Trade-In Value: This applies when you trade in an old car for a new one. This number includes all fees, with registration and sales taxes excluded. ![]() This refers to the “total cost” of the vehicle. Total Purchase Price: also known as the “selling price” of your car. Total Interest Paid: how much you are paying in total when it comes to the interest rate charges for your car loan. Used car sales tax rates vary across the provinces. Another factor is whether you are buying new or used. Sales Tax Rate: the sales tax rate depends on the dollar amount of car, and the province you purchase your car in. Fees do vary across Canada, which we already explained in our dedicated reviews of car loans in BC, Ontario, and also Ottawa, Edmonton, Toronto, and Calgary. The fees go to the dealer, who filters it to the provincial agency needed. For those who buy from a dealership, the vehicle paperwork is completed by your sales rep. The registration fees include your car’s license plate and sticker, as well as the vehicle permit. This must occur in order to take ownership of your car. Registration Fees: Canadian car buyers must register their vehicles with their provincial government. ![]() Payment: the total amount you pay each month, bi-weekly period, or weekly, against your car loan. Payment Frequency: how often your car payments are made. ![]() Terms range from six months to up to 10 years. Plus, you’ll pay more in total interest costs. With that said, it also means it takes longer to pay off. The longer the length of the loan, the lower your car payments. At the end of the term, you own your vehicle outright. Loan Term: this is the number of months it will take to repay the car loan in full. Those with bad credit scores pay higher interest rates, though high interest rates can also be a good thing. Those with good credit scores qualify for a low interest rate. Interest Rate: this is the rate of interest banks, or a car dealer charges you each year for your loan. This amount takes into account the trade-in value and down payment. A higher down payment also means less money to finance.įinanced amount: the total amount of money you will need to finance your car loan. The more money you have, the less your car loan will be. If the person you co-sign for defaults, this can affect your credit score.ĭown payment: this is the amount of money you have to place against your vehicle’s purchase price. This is a huge responsibility that should not be taken lightly. They turn to a friend or family member to co-sign. At times, there are households/individuals who cannot be approved on their own. The inspection is done by the manufacturer and certified.Ĭo-signer: another person who “signs” onto the car loan. It is like the “Kelley Blue Book” used in the United States.Ĭertified Pre-Owned (CPO): this refers to a used vehicle that passes inspection. It specifies the future trade-in or current resale number for a vehicle. This is determined by specific geographic regions across the country. This is noted as a percentage of the total vehicle price.Ĭanadian Black Book: is a reference used around the resale value of a used vehicle. It’s sometimes referred to as the “Purchase Agreement” or “Bill of Sale”.Īnnual Percentage Rate (APR): the cost of borrowing, annually. It’s an “agreement” between the seller and buyer. Car Loan Calculator Definitions of Termsīefore you fill out the car loan calculator form, below are some definitions.Īgreement of Sale: this is a document that outlines the terms of the purchase. This can help you change scenarios to fit a car loan into your budget.Perhaps, adjust the price of the vehicle to suit your affordability. Another advantage is that you can work with the tool to adjust factors. A car loan calculator can also help determine if you can afford a vehicle payment. It helps potential buyers figure out what their payments may be. We also have a handy car loan calc, right here at INCOME.ca. The online tool can be found on many bank (see Scotiabank) and dealership websites. One major component is whether your budget can handle a monthly payment or bi-weekly payment term.Ī calculator for car loan planning can help determine total interest and more. Regardless, there are many factors to consider when looking for a vehicle and a vehicle loan. Sometimes a down payment is needed for a vehicle. Depending on the price of the vehicle, Canadians often struggle to buy a vehicle outright.Ī car loan payment term can last 12 months, 36 months, 48 months and even as long as 60 months. ![]() This type of financing makes it affordable for people to purchase a vehicle. A car loan is a type of financing option. Thinking about buying a new or used vehicle? You may need a car loan to finance this purchase.
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