We all know price is important when buying a car, and so is what you pay to finance it. That’s why Bourgeois Motors works with all the major financial institutions nationwide to help you get the best rate for your investment.
The Financial Services team at Bourgeois Motors are authorized representatives of the banks who specialize in providing the best financing options for our customers. It is our obligation to ensure your financial arrangements have been thoroughly detailed to you since all leasing and financing paperwork is completed right here at the dealership.
VEHICLE FINANCING 101
Have questions about how financing works? We’re here to help.
When submitting a credit application, the factors listed below all affect the type of financing terms you may receive from a bank or lender. Our Financial Services team of experts is here to help you make smarter informed decisions about the best options available to you for your vehicle purchase.
Your credit score is the metric that lenders refer to when determining your financial risk. The better your credit score is on your credit report, the better the rate you are going to get for your vehicle financing.
Your debt-to-income ratio helps lenders anticipate whether you will be able to pay off your loan in a timely fashion by seeing how much of your regular income goes to existing debt and how much income remains available.
Down Payment Amount
You are better off putting a larger down payment if you afford it, versus a smaller one, since the larger a down payment you can make, the more favourable the terms that will be offered by the bank/lender.
Quality of the Vehicle
The age and the quality of the vehicle also affects the terms of a loan. Reason being, in the event of a default, the lender can repossess the vehicle and be able to effectively recoup losses with a high quality vehicle.
Length of Loan
The length of the loan shows how long lenders will have to put up with the risk. The shorter the length of the loan, the less risk lenders are taking and the more favourable the loan terms will be. So if you can afford a larger payment a month with a shorter term (length of the loan), it is more favourable by lenders.
YOU’VE BEEN APPROVED! NOW WHAT?
Upon financing or leasing approval by the chosen lender, all legal documentation with respect to your vehicle purchase / lease will be completed properly and in a timely manner to ensure you are driving your new vehicle as soon as possible.
With convenient on-site banking options available, we can help save you some money and time in having to shop around.
Did you know? We can tailor a vehicle’s service plan to meet your unique driving needs, protecting you from unexpected repair bills and allowing for worry-free driving. Exterior and interior protection packages can save you money on unwanted wear and tear bills. Ask us about our “VIP Gas & Go Plan”.
TOP 6 REASONS WHY YOU SHOULD NOT USE YOUR LINE OF CREDIT TO PAY FOR A VEHICLE
- Interest rates fluctuate with prime which can result in variable payments – unknown interest and unknown terms.
- Lines of credit are designed for emergencies and investment opportunities – don’t get caught without a backup plan.
- Many lines of credit are secured by your home; credit providers consider this a second mortgage – default of payment for any reason allows the bank to repossess your home.
- Lines of credit were designed as interest only loans – interest only payments result in long term liabilities without assets.
- Your credit line is a demand note – your bank has the right to demand payment in full, at their discretion, at any time, with or without cause. If you do not have the cash to pay off your line of credit, they will use their “Right of Offset”.
- Our full service finance team represents all major banks and can negotiate the best terms and conditions on your behalf – fixed term open loans save you money and allow you to trade sooner.
Have questions about financing your next vehicle? Contact our Financial Services Manager, Dan Wilkey, for more information at 705-526-2278 x 223