Here’s what you need to know about an auto loans upgrade loan.
Who can borrow?
You must be a Canadian resident to borrow on a vehicle loan.
What does an upgrade loan mean?
An upgrade loan is a vehicle-related loan that gives you a loan to upgrade your vehicle’s engines and transmissions.
The vehicle may have to be repainted and/or replaced.
It is a long-term financing option that allows you to get a vehicle up to a certain age.
You also get the option of paying a lower monthly payment, which can be as little as $1,000 or as much as $5,000 depending on the vehicle.
This loan can also be extended for a year.
The cost of the upgrade is typically $1.50 per kilometre, but if you live in Canada or the U.S., the payment is typically closer to $1 per kilometer.
How much is an upgrade?
The maximum amount of the loan depends on the type of upgrade and the vehicle type.
The minimum payment is $1 for a basic upgrade, $1 to $2 per kilometres for a standard upgrade, and $1-$2 per km for a full upgrade.
The total cost of an upgrade is usually $15,000, with a minimum payment of $3,000.
The full payment can be up to $4,000 per vehicle.
Some vehicles have a maximum monthly payment of as little a $3 for an upgrade, but most vehicles offer lower payments.
If you don’t qualify for a vehicle upgrade loan, you can get an extended payment of up to 15 per cent of the purchase price.
Can I get an upgrade on my regular auto loan?
Yes, you do.
You can apply for an extension of your loan and get an additional $10,000 of financing.
The amount of funding you get depends on your vehicle type, the age of the vehicle and the type you want to upgrade.
What happens if I’m unable to get an auto upgrade loan?
The loan usually is available for up to two years.
If the vehicle is out of service, you will not be eligible for an extended loan.
The extension can be for up or down to 15 years, depending on your circumstances.
You must make a payment of at least $10 a month to qualify for the loan.
If your vehicle is in an accident, the loan can be extended up to three years.
You cannot be charged interest on the loan or have it suspended or revoked.
If it’s a loan-for-equipment loan, the lender will not require payment in full.
What is an extended auto loan for my family?
If you have an extended credit line, you are eligible to apply for a loan with an extra $25,000 for an engine and transmission upgrade.
You will have to pay the full amount of your auto loan to get this loan.
An additional $5 million will be available for an after-market upgrade.
Can my family borrow on an auto debt upgrade?
If there is an aftermarket upgrade to your vehicle, you may be eligible to borrow $1 million for the new vehicle.
What if I am not a Canadian citizen or permanent resident?
If your family does not qualify for an auto financing option, you might be able to apply to have it extended.
The lender will have the option to allow you to borrow more money if you have a permanent resident status or are otherwise a permanent Canadian citizen.
You may be able use an additional installment loan to borrow up to an additional amount.
The loan amount depends on how long the vehicle has been in service and the level of maintenance required.
What are the rules for upgrading my vehicle?
You can buy a vehicle for as little or as high as you want, but it is more likely that the loan will be higher than what you can afford.
For an upgrade to an older vehicle, your lender will typically charge you interest for up the duration of the financing term.
It also may apply a higher maintenance charge, depending upon how long you live with your loan.
You should have an independent car mechanic check your vehicle to make sure it’s in good shape and has been inspected by a professional.
The dealer may inspect the vehicle before you buy, so check the website for a list of dealers.
You might also need to have a vehicle inspection from a certified mechanic.
Some of the lenders will also test your vehicle before selling it, so if you get an inspection, you’ll be able get a lower price.
Some lenders may offer incentives for you to upgrade, such as a $1/hour payment for 30 days, $2/hour for 60 days or an additional 25 per cent down payment for the next 10 years.
How do I upgrade my car?
The process of upgrading your vehicle can take anywhere from six to 12 months depending on what you want.
The process can also