Quantcast
automobile financing - Beyond.ca - Car Forums
Results 1 to 16 of 16

Thread: automobile financing

  1. #1
    Join Date
    Jan 2017
    Location
    Calgary
    My Ride
    Summer car or work truck
    Posts
    575
    Rep Power
    18

    Default automobile financing

    Hey everyone. I've only ever financed a vehicle through a dealership. How does it work if I want to finance a private sale? I could use my unsecured LOC to purchase, but the rate is around 6.75%. If I could get a car loan for a better rate, that would be best. I'm assuming I couldn't get a car loan without knowing what I'm buying and if that's the case, can I buy and then finance to pay myself? Also, any recommended lenders? Looking to spend 20k-30k. Any advice. Thanks

  2. #2
    Join Date
    Nov 2003
    Location
    Moo Town
    My Ride
    (0^oo^0)~
    Posts
    746
    Rep Power
    23

    Default

    For private sales, you either obviously have the cash or you find your own financing. Many institutions will have promotional rates. For instance, TD is offering a Fixed Rate at 4.29% for 1 year.

    They also offer auto loans but they come with conditions such as the car being less than 5 years old, etc.

    My advice is nothing that you don't already know. Shop around and call each bank to see what they're offering.

  3. #3
    Join Date
    Sep 2018
    Location
    Edmonton, Alberta
    Posts
    535
    Rep Power
    15

    Default

    Be tough finding a better rate than your LOC. That's what I would use if it's available.

  4. #4
    Join Date
    Aug 2003
    Location
    Medicine Hat, AB
    Posts
    2,009
    Rep Power
    26

    Default

    What i have done in the past, is broker the deal through a used car dealership. The buyer gets access to the dealer rates and an inspection (an AMIVC requirement), the seller doesn't have to hassel with paying off loans ect, and the dealer gets kickbacks from the bank for the deal.

    Often the dealer will add on the admin fee so they get a little more money out of the deal but that is easily made up on the 2-3% interest rate reduction.

  5. #5
    Join Date
    Jul 2007
    Location
    YYC
    My Ride
    VAG products
    Posts
    1,396
    Rep Power
    18

    Default

    Quote Originally Posted by spike98 View Post
    This quote is hidden because you are ignoring this member. Show Quote
    What i have done in the past, is broker the deal through a used car dealership. The buyer gets access to the dealer rates and an inspection (an AMIVC requirement), the seller doesn't have to hassel with paying off loans ect, and the dealer gets kickbacks from the bank for the deal.

    Often the dealer will add on the admin fee so they get a little more money out of the deal but that is easily made up on the 2-3% interest rate reduction.

    Generally what rates were you presented when going this way?

  6. #6
    Join Date
    Aug 2003
    Location
    Medicine Hat, AB
    Posts
    2,009
    Rep Power
    26

    Default

    Quote Originally Posted by pf0sh0 View Post
    This quote is hidden because you are ignoring this member. Show Quote
    Generally what rates were you presented when going this way?
    That entirely depends on the age of the vehicle. But for my situation, the bank was offering me 6.99% and the dealer 3.99%. The bank was only slightly better than my LOC at 7.49%.

  7. #7
    Join Date
    Jul 2007
    Location
    YYC
    My Ride
    VAG products
    Posts
    1,396
    Rep Power
    18

    Default

    What dealer did you use? I am just curious as to how that works

  8. #8
    Join Date
    Jan 2003
    Location
    Edmonton
    My Ride
    Megun/Kyosho/965
    Posts
    3,274
    Rep Power
    26

    Default

    I can tell you, 6.75% is pretty good, for a $20K used car, (say 5 or 6 year old) banks will charge 7% or more for 48 or 60 month.
    The Original !

