There are numerous cars which are being introduced virtually every other day in the market these days. However rich you may be it is difficult to buy all of them and change them quite frequently. The only way you get to use most of these cars is leasing. Car leasing is the most economically viable option rather than buying different cars or exchanging cars, which is economically viable at all. Using car leasing you can get to use different kinds of car without owning them.
The PTI is a figure stated by a lender that defines the maximum car loan the lender is prepared to offer based on the applicant’s income. This helps to avoid borrowers overextending themselves and being unable to make the monthly repayments. Current averages range from 10% to 15%.
When you buy a new car, its value is higher than a used one. So when it comes to making a down payment it becomes a bit difficult for students or anyone else. So if you buy a used car then making a substantial down payment would also be fairly easy.
Let’s say you buy a 5 year old car that has lost 65% of it’s value. Now, the value will only drop 15% or less after the fifth year of it’s lifetime. Come on, do the math; your driving cost for the years to come would only be 10-15% of the car’s original value. Can you see the huge money saving potential in this way of purchasing cars? If we deduct these vehicle costs from what it cost to purchase and drive a brand new auto, you’ll have a small fortune to spend on other things that can make life good for you. After two or three years of driving this car, you may resell it and buy another even newer one.
Your Insurance Rating: Your insurance rating is a way for insurers to determine how safe a drive you are. If you have had a few crashed and car insurance claims then you may be considered high risk and will pay a higher price for your car insurance. Rating 1 is the best and having no rating is the worst. Every time you make a claim, your rating will go down and you will pay more. Rating 1 usually gets a 50-60% difference. When a policy is $2000, a 60% discount means a saving of over $1000 so it literally pays to be a good driver.
You are also required to make a down payment in taking used car loan. Usually you would be asked to pay 20 percent of the car value calculator Canada as down payment. This sort of gives safety of the loan to the lender and also enables in lowering monthly payments towards the loan installments.
It is very important that you find out the suitable lender for refinancing car loans because you cannot afford to do another mistake in choosing the lender. With the help of the online medium you will be able to get the suitable lender with no hassle. You just need to sit at the front of your computer and start comparing various lenders.
Also keep in mind that as time moves along, the factors listed above begin to become less relevant. If your trade-in is less than 6 years old, the list applies to you. If you trade-in is more than 6 years old (give or take a year depending on the model), than this list becomes less relevant.