Complete Guide to Financing Your Nissan Car in Calgary
Complete Guide to Financing Your Nissan Car in Calgary
Posted on August 16, 2023
Buying a car, be it new or used, is a pretty big step, given the amount of money it usually involves. However, you don’t need the whole amount to buy your next vehicle. There are a few options for financing your next Nissan in Calgary, which don’t require having a large sum of money right from the start. Learn more about the available options -- one might be perfect for you.
Types of Auto Loans
There are two main ways of getting an auto loan: leasing and financing. It’s important to understand the differences between leasing and financing a vehicle to see which is best for you.
Leasing
Leasing a vehicle feels much like renting one. The main difference is that you can buy the vehicle once the lease term ends. Beyond that, much of the arrangement is the same as a rental car, such as anticipated wear and tear and yearly mileage caps.
Buying a car via leasing usually takes longer than financing one. While you’ll pay lower monthly fees for a leased car than for a financed one, you may also have to pay larger fees if you exceed the limits agreed in the contract. Just know that the car isn’t officially yours until the lease is fully paid.
Financing
When it comes to financing a vehicle, you can either get a loan from a bank or credit union, or you can arrange a loan agreement with the car dealer, but the bottom line is the same: They lend you the money you need to pay for the car, and you pay them back on a monthly basis.
It looks like a regular loan, as you pay for it over a fixed period. The payment value is also fixed, based on the loan amount plus interest and fees.
Eligibility Requirements
If you’re considering a lease or a loan, you need to pay attention to the eligibility requirements for each option. For example, it can be difficult to get a loan with a low credit score. Also, you won’t be able to get a car loan if you don’t have a valid licence issued by the Canadian government.
Your financial institution or car dealership might also ask for proof of residency and income, as well as your social insurance number, to do their complete background checks.
Applying For a Car Loan
Although applying for a car loan involves a lot of documents, the process itself is pretty straightforward. Most of the time, it follows three simple steps:
- Step 1: Submit your loan application to the desired lender
- Step 2: Provide all the documents requested by your lender
- Step 3: Wait for your lender’s approval
Options of Financing
If you’ve opted to finance your vehicle, you’ll have three options to choose from -- using a bank, going through the dealership, or getting pre-approval from an online lender. Let’s take a closer look at the pros and cons of each.
Bank
Bank loans are typically the cheapest in the market. Major banks tend to offer lower interest rates and also give you more time for repayment. However, they might be more demanding about your credit score. So, if you want to get a bank loan but have a low credit score, you may want to try to improve it before applying.
Dealership
Many dealerships offer their own financing agreements, which don’t necessarily require a top-notch credit score. Dealerships usually get this loan on your behalf from other lenders. However, this deal often involves higher interest over time and sizable down payments.
Online Pre-Approval
Online lenders are also an excellent option for those with low credit scores. However, these lenders often charge higher interest rates and fees than most financial institutions.
Interest Rates
Pay close attention to the interest rates of your deal, as it can increase the final price greatly. Always shop for the best interest rates.
You can also get better interest rates by keeping your credit score high and avoiding filing for too many credit checks during a short period.
Financing Terms
Car loans are typically repaid within a 36- to 72-month window. You can save money by repaying it in a shorter period, but that will mean higher monthly payments. The longer the repayment agreement, the more expensive the loan will be in the long run.
Finance Credit Score
Your credit score is vital for getting the loan deal you need. A high credit score may give you access to loans from banks that offer better terms and lower rates, while a low credit score can make a loan nearly impossible, depending on the situation.
Finance a Nissan Car in Calgary at South Trail Nissan
South Trail Nissan is one of the best official Nissan dealerships in Calgary. Visit us and find out more about our financing deals so you can get behind the wheel of your next Nissan today.
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