Getting a line of credit

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Jan 27th 2011, 12:47 am

#16

delsol79

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Joined: Jul 2005

Location: Calgary

Posts: 479

Re: Getting a line of credit

Quote:

Originally Posted by JB0591

dont forget to add on 13% tax even if buying a 2nd hand car. I brought privately and paid the tax when we registered the car.

That is Ontario for you......not sure about Alberta

<added this as your location says Manc-Toronto and did not read original post saying its now Calgary>

Yes I had assumed I needed to add tax on to the prices I see on Autotrader.ca but did not realise you pay the tax when register the car - thanks.

Yes I need to change signature - a job offer = change of plans

Jan 27th 2011, 1:03 am

#17

Auld Yin

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Joined: Oct 2008

Location: the GTA

Posts: 3,824

Re: Getting a line of credit

Quote:

Originally Posted by delsol79

Very useful indeed and really appreciate that.

I am very tempted by new car prices however whilst I have a confirmed job offer I don't know how it is going to work out. Therefore the option of getting finance from a dealer (even though I have seen 0%!) worries me in case I need to pull out during the 3 year period - penalties are huge.

At least with a straight bank loan you can sell the car and pay it back anytime.

Pushing me more towards a new car is the 2nd prices which I know everyone says are ridiculous. I am looking at a Honda Civic Sedan Si. The MSRP is $27k or for about $19-21k I can buy a 2008. Only 6-7k depreciation in 3 years - WOW.

I do not believe there are any penalties if you pay off such a loan either from the auto sale proceeds or re-financing. I have done it twice without being penalized.

Jan 27th 2011, 1:21 am

#18

delsol79

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Joined: Jul 2005

Location: Calgary

Posts: 479

Re: Getting a line of credit

Quote:

Originally Posted by Auld Yin

I do not believe there are any penalties if you pay off such a loan either from the auto sale proceeds or re-financing. I have done it twice without being penalized.

If you get a loan from the bank of $15k and buy a car then surely after a year if needed you could sell the car and pay off the loan.

If I financed a brand new car over a three year period but after one year I needed to get out, do I not have to pay all the outstanding payments before I hand back? Is the car then sold and any profit above residual value taken off the payments I owe?

Maybe I am missing something but the bank loan option just seems much "cleaner" if you need to sell up.

Last edited by delsol79; Jan 27th 2011 at 1:23 am.