Your Options for Car Loan Financing in Oakville

Your Options for Car Loan Financing in Oakville

Posted on February 21, 2022

Car Loan Financing in Okaville commonly used by a lot of big businesses and members of the public to buy a car. There are a lot of financial products to choose from, ranging from business contract hire, which brings in tax and the benefits of cash flow, to outright purchases.

Car loans are a middle ground, as our Oakville auto loans team explains.

Car loan financing options in Oakville include banks, online lenders, finance companies, credit unions, and a few car dealerships.

According to the consumer protection agency, there happen to be just two options for both consumers (that is, an individual) and businesses, which are:

1. Dealership financing
2. Direct lending

Dealership financing

Dealership financing allows you to get financing through the seller — the dealership.

There will be a contract agreement between the dealer and the customer that allows them to pay the financed amount with the finance charge (interest) over an agreed period of time.

Some dealers may hold onto the contract, while the majority sell the contract to a bank (assignee), finance company, or credit union – who takes care of the account and collects the repayment installments.

There are lots of advantages attached to dealership financing, but we will discuss these 3:

• Choice: Dealers have relationships with a wide range of finance companies and banks, which give customers various options to choose from.
• Convenience: dealers' options extend to financing in the same location with a lot of car options with extended hours like evenings and weekends.
• Special programs: To be considered for any of these programs, customers must have a very strong credit rating, as some of these programs apply to certain types of vehicles with a requirement such as a shorter-duration contract or large deposit (down payment). The dealers also offer other manufacturer-sponsored programs to buyers with low rates of interest and other attractive features.

Direct lending

For the direct lending option, the purchaser gets a loan directly from the lender, which is usually a credit union, bank, or finance company.

They agree to pay back the loan over a period of time plus the interest and finance charges.

Once the customer makes an agreement with a dealership to purchase a car, they then make use of the loan from the direct lender to pay for it.

There is no real advantage to going direct to a lender over working with a dealership.

Both have access to different markets but one won’t be able to undercut the other. We would recommend checking them both, comparing the market and choosing the option that’s best for you.

Inquire about offers from several dealers and financing sources to get the suitable financing option that best suits your needs and lifestyle.

We’d love to help you find the perfect car loan. Simply fill in the form below and we’ll get back to you ASAP! 

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