Since 1997, Montreal residents have trusted AutoNet Financial. As a leading provider of Car Finance and Auto Loan services in the greater Montreal area, AutoNet Financial can help you get a competitive finance rate from a local new or used car dealer, regardless of your past credit.
Canada's citizens who find themselves shopping for a new car need to be aware of the three different types of lenders that deal in car finance. Canadians need to understand how the online car finance application process works, which includes an understanding of the different kinds of lenders that are currently in business originating auto loans as well as where these loans are available – from the biggest franchised dealers to the smallest buy here pay here car lots.
Direct lenders are banks, credit unions and car loan finance companies that lend money directly to the customer. When applicants are approved for a loan from this type of lender, they can shop for a car like a cash buyer. It also means they don't have to be concerned about whether or not a dealer can get them financed.
One of the disadvantages of direct lenders, however, is that most have stricter underwriting guidelines. This means that they don't do a very good job of approving applicants with lower FICO scores that need car finance. Direct lenders may finance the following loan types:
Most direct lenders will also offer indirect Montreal Car Loans through automobile dealers. Under this program, the lender will often offer the dealership slightly better "buy rates" than they offer their direct customers. The dealer can then choose to offer the customer this rate, or mark it up in order to earn additional profit. It should be noted that most lending programs that feature these mark up deals with prime customers.
Indirect lending is the most common type of car loans when it comes to either new or used car automobile lending. The indirect lenders that are available to consumers can vary widely from dealership to dealership, which means that it can be important for car loan applicants looking for the best loan rates to choose the right dealership before they begin the buying process.
Most indirect car finance lenders deal with franchised dealers as well as large mega-sized used car franchises, while not nearly as many do business with the smaller neighborhood independent used car lots. Common examples of indirect lenders include Ford Motor Credit, GMAC, Toyota Financial and Canadian Honda Financial Services.