What are the benefits of getting pre-approved for a car loan?

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Posted in Car Shopping Tips, Credit and Financing, Frequently Asked Questions


From the time you decide to start searching for a car to the time you drive your car home, it takes the average Canadian car buyer nearly three months to find the right vehicle. That includes hours of online research and multiple visits to dealerships and banks. According to buyers, one of the most stressful parts of buying a car was arranging the financing. A car loan pre-approval makes this entire experience a lot more efficient…

Picture this: You’ve fallen in love with a new vehicle, and settled on the price- only to find that credit is just so-so or your income doesn’t quite support the loan value, so you’re waiting for the dealership to get you approved. Unfortunately, this is what happens to so many Canadian buyers. At VIDrives we know there’s no worse feeling than having your heart set on a car and getting a negative answer.

In 2022, car shoppers don’t have to go through that cat-and-mouse of waiting and being disappointed. Automotive pre-approvals have changed the game for car buyers. Not only does a pre-approval reduce (or completely eliminate) the time you have to spend at the car dealership, but it empowers you to shop for your new car more confidently, and even save you money.

How does a car loan pre-approval work?

According to data analytics firm FICO, two out of every three Canadian car buyers look for financing when they’re vehicle shopping at a car dealership. For those who plan to take advantage of financing options, A car loan pre-approval is simply preparing for the process before settling on the vehicle or setting foot in the showroom.

The loan pre-approval process is more specific than just asking, “How much car can I afford?” Instead you’re saying, “I’m going to be looking for a new vehicle. What terms am I approved for so I can select a vehicle?” In that way, your pre-approval gets you much closer to taking a vehicle home- because it helps narrow down your search.


A pre-approval application is completed at home, typically online, and all the same steps of a car loan application are taken. Income is verified along with your credit score and debt-to-service ratio. Then, the lender delivers the estimated loan terms that you can use to make your vehicle selection. Typically this will include the total loan value, monthly or bi-weekly payment amount, loan term, and an estimated interest rate.


That’s great to know, but what are the benefits of being pre-approved for a car loan?

4 benefits to getting a pre-approval for your next car

  1. It focuses your attention on the right vehicles

    If you want to avoid the phone call saying, “you’ve been approved, but” then getting pre-approved is a good idea. If you don’t have the income to support the car you’ve chosen, and need to provide a bigger down payment. If you don’t have that, that means the car you’ve got your heart set on is out of reach. Without a strong credit history- you might not get approved at all.

    When you get a pre-approval you can more accurately shop for a vehicle. You’ll know up front the total price, your expected payment and where your interest rate should be. This helps you shop within your actual budget, or allows you time to save up for a down payment if you want something more expensive.
  2. It gives you access to the best available financing rates

    One of the most beneficial aspects of pre-approval is that it arms you with knowledge. When you know the interest rate you’ve been pre-approved for- you can shop more intelligently.

    For example, if a flawed credit history means that you’ve been pre-approved on a 60-month term. You’ve selected the perfect Truck for your needs and budget and you know what your interest rate will be. The Finance Manager might ask “would you like to go forward with your pre-approved financing, or I can see if I can get you a better rate?” You can say yes, and have the chance to get an even better deal- because with a pre-approval you aren’t locked into the deal until you’ve signed on the dotted line. Whether the Finance Manager comes back with a lower interest rate or not, you can be confident that you’ll be driving home in your new ride- with no unexpected surprises.
  3. It speeds up the process

    Patience is a virtue, but it isn’t one you should have to practice in the waiting area of a dealership when you’re ready to make a big and exciting purchase. If you decide against a pre-approval and walk straight onto a car lot, it’s going to take hours or even days longer before you finally take your vehicle home. After you fill out an application and head to the finance office, the approval process can take a very long time.

    The finance manager may need to call a few lenders to clarify conditional approvals while others will require documentation that might take you time- and trips to the bank to get your hands on. Getting approved instantly isn’t the norm, especially if you don’t have perfect credit.

