Considering Business Manager Training? Explore 3 Car Financing Options for Canadian Drivers
Drivers in Canada have several options open to them when they purchase a new car. Paying outrightly for the vehicle in cash might seem like the easiest option, but it’s not always the best or even preferred option. Many people prefer the flexibility that auto financing offers.
For starters, auto financing is easier on people’s finances and cash flow, and approval for car loans can often be obtained without collateral or down payments. Further, auto financing approval may even be granted to people who do not have good credit scores, making auto financing the most accessible option.
Business manager training will prepare you for a future role in automotive sales. Having a prior understanding of how auto financing works and which car financing options are available to Canadian drivers will be of immense benefit to you in your position.
1. Bank Auto Loan Financing
Banks are often the first port of call for private Canadian drivers seeking auto financing. It’s important for those auto careers to know that this is an ideal option for clients who have good credit ratings or those that cannot afford a down payment at the point of their requests.
Getting a loan from a financial institution typically involves several physical appointments with bank officials bearing lots of forms to fill out. On the flip side, however, most banks offer competitive interest rates and a plethora of loan options. And people with good credit scores can negotiate even better loan conditions.
2. Auto Dealership Financing After Business Manager Training
The majority of dealerships have an internal financing division that provides loans either through the businesses that produce the automobiles or through a particular bank they work with. During your business manager training, you’ll discover all the various means through which auto dealerships arrange financing for potential customers.
Auto financing terms (down payments, interest rate, and loan term) from dealerships are typically negotiable, which may contribute to their appeal. And, although auto dealerships send auto financing applications from customers to external lenders for approval, people without good credit ratings can still have their loans approved. Finally, bear in mind that clients who choose this type of financing need to pay a down payment of between 10-20 per cent of the total value of the car.
3. Car Leases
Leasing is comparable to long-term renting. When clients lease an automobile, they commit to using it for a predetermined amount of time—typically 3 to 5 years—in exchange for regular payments. The car is not being purchased, and when the lease expires, they won’t be the owners. At the end of the lease term, however, most leasing agreements provide them with the choice to purchase the vehicle.
Once you start your career, you’ll notice that clients who like to get a new car more frequently and don’t want to sell or trade in their current vehicle are more likely to lease.
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