By It can be quite confusing to select the best banks to help finance your car payment in Canada. This is understandable because there are many car financing firms in Canada. Yet, not all offer good packages to their clients. So to make things easy for you, here is a list of financial institutions that offer car loans to customers. This also includes their terms, interests, pros, and cons.
Financial institutions that offer car loans
Scotiabank
Customers gave Scotiabank a 9 rating out of 10.
Scotiabank is a very large bank in Canada that provides several financial services to customers. What attracts many customers to Scotiabank is its good and affordable interest rates that are readily available to customers. They also offer clients car loans, hence, customers can apply for loans to buy their dream cars in Canada.
Furthermore, they have flexible payment plans that can last for years. Unfortunately, intending borrowers cannot register for a car loan on the internet. They need to go to any Scotiabank registered automobile dealer. However, Scotiabank has over 4,000 auto dealers registered with them. Find out if other car financers pre-approve the car dealer before you go there, though.
Eligibility criteria and special offers
In addition, Scotiabank doesn’t have any specific eligibility criteria. Nevertheless, you may learn more by contacting an auto dealer or Scotiabank. And there is more. Borrowers can apply for a special program for new residents in Canada called StartRight. Borrowers can get a car loan of 75,000 dollars in this category.
Features
Employment duration: Not stated
The interest rate varies, but you can get a loan of 200,000 dollars.
Income requirements: The borrower will know this when registering for the loan.
Repayment time: The loan lasts for 8 years.
Credit requirement: The credit score requirement is revealed to the customer during registration.
Advantages
- Borrowers can personalise their payment plan.
- Payment plans are flexible
- Financing opportunities are available and accessible.
Disadvantages
- You can’t apply for the loan online
- Quebec residents can’t get variable interest rates.
Royal Bank (RBC)
RBC customers gave it a 9.3 percent rating out of 10. This bank is located in Montreal, Quebec, Canada. It has been in operation for years. Many people in Canada go to this bank to finance their cars due to its favourable repayment plans and interests. RBC offers its clients different repayment plans and interest rates according to their financial needs.
Additionally, borrowers can opt for short-term loans that last for eight years. But, if the borrower pays the money before the loan time is up, there is no penalty.
What’s more, new residents in Canada can get exciting offers specifically meant for them. To know more about what RBC has to offer, check out RBC’s website.
Features
The interest rate varies or is fixed, depending on the loan type.
Income requirements: Even though the income requirements are not revealed, borrowers must have a steady income.
The amount you can borrow: The maximum amount is 75,000 dollars, and the minimum amount is 7500 dollars.
Repayment time: The loan lasts for 8 years
Credit requirement: The credit score requirement is revealed to the customer during registration.
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Cars RBC finances
- Electric cars
- Pre-owned or new marine cars, automobiles, and VRs.
Advantages
- RBC repayment plan is flexible
- New residents in Canada can finance their cars easily
- No penalty if you pay your loan earlier than the agreed time.
Disadvantages
- Charges are not clear
- Some auto dealers are not registered on the RBC network
Loans Canada
LoansCanada helps people with bad credit, poor financial situations, and low-wage workers buy their dream car. However, the company doesn’t directly lend money to borrowers. Rather, it matches people who meet the loan requirements with financial institutions that give car loans.
Features
Income range: A monthly minimum wage of 1,800 dollars
Employment duration: The borrower must have been working for more than 3 months at the time of borrowing the money.
The amount you can borrow: The maximum amount is 50,000 dollars, and the minimum amount is 500 dollars.
Repayment time: You can pay the loan back within 60 months or more. Also, for short-term repayment, the duration is three months.
Rate of interest: The maximum is 46.96 percent, while the minimum rate is 2.99 percent.
Credit requirement: The credit score requirement is revealed to the customer during registration.
Advantages
- Customers can get credit scores for free
- Wide range of loans available
- The application process is simple and easy.
Disadvantages
- Interest rate is higher for people with bad credits
- Some lenders ask for origination fees
Conclusion
Lastly, just like some Indian banks in India do when it comes to auto-financing, Canadian banks also offer competitive rates. It is up to the customer to pick a loan option that suits him or her.
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