    Armed with your pre-approval- you can usually expect to be driving your car home within a day- even the same day. No need to jump through hoops- because you’ve organized it all ahead of time.
  4. It can help you get approved, even with bad credit

    Getting pre-approved for a car loan is a great idea for anybody, but especially for those with no credit or bad credit. While traditional dealerships have access to low or zero interest loans from the manufacturer, they aren’t always equipped to help buyers with bad-or no credit. Getting pre-approved provides you with the best rates and terms for your specific credit situation- before you even step onto a car lot.

How can I get pre-approved?

VIDrives can help you get pre-approved (with no obligation) online, so you know exactly how much financing you can get before you start car shopping.
It only takes three minutes and works with all credit situations (including bad credit). This credit check will not harm your credit score, and you don’t need to do anything with the approval terms we send you.

Get Pre-Approved today!

buying a car from vidrives

The difference between purchasing a used car privately, at a dealership, and from VIDrives.

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Posted in Car Shopping Tips

Buying a vehicle is a huge investment for anybody, so it’s important to find a seller that you can trust. If you’re looking for a used vehicle- you can choose to buy a vehicle from a dealership, a private seller, or online from VIDrives.
Choosing a private seller can save you some money on your purchase, but there’s no security in your new vehicle, On the other hand dealerships can be a scary, high pressure environment- that’s why VIDrives mission is to offer you the security of a car dealership- with the better value and freedom that comes with buying privately. Below- we’ll list 7 ways we make this happen.

VIDrives vs Traditional Dealerships Comparison Chart
A quick look at the difference between purchasing with ViDrives, Privately, and from a traditional Dealership.

1. Warranty

One thing a private seller can’t offer you is a vehicle warranty, if you’re lucky the vehicle may be new enough to have some remaining factory warranty- but this isn’t always transferrable. VIDrives offers warranty options on every vehicle we sell, and have many in stock with factory warranty included. For more information on the benefits of extended warranty options, check out this helpful guide: The benefits of purchasing a vehicle extended warranty.

2. Peace of Mind

How can you enjoy a road trip when you’re worried about breakdowns and expensive repairs?

When you buy a vehicle from VIDrives, you know the vehicle is going to meet safety standards and not have any hidden defects. All of our vehicles go through a comprehensive 151 point inspection and are repaired if necessary, with an included Carfax report so you can see the vehicle’s history and condition for yourself, even if you’re not a mechanic. If you buy privately, there’s nobody holding the seller accountable for quality standards, and no protection for you even if it breaks down in the first week.

3. Better Price

savings

Generally speaking you may be able to find the same vehicle slightly cheaper from a private seller- because dealerships have more overhead costs that they need to cover, so they’ll need to make a higher profit than a private seller would. VIDrives is an online based business- which helps us to keep overhead costs low, and our prices fair which helps you get a better deal than you would at a traditional car dealership.

4. Financial Flexibility

payment schedule image

If you’re buying from a private seller, you’ll usually need to pay the full value of the vehicle up front, if you don’t want to lose your hard earned savings to buy a vehicle privately, or don’t have that kind of cash- you’d have to secure a loan from a third party, often at a high interest rate. VIDrives specializes in financing for any credit situation. We work with over 30 lender partners, and have access to the same subvented rates that many dealers boast, so that we can get our customers the lowest possible interest rate, and affordable payments to make sure your deal works for you.

VIDrives also offers a Lifetime Oil Change Program which means you won’t pay for an oil change while you own your vehicle. This is an optional extra so make sure to ask your financial specialist for details.

For a more detailed look at credit and financing section of our blog.

5. More Options

Illusion of Choice
Many options can be deceptive when the majority are inaccessible and the remainder may be unappealling

Private sellers usually only have 1 vehicle available for sale, so when you’re shopping you may have to meet up with countless strangers, only to be disappointed in the vehicle or find that the seller makes you feel uncomfortable.

