What is the interest rate for a car loan in Canada?

1. What is the interest rate for car loans in Canada?

Mortgage loans are generally 2%-3% 3. The interest rate of the Bank of Canada also changes frequently

2. How to buy a new car by leasing in Canada

New After landing in Canada, buying a car will soon be on the agenda. In North America, the wheel is an extension of the human leg. When chatting here, "the distance is close, within 5 minutes" refers to the driving distance?

Everyone knows the importance of cars in North America; cars are only used in places like Edmonton where it is winter for half the year. The importance is self-evident to the people who live here; but the importance of a car to getting a job interview? I guess only I know. I got a favorite interview opportunity within the first month of logging in, but it failed because I didn’t have a car. You can estimate the area of ????my psychological shadow at that time.

Therefore, you should get a car as soon as possible when you arrive in Canada. There are generally several ways to get a car here:

Renting a car with a domestic driving license: This is a short-term emergency, but not a long-term solution.

Buying a second-hand car: If you are good at mechanical repairs or second-hand cars, this is highly recommended. After all, the price is affordable.

Buying a new car with full payment: Pay the full amount in cash, which car dealer dares not to do so?

Buying a new car with a loan: For newcomers who have no credit history, they need to go through this method Buying a new car is difficult!

Among the above methods, combined with our own circumstances, we have no choice. Here, we would like to share with you our experience of buying a car in Canada. There is really no such thing as leasing a new car in China.

Advantages of leasing a new car:

1. Small one-time investment and good cash flow control

If a car costs CAD 50,000, leasing In this way, you only need 1,000 to 2,000 knives to drive the car away, and the monthly repayment will only be a few hundred Canadian dollars in the future (the lease contract signed with the car dealer is for 36 to 48 months).

Imagine that you have 51,000 Canadian dollars on hand. If you buy a car with the full payment, you will only have 1,000 Canadian dollars left after buying the car; but if you lease it, you can get it with 1,000 Canadian dollars. If you have a car, you have 50,000 Canadian dollars left that can be used as a down payment for a house, so that you can own a house at the same time as you have a car. Everyone knows that a car depreciates as soon as it lands and becomes a liability, so from a common sense point of view, there is no need to invest a large amount of money for liabilities.

2. Low leasing interest rates

The leasing interest rates for cars in Canada are generally around 2% to 4%, with the lowest being 0.9% and the highest being only 4.9%. This interest rate is locked in throughout the lease period.

Let’s use the above example to imagine: By leasing, you can safely place the equivalent of 50,000 Canadian dollars in RMB in a domestic bank for low-risk financial management, and a return of about 5% can still be achieved. Even if Canada's highest leasing interest rate is 4.9% (general models are only 2%), your domestic income can offset the cost of leasing, which is equivalent to renting a new car at zero interest rate.

3. Tax deduction

Living in Canada, taxes will accompany you throughout your life. For self-employed people who set up a business in Canada, part of the cost of leasing and purchasing a car can be regarded as operating costs and used for reasonable tax deductions. Please consult professionals for specific details.

4. Quickly establish a credit record

In addition to taxes that will accompany you throughout your life in Canada, there is also personal credit. In Canada, when buying a house, buying a car, or applying for a credit card, whether you can get a loan or enjoy preferential interest rates depends on your personal credit record (we have a bloody history of being rejected for credit cards, and VCs must complain about it for everyone in the future. Just a reminder). For newcomers, there is no stable job in the early stage, so the credit record is zero. Buying a car through leasing and repaying the car on time each month prove that you are able to repay the debt, so that your personal credit record can be quickly established.

However, there is actually a paradox here: As a newbie, I want to buy a car by leasing, but I have no credit record. How can the car dealer agree to let me buy it by leasing? About this Question, I will answer it later.

5. You can return the car in another place

As a newcomer, the place of landing is where your whole family will live forever? I don’t think anyone can guarantee it. We have heard and seen too many stories like this: moving from Toronto to Edmonton, from Edmonton to Toronto, from Edmonton to Calgary, from Calgary to Vancouver? Even moving from Canada? to the United States.

Since the lease contract is essentially signed with a Canadian car brand (the car dealer, as a dealer, signs on behalf of the Canadian car brand), once the lease expires and you want to return the car, you must return it to the Canadian car brand. You can go to any car dealership, there are no city restrictions. If your family moves to Toronto or Metro Vancouver in the future, you can return the car to a local car dealership instead of traveling all the way to the place of purchase.

Disadvantages of leasing a car:

1. Not owning all the property rights of the vehicle

Leasing a car means signing a 36-48-month agreement with the car dealer. After the monthly car rental contract expires, you have to return the car to the dealer, or you pay another fee to buy out the car at the market price after the lease period ends.

However, is it really important to you to own the full ownership of the vehicle? You can drive the latest car at a very small cost, and only pay the interest and interest on the lease during the entire lease period. About 52% of the car price (the residual value of a general vehicle after 48 months is about 48% of the original car price). After the lease period is over, you can also choose to return the car to the car dealer and ask the car dealer to borrow a latest model car to continue enjoying the fun of driving a new car. What do you think?

In addition, Considering your own family situation, if you add a new family member within four years, it will be almost time to change your car, right? If you want to sell the car when changing your car, it will involve a lot of transactions. When the car rental period expires, you don’t have to think about these things, which is more worry-free.

2. When buying car insurance, you need to have comprehensive insurance

This is a matter of opinion. From a financial point of view, the one-year full-risk insurance premium is definitely not higher than that of full-risk insurance, but there is one thing to consider. As a newcomer, you are not familiar with the place, and you are driving in a country with completely different driving rules from those in China. Maybe this The extra insurance premium is worth it.