    1234567, ¦h³Ò¦h±o

  9. #9
    Join Date
    Apr 2008
    Location
    calgary
    My Ride
    CLK 55 / 2g Eclipse / EP3
    Posts
    4,422
    Rep Power
    22

    Default

    Quote Originally Posted by spike98 View Post
    This quote is hidden because you are ignoring this member. Show Quote
    What i have done in the past, is broker the deal through a used car dealership. The buyer gets access to the dealer rates and an inspection (an AMIVC requirement), the seller doesn't have to hassel with paying off loans ect, and the dealer gets kickbacks from the bank for the deal.

    Often the dealer will add on the admin fee so they get a little more money out of the deal but that is easily made up on the 2-3% interest rate reduction.
    I assume you would have to have decent credit for a good rate. Doubt they would be giving away 4% rates to 'everyone approved' kind of setup.

  10. #10
    Join Date
    Jan 2017
    Location
    Calgary
    My Ride
    Summer car or work truck
    Posts
    575
    Rep Power
    18

    Default

    Someone else commented this through PM and it seems like a good idea. I will probably look into this option and see what the rate will be. Called TD and they quoted me a rate of 5.94 without knowing really anything specific. I have great credit, so I imagine the used car lot will be the best option when the time comes.

  11. #11
    Join Date
    Mar 2006
    Location
    Calgary
    My Ride
    Cayenne S, 335i Cab
    Posts
    800
    Rep Power
    21

    Default

    Trade off is you will need to pay GST on the used vehicle if you go through a dealer ? Might end u guys being the same. 6.99% but no gst or 3.99% + 5%gst
    Last edited by RX_EVOLV; 06-28-2019 at 05:42 PM.

  12. #12
    Join Date
    Apr 2008
    Location
    calgary
    My Ride
    CLK 55 / 2g Eclipse / EP3
    Posts
    4,422
    Rep Power
    22

    Default

    Quote Originally Posted by RX_EVOLV View Post
    This quote is hidden because you are ignoring this member. Show Quote
    Trade off is you will need to pay GST on the used vehicle if you go through a dealer ? Might end u guys being the same. 6.99% but no gst or 3.99% + 5%gst
    No, he was talking about BROKERING a loan through a used car lot. You might get dinged an Admin fee plus the inspection fee.

  13. #13
    Join Date
    Apr 2003
    Location
    AB
    Posts
    889
    Rep Power
    21

    Default

    Just tell the bank you are looking for a personal loan to buy a vehicle. You are not sure what you want yet. I have done this a few times without any issue.

  14. #14
    Join Date
    Jan 2017
    Location
    Calgary
    My Ride
    Summer car or work truck
    Posts
    575
    Rep Power
    18

    Default

    I actually had an unrelated Bank appointment and asked. The rate was marginally better than my LOC. Not worth the hassle. They also knocked .05 off my current rate.

  15. #15
    Join Date
    Jan 2008
    Location
    Upstairs
    My Ride
    Natural Gas.
    Posts
    13,332
    Rep Power
    100

    Default

    Heloc that shit yo!

  16. #16
    Join Date
    Jan 2017
    Location
    Calgary
    My Ride
    Summer car or work truck
    Posts
    575
    Rep Power
    18

    Default

    Neither of my mortgage providers offer that. I've been reading Beyond long enough to know that is ALWAYS the first option!

Similar Threads

  1. Financing a used car- dealer or bank financing?

    By woodywoodford in forum Real Estate / Finance
    Replies: 24
    Latest Threads: 06-25-2014, 01:30 PM
  2. Automobile insurance rates in Canada?

    By GRIPSHUN in forum General Car/Bike Talk
    Replies: 0
    Latest Threads: 01-15-2005, 07:15 PM
  3. Need automobile appraisal

    By 4G63Power in forum General Car/Bike Talk
    Replies: 3
    Latest Threads: 11-05-2004, 10:29 AM
  4. Automobile Appraisals

    By 4G63Power in forum General Car/Bike Talk
    Replies: 5
    Latest Threads: 05-24-2004, 11:34 AM
  5. Volkswagen's Glass Automobile Factory

    By Dope Dealer in forum General Car/Bike Talk
    Replies: 7
    Latest Threads: 11-12-2003, 11:24 AM

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •