The terms and phrases associated with the lending industry can confuse consumers, especially first-time vehicle shoppers. Our team at Skaha Ford in BC is here to cut through the complexity by providing you with the information you need to make a sound decision with our Easy Deal program.
Take variable rate loans as an example. This type of loan has an interest rate that can vary (hence the name) over the term. This variation is commonly based on changing market interest rates and is related to the prime rate used by Canada’s major banks and financial institutions when determining interest percentages.
Variable-rate loans are different from fixed-rate loans because the latter has a set interest rate and payment amount that doesn’t change throughout the term. Auto loans are primarily fixed because they are easier for consumers to budget for and are more predictable. However, while you may benefit from lower market percentages by choosing a variable loan, it’s not guaranteed that the rate won’t go up, resulting in higher interest.
Want to learn more? Complete our quick and easy online finance application to help our team at Skaha Ford assess your goals and provide an affordable vehicle and terms to fit your needs.