Cash or Credit? Getting the Best Deal on Your New Car – Hayden Auto

Cash or Credit? Getting the Best Deal on Your New Car

By John Hayden

Choosing a new car is fun – but deciding how to pay for it can be tricky. Few people have enough cash on hand, and dipping into savings might not always be prudent. However, it’s never been easier to qualify for a car loan, even without a five-star credit score.

A great way to fund a major purchase like this is through auto financing in Canada. With no dealer fees or overhead, prices are lower, and the vehicle is wholly owned by the time the final instalment is paid – which is a major advantage over a leasing agreement. So here’s a quick overview of some of the advantages paying off a car over time: 

  • no collateral needed, other than the vehicle;
  • no down payment required;
  • painless monthly instalments;
  • minimal impact on personal cash flow.

By the end of the purchase period, additional – if intangible – benefits appear: 

  • savings remain intact;
  • a better credit score;
  • a fully paid-off vehicle is a valuable asset.

Auto Financing Options in Canada

Until just a few years ago, car loans were available only through traditional channels, mainly dealerships and banks:

  • Dealerships help customers choose a make and model (with whatever add-on features they prefer), and then discuss how to finance the purchase. This requires approval (with plenty of paperwork!) from either their in-house financing department or an external lender (often a bank). This time-consuming process can frustrate would-be buyers, thwarted by applications turned down after weeks of waiting, often due to insufficient income or poor credit scores. Then they have to start the entire car search process all over again. 
  • Banks are traditional moneylenders that are very particular about their borrowers, with complex application forms and backup documentation, usually extended through personal meetings with loan officers to discuss repayment conditions. Before making any decisions, the loan department checks out a lengthy list of factors, such as job stability, savings, current income, and credit score, all of which take time. In fact, banks generally lend money only to people with solid financial track records.

Innovative Car Loan Channel

However, online lending platforms – like Canada Drives – run on state-of-the-art financial technology that streamlines automobile financing for almost all income brackets. Better still, there is no need for time-consuming paperwork and stressful face-to-face meetings. All a prospective buyer needs to do is to complete a simple application form, with pre-approval terms notified rapidly through an email or text message. 

From the comfort of their own homes, Canadians can now obtain preliminary loan approval online, before they even begin looking for their next set of wheels. With pre-approval, shoppers are not committed to any particular deal, while credit checks do not harm their credit scores. 

By reversing the usual purchasing process of choosing a vehicle and then working out how to pay for it, pre-approved buyers waste less time considering vehicles beyond their financial grasp. Instead, they can quickly shortlist cars that fit their needs and fall within their budgets, rather than under-estimating or over-guessing their financial capabilities. 

Auto Loan Options for Everyone 

For buyers who prefer to browse and think about the financial aspects later, the Canada Drives showroom offers a huge range of possibilities. And once a few favourites have been shortlisted, there’s a range of financing options for every pocket: buyers can finance through their own banks, settle in full through a bank draft or debit card; put their purchase on a credit card; or sign a loan agreement with Canada Drives

Over the course of the past decade, Canada Drives has been building up an inventory of hundreds of certified vehicles in its virtual showroom. When a pre-approved buyer finds a suitable vehicle, the entire deal can be closed online. And that includes car loans, handled through a network of reputable lending partners that support Canadians needing a little help to surmount everyday financial hurdles. 

 

Looking For Quick & Easy Financing?

We know how to find the best vehicle for your situation, and have you leave the lot with a smile on your face.

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