Ten Questions To Ask An Auto Finance Expert
If you’re looking for auto financing in Ontario, it’s vital to pick a reliable agency with high standards as there is a significant investment required. Financing the car of your dreams or a business vehicle also has a direct impact your daily finances, which makes it essential to choose an auto finance firm that you can trust to provide you with the right financing option for your needs.
However, if you’ve never worked with an auto finance expert before, you may not know where to start when it comes to choosing the right one for your business. To make the whole process easier for you, we’ve outlined ten valuable questions to ask an auto finance expert.
1. Is it an “open loan”?
An open loan is a loan that you can pay sooner. You do not want a “non-open” loan because it means you are stuck with the term of the loan. You want an “open loan” that will give you the flexibility to pay it faster and save on interest.
2. What happens if a client makes extra payments to their loan?
You need to know if you can make extra payments and if it will reduce your regular payment or shorten the term of your loan.
3. Is the auto loan strictly finance or is it a lease to own loan?
Depending on your credit situation, you might be eligible for finance or lease to own.
4. What does “financing a vehicle” mean?
“Financing a car” is a straight forward car loan where the client borrows the required money, including taxes. There is an interest charged here, and several payments must be made. The client will own the vehicle at the end of the term.
5. What does “lease to own” mean?
“Lease to own” allows people with bad credit to acquire a vehicle. The client can borrow the required money without taxes but must pay taxes with every payment. Usually, there are taxes to be paid at the end of the lease before you can own the car.
6. Which finance or lease to own company should one do business with?
We can only recommend the companies we partner with because they are reputable and fair companies. They do their best to design an inclusive product that will fit your needs.
7. Can a client skip a payment, and what happens if they do?
Companies we partner with allow clients to skip a payment with notice. That means, if you know you can’t make the payment, you can arrange with the company in advance. If you do, you won’t face any adverse effects, but you may still have to pay the interest portion of the payment.
8. What happens if a client defaulted on a payment or payments?
In this case, the finance company will give you some time to catch up if you defaulted on one payment without penalties. However, if you’ve defaulted on multiple payments, they will try to work with you to catch up. If you don’t, then they eventually will repossess your vehicle and report it in your credit record. Should this happen, it will become more difficult to acquire another vehicle.
9. Can a client purchase and finance any vehicle?
Yes, if the client has good credit and can afford the payment, they can do this. But if the client has bad credit, then they might have to purchase a vehicle that fits their needs and budget.
10. Should the client purchase a warranty or gap insurance?
Warranty is recommended to protect your purchase at least for a power train warranty and a minimum of half the time the vehicle is financed for. Gap insurance is recommended for clients with bad credit or new drivers because it covers the balance of the loan in case the car got written off. At the same time, be aware that most companies offer a maximum of $5000 coverage.
Want to get started with the leading auto finance company in Scarborough, Toronto for reliable car loans, bad credit car or auto loans, auto financing, car or auto insurance? Then reach out to the experts at Autoversal Corp.
We specialize in helping people with poor credit to secure the funding they require for a much-needed vehicle. Our team understands your challenges and constraints and works with you to create a financial solution that meets your requirements adequately. We enable you to get back on your feet with a vehicle loan that suits your needs and budget.
At Autoversal Corp, we work quickly to get back to you in less than two business hours. Then we will guide you through the processes of auto finance and selecting a vehicle from start to finish.