How to get financing for used cars in London, Ontario

mm Paul Verbiton January 8, 2020
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London, Ontario, is a bustling city with a population of almost 400,000. It is near the US border, specifically 230 kilometers away from Buffalo, NY. If you think the name is weird, you can blame John Graves Simcoe for it as he christened the place in 1793 to become the capital of northern Canada.

There are plenty of things to do and see in London, Ontario. For instance, St. Peter’s Cathedral Basilica, with its French Gothic Revival design, is always a popular attraction. You can also visit the house of Dr. Frederick Banting, the Canadian scientist who invented insulin. You can loiter around the park, tour a brewery, or buy fresh produce at the Covent Garden Market.

While public transportation is efficient, the city is best explored behind the wheel. Students, transients, or visitors either rent or buy used cars in London, Ontario. When you use a vehicle, you own your time. You are not worried about getting left behind by the bus, and you can go around even in the middle of the night, knowing that you can always go home anytime.

A typical question regarding second-hand vehicles is how to get financing. Here are two of the most common ways that you can try so you can drive home your dream car.

1. Apply for financing from the bank or credit union. People think that banks only process applications when you buy new vehicles. They do accept second-hand vehicles. However, there are some pre-conditions before they receive your documents. For instance, they do not usually consider used cars with over 100,000-kilometer mileage or ten years, whichever comes first.

Also, with banks, you need to have a good credit score before they approve your loan.

2. Apply for financing from the dealership. Most dealerships offer in-house financing. One advantage of this is that everything is processed in one place. You do not have to deal with too many individuals to get your application approved.

One misconception about dealer financing is that you need to have a good credit score. It is not always the case. With that said, your credit score does affect how much you can borrow and the interest rate you pay. It is in your best interest to boost your credit score, especially if it is below 650, before applying for financing to buy used cars in London, Ontario.

With dealers, they serve as co-guarantor. Now, it does not mean that they will shoulder the cost if you default on payment. They will send your application to several lenders and give you the choice of selecting the best terms.

Of course, you can always pay in cash. This is the ideal option if you do not want to be saddled with monthly payments. With no encumbrances on your vehicle, you can also sell it anytime you want.

Before making a choice, make sure you review the interest rates. Some options will upfront the cost, which means that you pay more initially. However, you end up paying less in the long run because of the lower interest rate. The reverse could be true. You may pay almost nothing at the outset, but you pay more in terms of the monthly mortgage and interest rate.

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Paul Verbiton

I enjoy spotting opportunities and doing my best to grab them if I can. I am eager to see the world, I love taking photos and writing, coming up with topics that are pleasant to read, funny, and interesting at the same time.

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