Car financing, refinancing and credit checks

Purchase finance and refinancing solve different problems

Financing a car purchase is different from refinancing an existing vehicle loan or borrowing against an owned car. For a purchase, compare the cash price, deposit, extras and total financed balance. For refinancing, obtain the exact settlement figure and any charges for ending the current agreement. A longer replacement term can make payments smaller while leaving debt outstanding after the vehicle has lost considerable value.

Compare the vehicle price with the amount financed

Scotiabank’s auto finance is subject to credit approval and security. Its separate newcomer program illustrates that a lack of Canadian credit history can be considered without removing all lending criteria. Request the enquiry policy before a dealer sends an application to several creditors. Assess insurance, maintenance and fuel alongside the instalment, and keep any existing negative equity clearly identified instead of allowing it to disappear into the headline payment for another vehicle.