Financing an Electric Car in Canada: How to Get a Great Deal
Financing an Electric Car in Canada: How to Get a Great Deal
Posted on June 8, 2022
The electric revolution is underway. Countries are banning the sale of new petrol and diesel cars and automakers are gradually shifting their designs from fossil fuels to cleaner alternatives. But how can you pay for an electric car? Can you buy one using a standard auto loan?
Our Halton Hills auto loan team finds out.
Auto loans and electric cars
The cost of designing and developing electric cars is immense and someone has to pay for that. Us. That means, for now at least, the price of electric cars can be much higher than standard gas engines.
That will change over time but if you want to go green now, you have to pay for the privilege.
But how do you pay for it?
The good news is that you can use a standard auto loan to buy an electric car. Sure, it will likely be a little higher than you’re used to but the process and the outcome are the same as they have always been.
Buying an EV with a Halton Hills auto loan
Your only real challenge when buying an electric vehicle with an auto loan is qualifying for the amount you’ll need to borrow.
If you’re used to buying premium cars, you won’t notice a difference but if you’re used to buying used or cars from lower down the scale, you may have to borrow more than you usually would.
In return, you get a car that’s very cheap to run, should be cheaper to maintain, has zero emissions and will be part of the future and not the past!
Qualifying for the auto loan
With electric cars currently priced higher than most everyday cars, you’re going to have to borrow more to pay for one.
That means:
A good credit score – You’ll need a good credit score to qualify for a loan sufficient to buy an electric car. While we can work with you if you have bad credit, you may find it a challenge to borrow the amount you’ll need. Nothing is impossible though!
A down payment – The more money you can put down, the higher the chances of being accepted for the loan. This could mean the difference between being accepted and not, so the more you can use as a down payment, the better.
Proof of income and outgoings – You will need to prove you can afford the repayments of the auto loan in the same way you always do. That means wage stubs, salary statements or paperwork showing how you get paid as well as bank statements.
Pay down existing debt – A larger auto loan means potentially pushing you closer to your debt to income ratio. Paying down debt in advance of applying for the loan means you should be able to qualify without worrying lenders.
Buying an electric car means you become part of the solution to the world’s pollution problem. It also means being able to get around the city guilt-free and being able to make use of the increasing number of charging points in Ontario.
It’s a great time to go electric!
If you need help or advice on anything to do with auto loans in Halton Hills, contact Car Nation Canada today, we can help!
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