Tag Archives: Open Loan

How Auto Loan Interest Rates Are Determined

Every auto loan has 2 parts to it, the applicant and the vehicle itself.  Therefore 50% of the interest rate is determined by the quality of the applicant or in other words their credit history.  The remaining 50% of the interest rate is determined by the actual vehicle used for the car loan, more specifically the year, make, model, and most importantly the kilometers driven.  The reason why the vehicle is equally as important as the applicant when determining an interest rate is due to the fact that cars are depreciating assets which means that as time goes on the value of your vehicle becomes less and less until it eventually becomes worthless.  Therefore, when giving a car loan the lender must keep in mind that if they are  forced to repossess a vehicle they will be getting a vehicle that is worth substantially less than when it was sold.

Getting a Car Loan After Bankruptcy


Most people think that they have to wait a certain time period after their bankruptcy to obtain a car loan.  In actual fact you become eligible to obtain an auto loan the moment a judge grants the discharge of bankruptcy.  CA Lending® specializes in helping individuals get a car loan after bankruptcy.  We realize that you’ve just been through an awful ordeal and our trained professionals will structure your car loan so that you can re-establish your credit as fast as possible.  One of the  ways that we do this is by making your monthly or bi-weekly payment as small as possible.   This ensures that your monthly or bi-weekly payments are manageable enough so that should something arise in your life that would require a portion of your monthly income, your car loan will most likely be paid.  It is very common for people who have just come out of bankruptcy to fall into the same pattern of bad habits that in most cases got them into bankruptcy in the first place.   Your CA Lending® representative will answer all your questions regarding your new car loan to make sure that you are fully informed of the many ways that we can increase your credit rating dramatically and in a relatively short period of time.  After making 12 monthly or 26 bi-weekly payments without missing any payments, CA Lending® customers are eligible to have their auto loan reviewed and have their interest rate slashed  by up to 50%.

Bad Credit Car Loans Ontario

Getting  approved for a bad credit car loan through CA Lending® will be one of the quickest and most effective ways to improve your overall credit score.  The reason for this is that an auto loan is usually the second biggest loan that an individual will obtain, next to a home loan (mortgage) of course.  It is also a secured loan with the car itself being the collateral.  Banks and lending institutions tend to provide more favorable terms when they are able to secure their debt with something of value that they may legally acquire should the borrower default on the car loan altogether.  Although obtaining credit cards and/or lines of credit will help improve your credit score  a bad credit car loan will do so in a much shorter period of time.  Remember, everyone makes mistakes, especially when it comes to credit; but doing nothing to fix it is the greatest mistake.