3. There are mileage restrictions on the use of vehicles

Generally, when signing a lease contract, it is agreed that the annual mileage of the vehicle shall not exceed 20,000 to 24,000 kilometers. The excess amount will be charged corresponding fees. Actual mileage depends on individual usage.

The lease contract we signed stipulated that the annual mileage should not exceed 20,000 kilometers, and the total mileage in four years should not exceed 80,000 kilometers. What car dealers actually look at is whether the total mileage at the end of the lease period exceeds 80,000 kilometers. Recently we drove from Edmonton to Calgary and then to Banff, a round trip of almost 1,000 kilometers. I estimate that I will drive to Vancouver, BC, or Regina, the capital of Saskatchewan, at most in the future, but how many times does this happen a year?

The previous article mentioned the paradox of new people who want to buy a car through leasing, here. Let’s use our case to answer this question.

At that time, after we proposed to buy a car through leasing with the car dealer, the financial manager of the car dealer needed us to provide basic information, including: rental contract, water, electricity or telephone bills, as well as bank and credit card information. A few days later, the financial manager called and said that since we were new and had no credit history, we could not apply for leasing or buying a car with only basic information, unless we met one of the following conditions:

Provide proof of stable job income.

Pay an additional deposit to the car dealer when picking up the car: it varies by brand and car dealer, ranging from a few thousand to 10,000 Canadian dollars

From a local company with good credit Residents serve as guarantors and *** also sign the lease contract (co-signer)

Since we just landed and have no job and don’t want to pay the security deposit, we have friends who live here and agree to guarantee us, so we I chose to attach a third condition, and finally signed the lease agreement as I wished.

Therefore, for newcomers, it is difficult to buy a new car through leasing, but there is still a solution - of course, the most important prerequisite is to accept this car buying method and it is suitable for you. family situation.

3. What is the Canadian loan interest rate?

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What are the requirements for admission to various universities to study abroad? You can use the study abroad application reference system to see the system. How many students with similar situations to yours have successfully applied to this school or those majors? You can know the score requirements for application by looking at the minimum score they need to get admitted.

4. What kind of cars do Canadians like to drive?

Question 1: What kind of cars do Canadians drive? For the working class:

Local white people like American brands, such as Ford, GM, etc. Canada does not have its own car brands. Many American cars are produced in Canada, so Canadians driving American cars are equivalent to driving domestically produced cars.

Asia likes Japanese brands because Japanese cars are durable and have fewer faults. Second-hand Japanese cars are more expensive in the market than American cars of the same level, so there is a saying in Canada that "Japanese cars maintain their value."

For wealthy people, of course they like German cars, such as Mercedes-Benz and BMW.

Question 2: Tell us what cars Canadians bought in 2014. List of Canadian car sales rankings in 2014.

Question 3: What kind of cars do foreigners like to drive? Everyone (including foreigners) has different preferences, so everyone’s choice is also different

Question 4: Canada What kind of 7-seater cars do people drive? Rich people drive Audi Q7s, ordinary people drive Japanese cars, and ordinary families drive VANs. Most of them are American cars, and Dodge is the cheapest.

Question 5: What brand of car is suitable for international students to drive in Canada? Whether it is suitable to drive does not depend on the brand at all. It mainly depends on your budget, the main purpose of buying the car, and where you are. In cities, are there more heavy snowfalls in winter?

Canadians will not judge you based on the brand of your car. If you are a student, it is good to buy an economical and practical Japanese car. Toyota and Honda are both good. You can also consider German cars, which are heavier and stable to drive. American cars are cheaper, but they seem to consume more fuel in the first place. In addition, the price drops quickly. If It won’t fetch much if you resell it.

Question 6: What kind of cars do Chinese Canadians buy? Generally speaking, most Chinese believe that Japanese cars are economical, durable and not prone to breakdown. Families with good conditions will consider German cars, then American cars, and then Korean cars. .

Question 7: What kind of cars do Canadians like? For the working class:

Local white people like American brands, such as Ford, General Motors, etc. Canada does not have its own car brands. Many American cars are produced in Canada, so Canadians driving American cars are equivalent to driving domestically produced cars.

Asia likes Japanese brands because Japanese cars are durable and have fewer faults. Second-hand Japanese cars are more expensive in the market than American cars of the same level, so there is a saying in Canada that "Japanese cars maintain their value."

For wealthy people, of course they like German cars, such as Mercedes-Benz and BMW.

Question 8: What kind of cars do foreigners drive? Most of the foreign movies we watch are American. American cars are cheap, and it is normal for a family to have several cars. Because of this, a car is a very common daily necessity and a means of transportation. Buying a mainstream mass-market car with high sales, easy to get preferential loan interest rates, and low maintenance costs, why not?

Hope to adopt

Question 9: Why Canadians drive their cars and rarely take the bus? First and most importantly, it is because almost every household in Canada has a car. Now that they have a car, who will take the bus? Secondly, the land area of ??Canada is so large that it may take more than ten or twenty minutes to walk through a residential area in China, but in Canada, it may take an hour. Therefore, in this case, there are only more buses in the urban area. If you live in a slightly remote area, it will be more than ten kilometers to buy groceries, and it is very inconvenient to take the bus.

Question 10: Why? Foreigners prefer to drive old cars. Issues that foreigners think about are sometimes difficult for Chinese people to imagine.

Sometimes, foreigners buy the car because they think it would be a pity to throw it away.

Sometimes the owner sells the car not because he doesn’t like it anymore, but because he is old or wants to leave the city, so he sells the car. The buyer is not a poor man, or even a rich man. He bought this car not because he was poor, but because he thought it would be a pity to throw away such a good car after only driving 100,000 kilometers, so he bought it.