We often get asked why a bank loan is beneficial for the client, so here are some of the bank benefits to keep in mind! If you may have had credit issues in the past, you are still entitled to these valuable benefits! As long as the monthly payments are being made as agreed upon in the contract, the bank has some great benefits to take advantage of.
- Payment Deferrals: Payment deferrals are payments that are moved to the end of the loan instead of the regularly scheduled payment date. Most deferrals have an extra charge associated, but they are very useful in a time of need. The bank will charge the interest due for that month’s payment on the deferred payment. For example: if the monthly payment is $450 and the interest on that payment is $178, only the $178 is required to be paid and the 1 full monthly payment is moved to the end of the loan. Deferrals are often used in a time of emergency, such as a job change, moving, needing extra cash and many other reasons.
- Changes in Payment Frequency: Loans can be changed from weekly, bi-weekly or monthly if necessary. For instance, if a loan is set up on a monthly basis because an individual’s job pays them once a month and then the individual’s changes jobs and now gets paid every 2 weeks, the bank can and will change the payment frequency to fit the client’s needs.
- Deferred Payment Options: Some banks will offer deferred payment options such as no payments for 90 days or even extend this offer up to 6 months, on approved credit.
- Paying Out Your Open Loan: In order to pay out a loan, the client must first get the loan payout from the bank. Our team at Comox Valley Auto Loans highly recommends that every client inquires if the payout includes any fees or added charges. Charges may include late fees or NSF fees. Clients can negotiate with the bank directly to see if those fees can be waived, especially if you are getting a new vehicle and are financing through the same bank.
- Interest Rate Reductions: We saved the best for last! After 12 consecutive months of payments (on-time), clients are qualified for Current Customer Loyalty Programs. These programs can reduce a client’s interest rate by up to 10% to 15%. It is important to remember that the bank cannot lower the interest rate on the current vehicle that is financed. This program applies to a new vehicle and trading-in the previous vehicle to take advantage of the new rates.
These are just some of the benefits of financing your auto loan with one of our authorized banks with Comox Valley Auto Loans. We would be happy to discuss more benefits and options that suit your needs best with a complimentary one-on-one consultation with our team. Comox Valley Auto Loans is serving the Comox, Courtney and Vancouver Island area for all your car loans and specialty financing needs.