Car finance with Twp?
Dec 14th 2014, 11:41 am
#16
BE Enthusiast
Joined: Dec 2010
Location: Whitby, Ontario
Posts: 732
Re: Car finance with Twp?
We went direct with VW in 2010, got a good rate (with a deposit) on a 2 year TWP.
Dec 14th 2014, 3:28 pm
#17
Forum Regular
Joined: Dec 2013
Location: Regina
Posts: 278
Re: Car finance with Twp?
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.
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.
30% is well steep mate, I think they are taking the p**s as you have just got off the plane. We was told from Conexus that we should not buy the car out right and get a portion on finance as a way to build our credit history.
When we visited our car dealer they told us we could only get finance for the length of our TWP, you should be ok for 3 years. Also jus to let you know the rate that was offered by them was 2.49% annually at Jeep Chrysler.
Good luck with the purchase mate
Dec 14th 2014, 4:21 pm
#18
Joined: Sep 2008
Posts: 12,830
Re: Car finance with Twp?
It may have been more to do with them making money from a loan. You can build credit history by getting a couple of cards and paying off the balance monthly, with no finance charges.
Dec 14th 2014, 5:01 pm
#19
Forum Regular
Joined: Dec 2013
Location: Regina
Posts: 278
Re: Car finance with Twp?
Yes thats right, we have a card now but with a set limit. The loan, although not that much, just helps with us with our credit score.
Dec 14th 2014, 5:46 pm
#20
Joined: Sep 2008
Posts: 12,830
Re: Car finance with Twp?
It would, however this can also be achieved without taking out a loan and paying finance charges. Paying off credit cards and store cards on time achieves the same result.
Dec 14th 2014, 8:31 pm
#21
Just Joined
Joined: Jun 2014
Posts: 28
Re: Car finance with Twp?
We were in same position last month and had to stump up 25% deposit as minimum before the dealership would look at us. They said bank (Scotia) have a program for TWP's but no flexibility. Good luck!
Dec 15th 2014, 11:14 pm
#22
Just Joined
Joined: Dec 2014
Posts: 2
Re: Car finance with Twp?
Hi
I moved to BC at the end of July on an 8 month work permit and got a vehicle on lease from a main dealership for a very minimal interest rate, 2 months after I got here.
It was much much cheaper than financing a used car I looked at by a massive amount. Although I did have to put some money down initially for the brand new car.
I would suggest going to a large main dealership even if you have a very minimal credit history in Canada.
They helped me out.
Hope this helps
I moved to BC at the end of July on an 8 month work permit and got a vehicle on lease from a main dealership for a very minimal interest rate, 2 months after I got here.
It was much much cheaper than financing a used car I looked at by a massive amount. Although I did have to put some money down initially for the brand new car.
I would suggest going to a large main dealership even if you have a very minimal credit history in Canada.
They helped me out.
Hope this helps
Dec 16th 2014, 8:05 pm
#23
Weegie in Calgary
Joined: Dec 2012
Location: Calgary
Posts: 810
Re: Car finance with Twp?
I was approved through Jeep for my new wrangler, put down 10% deposit and was approved for a rate of 4.05% and my SIN number starts with a 9. Credit history was 10 months old.
Dec 16th 2014, 10:05 pm
#24
Just Joined
Joined: Dec 2014
Posts: 2
Re: Car finance with Twp?
Go to Ford
0.4% interest rate
0.4% interest rate
Dec 17th 2014, 4:52 am
#25
Just Joined
Thread Starter
Joined: Aug 2014
Posts: 28
Re: Car finance with Twp?
Thank you everyone, we'll look into buying a new one instead! Thought it would be cheaper to go for a used car, see what happens!
Dec 17th 2014, 4:52 pm
#26
Joined: Sep 2008
Posts: 12,830
Re: Car finance with Twp?
If you factor in depreciation, which is higher from new, it may be much lower total cost of ownership to buy used. We always buy dealer demos and get a discount to cover the initial off the lot hit.
Dec 17th 2014, 5:13 pm
#27
Pea Brain
Joined: Jun 2005
Location: TBD
Posts: 6,005
Re: Car finance with Twp?
Indeed - my purchase this month was an 18mth old vehicle, with dealership approved warranty for 4yrs. Finance rates were the same as new stock, and I saved $10k over new price.
Dec 20th 2014, 5:54 pm
#28
Forum Regular
Joined: Jun 2008
Location: Parry Sound Ontario
Posts: 140
Re: Car finance with Twp?
We got finance from Nissan..they too, do special deals for immigrants and people with new credit scores.Originally advertised in Alberta, but I managed that route in Ontario.
I was approved for lease and Finance but it had to be over 48 months .
I was approved for lease and Finance but it had to be over 48 months .
Dec 26th 2014, 9:22 pm
#29
Forum Regular
Joined: Dec 2008
Location: Rouleau, Saskatchewan
Posts: 120
Re: Car finance with Twp?
We went direct to Ford and got a lease vehicle for 2 years on a 22 month TWP - pay a bit more to lease it but we can now buy the car for $4000 less than the same vehicle on the Ford forecourt.
Dec 27th 2014, 10:24 pm
#30
BE Enthusiast
Joined: Dec 2009
Location: Vegreville, AB
Posts: 611
Re: Car finance with Twp?
A friend of mine had trouble trying to lease a car from Ford in the past.
When she asked why thins were so difficult the replied "you're here on a work permit and you might leave Canada and take the car with you"
Her response .. "If that was my intention, I'd be at the BMW dealership!!"
Priceless
When she asked why thins were so difficult the replied "you're here on a work permit and you might leave Canada and take the car with you"
Her response .. "If that was my intention, I'd be at the BMW dealership!!"
Priceless
