What to know when financing a car
When considering what you can comfortably afford when financing a vehicle it is necessary to consider the following:
Year and mileage
Services performed in presale inspection
Future required maintenance
Cost of such repairs
The number one reason for payment delinquency is a result of unexpected repair bills. The safest vehicle to purchase under a credit building program will always be a car followed by minivans and front-wheel drive SUV's. Regardless of your road conditions or driving habits, a car will always cost less to maintain than SUV's and Trucks. Tires cost more, the brakes cost more and the list continues. So unless you are prepared to pay those maintenance bills down the road cars are always the best option to consider.
Negative equity defined simply is the amount of money owing on your vehicle that is more than the current value. As vehicles are depreciating assets it is not uncommon to incur negative equity when financing a vehicle. It is important to understand that in Canada vehicles depreciate at about 12-15% a year driven under what may be considered normal and personal driving conditions.
With a high-interest rate loan or credit building loan you will with no doubt incur more negative equity on your loan then you would with good credit and a low-interest rate. Making the next loan you take out more risky in the bank's eyes than the first. Although auto loans are mostly open-ended loans, meaning you can pay them out early the chances of that happening are slim. It is important to find a lender when considering credit building financing that offers a loyalty program to reward its good paying customers with lower interest rates.\
Regardless of what other dealers, banks and lenders will tell you there are very limited choices for vehicles when financing with bad credit and more choices as your credit score improves.
At TakeTheDrive we have specialized in credit building financing since 2007 and purchase, sell, recondition and finance all our vehicles under the TakeTheDrive brand. This way we are able to either get you what you want or find something suitable and reliable to fit your budget and credit building needs for the long haul.
At TakeTheDrive we have been around long enough to understand all the important factors to consider when rebuilding your credit or buying a vehicle for the first time. We offer the most widely accepted national aftermarket warranties and 100% support throughout your whole journey. Get in touch with us below to find out how to get started!