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Auto Finance Questions

 

Frequently Asked Questions About Car Financing

200+ Vehicles IN STOCK

Cambridge, Kitchener, Waterloo, Guelph

1. Can you help me get auto financing?


Garston Motors is a car dealership in Cambridge Ontario that believes that everyone deserves a chance for auto financing to own or qualify reliable vehicle, no matter what their credit rating shows. Our car financing department has helped many overcome low credit issues and to improve their credit score.

 

2. How to finance a used car at Garston Motors?


You can get pre-approved for an auto loan the same day you apply. You just need to do our credit application and fill it out in full in order to ensure accuracy of information. 


Every particular lender in Kitchener-Waterloo has different qualifying criteria based on your personal application. Our registered finance specialists review the information to ensure you are getting the best possible deal. Some lenders might require proof of income based on your employment, along with a valid driver's licence

If you are looking to finance a used car please fill out the form below and we'll contact you immediately with some options

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Proof of Employment or Income 

You can buy a used car with low income but you need to be at your current job for three or more months and make at least $1800/month income to qualify. Other sources of income, such as certain types of government assistance may also be accepted other than Ontario Works/Welfare.

Driver's license

It is necessary to have a valid Ontario driver's license and be legal age. Lenders know that customers are more likely to pay back their car loan if they can legally drive. 

Bank Account in Canada

The lender wants to be able to take the used car loan payment out of your bank account each month. The easiest way to do this is to get a void cheque or stamped pre-authorized payment form.

Ontario Current Address

In order to complete your loan documents you must provide the lender with your current address.

Down Payment

Although a down payment isn't always necessary to qualify, it will often help. The less you have to finance, the more likely the lender will be to approve your car loan.

3. Why the way a dealer structure an auto finance deal is important and how it saves you money

Car Dealers in Kitchener Waterloo may dictate your interest rate and take advantage of any promotions that a lender may have on going which benefits your monthly payments.

Also, there are scenarios where you may have a trade-in and the financing is more complicated to structure. These factors play a critical part in how your financing options are developed.

Finally, price transparency and honesty are very important as you don't want unexpected fees, disappointments or cost differences added to your purchase at some point in the process.  


4. Can I Apply for a Car Financing with no job?


Just because you may not fit some of the criteria the lender is looking for, doesn't mean you won't qualify for a car loan in Ontario. Some exceptions can be made and there are lenders that would accept government income sources but down payment maybe required. 

Whether you live in Cambridge, Kitchener, Waterloo, Guelph, Hamilton, Brantford or Burlington We are here to help negotiate the best possible car loan approval and rate for you. Which is why you want to come directly to the source and not get bounced around from place to place, your file will be put directly with one of our car finance specialist that will work in communication directly with you to ensure you are involved every step of the way.

5. How to finance a used car if you don't have good credit?

It is definitely possible to get a loan whether you have bad, or no credit. Income plays an important role allowing us to pre-qualify you with no obligation. This only allows you to know exactly where you stand in the initial process. This online car loan pre-approval allows our customers to determine very quickly if this is the right decision for them and their budget.

6. Does zero percent financing really exist on many brand-new cars?

Seriously??? Nobody in their right mind would lend you money for free. Think about it - most zero percent and zero down car loans incentives have the cost of borrowing already included into the price! So, NO, it is a gimmick.

7. How a car loan can help to improve my credit score?

Garston Motors only uses reputable auto lenders that report to your credit bureau. These payments are non-revolving meaning they are a fixed dollar amount paid each month determining your capabilities of paying o

Nowadays credit is checked before you buy real estate or take small loans. That reason alone makes it so crucial to understand. 

Most people believe that waiting will qualify them for a lower interest rate, however unless you take certain steps towards establishing credit, waiting won't change anything. The sooner you start on the road to recovery, the sooner you will reap the benefits of a higher credit score and lower interest rates.n time and seriously influencing your credit rating over time.


8. What will be my used car loan term?


Typically terms will run anywhere between 36 Months and 84 Months (Shorter or longer terms are sometimes possible).

9. What about your auto finance rates?


Interest car loan rates can vary depending on whether the vehicle and the risk the lender perceives in lending the loan. Learn more how to get car loans at low interest rates and payments.

10. What's the Easiest Way to Apply for an Auto Loan in Canada?


With Garston Motors' Online Car Financing Application, you can submit it securely without having to explain the whole story. Our vehicle finance specialists will process your used car loan pre-approval if that is the case (without judgment). No muss, no Fuss!

11. I have been pre-approved for a car loan, now what?


Once the lender has issued a used car loan approval, the process becomes MUCH simpler. Meet with our Canada auto finance specialists to discuss what you need from your car and to proceed with the car loan approval. Our in-house car financing  team will recommend several different options that will fit your needs and your budget! Once your vehicle is selected, it's simply processing the auto financing paperwork and you're ready to drive away!

Although there is no such thing as guaranteed car finance in Ontario, once you have found a vehicle that you like, you should have no trouble getting approved for a car loan. 

You will need to go to your lender and give them the exact amount that you are going to need to borrow. You are going to have to go over all of the loan documents with a loan officer. 

