Guide to Financing a Luxury Car in Edmonton

How to Buy a Luxury Car in Edmonton?

Thanks to historically low-interest rates, a variety of lenders, and West Side Acura, financing a luxury Car in Edmonton has never been easier. But, just like finding the perfect vehicle, finding the perfect loan requires some "due diligence," as well. Here are a few questions that shoppers should ask themselves when financing their next luxury vehicle in Edmonton.

How Much Should I Spend?

Financial experts agree that most buyers should not borrow more than twenty percent of their net household income. This means that someone who takes home one-hundred-thousand dollars a year, for example, should finance no more than twenty-thousand dollars towards their vehicle purchase. This takes into account all vehicle loans for the entire home, as long as they're part of the household budget. Of course, current interest rates, loan terms, and personal situations will all play a role in a buyer's final decision.

Should I Buy or Lease

Leasing a new car has several distinct short term financial advantages over buying the same vehicle. Both the initial and monthly payments will almost always be lower on leased vehicles. Leasing becomes really attractive when depreciation and maintenance get added into the equation. The obvious downside to leasing is at the end of the lease, or if the vehicle gets totalled or stolen, the lessee must get another vehicle.

Who Makes Auto Loans?

Banks, credit unions, and dealerships (often through their brand) make the majority of auto loans. Potential buyers should get a copy of their credit report, and check it for errors, several months before applying for a loan. This will provide enough time for them to straighten out any mistakes on the report, or even take actions to improve their credit score. Lenders rely on these scores, more than any other factor, to set interest rates on their offer. Financing through the dealer often makes the most sense as it keeps things simple and automakers frequently offer exceptionally low promotional interest rates.

How Much Down Payment do Lenders Require?

Down payments on new-car leases vary. Most dealers require at least the first and last month's payments, any bank fees involved, and the applicable sales tax. Based on the lessee's financial situation, the dealer might also ask for a down payment, as well. For a new vehicle purchase, dealers may ask for as much as twenty percent down. Required down-payments on used vehicles vary depending on the car's age and mileage but are usually at least ten percent. Fortunately, any money that a buyer receives from their trade-in can be used towards a down payment.

Do All Car Dealers Offer Financing?

Any reputable car dealer offers financing to their customers whether it's through the financial arm of the automaker they retail for, or through an affiliation with a bank or finance company. At West Side Acura, we deal with a variety of lenders and our experienced finance team works overtime to get our customers into the car of their dreams at a price they can afford. West Side Acura - the number one place to buy, lease, or finance a luxury car in Edmonton, and all of Canada, as well.