Get the Loan You Need
Looking for a car loan with rates you can live with, but aren’t sure where to get one in Edmonton, Calgary, Fort McMurray, and Cold Lake? YEG Auto Credit financing can help! Learn about the different types of loans you’ll face to get the car of your dreams.
Leasing vs. Loans
Leasing a car is like renting a car. When you lease a new car, you’ll pay per month to use the car for a predetermined amount of time. When your lease is up, you can buy the car at a reduced price, or give it back to the dealer and start another lease with a new car.
A loan means you’re buying the car, but you’re borrowing money from the dealer or a third party to buy it with. The car will be in your name, but you’ll have to pay off the car in full before you own it without the possibility of repossession. This can be applied to new or used cars.
A pre-computed loan has two parts. The principal is the amount of money that you’ll be borrowing, while the interest is the charge the lender levies for borrowing their money. A pre-computed loan means that both the principal and interest are set at the beginning of the loan, and the interest cannot be changed even if you make payments early.
A simple interest loan is similar to a pre-computed loan, with a principal and interest. However, instead of having a set amount of interest, the interest is based on the amount of the loan you’ve paid off every day.
A secured loan means that you’ll put up some of your own property, whether it’s a house, a car, or other assets, as collateral against you paying off the loan. This means that if you default on the loan, your property can be seized in lieu of the payment.
Unsecured loans are the most common types of auto loans. There is no collateral involved, just your word that you’ll pay the loan back. However, the interest rates on these tend to be higher than on secured loans.
Get Your Loan Today
Are you ready to speak to someone at YEG Auto Credit about your auto loan today? Call us at 780-446-4558 or come see us at 13815 Manning Drive NW in Edmonton.