They will go over all of the terms of the loan and make sure that you understand them. You will then have to sign off on the loan, and they will provide you with the money that you need to make the purchase. 

12. What should I do if I have filed for bankruptcy recently?

While getting a loan for a car after bankruptcy in Canada can be a challenge, they are not impossible! It's likely that (if you meet the minimum income requirements) providing the lender with paperwork to support your situation can make the process quite simple. If for some reason your application is still not accepted with supporting documentation, adding a co-applicant or co-signer to your loan can make the process much smoother.

13. What Factors Affect my Canadian Credit Rating and How Important is to Get a Car Loan?

1) Late payments

Late payments have a strong negative effect on your credit and should be avoided if at all possible.

2) High debt to income ratio

Ontario auto finance companies may be weary if you are carrying a lot of debt against your income. When determining your debt to income ratio to get a loan, the formula is fairly simply ([total debt/total income] x 100). The percentages rank accordingly:

0-36%: A manageable debt to income ratio
37-42%: A slightly high debt to income ratio
43-49%: An unhealthy debt to income ratio
50%+: An unmanageable debt to income ratio (seek professional assistance)

Sitting above 43% you may have some difficulties obtaining auto finance in Ontario. Evaluation of your finances at this point in time are prudent.

3) Past bankruptcy

Any combination of these three factors can make car finance companies nervous. These factors are what makes up your credit score that is used by auto finance companies to determine what kind of auto loan you qualify for.

14. Do I have to put money down when financing a car?

Although a down payment isn't always necessary, it will often help. The less you have to finance, the more likely the car finance company will be to approve your car loan. A higher down payment on bad credit auto loans may be required. While this may be hard for people in these situations, offering some down payment shows your dedication and gives the finance companies some peace of mind. 

15. How is my Monthly Payment Determined?

Some people will head to a Kitchener Waterloo car dealership with a specific vehicle in mind and will find out the monthly payment was much greater than they expected. Why is that? While part of the car dealership loans is calculated based on the credit rating, what are the other factors?

Factor 1: The Age of the Vehicle

Most people think that the main factor determining the monthly payment on an auto loan is their credit rating. While credit rating does affect the loan, the main consideration is the age of the vehicle you are selecting. Think about it - if you're looking at buying a 2000 Honda Civic, is the auto finance company going to bank on the car lasting another 5-10 years when selecting the term for the loan? Likely not. When getting a loan for a used car the golden rule is the newer the car, the longer the term. This will mean that you are paying for a longer period of time, but making payments for an additional year or two can great reduce the monthly amount.

Factor 2: The Vehicle's Mileage

Similar to the age of the vehicle, a lender isn't going to put a 5-year term on a vehicle that already has 300,000 KM on it. While the car may last those full 5 years, there's no guarantee and the lender isn't going to risk it. 

Factor 3: Your Down Payment

A substantial down payment can greatly reduce the amount of the car loan, therefore reducing the monthly payment.

Factor 4: Your Credit Rating in Canada

The credit rating of the applicant does have an impact on the interest rate at which the car loan is offered, which in turn affects that monthly payment. In cases with poor credit, it may be beneficial to consider purchasing a newer vehicle on a longer term to allow for more flexibility in your monthly payment.

When applying it's best to consider your auto loan options and what will work for your monthly budget. Garston Motors will offer you the term and interest rate options available to suit that budget, and will work with you to get the car you love at the price you can afford. 

16. Can I use a Co-signer?

If you are opting for an auto loan bad credit or you have low income, one of the best ways that you can get auto financing is to get a cosigner. 

Why do you need a co-signer you might be asking?. Well, having someone co-sign an auto loan with you is going to substantially increase your chances of getting approved for the money you need. When you get a cosigner, the lender is going to be evaluating the co-signer's credit instead of yours. 

For the co-signer, this is a very risky proposition. If you do not pay your bill, the cosigner is going to have to start paying. If the loan goes into default, it is going to negatively affect the cosigner's credit just as much as it does your own. The cosigner is essentially guaranteeing the loan, which is something that a professional lender is not going to do because of your credit score.

You can still get approved for a car loan without a cosigner but keep in mind that you must meet other requirements in Ontario. 

17. Do you Offer In-House Auto Finance?


We do have similar options to some in-house car financing dealerships in Kitchener-Waterloo.

Opting for auto financing in-house in Kitchener Waterloo or Cambridge gives you peace of mind while saving time too. We offer the perfect combination of top quality used cars that's not in-house car financing options that can qualify you on the road right away. We have a fantastic range of quality used vehicles and flexible repayment schedules to suit you. If you are looking for a used car in Ontario, drop in to Garston Motors or apply for a car loan online today.

If your question is not here please contact us.

You have come to the source of auto financing in Kitchener-Waterloo Region


Contact Us

Garston Motors

408 Witmer Street
Directions Cambridge, ON N3H 0A3

  • Sales: (519) 653-1212

Hours

  • Monday 10am-8pm
  • Tuesday 10am-8pm
  • Wednesday 10am-8pm
  • Thursday 10am-8pm
  • Friday 10am-7pm
  • Saturday 10am-5pm
  • Sunday Closed