Where many dealerships offer the illusion of choice. When you drive into a dealership you’re often overwhelmed by the number of vehicles, and spend time looking at each one until you find one you just have to have! The only problem is that many of these choices aren’t real. The vehicle might be sold, out of your budget, doesn’t work for your lifestyle, or worst of all 𝘺𝘰𝘶 𝘤𝘢𝘯’𝘵 𝘨𝘦𝘵 𝘢𝘱𝘱𝘳𝘰𝘷𝘦𝘥.

VIDrives offers real choices, That’s why start with a questionnaire to find out your budget, and what types of vehicles you’re actually interested in, then present you with options that already work for you, and expand from there.

6. Trade-In Options

Another advantage of buying a pre-owned vehicle from VIDrives is that we offer the ability to trade-in your vehicle- which helps to lower the costs of your new vehicle, in BC you’ll only pay tax on the difference in value from your trade-in and the new vehicle. If you’re buying from a private seller, you’ll likely need to sell your vehicle before buying a new one, this can take time and leave you without transportation for weeks.

This can also present more obstacles for those who are still paying off their current vehicle with the difficulty of contacting lenders and dealerships to find out just how much you owe- and when things like negative equity come into play.


7. Transparency

Dealerships are notorious for hidden fees and evasive answers to simple questions.

Buying from a dealership can be overwhelming, between dealing with so many people, salespeople who can’t answer your questions and the hidden fees dealerships are notorious for.

Choosing a private seller is a fairly straightforward process, you find out about the vehicle, set a time to meet and view the vehicle, and you’re dealing with the same person for the entire process and when you agree to a price- that’s the price you’ll get.

At VIDrives, your financial specialist will work with you to find the right vehicle, get you approved, help you select payments, and finalize your deal. We take great care to ensure the whole process is easy and transparent, without hidden fees or misinformation.

8. Buy from home

Private sellers and dealerships require you to come to them, this can be an obstacle if you don’t have reliable transportation or live far away. It can be difficult to coordinate between your schedule, the seller’s schedule, public transit schedules, and friends and family who help you get around. Private sellers may not have their vehicle’s insured, so you may need to find a ride to their home, to get insurance, to the bank and back all over again. Dealerships in your area may not have what you’re looking for and may require multiple visits before you can take your new vehicle home.


That’s why VIDrives offers the option to do the whole deal, right from your home, on your schedule. We’ll find your vehicle, offer a virtual test drive, find you payment options, and communicate with you securely online or on the phone. Once you choose the vehicle, and payment that works for you we’ll deliver it for free right to your door, anywhere on Vancouver Island. If you’re trading in, we’ll pick up your trade at the same time.

Shopping for a new vehicle?

If you’re looking to buy a car, there’s no better place to start than here. Fill out our short application form and get approved for vehicle financing in minutes!

Get Pre-Approved Today

The Benefits of Purchasing a Vehicle Extended Warranty

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Posted in Car Shopping Tips

Vehicle repairs can be pricy, and unexpected repairs can be difficult to budget for, especially if you’re making payments on a car loan. Many Canadian drivers who used to be able to take care of repairs themselves or with the help of car savvy friends and family find that with modern vehicles are becoming more and more automated options like these are often out of their depth.

When you purchase a new vehicle, expensive repairs like these are covered by your factory warranty, but what happens when that warranty expires, or you chose a pre-owned vehicle? That’s why extended warranty is an excellent option to consider when you’re shopping for your next new or used ride. Below we’ll highlight some of the benefits of purchasing an extended warranty for your vehicle.

1. Huge Potential For Savings

While many people claim that car warranties are overpriced, there is no denying that if you run into a serious mechanical problem, a warranty can save you thousands of dollars- Especially on vehicle’s with expensive parts. For example- the average cost of a cylinder head on a 3 Series BMW costs more than $10,000 costing way more than any warranty, where vehicles which are cheaper to repair- the costs add up and make a warranty more than pay for itself.

