auto loan from banks, such as Scotiabank, could help you buy the car you want right away.
If you have never taken out a loan, the most important thing to consider is whether or not you will be able to make the monthly payments. If not, don’t risk your credit rating by taking out a loan. Let’s take a look at some of the best places to find an auto loan, Scotiabank, Canada Drives and Loan Connect.
Car Loans from Scotiabank
Scotiabank auto loans are some of the best in the country. You can get vehicle financing up to $200,000 from Scotiabank. This is the perfect loan for those looking to buy luxurious vehicles.
Scotiabank gives a lot of freedom to their customers as you can customize payments the way you want and can choose either a fixed or variable rate. Scotiabank also gives loan terms of up to 96 months, plenty of time to pay off your loan.
Scotiabank financing is available at over 4,000 dealerships in Canada, so you don’t even need to go into a Scotiabank location directly to apply for your loan.
Best Alternative to Scotiabank
If you don’t want to get a loan with Scotiabank, there are other alternatives. You could get a loan directly from the dealership you are buying your new vehicle from. If you have bad credit, however, traditional lenders are not likely to approve you for any loans.
Thankfully, private lenders do exist and are willing to give out loans to those with bad credit. The only catch is, the interest rate for a loan from a private lender will likely be more than one from Scotiabank, for example.
To find the perfect vehicle loan, check out Loan Connect or Canada Drives. If you’ve never heard of either loan sites, keep reading!
Loan Connect is the perfect place to begin your search for the perfect auto loan. It is a loan search engine for Canadians. Although Loan Connect has only been around since 2016, it has swiftly become Canada’s premier loan search engine. The company is based in Toronto, but Canadians from any province or territory can use the site.
On Loan Connect, you can find loans for vehicles, debt consolidation, personal use, and more. You simply need to input your personal and financial information. Then, Loan Connect will show you all the available lenders for you to easily compare.
Loan Connect only offers loans up to $50,000. If your vehicle is more than that, you may want to consider other financing options.
The main benefit of using Loan Connect is that they help Canadians regardless of their credit rating. Traditional lenders, such as banks, will not lend to those with poor credit. Loan Connect, however, can help you find a lender that will. It is important to note that if you have bad credit, your interest rate will likely be higher. If you have good credit, interest rates could start as low as 4.6%.
Another great place to look for vehicle loans is Canada Drives. Canada Drives works a bit differently from Loan Connect. To begin your search, you need to pick which type of vehicle you want to buy. Then, you will need to input your personal and financial information. Canada Drives will then show you a list of dealers that have that car available. Once you choose one, the dealer will call you directly to discuss details about the financing, such as your monthly payments.
The application process can be done completely online in less than five minutes. Once your application is complete, and your loan is approved, you could receive your new vehicle in less than 48 hours.
Eligibility requirements from Canada Drives state that you must be a Canadian that is of the age of majority. You also need to have been employed for at least the last three months with a minimum income of $1,500. This means that even Canadians with bad credit can apply for financing with Canada Drives.
The maximum amount of financing available is $75,000. You can choose from 12 to 98-month terms to pay off your loan. You can also choose to make weekly, bi-weekly, or monthly payments.
The Bottom Line
Scotiabank is Canada’s number one choice for auto loans, and for a good reason. They offer great rates and make payments easy for you, as you can customize them to suit your financial needs.
If getting a loan from a traditional lender is not an option for you, Loan Connect and Canada Drives are great alternatives. The loan websites will help you find the perfect lender or dealership, regardless of your credit rating. Using each site to find the perfect loan is completely free, so head over there now to see all your potential loan options.