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Whether you’re a first-time car buyer or on your third vehicle, you want to make sure your money is being spent wisely. You want a vehicle within your budget and payments you can afford to make without leaving you broke each month. So how do you choose the right car loan?
Buying a new car is a large expense. Not quite as much as buying a house, but they both require a large sum of money. Most cars are not bought with cash upfront and neither are houses. People either apply for a loan for a car or a mortgage for a house. This allows you to borrow money and pay it back in installments with a percentage of interest added each month.
While it might seem daunting to borrow such a large sum of money, Toyota Canada has dozens of financing programs and options to help first-time car buyers and others get a great vehicle at an affordable rate. Curious about how financing a new car works? Want to understand the difference between financing a new car and leasing a new car? This post will help you understand both so you can make the most informed decision possible.
Unsure how financing a new vehicle works? We can explain everything! First off, most people choose the financing route if they want to end up owning their vehicle or they are using it for commercial reasons.
The first step to financing a vehicle is filling out an online credit application. Once we have your information (which we always keep 100% confidential) we work out the options available to you. If you are pre-approved, we can put together the specific payment details of your contract that work within your budget.
With the maximum financing term available being 84 months, your monthly payments can be made smaller over years. Or, if you prefer to pay off your loan quickly you can choose a shorter term with higher monthly payments. Putting a down payment on a vehicle or trading-in an existing vehicle are also ways you can lower your payments each month.
Once you have paid off your car loan in full, your Toyota is officially yours. So while some people can afford to own their vehicle outright from the beginning, most choose to take a loan and spread out their payments over time, and pay interest. With the right loan term and interest rate, buying a new Toyota becomes affordable for all budget scenarios.
Toyota is one of the most popular car brands in North America for a reason. In addition to having the most reliable and safety-first vehicles on the road, Toyota also offers enticing monthly financing offers that make buying a new car easier and more accessible for people with all types of budget concerns.
Additionally, because Toyota vehicles have incredibly high resale values and are dependable over time, Toyota owners eventually end up spending less over the years on pricey maintenance and can often sell their vehicle at a later date for more money than other used vehicle brands.
Need proof? Six Toyota vehicles took home the 2020 Canadian Black Book Awards for having a high resale value including the Corolla and Camry.
Remember when we compared financing a new car to buying a house? With a new house, you get a mortgage and when you finance a vehicle, you get a car loan.
Leasing is a little different and is more comparable to renting a house than buying one. Except with vehicle leasing, you pay for usage and vehicle depreciation.
When you finance a new Toyota, you own the vehicle after you have paid the contract in full. However, with leasing a car you either purchase the vehicle outright or return it to the dealership after your contract has ended.
So why do some people choose to lease over finance? Typically, if you like to always be driving a new vehicle and want lower monthly payments, leasing is a great option for you. If you want to own your vehicle after your contract is up and can handle slightly larger monthly payments, financing might be the better option for you.
The great thing is, you are not expected to understand everything right from the hop. Whether you want to buy a new vehicle with cash upfront or are having difficulties choosing between leasing and financing, our dedicated finance specialists are able to walk you through your options and help you make the right decision based on your budget.
Listen, we get it. Edmonton car dealerships and salesmen have a bad rap. Years of untrustworthy tactics and shady sales practices are to blame. Thankfully, we like to think differently around here. We’ve worked hard over the years to create an environment of trust and transparency.
That means after you have found a vehicle you love, our finance team sits down with you one-to-one and pours over your options. That means breaking down a payment structure with your budget in mind and providing you with a list of all your possible options. So you can buy a new vehicle knowing you spent your money wisely.
Shopping for a new Toyota in Edmonton and need help with a car loan? Talk to our team today! We have experience working with all credit types including bad credit and no credit situations. Fill out our online credit application or book an appointment today and let us help you get into a new car!
