Vehicle financing, how does it work? discover it with Autostudio 72 in Mirabel near Laval and Saint-Jérôme



Have you shopped for your used car and have your search been successful? Good! Now, you will have to finance it. But auto financing can sometimes be difficult to unravel. Discover our tips for getting your financing with ease and you'll learn all about auto financing!

Financing solution obtained from the merchant: options and tips.

Getting your car financing directly from your used car dealer is a practical solution that many people choose. Here are some tips that will help you unravel your options.


First of all, you must first establish your monthly budget. This step is very important and should even be done before you start shopping. This gives you a better idea of the vehicle style you can get. Keep in mind the maximum amount you can pay per month.

It's a tip that may sound simple, but is important. Also, remember to consider other expenses related to your car, such as gas (or electricity!), insurance and maintenance.

To help you, you can consult the solutions available online such as the websites of manufacturers or the website of your dealer (AutoStudio 72 has indeed a tool to help you get your pre-approved financing faster!).

Enjoy it! Use them as a starting point and print or keep the results in mind. They will be able to serve you when finalizing your auto financing.

Then, educate yourself! Learn the terms of sale as the difference between the interest rate, the credit rate and the financing charges. Knowing and demystifying these terms will help you understand your salesperson and the finance manager. You will be on the same length and avoid communication problems.



Here are some brief definitions of these terms:

Interest rate: The interest rate is the yield, for the lender, the amount he lends you: in other words, his earnings.

Credit rate: When you finance your car on credit at the merchant, you must pay a financing fee. The credit rate is the percentage indication of these financing costs. Note that the law requires that the credit rate appear in your financing contract.

Difference between the two: Unlike the interest rate, the credit rate specifies, in an overall percentage, all financing costs.

Financing fees: They include the amount of interest, if any, the various administration fees related to the credit, the value of the reduction granted to the consumer who would pay cash and the costs of the "options" that you could add to the credit agreement (insurance, winter tires, etc.).


The stages of auto financing at your used car dealership

1: the CFO offers you a spread loan

First, the dealer's CFO will offer you a loan over a period of time - unless you expect to pay for the car in full. This type of auto-installment financing is very common. Note: Autostudio 72 is a financing specialist and, although a spread loan is the most common form of financing, our financial advisors and directors will offer the financing solution that best suits your situation. No worries, even if you do not have a good credit record, Autostudio 72 has access to 2nd and 3rd chance financing as well as in-house financing. You will be approved no matter what your situation is!

2: he contacts a financial institution

To offer you a loan, the merchant contacts a financial institution or a financing company of a manufacturer.

3: he checks your credit report

His offer is then conditional on the verification of your credit file. This is a document that allows you to know your level of debt and, especially, to know if you repay your debts. Although this is the way of proceeding of the majority of the dealers, Autostudio 72 will ask you questions on your credit file before proposing a form of financing to you. Their specialists are on the lookout for your needs to offer you what will best suit your financial situation.

Namely: you do not have to accept that the dealer consults your credit report ... but that will probably end your transaction!

4: you sign the contract
If your credit application is accepted (which is always the case at Autostudio 72!), You will sign the contract for the purchase of your used vehicle. Read it well before signing it, because you will not be able to modify it afterwards.

5: you start your repayments
If the transaction takes place, you will have to start repaying the loan, of course.


Namely: the merchant remains the owner of the car until you have paid for it in full. Its value serves as a guarantee for repayment of the debt. In default of payment, the car can be resumed and resold.

There you go! The information in this blog post should help you see more clearly in the world of auto loan! If you're ready to find your next used vehicle, check out the Autostudio 72 inventory by clicking here or proceed directly to your pre-approval online. At your used car dealer in Mirabel, auto financing has never been easier!

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