Hybrid Car Loans: How to Find a Great Deal
Hybrid Car Loans: How to Find a Great Deal
Posted on July 29, 2022
With the internal combustion engine (ICE) going the way of the dodo, thoughts naturally turn to electrics and hybrids. Can you use car loans for hybrid or electric cars? Do you need a specific loan for an electric car?
We asked our Georgetown auto loans team to answer whether you can use an auto loan to buy an electric or hybrid car or not. This is what they said.
Auto loans and green motoring
Electric cars and hybrids are the future but right now they are expensive. They currently cost more than gas-powered cars and that’s not likely to change for a little while.
Once manufacturing is more efficient and more people are buying them, the price should reduce. For now, you pay a premium.
A premium that has to be covered by an auto loan in many cases.
Can you use Car Loans for Hybrid or Electric Cars?
Yes, you can use an auto loan to buy an electric or hybrid car. Aside from the drivetrain, these are standard cars with standard configurations so will be covered in the same way as a gas car by auto loans.
That means you can use any type of loan to buy an electric or hybrid car.
The main difference will be in the amount you need to borrow to pay for one.
Financing an electric or hybrid vehicle
The loan is the same and so is the application process. You’ll still need a decent credit score to be able to borrow the amount you need and will still need to follow the standard auto loans process to qualify.
That means:
Preparing your down payment or trade in
The more you can afford to put down, the less you’ll have to borrow. That’s the same whether you’re saving up cash for a down payment or preparing your trade in.
If you’re planning for the future, save as much as you can, as often as you can. That way you’ll have a healthy down payment to help minimize the amount of auto loan you’ll need.
Improve your credit score
Again, if you’re planning for a future purchase, doing what you can to improve your credit score is also useful. Even if you have a good credit score now, a 20-30 point improvement could reduce the cost of borrowing, which is well worth the effort!
Pay down any existing debt, check the accuracy of your credit report, make sure you have a spotless payment history and that your overall situation looks as good as it possible can.
Prepare the paperwork
You’ll need to prove every claim you make in an auto loan application in Georgetown. That means proving income with salary statements or wage stubs, proving savings, income and outgoings with bank statements, your driver’s licence to prove ID and entitlement to drive and your down payment.
The more proof you have, the better. There’s no such thing as too much paperwork when it comes to an auto loan application!
If you need help or advice on anything to do with auto loans in Georgetown, contact Car Nation Canada today, we can help!
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