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Car Loans in Simcoe Ontario: The Ultimate Guide to Approval

Car Loans in Simcoe Ontario: The Ultimate Guide to Approval

You don’t always have to buy a new car with a car loan. You can use a loan to buy a used model too. In fact, there are some good reasons why you should consider it.


Today’s post by our Simcoe car loan team explains the what, why and how of used car loans.


What type of used car can I get with a loan?


You can buy just about any type of used car with a car loan. Typically, the car will need to be no more than 10 years old and not be a classic. There are specialist loans for classic cars.


Most used car loans in Simcoe will be provided only as long as you buy your car from a dealership. Dealerships will usually check all cars for safety and roadworthiness before listing it for sale, which helps reassure the lender it’s a good investment.


You may have to consider a personal loan if you want to buy privately.


How do I apply for a used car loans in Simcoe?


You can apply for a used car loan in the same way you apply for any loan. Assess how much you can afford to borrow, check your credit score, get your down payment or trade in ready and work with our car loan team.


The application is quick, easy and painless and shouldn’t take long at all. As long as you provide proof of ID, proof of income and outgoings and can demonstrate you can afford the loan, you should be fine.


How much can I borrow?


How much you can borrow depends on your credit score, how much you can comfortably afford and the car you want to buy. Some lenders will offer 100% of the car’s value as a loan. Some will offer less. Much will depend on your situation.


You will stand a much higher chance of being accepted for a used car loan if you have a down payment. This insulates the lender a little from loss and demonstrates intent. Two things that increase your chances of acceptance.


Can I use a car loan to buy from a private seller?


Not usually no. Car loans are predominantly used for buying from dealers. That way, the lender can be reasonably sure that the car is worth the price and should hide no serious deficiencies that might lower the resale value.


The lender is looking to the future here. Should you default, they need to know they can recoup their money by selling the car. A car purchased from a dealer stands a higher chance of being mechanically sound.


There are no such guarantees with a private sale.


What else do I need to know about used car loans in Simcoe?


Nothing much. They work the same as standard loans. You repay them the same as any other car loan, you lose the car if you don’t make payments and you can usually overpay or settle early if you need to.


You may pay a slightly higher rate of interest on a used car loan due to them being higher risk than a new car loan. Other than that, there are no mysteries here.


When you’re ready for a car lease or loan, get in touch with the Simcoe auto loan experts at Northway Ford for great deals on auto finance.


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Categories: Car Loan

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