Start by checking your budget and your credit
Before you even shop for a vehicle, set your budget: it is what determines the kind of car within reach. Start from your real needs: an economical sedan, a family SUV or a work truck.
The costs to account for
Beyond the monthly instalment, a vehicle costs you insurance, registration, fuel and maintenance. A simple rule: your car payment should never put your financial comfort at risk. A comfortable payment beats a vehicle that smothers the budget.
Your credit profile
Your credit history directly affects whether you qualify and on what terms. In Canada, Equifax and TransUnion assign scores from 300 to 900: the higher the score, the better the rates. A pre-approval tells you in advance how much you can borrow, and spares you unpleasant surprises at the dealership.
Applying to a lender who knows you
A bank follows a grid, and the decision gets made somewhere else, by someone who will never meet you. At Beaucage Auto Credit, we are the lender: the advisor who receives you is the one who decides, and can take your actual situation into account rather than a single number.
The documents to have on hand
- Your full contact information and a piece of ID;
- Proof of income (recent pay stubs);
- Proof of address;
- The amount of your down payment, if applicable.
A credit check is required to proceed: it lets us assess your file. Your application is not shopped to several lenders.
Understanding payments and repayment terms
Repayment on a car loan is calculated from the value of the vehicle purchased (less your down payment or trade-in, if any), plus sales tax and interest.
Payments can be weekly, bi-weekly or monthly, with terms generally running from 36 to 72 months and beyond. A shorter term costs less interest overall; a longer term lowers the periodic payment.
Finding the best interest rate
A solid credit file makes negotiating easier. Late payments, a bankruptcy or other bumps make the best rates harder to reach, without closing the door: that is exactly what second chance and third chance financing are for. Worth noting: used vehicles usually carry slightly higher rates than new ones.
Why us rather than a bank?
One place for everything: choosing the vehicle, the financing and the delivery. And above all, we are the lender: your application is not shopped to several lenders, and there is no one else to convince.
Changing your loan along the way
Can you sell your vehicle before the end of the term?
Yes. You can pay off the balance, resell the vehicle or trade it in at a dealership. If the loan balance exceeds the value of the vehicle, the difference (negative equity) can be added to the new financing, something to weigh with your advisor to avoid debt piling up.
Can you renegotiate a loan?
With a good repayment history, renegotiating your rate or refinancing is entirely realistic. It is in fact the strategy we recommend to our second and third chance clients after 12 to 24 months of solid payments.