morgansseeal

Can anyone give some advice please on the best way to buy or lease a car please, only have a twp at the moment (just applied for AINP). We've been accepted for credit, but both companies are charging nearly 30%, we expected the interest rates to be quite high, but really don't want to start the vicious circle of debt! But we really need a vehicle as we're living out in the countryside at the moment with 3 kids!

Novocastrian

I think your best shot would be to search around on New & Used Cars for Sale – Auto Classifieds – autoTRADER.ca for a private sale that you can afford.

I'm not sure though what you mean by "both companies are charging nearly 30%". What companies and charging for what?

Edit: This thread should be moved out of this sub forum.

morgansseeal

APR The interest rate is nearly 30%

Novocastrian

For what?

Aviator

From whom, credit card companies, banks, loan sharks?

If you have a good credit rating and use conventional financing, interest rates should not be much more than 6-7%. If you use a secured facility you should get prime.

http://www.rbcroyalbank.com/services...A891CE0F4DDF7E

scrubbedexpat091

Whats considered good credit? Just curious. My GF has a 720 and had a hell of a time getting a car loan, but not sure if thats considered good/bad/okay.

I suspect income was the issue, and Scotia was the only taker, but less then ideal interest.

R I C H

Dealers are often lower than that. I got 0.9% finance this week for a used vehicle.

morgansseeal

They were both dealerships, Go auto and Canada drives. It's because we're new to Canada, have no credit history here and are here on a twp. I was wondering if anyone else had any experience with this and could offer us some advice.
I was reading an article which criticised dealerships duping customers into signing finance agreements at ridiculously high interest rates, with the promise of reducing the rates after regular payments were made for a year, but this isn't true apparently, they were unable to change their credit agreements. This means that after a year or two, your car maybe only worth a few thousand dollars but could owe over 10000 on finance.
We don't have much money left after furnishing a house, flights and newborn, but don't want to get in debt over a car either. Looked at renting one with enterprise for a month but that was too expensive.
Just wanted to hear from others who were maybe in the same situation as us to see if we could get a better deal.

Dashie

Used car dealerships can sometimes offer a credit for everyone, no refusals policy, but the interest rates are astronomical, as you've found, pretty much on the same level as loan sharks and payday loans.

Have you tried a proper dealership? someone we know was able to get finance from (I think) Hyundai, but that was with PR and 6 months of credit history. Maybe you could also talk to your bank, or to Scotiabank, they have specific deals to help newcomers.

Dashie

Oh, and incidentally, dealerships are main dealers - Ford, Dodge etc. used car places are not called dealerships here, they're used car lots to my knowledge hence why a dealership was suggested above I think.

withabix

Have you tried Scotiabank's Startright auto loan?

http://www.scotiabank.com/ca/en/0,,5208,00.html

I never went down this route, but they appear to have something tailored to 'us'.

Does need a 25-40% deposit though.

morgansseeal

Thank you very much, will try Scotiabank, appreciate the advice :-)

Tootlepootle

We went direct with Toyota, got a very good rate. We had only been in the country two weeks!

Novocastrian

On a one year TWP or as PR?

Tootlepootle

We have a three year TWP