Tag: Car Lease

Information Regarding Car Loan in Canada

Information Regarding Car Loan in CanadaCar Loan vs. Personal Loan, What’s the difference?

A car loan is different than the regular personal loan but the method applied to both is almost the same. The most important difference between a car loan and personal loan is that car loan is secured against your purchased car and is short termed like 2 to 5 years normally and 2 to 7 years in some extended cases maximum. Another good thing is that car loan interest is only from 0 to 10% per year in Canada. On the other hand, a personal loan can or cannot be secured against an asset.

Car Lease vs. Car Financing, Which Option is better?

In Canada, if you travel a lot then you should not take the car on a lease because it limits your yearly kilometers but if you don’t travel much then this option is fine with you. Many people have a misconception that lease is only offered for the new car but that is not true at all. You can get a lease for a second-hand car but if this is costing you just as financing a new car, then you should pass that option and lease a new car as ample of warranties reduce the maintenance cost for you. Also, if you change your car after every 4-6 years, then leasing a car seems a better option.

Who Offers Car Loans in Canada?

Car loans in Canada are offered by many entities including some unconventional lending institutes, used car dealerships, new car dealerships, private lenders, used car lots, and even some bank.

  1. The new car dealerships do their own lending mostly. For instance, Volkswagen has its financing support through VW Finance that deals with the financing of new or used car purchases. Having good credits will ensure your finance at lower rates and improve your chances of being approved by bank.
  2. The used car directly work with Canadian banks to finance their customers which works out between them like banks pay the dealers directly when a car is purchased without involving the used car lots and ask the customer to reimburse the loan straight back to them. This kind of loan is sometimes considered as bad credit because most dealers don’t do background credit checks as they only care about their job stability or look for income.
  3. Many people try to find financing from the private lenders to purchase a new car. This option is somehow flawed because loan is safe against an asset which is your car. Now, what happens in this context is that the car is transferred to the moneylender, until the loan is paid. This method is also known as the car title loan.
  4. Certainly, if you get hold of an unsecured personal loan, you can do pretty much whatever you want with that money including buying a new car but unfortunately; unsecured loans are a small amount and tend to range only from $500 to $5000 that limits your buying options.

Walking Away From Your Auto Lease Early

Exiting Your Vehicle, Auto or Car Lease Before Maturity With or Without Penalties

There are two ways of getting out from your auto lease early, before time, either you terminate your lease contract or transfer, while termination cost you a heavy lose in related to the lease transfer that allows Sellers to exit a lease with no penalties while Buyers get to assume a lease with no money down and for the terms not shorter than 6 months.

Lease Termination

Every loan product is designed to complete its credit tenure and timely payments and if its broken before its maturity there is a great setback arises for the borrower or the lessee who have to pay all the charges while leaving benefits what so ever to cover up the damages. So its not feasible for anybody to ask for a lose, but there is another way in which termination could not effect you really hard, there are alternatives to transferring your lease that may hold additional expenses not hard like the termination. If there is not any option left instead of termination you may exercise following alternatives:

  • Sell your lease/auto lease outright
  • Refinance your lease/auto lease

Lease Transfer

Transferring in or out of an auto lease has never been easier or faster. A vehicle lease transfer have become increasingly popular over the last few years in Canada, due to its simplicity, saving and without paying extra charges and penalties as normal way of loan walk away. Anyway, vehicle lease transfer could save you thousands of dollars while allowing you the easy way to walk away with no strings attached.

A Lease Transfer permits you to transfer your lease contract to another person, without changing its nature of payment and duration. The lessee title is shifted to the other person to whom the lease is transferred making him responsible for the subsequent payments according to the terms and conditions of the ongoing original contract.

Finding a Buyer! A Credit Qualified Buyer

Credit qualified buyer is a person who is of a legal age and have creditability enough to afford the payments accordingly. In order to initiate a lease transfer, you will need to find a person, wishing to assume your existing auto lease. You may find a friend, family member, colleague or a co-worker interested in the car for the remainder of the lease and without any money down to acquire a vehicle. Although there is no any such problem seen if you transfer your lease inside your family or friends without going into legal formalities of vehicle leasing but its highly recommended to adopt the process that protects and feasible for both the parties you as a seller and other one as a buyer for any inconveniences that may occur and specially if you have an opportunity to get services of such companies easily and free then lease transfer should be in accordance to the leasing way, anyhow there is no cost to the consumer.

Want Out of Your Lease? We can find people that really want it!

Moreover, if you can’t find any buyer to switch over your lease, you may submit your request for prompt action to the OutOfMyLease.ca and list your vehicle in 3 easy steps now for a Free evaluation!

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