Why is it such a pain to sort out in Canada or am I just doing something wrong. When I first arrived 2.5 years ago, I had to put down a sizeable deposit which I expected being new and all that, the ineterst rate was 18% which I wasn't prepared for so came as a shock to the system. I now find myself looking to replace the Yukon as it is nearing the end of the road, so took myself off to Ford Lincoln to try to buy a new car, well used but new for me. I am having exactly the same issues as when I began, now the banks are after a 10k deposit on top of teh 5.5k trade in and an interest rate of 13%!!! I would have thought that by now I would have some form of credit history? Should I just try the lease route instead of buying a car?

Have you tried your bank?
The only thing I can think of, if that's the best terms you can get, is that you've got a crappy credit score. But if you've been making your payments on time etc, that shouldnt be the issue.
Also, if you're still on a TWP, that will also be a problem from a financing point of view.

The only difference between buying and leasing, from the lender's perspective, is the payments on leasing are lower and may provide a more acceptable debt servicing ratio. Banks are really no longer in the auto financing business hence the excessive interest rate to discourage. Try and finance through the dealership. For Ford that would be the FMCC (Ford Motor Credit Corporation).

As the previous poster suggested.... have you tried financing through the dealership?
I got my brand new Nissan Rogue about 6 weeks after landing. Paid a $3000 deposit and got financing at 1.9% so it can be done! That was done via the dealership.

You could get hold of your credit report/score to see if there is an error on the records. I think some information you are entitled to get for free but some you might have to pay for. Try equifax.

Thanks for the replies. Been speaking to my bank and the outcome is that they are wary about the size loan I want as I have a short time in Canada albeit on a PR basis. They would be ok with a smaller amount apparently. The fact that I managed to pay off my original loan 6 months early by doubling the payments to be very close to the new repayments does not seem to carry any weight. So my chioce is to buy something that I really dislike, do not want at a price some body in a bank is happy with or wait longer and take out another small all purpose loan over say 3 years settle that early and see if that helps. They also tried to sell me a mortgage whilst I was talking to them apparently they would be happier loaning me hundreds of thousands of dollars versus 50k - yes I do get it thatthey have the security of the house but not immediate security !!!

Is there really not a single used vehicle under $50k on the market that you'd actually like? That sort of amount pretty much buys you anything in terms of good quality transportation.

Do you meet the bank's debt servicing requirements?

$50k @ 5% over 5 years = $ 940p/m
$50k @ 10% over 5 years = $1060p/m

One would require to be in receipt of a substantial income to commit to/pay such amounts each month, which perhaps the OP is.

Bank financing a house vs an auto is a totally different thing. A house/land cannot be moved and it's highly unlikely a bank would lose money on a mortgage loan, whereas a car can be moved elsewhere and easily sold.

Hi All

OK here are some answers yes there are lots of cars under 50k, however they do not meet all of my wants/requirements. However I was back at Ford at teh end of last week and we managed to get it sorted. Didn't get exactly what I wanted but made some compromises and have ebded up with the new Explorer XLT on a 3 year lease and this should get me in a position to get the vehicle that I really want in about 3 years time, plus my wife will take this car over as we will in all likelihood purchase this at the end of the lease

Thanks for all the answers and advice guys

What age Explorer?

Buying at the end of a lease is generally a mugs game. Be sure you are not overpaying and walk away from it if they want more than its worth.

Personally I wouldnt dream of financing a 50k purchase at dealer interest rates, but then I'm a notorious tightwad.

Unless of course you were offered 0% financing as an incentive to purchase. You'd turn that down ?

Possibly. Zero percent finance offers generally involve buying the vehicle at full MRSP. Pay 7% or more from the dealer or arranging your own finance, might enable you to buy the vehicle at a substantial discount ($000's) from the nominal MRSP. You have to do the math based on how long you might keep the thing vs. interest paid to work out whats best.

One thing to consider is that the vehicle will depreciate from it's actual market price (the discounted price) rather than MRSP. So that nominal $50k vehicle is actually depreciating from $45k or whatever. So it is very east for the vehicle to be worth rather less than you owe on it for most of your ownership time. Not a problem if you are happy with the vehicle and the payment. Bit of a problem if you want to change or circumstances change and the payment is a struggle.

It would still be a Ford Explorer, so probably.

I missed the bit about it being new, but 0% for a lease would be unusual, and other factors (start price vs MSRP, buyout at end of lease, etc etc) play into the decision.

I still don't understand what you were looking for - $50k on a used vehicle means an original retail of c$70k if you buy something a couple of years old. And you couldn't find anything that would meet all your wants and requirements for that sort of money?