Be careful choosing a vehicle based on its high mileage and low price tag. Even though the monthly payment may be lower for a cheap older model vehicle, you’re likely not getting a safe and reliable vehicle that will last the length of your car loan.
With older, cheaper vehicles, you will experience higher than normal maintenance fees and unexpected costs when something breaks down. Banks and auto loan lenders know this and will expect you to cover your repair bills rather than make your monthly auto loan payments. This results in a higher interest rate from the start of the loan, so the lender can make their money back as soon as possible.
The majority of auto loan lenders will refuse to approve a car loan for a vehicle older than 2009 or costing less than $7000 before tax. This is due to the fact that older vehicles have a higher risk of breaking down, and its owner not being able to cover both the repair fees AND the auto loan payment.
When it comes to bad credit auto loans for an older vehicle model, the majority of warranty companies will not provide any additional coverage for that vehicle.
Remember that with a high mileage vehicle, once you’re ready to refinance, the value of your trade-in will be significantly lower, meaning that what you owe from your previous loan will be added onto your new car loan.
How Are We Different?
- We have over 4000 certified used vehicles in our inventory. Every vehicle arrives to the customer fully certified, e-tested, reconditioned and plated in their name.
- Our inspection standards are much higher than Ontario’s safety standards. We go above and beyond for our clients to ensure that they’re getting a safe and reliable vehicle that will not break down on them during the loan.
- We do not sell any vehicles that we know a bank would not approve. The last thing that we want is to get you excited about a vehicle, just to find out later that it cannot be approved by the lender. We always work on your car loan pre-approval first and only then we’ll select the appropriate vehicle to fit both your needs and budget.
- We offer the industry’s best extended warranty packages to protect both your vehicle and auto loan. Often these warranties are included in your financing and we always make sure it’s within your budget.
Our goal is to put clients in a safe and reliable vehicle, but not bury them in debt. If you’re ready to apply for a car loan, click here.