Your Guide to Financing Your Ford Car in Calgary!
Your Guide to Financing Your Ford Car in Calgary!
Posted on July 17, 2023
Stepping into the realm of car financing in Calgary can seem like you've opened Pandora's box, particularly if you're new to the car-buying journey. Fear not; with a well-drawn roadmap, you can seamlessly chart your way toward securing your dream Ford car. At its core, car financing is the bridge that connects you to your desired vehicle. It is a way to procure funds from a lender, like a bank or a dealership, such as Country Hills Ford, to purchase a car. The borrowed sum is then repaid over time, with interest, in agreed-upon installments.
Welcome to our Ford financing guide!
The Two Faces of Auto Loans
When in the market for a Ford car leasing in Canada, you'll be presented with two main types of car loans - leasing and financing. Let's decipher these options:
Leasing: The "Try Before You Buy" Option
Think of leasing a car as entering a rent-to-own contract. It's a deal that allows you to enjoy the luxury of a new car without the full investment as you commit to use the vehicle for a defined period (usually between 2 and 4 years). During this lease term, you make relatively lower monthly payments compared to financing. As the curtain falls on the lease term, you get to decide whether to buy the car at its current worth or wave it goodbye.
Financing: The "Invest in Full Ownership" Option
Opting for Ford car loans in Calgary is like putting down a marker on a vehicle you want to call your own. It involves borrowing funds to pay for the entire value of the car. You repay this loan plus interest in monthly installments over an agreed period. Once all the payments are made, the vehicle is entirely yours, with no restrictions on mileage or customizations. Financing suits those who seek long-term ownership and want to build value in their car over time.
Eligibility Requirements: The Initial Checkpoints
While the prerequisites for car loans can vary between lenders, there are a few universal boxes to tick. Typically, lenders look for proof of a stable income to reassure them of your ability to manage monthly payments. A valid ID is necessary for legal verification, and proof of residence helps confirm your current living arrangements.
The Three-Step Dance to Car Loan Application
The journey to Ford car finance can be boiled down to three main steps:
Step 1: Filling the Lender's Car Loan Application
Your first move is to fill out the lender's car loan application, which could be completed either online or in person at the dealership. This form seeks information about you, your employment status, income, and possibly details about the car you plan to acquire.
Step 2: The Backup Documentation
Once the application form is completed, you'll need to provide additional documents to bolster your application. Generally, this would include proof of your income (like recent pay slips or tax returns), evidence of your residence (like a utility bill or a lease agreement), and a valid ID (like a driver's license or passport). If you plan to trade in a vehicle, the necessary paperwork for this might also be needed.
Step 3: The Approval Wait
After submitting your application and all required paperwork, the lender will roll up their sleeves to assess your application. This review, spanning a few days, involves checking your details and determining your creditworthiness. If your application passes muster, the lender will extend a loan agreement to you, outlining your loan's specifics like the interest rate, monthly installment amount, and the loan term duration.
Routes to Financing: The Road Less Traveled
Car financing can be obtained through your bank, the dealership where you buy your car or an online pre-approval process. Each route has its unique attractions and may present different interest rates and terms.
Interest Rates: The Cost of Borrowing
Interest rates are decided based on several factors, such as your credit score, the loan amount, the loan term length, and the lender's policies. To snag the best rate, don't hesitate to explore different options.
Financing Terms: The Duration of the Journey
The loan term defines how long you have to repay your loan. Shorter terms equate to higher monthly payments but lower total costs due to less accrued interest, and vice versa.
Credit Score in Vehicle Finance: The Silent Influencer
Your credit score holds substantial sway over your financing options. A higher score may fetch you lower interest rates, while a lower score might mean higher rates or potential difficulties in obtaining financing.
Drive Off with Your Dream Ford in Calgary at Country Hills Ford
Are you all set to park your dream Ford in your driveway? Entrust your Calgary Ford finance needs to Country Hills Ford, the leading Ford dealership in Calgary. We offer competitive rates, flexible terms, and a team of experts ready to guide you every step of the way. We aim to make the process of buying a new or pre-owned car as streamlined as possible.
Ready to set the wheels of your car financing journey in motion? Reach out to Country Hills Ford and let us help you drive home the Ford you've dreamt about. Let's revamp the definition of car financing, together.