2. Peace of Mind

The second benefit to opting for a car warranty is that you’re able to have peace of mind. Without a car warranty, it’s always stressful seeing the engine light go on and knowing that this could potentially cost you hundreds, if not thousands of dollars to repair. When you have coverage, you don’t need to stress about seeing an engine light go on or an occasional visit to the mechanic shop.

3. The Extra Perks

Not only are car warranties great for peace of mind and savings, but they commonly also have hidden perks. While this is dependent on the car warranty you buy, many of them come with roadside assistance, rental car reimbursement and towing. This adds a ton of value as you don’t need to pay an additional monthly or annual fee for a roadside assistance company like BCAA. The second perk to car warranties is that unless you buy an extended warranty from the manufacturer, you’re able to get your vehicle repaired at most mechanic shops.

4. Higher Resale Value

The last benefit of opting for a car warranty is that if you decide to sell the car within its warranty period, you’ll be able to get more money for the vehicle. Most car warranties are transferable for a small fee and now the new owner has peace of mind that the car they just bought is covered in case of any potential issues.

In the end, whether or not you decide to buy a car warranty is up to you, but we think these four benefits are well worth the extra cash- especially if it means only a couple extra dollars on your car payment.

Every New and Pre-Owned Vehicle from VIDrives has extended warranty options available.

Get Pre-Approved today and start driving with ease of mind.

Does owning a PHEV actually save you money?

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Posted in Car Shopping Tips

With fuel prices rising, and 21 PHEV (Plug-In Hybrid Electric Vehicles) models currently being made, and sold in Canada many drivers have started considering making the switch to a greener vehicle- even if they aren’t ready to go fully electric for range and affordability concerns. 

While Plug-In Hybrids are typically priced much more competitively than Battery Electric Vehicles (BEVs) they still come with a higher MSRP than traditional internal combustion engines (ICEs). So does the fuel savings really pay for itself? 

We took a look at the most popular PHEV on the market in Canada today: 

The Mitsubishi Outlander PHEV and compared it to its Gasoline counterpart the Mitsubishi Outlander to check out the difference.

2022 Mitsubishi Outlander SE S-AWC MSRP $34,648.00

The 2022 Mitsubishi Outlander SE S-AWC CVT starts at an MSRP (Manufacturer’s Suggested Retail Price) of $34,648.00 and gets a combined fuel economy of 8.9 L/100km (city 9.7 L/100km, highway 8.9 L/100km)

2022 Mitsubishi Outlander SE S-AWC MSRP $44,198.00

The 2022 Mitsubishi Outlander PHEV SE S-AWC starts at an MSRP (Manufacturer’s Suggested Retail Price) of $44,198.00 and gets a fuel economy equivalent of 3.18L /100km

With the average Vancouver Island driver travelling 25000km per year in their vehicle- assuming the price of gas stays around $1.99 per liter- you’ll spend $1582.04 on fuel in a year driving the PHEV (with overnight home charging) compared to $4427.73 driving the Gasoline Outlander. That’s a difference of $2845.00 each year.

What that means for cash buyers is that it will take 4 years of driving to make up the difference in MSRP in fuel savings- provided you don’t take advantage of federal iZEV incentives or provincial rebates – which could cut this time in half.

For finance buyers this could save you money in the first year, while the 2022 Mitsubishi Outlander PHEV SE S-AWC starts at $315.38 biweekly for 84 months at 2.99% and the 2022 Mitsubishi Outlander SE S-AWC CVT at $263.25 biweekly for 84 months at 4.5%- in a year (including fuel) you’ll spend $11,272.23 driving the ICE Outlander compared to $9781.92 in the PHEV.

Assuming you keep your vehicle for the duration of your financing the PHEV will have saved you almost $20,000 dollars in fuel (spending $11,074.30 with the PHEV and $30,994.12 on the Gasoline only)

No matter what type of vehicle you’re shopping for, VIDrives has options that will work for your lifestyle, needs and budget- with a team to help you every step of the way to make the process easy. Get Pre-Approved today and get driving tomorrow.

