Tips for Buying a Car
One of the biggest considerations you will have when
purchasing a car is whether to buy a new or used vehicle.
While there is no right or wrong answer, your decision
might depend in part on how you feel about the following
considerations:
- How important is it to you to have a low-maintenance
vehicle? A new car will be covered by a warranty
for a longer time, and will probably require fewer
repairs than a used car.
- How comfortable do you feel buying a used
car? While there are many excellent pre-owned
cars for sale, this type of purchase requires extra
precautions to ensure you purchase a reliable vehicle.
- How long do you expect to own your car?
If you plan to trade your car in every few years,
you may prefer the benefits of a new car.
- How much can you afford to pay?
A pre-owned car can cost considerably less than a
comparable new one.
Financing Your Car Purchase
Depending on whether you buy used or new, and the type
of automobile you buy, purchasing a car can be a major
investment.
There are several ways to finance your purchase, which
can make it easier to afford a car.
Car loans — With a car loan,
you borrow the full amount of the purchase price and
pay it back over a predetermined term, typically one
to five years. We offer two main types of car loans.
Both offer competitive rates and flexible terms.
Dealer financing — Most dealers
will offer to arrange a loan or lease financing when
they sell you a car. Be sure to look for an RBC Authorized
Dealer, or else compare the dealer financing costs with
those available from RBC Royal Bank. Our car loans provide
greater flexibility and more options than most car dealers
can offer you.
Leasing — When you lease a car,
you don’t actually purchase it. Lease payments
are often lower than loan repayments for a vehicle of
the same value. At the end of the term (typically one
to five years), you have the option of returning the
car to the dealer or buying it for the price set out
when you signed the lease. Note, however, that if you
have driven more than the amount of kilometres stated
in the lease agreement, you’ll be charged a penalty.
Keep in mind that leasing is normally only available
for new or slightly used cars and not for older models.
Car Financing Through RBC Royal Bank
We offer two main types of car loans:
The RBC Royal Buy-Back® Car Loan
combines the best features of leasing and car loans,
providing an affordable way to buy a car under flexible
terms. By paying less money for the down payment or
the loan repayments, you will have more cash for other
needs.
The RBC Installment Car Loan may
be the right choice for you, if you expect to drive
more than 24,000 kilometres a year, to keep your vehicle
for a long time or if you don’t want to owe anything
at the end of your term. Like the Buy-Back Loan, an
installment loan offers a great deal of flexibility.
We Can Help You Get Started
An RBC Royal Bank representative will be happy to discuss down
payment options and help you arrange a car loan. Your
representative can even pre-approve a car loan, so you
know exactly how much you will be allowed to borrow
before you look for a car.
You can arrange a car loan by visiting your local RBC Royal Bank branch, or by locating an RBC Authorized Dealer who
sells the type of car you want.
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for the general guidance and benefit of our clients.
This website is for informational purposes only and is
not intended to provide specific advice. See
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