Financing specialists

Traditional financing vs. leasing: which one to choose?

When you want to buy a car, it is essential to understand the different options available to you. The two most common solutions are traditional financing and leasing or leasing. Financing specialists can help you determine which option is best for your situation.

1. Traditional financing:
   Traditional financing involves taking out a loan to purchase the vehicle. You immediately become the owner of the vehicle, although you must repay the loan over a set period of time. Here are some advantages:
   • Full ownership: Once the loan is repaid, the car is yours without any restrictions.
   • No mileage limit: Unlike leasing, you have no constraints on the number of kilometers driven, which is ideal if you drive a lot.
   • Vehicle customization: You are free to modify or customize your car as you wish (additions, equipment, etc.).

   This type of financing is generally recommended for people who want to keep their car for the long term. Financing specialists can help you get a loan at a favorable rate, taking into account your credit and financial needs.

2. Leasing (rental with option to purchase – LOA):
   Leasing is a form of long-term rental with an option to buy. You rent the car for a fixed period of time (usually 2 to 5 years) and, at the end of the contract, you have the option to buy it. The advantages of leasing include:
   • Lower monthly payments: Monthly payments are typically lower than a traditional loan because you're only paying for the use of the vehicle, not the full purchase.
   • New car every 2 to 5 years: Leasing is a good option if you like to change your vehicle regularly to take advantage of the latest technologies and manufacturer warranties.
   • Warranty: Since the car is often new, it is generally covered by a warranty for the entire duration of your contract.

   However, leasing also has disadvantages such as mileage limits (often between 10,000 and 20,000 km per year), fees for exceeding the limit or restrictions on vehicle modifications. Financing specialists can advise you on the best leasing offers based on your usage and preferences.

Loans adapted to each financial situation

Financing specialists understand that every client has a unique financial situation, so they can help you choose from different types of loans, depending on your profile.

1. Loans for people with good credit:
   If you have a good credit, you can access interest rate lower and more favorable terms. A financing specialist can negotiate to get you a fixed or variable rate loan depending on your preferences. A fixed rate guarantees stable payments, while a variable rate can offer savings if interest rates drop.
2. Loans for people with poor or damaged credit:
   If your credit history is less favorable, financing specialists can still help you find suitable solutions. They have access to lenders who specialize in bad credit loans. While interest rates may be higher, these experts negotiate to get the best possible terms, allowing you to rebuild your credit while financing your vehicle.
3. Loans for self-employed workers or those without stable income:
   If you are a self-employed or if you have fluctuating income, traditional banks may be hesitant to grant a loan. Financing specialists, with their expanded network of lenders, can find solutions adapted to this type of profile, based on a more flexible assessment of your income.
4. Balloon loans or loans with staggered payments:
   Some buyers prefer options like the balloon loan, where a large portion of the amount is repaid at the end of the contract, or loans with staggered payments to accommodate peaks in income specific (such as annual commissions or bonuses). Financing specialists can assess whether these options are viable for you based on your budget and your preferences.

Customized solutions for each client

When looking to finance a vehicle, it’s essential to find a solution that fits your unique situation. That’s where financing specialists come in. Unlike traditional banks, which often offer standardized options, financing specialists offer customized solutions tailored to each customer, regardless of their financial profile.

1. Taking into account your personal situation:
   Whether you are a first-time buyer, self-employed, or have a less favourable credit history, financing specialists will carefully assess your situation to provide you with tailored options. For example, if you have a damaged credit history, they can access specialist lenders who offer tailored terms, unlike banks who may decline your application.
2. Adaptability for different profiles:
   Financing specialists understand that every customer is unique. Some buyers may need a lower monthly payment, while others want to pay off their loan quickly to avoid paying too much interest. For example, a customer with a fluctuating income may benefit from a flexible payment loan, while a customer with a strong savings capacity may prefer a short-term loan with higher monthly payments but less interest over time. Financing specialists find solutions that fit each individual.
3. Access to a wide variety of lenders:
   Rather than limiting you to a single financial institution, financing specialists work with an extensive network of lenders, including banks, credit unions and alternative lenders. This allows them to offer you a wide range of options, which you may not have discovered on your own. For example, a client may be offered several loan options with different interest rates and terms, allowing them to make an informed choice based on their priorities.

How specialists help you save in the long term

Using financing specialists can not only make it easier to get a loan, but it can also save you money in the long run. Here's how:

1. Competitive interest rates:
   Through their network of lenders, financing specialists are able to negotiate lower interest rates than you could get on your own. A lower interest rate can add up to significant savings over the life of the loan. For example, on a five-year $25,000 car loan, a one percentage point reduction in the interest rate can translate into hundreds or even thousands of dollars saved in interest.
2. Avoid hidden costs:
   When taking out a loan, there may be additional fees such as application fees, administration fees or early repayment penalties. Financing specialists guide you through these intricacies to avoid pitfalls. For example, a client may be attracted to a loan with an initially low interest rate, but a specialist could help you identify hidden fees that could increase the total cost of the loan.
3. Flexible Refund Options:
   Depending on your financial situation, you may prefer a more flexible repayment plan. For example, if you anticipate an increase in income or annual bonuses, financing specialists may recommend a loan with the option to make early payments without penalty, allowing you to repay the loan faster and save on interest.
4. Maximizing incentive programs:
   Sometimes, dealerships or lenders offer special promotions, such as reduced interest rates, discounts for loyal customers, or interest-free financing programs. Financing specialists are aware of these programs and can help you take advantage of them. For example, if a dealership offers 0% interest financing on certain models, a specialist will be able to identify if you qualify for this offer and direct you to this advantageous option.
5. Optimization of the loan duration:
   The term of your loan directly influences the total amount you will pay. A longer loan has lower monthly payments, but higher interest over time. Financing specialists help you find the perfect balance between manageable monthly payments and optimized total costs. For example, for a client with a tight budget but who wants to minimize long-term costs, they may recommend a mid-term loan term that optimizes both monthly payments and total interest costs.

We can help you.