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Financing Options - Finance - Lease - Smartpurchase

Category: Auto Financing Edmonton

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Once you have picked out the right vehicle the next important decision is to choose the best financing option.  Our Finance mangers can assist you in deciding how to finance your vehicle and then find the best terms available from the various banks, financing and leasing companies that we deal with.

With General Motors return to leasing there are now four options for paying for your vehicle:

1. Cash - this can be the most cost effective option if funds are available and are not needed for other uses.
2. Traditional financing - our finance managers can arrange financing for you with any of the major financial institutions.
3. Smart Purchase^TM - a variation on traditional financing offered by Ally Credit^®  (formerly GMAC) that allows you to exercise an option to return your vehicle to Ally Credit^® at a specific time (usually after 3 or 4 years) prior to the end of the term of the finance contract. More details...
4. Leasing - allows you to pay for the portion of the vehicle's value you expect to use over a period of time, plus a borrowing charge and applicable taxes. More details...

You can submit and credit application online and get the process started.

Decision Criteria

The factors that you should consider when evaluation your financing decision include:

1. Credit history - a strong credit record will provide you access to all type of financing and provide the best opportunity to negotiate the best terms.  Issues related to weaker credit can be overcome by dealing with an experienced credit manger and in some cases by dealing with finance companies that specialize in this business. 
2. Ownership - the purchaser will own the vehicle except in the case of leasing.  When you lease the leasing company owns the vehicle.  This is a distinct advantage for companies purchasing vehicles that do not want assets and the related liability on their balance sheet.
3. Term - extending the term of the contract lowers the payment but also extends the period during which the balance owing on the finance contract exceeds the value of the vehicle.  Many financing companies now offer terms up to 84 months.
4. Interest Rate - this is the most critical factor in determining the cost of financing your vehicle.   Interest rates will vary depending on the term, the bank and your credit rating.  Auto manufactures often discount their vehicles by offering interest rates that are below market rates.
5. Option to purchase - a feature associated with leases that provides you an option to purchase the vehicle for a certain amount at the end of the term.
6. Option to sell - a feature of Smart Purchase that gives you an option to sell at a certain amount at a fixed point during the term.
7. Repayment options - ability to make extra payments or pay out the contract during the term.   Some contracts allow extra payments and most contracts provide for an early payout without penalty.

Our experianced finance mangers will assist you in identifying the best financing alternatives for your situation.   Contact us with any questions.

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