How to make your brake pads last longer.

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Posted in Caring for your vehicle.

Replacing your brake pads is something that you’re most likely going to have to do if you own a car for over four years. Brakes pads aren’t cheap to replace so if you can get an extra year or two out of them before needing to replace them, you should try. Here are a few tips that may help you do just that!

Don’t “two foot” your pedals

If you tend to tap your brake pedal with your left foot while still keeping your right foot on the accelerator, this is a bad habit. It leads to more “brake taps” which don’t’ really do anything to stop your car, and cause premature wear.

Slow your speed

When it comes to braking, full and complete stops from a high speed are absolutely the #1 cause of premature brake pad wear. Speed causes wear on brake pads exponentially – that is, coming to a full stop from 105 kph rather than 85 kph forces the brakes to dissipate 33% more energy.

Coast when you can

Consider paying more attention to the flow of traffic, and stopped or slowed-down cars that are ahead of you, and coast whenever you can to lower your speed – as opposed to braking.

Hills are a great example of this. If you’re riding your brakes down a hill, this can wear them out very quickly. Instead- don’t accelerate at all and lightly tap the brakes when necessary

Don’t hurry to stop

This advice will help you save on gas, as well as on brake wear and tear. Is there a red light or a stop sign coming up? Start coasting and slowing down!

There is absolutely no reason to step on the gas and “hurry up to stop” when the cars ahead of you are clearly not moving. All you’ll do is waste fuel – and when you do have to stop, you’ll put excessive wear and tear on your brake pads.

Consider a Brake Service

A brake service can extend the life of your brakes and save you money over time.

Have your regular mechanic inspect your brake fluid, and flush if necessary. Many shops offer a service to remove the wheels and disassemble the brakes and clean and lubricate all components- preventing just and excessive wear and tear.

road trip snakcs

Best Road Trip Snacks

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Posted in Road Trip Season

🍽️With spring and summertime road trip season on the horizon- we know a lot of people will be on spontaneous road trips or planning for upcoming road trips– so we thought it might be fun to put together a list of some road-trip-friendly snacks!

What makes a good road trip snack?

  1. Satisfying: but not heavy, We think a good road trip snack will give you the energy to keep going to your destination without being too heavy, or a full meal. For example- think energy bar instead of chocolate bar.
  2. Mess Free: A good road trip snack won’t leave crumbs, sauce, or a ton of garbage all over your car. This could mean choosing to put your leftovers in a wrap, instead of right out of the tupperware.
  3. Easy to Eat: This one is pretty common sense, but it’s easy to overlook. Make sure your road trip snacks still allow you to focus on the road- you shouldn’t have to use both hands, look away for the road or remember cutlery. ie. choosing Finger Foods like veggies and dip instead of a salad.
  4. Healthy-ish: Okay, they don’t have to be healthy- but your road trip snacks shouldn’t make you feel sick, sluggish or moody. Avoid excessively salty, greasy, or sugary snacks- especially in large quantities. That doesn’t mean you have to meal prep for your road trip, just that when you grab candy- maybe grab some nuts or veggies as well!

Best Savory Snacks

Not everyone has a sweet tooth, and even if you do- candy gets old and it’s great to mix in something salty, more satisfying or savoury. These are our top 3 picks for a savoury road trip snack:

Beef jerky, pepperoni, and other meat snacks

A lot of meat is ill-suited for eating in the car. Dried and cured meats are an exception. Pepperoni sticks or beef jerky are car ride classics- or your grocery store’s deli section might offer a single serve prepared meat and cheese tray. One of our favourites are the Schneiders Snack Kits

Trail mix or nuts

Healthy and satiating, this pick is getting you from A to B with energy because they’re a great source of fat, fiber, vitamins and protein. If you have allergies- try making your own trail mix with things like dried fruits (raisins, craisins etc.) sunflower or pumpkin seeds, and something fun like chocolate chips or smarties. For Pistachio lovers, why not try a resealable package of shelled pistachios like the ones from Wonderful Pistachios for easier eating and to cut down on mess!

