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Can I buy an EV with a standard auto loan?

Can I buy an EV with a standard auto loan?

The world is evolving, and we all want to evolve with it. Everyone also wants to shed costs in every possible way; one of those ways of reducing costs is to move from gas to electric cars.

With the initial cost of these electric cars being so high, many people look for a way to finance their EVs.

Can an EV be bought with a standard auto loan in Canada? Yes, it can.

How can an auto loan be acquired?

The process of acquiring a car loan is quite simpler than people think. With these three steps, you can acquire your car loan in Canada:

  • Collect the lender's car loan application and fill in the personal and financial information required by the lender.
  • You are to submit the documents required by the lenders. The likes of income and expense documents, debt obligation supporting documents etc and the EV model of the car would also be stated by you.
  • Then you wait to be approved by the lender. Depending on the lender, this can take a couple of days or weeks.

Where is the best place to get your standard auto loan?

There are two basic options to get your car loan in Canada: banks and dealerships.

  • Banks in Canada like Toronto Dominion bank, BMO, RBC, CIBC and Scotiabank offer car loans.

These banks listed above are great places to get an auto loan approved if you have a good credit score. However, many people complain of the frustration that comes with working with the bank because of the paperwork and multiple appointments they do have.

  • With a dealership after you've found the car you like, the dealership offers finance options at the point of sale, and it is convenient. You have the advantage of having the car and finance in the same building and everything can be taken care of for you, in one appointment. Much easier than a bank!

Comparing the two options, we can say that the bank is the best place to get an auto loan.

How does car loan interest work?

The interest rate paid on car loans depends solely on the lender, as stated in the agreement form. Every payment made monthly, quarterly or yearly would include part of the interest and principal.

In most cases, the interest is larger at the beginning but gets smaller as the loan's term progresses.

What are the requirements for car loans in Canada?

The requirements of each bank vary as well as that of any lender. However, here are some of the general requirements that every lender would request:

  • Proof of residency
  • Proof of income
  • Proof of insurance
  • Government-issued Identification
  • Age
  • Consent to a credit rating check

After they have been submitted and verified by the lender, you are eligible to be approved for an auto loan.

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Categories: EV motoring