So you’re ready to buy a new car, you’ve chosen the brand, researched the competition and chose a dealership to receive your business. Unless you are paying cash for your vehicle, the time will surely come to visit the financing department at the dealership or contact your bank lender. This is a key moment in the buying process for all consumers and it is important to understand all options.

Here at Old Mill and Eastside GM we employ Financial Services Managers. These highly trained individuals are the authorized representatives of several financial institutions. In addition to being able to arrange financing through the manufacturers captive financial source, GM Financial for example, our Financial Services Managers can often organize very favourable terms through other chartered banks. Our financial services managers are capable of arranging financing for your purchase to suit your needs. Such as stretch terms (72 or 84 months) or bi-weekly payments and they will shop rates for your loan between different lenders.

Old Mill GM and Eastside GM’s Financial Services Managers recommend that you do not use a line of credit to borrow and pay for the purchase of a new vehicle.

Here are some key reasons why:

• Floating interest rate – fluctuates with the prime rate.
• The bank has the right to withdraw money from your account to pay for your line of credit.
• Secured lines of credit use your home as collateral.  Default of payment for any reason allows the bank to take your home. These line of credit loans are in fact mortgages or second mortgages as the banks use to refer to them. These loans are demand loans with no specific maturity date, but payable at any time. Therefore you could receive notice at any time that you must pay off your loan in full – period. Scary thought. What would happen if you couldn’t pay it back right away? Would you lose your house to the lender?
• The bank may require the total balance of your line of credit paid in full if you die, become insolvent or bankrupt.
• If the bank sees any increase in risk to the security they can demand full payment.
• Home insurance costs may be higher due to the additional line of credit.

Know what you owe. We are committed to helping customers best understand their purchasing options and are committed to finding the right path for them and their family. For more information, visit Old Mill GM or Eastside GM and remember, when banks compete, You Win!