Pringles or Popcorn

Don’t get us wrong, we love all chips- and others could be a great choice too. But for a road trip, The resealable container makes Pringles a great one-hand-snack with minimal mess. If pringles aren’t your speed, maybe try a resealable bag of popcorn, or bring a chip clip with you to keep your chips fresh, mess free, and more easy to share.

Best Sweet Snacks

Long drives can get tedious, and tiring. A sweet treat can be the perfect solution for a quick pick me up to keep your blood sugar where it needs to be and keep you and your passengers from getting grumpy. Here are our top 3 picks for a sweet road trip snack:

Candy

What is a road trip if it’s not a chance to treat yourself to everyone’s favourite gas station snack- candy. Discuss with your road trip buddies to find out what your favourite candies are- If they’re the same you can grab a big resealable bag to share, if they’re different, opt for several smaller bags or a variety like the Koala King Cone or Haribo Star Mix which are available at most gas stations and grocery stores.

Chocolate

We know it’s technically Candy too, but there’s something a bit different about chocolate. As an added bonus- this can be a great opportunity to repurpose your leftover holiday chocolate if you have some mini Halloween bars, Easter Eggs, Valentines day treats or anything else you’ve been slowly working on. Chocolate comes with individual wrappers usually- so try to keep your shopping bag to keep your garbage in to avoid a messy car.

Baked Goods

Whether you do your own baking, buy things like muffins or pastries when you’re grocery shopping or decide to grab a donut when you stop for coffee on the trip- these are always an easy one hand snack (as long as you watch out for crumbs). Baked goods are a great option as a sweet treat that offers just a little more sustenance than candy or chocolate.

Best Healthy(er) Snacks

Road trips, especially long distance road trips are exhausting, and foods that are too salty, sugary or greasy (like the ones you get in a drive-thru) can make you feel even worse. Here are top 3 Healthy Road trip snacks:

Sandwiches (or wraps)

Sandwiches are a great road trip snack because they’re filling- but not too heavy and as a bonus you can eat them with one hand. The trick is that they just straddle the line between a snack and a meal. To avoid crumbs and mess, eat your sandwich holding it from the bag you packed it in- or choose packaged sandwiches from the deli section of your grocery store. If sandwiches are a little too much food for you, choosing a wrap might make it a bit lighter, plus they’re a bit easier to eat without a mess.

Fruits and Veggies

Fruits and veggies are a refreshing and wholesome choice to snack on during your long road trips. The easiest options are things like baby carrots, cherry tomatoes, snap peas, grapes, cherries, and bananas. Another easy option is grabbing a small fruit or veggie tray from a grocery store as they’re resealable and easy and ready to eat.

Snack Bars

The most convenient way to choose a healthier option on a road trip are grabbing some individual snack bars, or a small pack. For something filling and satisfying- opt for protein and energy bars, For something quick and easy- pick up some granola bars. There are so many options with so many flavours and that helps snack bars be an easy and healthy alternative to heavier snacks or sweet treats like chocolate and baked goods.


𝙍𝙤𝙖𝙙 𝙩𝙧𝙞𝙥𝙨 𝙖𝙧𝙚 𝙢𝙤𝙧𝙚 𝙛𝙪𝙣 𝙞𝙣 𝙖 𝙫𝙚𝙝𝙞𝙘𝙡𝙚 𝙮𝙤𝙪 𝙡𝙤𝙫𝙚, 𝙂𝙚𝙩 𝙋𝙧𝙚-𝘼𝙥𝙥𝙧𝙤𝙫𝙚𝙙 𝙖𝙣𝙙 𝙨𝙩𝙖𝙧𝙩 𝙙𝙧𝙞𝙫𝙞𝙣𝙜 𝙖 𝙣𝙚𝙬 𝙖𝙣𝙙 𝙖𝙢𝙖𝙯𝙞𝙣𝙜 𝙫𝙚𝙝𝙞𝙘𝙡𝙚 𝙩𝙤𝙢𝙤𝙧𝙧𝙤𝙬 𝙖𝙩
www.vidrives.ca

Monthly, Semi-Monthly and Bi-Weekly- what is the difference?

