DIRECT AUTO FINANCING
Easy. Quick. Affordable.
Got Questions? We’re Here to Help.
WHAT DO I NEED IN ORDER TO QUALIFY FOR AUTO FINANCING?
As long as you have some sort of credit history, a source of income, and you are able to prove your identity and residence you are able to qualify for Auto financing with Direct Auto Financing!
WHAT IS THE DIFFERENCE BETWEEN FINANCING A CAR AND LEASING IT?
When you finance a vehicle, you own the vehicle and get to keep it for however long you desire. You can customize or modify it and put as much mileage as you need to on it with no limitations. We also provide an open loan meaning you can pay off or trade-in the vehicle at any time with no penalties!
Leasing a vehicle means you use it for a fixed period of time and you technically do not own it, at the end of the term you either return it or buy it out.
WHY SHOULD I FINANCE A VEHICLE THROUGH AUTO LOANS DIRECT INSTEAD OF USING MY SAVINGS OR LINE OF CREDIT?
Applying for an Auto Loan not only allows you to start relationships with new lenders it also allows you to build and improve your credit. Especially for young buyers, a car loan is a great opportunity to show lenders that you are able to handle a loan bigger than a credit card. This will benefit you in the long run when applying for a possible larger loan or a mortgage.
If you already have an existing mortgage, using your savings and putting it towards your mortgage will save you much more than the interest that you will be paying for an auto loan by buying a car out in full. Remember it is an open loan meaning you can pay it off at any time, reducing your cost of borrowing, whether it is a year from now or 4 years from now.
With a line of credit, It will be tied to the prime lending rate, which will go up or down depending on Bank of Canada announcements and economic factors beyond your control; it may be a percentage of what you owe (e.g., three per cent of your outstanding balance), or if your credit line is secured by your home it may only require interest only payments.
With a line of credit, your minimum monthly required payment will fluctuate, which can make it harder to budget, especially if you’re banking on only making minimum payments.
If you save your credit line for emergencies, the cash you need for an emergency may no longer be available if you use most of your credit limit to buy a vehicle. If your credit score drops for some reason and your lender becomes concerned that you may not be able to repay your credit line, they can ask for full payment of the line of credit or lower your credit limit drastically at any time.