Consumer Line Issue #55
Financing – Considerations, Questions and Tips When Arranging Auto Financing
Purchasing a vehicle is a decision that should only be made after careful consideration; and for most consumers one of those major considerations is: how to finance the purchase.
The majority of consumers borrow money for a vehicle purchase. Some choose to use a personal line of credit or arrange financing at their own financial institution but many have the dealer arrange financing.
Having the dealer arrange financing often makes sense—dealers have access to numerous lenders that may provide terms or rates unavailable elsewhere. But this doesn’t mean consumers shouldn’t carefully consider what is being offered and take steps to ensure they are getting the best possible finance rate and terms.
The Risky Business of Extended-Term Car Loans
Not long ago, four- to five-year car loans were the norm. But today, banks and lenders make it possible for consumers to finance a vehicle over seven to eight, even nine years. That’s a significant length of time for a product that begins depreciating the second it’s driven off the lot. Vehicles that would have been completely unaffordable two decades ago now seem to be financially attainable. But how?
Vehicle Delivery Tips and Considerations
Taking delivery of a newly purchased vehicle is exciting, but for some that can mean rushing through the delivery in order to get behind the wheel and on the road as quickly as possible. But there are important steps to follow when taking delivery of a new car in order to protect yourself and ensure the road to vehicle ownership starts with as few bumps as possible.
OMVIC administers and enforces the Motor Vehicle Dealers Act (MVDA) on behalf of the Ministry of Government and Consumer Services. OMVIC maintains a fair and informed vehicle sales marketplace by regulating dealers and salespersons, regularly inspecting Ontario's 8,000 dealerships and 27,000 salespeople, maintaining a complaint line for consumers and conducting investigations and prosecutions of industry misconduct and illegal sales (curbsiding). OMVIC is also responsible for administering the Motor Vehicle Dealers Compensation Fund on behalf of its Board of Trustees.
Consumer Line is OMVIC’s consumer guide to Ontario’s motor vehicle dealer industry. It is published throughout the year, delivered free via e-mail and provides consumers with useful tips, industry news and important, up-to-date information.
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