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Posted in Credit and Financing, Frequently Asked Questions

There are 3 main types of payment schedules: 𝐌𝐨𝐧𝐭𝐡𝐥𝐲, 𝐒𝐞𝐦𝐢-𝐌𝐨𝐧𝐭𝐡𝐥𝐲, 𝐚𝐧𝐝 𝐁𝐢-𝐖𝐞𝐞𝐤𝐥𝐲 and it’s hard to know which type work’s best for you!

Choosing a payment schedule that doesn’t work for you can leave you with little room in your budget to enjoy your life, or lead to missed payments and ruin your credit.

That’s why VIDrives works with you to find the best financing solution so you can get into a great car, without being Car Poor!

What are my payment schedule options?

VIDrives partners with lenders who offer Bi-Weekly, Monthly, and Semi-Monthly Payments.

Our financial specialists are available to help you find a payment, and a schedule that works with your other bills.

What is a Bi-Weekly payment?

Bi-Weekly payments are made every two weeks, for a total of 26 payments per year- which is the same as 1 extra monthly payment or 2 extra semi-monthly payments per year.

These extra payments mean that you’ll pay off your vehicle faster, and pay less interest over the duration of the loan- as these extra payments are applied directly to the principal.

Additionally, these payments are generally lower, as there are more of them per year.

What is a Monthly payment?

A monthly payment schedule is exactly what it sounds like. One payment is made each month, usually on the same date. Twelve payments are made per year.

What is a Semi-Monthly Payment?

Semi-Monthly usually means that two payments are made each month. Many people stick with the traditional 1st and 15th of the month- but it’s possible to choose other dates if they make more sense for you financially. Twenty four payments are made per year.

Should I choose Bi-Weekly or Semi-Monthly?

Semi Monthly payments might work better for someone who is paid Semi-Monthly. That way you would make your payments on the same day’s you get paid, instead of having to make multiple payments on the same cheque.

If you’re paid Bi-Weekly, you can set up your payments to come out the same day as your paycheques come in- and this structure of payments may work better for you.

Should I choose a Monthly Payment Schedule?

Monthly payments might work best for someone who is working around other payments schedules. For example, if your bills all come out on the same day, you may not be left with much money to get through to your next paycheque- so a monthly payment that comes out on the 15th, instead of the 1st might work best for you.

Get pre-approved and start driving today: www.vidrives.ca

Debt Consolidation FAQs

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Posted in Credit and Financing, Frequently Asked Questions

Debt consolidation can be an excellent way to pay off high interest debt, improve your credit score, and help save you money!

What is Debt Consolidation?

Debt consolidation refers to the act of taking out a new loan to pay off other liabilities and consumer debts, usually with more favourable terms such as a lower payment, lower interest rate- or both!

How can I get a lower payment and interest rate if I’m taking out a bigger loan?

If you’ve been paying off higher interest loans and debts for a while, your credit score has likely improved- and finance rates are lower now than they’ve been in recent years- making it an excellent time to take advantage of financing.

What can I use debt consolidation for?

Debt consolidation can be used as a tool to deal with a great deal of debts- Primary examples include student loan debt, credit cards, and other liabilities.

How can I consolidate my debt?

There are a few ways to consolidate your debt, but VIDrives recommends doing it with a vehicle loan. An auto loan is a secured consolidation which makes it easier to obtain, and allows you access to lower interest rates, lower payments, and longer terms- which allows you to pay off your debts sooner. Either by dropping your payment and allowing more of your income to go towards paying off debts, or a lower interest rate- allowing more of your payment to go toward the principal of your debt.

To help understand your debt better- check out other posts on www.vidrives.ca/blog

Credit FAQ’s

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Posted in Credit and Financing, Frequently Asked Questions, Uncategorized

𝗖𝗿𝗲𝗱𝗶𝘁 𝗤𝘂𝗲𝘀𝘁𝗶𝗼𝗻𝘀? 𝗩𝗜𝗗𝗿𝗶𝘃𝗲𝘀 𝗵𝗮𝘀 𝘆𝗼𝘂 𝗰𝗼𝘃𝗲𝗿𝗲𝗱!
𝗪𝗲 𝗵𝗮𝘃𝗲 𝗮𝗻𝘀𝘄𝗲𝗿𝘀 (𝗮𝗻𝗱 𝘀𝗼𝗹𝘂𝘁𝗶𝗼𝗻𝘀) 𝘁𝗼 𝗲𝘃𝗲𝗿𝘆 𝗾𝘂𝗲𝘀𝘁𝗶𝗼𝗻 𝘆𝗼𝘂 𝗺𝗶𝗴𝗵𝘁 𝗵𝗮𝘃𝗲 𝗮𝗯𝗼𝘂𝘁 𝗰𝗿𝗲𝗱𝗶𝘁!

What is Credit?

Credit is the ability to borrow money or access goods or services with the understanding that you’ll pay later.

Lenders, merchants and service providers (known collectively as creditors) grant credit based on their confidence you can be trusted to pay back what you borrowed, along with any finance charges that may apply.

What does my credit score mean?

Creditors often use a three-digit number known as a credit score as the first step in deciding whether or not to issue credit.

Your credit score distills the information on your credit reports to something that’s easy to interpret, and does so in a fair way that minimizes the possibility of bias.

What is in my credit report?

Information in your credit report includes:

  • The number of credit card accounts you have, their borrowing limits and current outstanding balances
  • The amounts of any loans you’ve taken out and how much of them you’ve paid back
  • Monthly payments for your accounts were made on time, late or missed altogether
  • More severe financial setbacks (ie. mortgage foreclosures, car repossessions and bankruptcies)

Why do I need credit?

  • To borrow money for major purchases, such as a car or a home.
  • Landlords may check your credit when deciding if they’ll rent you an apartment.
  • Insurance companies may use your credit score as a factor in determining your premiums.
  • Utility companies may check your credit before deciding to let you open an account or borrow equipment.

How can I build my credit?

To start building credit you’ll need to get your first credit card, line of credit, or loan. Once you’ve done this.

  • always make your payments on time
  • make at least the minimum payment if you can’t pay the full amount that you owe
  • contact the lender right away if you think you’ll have trouble paying a bill
  • don’t skip a payment even if a bill is in dispute

For more information on how to build your credit- check out our post 5 ways to build your credit at home.

What if I have Bad Credit, or No Credit?

No problem! At VIDrives our goal is to get you approved to finance a vehicle at the best interest rate possible- Regardless of Credit Score.

We also offer credit rebuild and credit building programs as multistep programs.

Visit us at www.VIDrives.ca to learn more.

5 Ways to improve your credit

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Posted in Credit and Financing

Credit can be confusing, at VIDrives it is our goal to help our customers to empower our customers with information and the tools to improve their credit- while driving an amazing vehicle.

Here are some quick tips to help you increase your credit score on your own!

𝗚𝗲𝘁 𝗮 𝗽𝗿𝗼𝗱𝘂𝗰𝘁 𝗼𝗳 𝗰𝗿𝗲𝗱𝗶𝘁

The only way to build up a credit score is to prove to lenders that you’re responsible and capable of paying back credit is to make sure you’re actively using a product of credit. This can be a credit card, line of credit, car payment, or a secured credit builder loan to name a few.

Keep your credit utilization around 30%

Being mindful about the amount of your credit utilized is the fastest way to improve your credit-

Your Credit Utilization Ratio makes up 30% of your Credit Score. Credit utilization ratio is the percent of your revolving credit that you have used on your credit card or line of credit. A maxed-out credit card would have credit utilization of 100%.