Buying a Car

Buying a Car

Whether you're looking at a new or used vehicle, CIBC offers flexible terms and competitive rates to help you get behind the wheel of a new or used car.

Car Loan Calculator

Car buying products to consider:

CIBC Car Loan

Take advantage of up to 8 years to pay off a vehicle loan with no down payment.

CIBC Personal Loan

With a term of up to 5 years and fixed payment amounts, a personal loan might be an ideal solution for financing vehicles that are more than 7 years old. For your added convenience, payments can be made on a weekly, bi-weekly, semi-monthly or monthly basis.

CIBC Personal Line of Credit

You can pay for all or part of your vehicle with a line of credit which gives you an open pool of funds to draw on at any time, with interest paid only on the amount used.

CIBC Home Power Plan®

Using the equity in your home you can combine a line of credit and a mortgage, in order to consolidate all of your personal credit under one simple, low-interest and secured borrowing solution, which can be adjusted to meet your changing needs.

Compare these products: CIBC Car Loan, CIBC Personal Loan, CIBC Personal Line of Credit, CIBC Home Power® Line of Credit

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Expand article : Learn How to Test Drive a Car

With so many options to choose from when buying a car, itís easy to get caught up in comparing specs such as gas mileage, luxury amenities, legroom, cargo space, horsepower and more. One of the most important elements in making your final decision is to test drive the car youíre interested in. Here are a few tips to help you get the most out of your test drive.

1. Research before you test drive a car

Before you set foot in a dealership, be sure to do extensive research on the car youíre interested in purchasing. Get information directly from the car manufacturerís website or consult reviews from industry publications. By doing your homework, youíll be more familiar with the carís capabilities and better understand the differences between models, as well as the strengths and weaknesses of various vehicles.

2. Drive on various surfaces

Most car dealerships have pre-determined routes for test drives. Typically, they stick to smooth, straight roads, which offer a one-dimensional view of the carís performance. Check with the salesperson before setting up your test drive, and ask if you can take the car on the freeway, curvy roads, hills, and bumpy roads so you can get a feeling for the carís suspension, acceleration and steering.

3. Listen carefully

While you definitely want to check out the carís sound system, you also want to notice sounds the car doesnít make. During your test drive, turn off the radio and take note of any odd sounds. For example, excessive road noise from outside the vehicle might indicate the car is not adequately insulated. Rattles and squeaks from the inside could signal engine or muffler trouble, tire issues, loose wheel bearings, or poorly assembled plastic parts.

4. Test key responses

Since the way the car handles is linked to your satisfaction with it, assess some of these key functions while youíre test driving the car. Accelerate sharply to test the carís pick-up, and then make a hard stop to see how the brakes handle. Also, make three-point turns and turns at various speeds to get a sense of the steering capabilities and turning radius.

5. Get comfortable

Last, but certainly not least, make sure the car is comfortable. Before you start your test drive, adjust the seat, mirrors and steering wheel positions to your preference. If they donít feel right after your modifications, the car may not be a good fit. See if itís easy for you to get in and out of the car. If you bump your head every time, itís probably not ideal. Donít forget to check the back seat for legroom to ensure your passengers will have a comfortable ride.

Making your purchase after the test drive

Test driving a car with these clear objectives will help ensure that you end up with the right car for your needs and driving style. When youíre finished with your test drive and ready to bring home your new vehicle, let CIBC help you with the financing. Apply for a personal car loan and get flexible repayment terms, a competitive interest rate, and the convenience of automatic payments so you never miss one.

The information in this article is general only; it is not intended as specific investment, financial, accounting, legal or tax advice for any individual.

Expand article : Where to Get a Car Loan

When youíre ready to buy your next vehicle, youíll most likely be tasked with obtaining financing for the purchase. This means youíll have to decide if you want to get your car loan from the dealer or from a bank. As you might expect, the answer varies.

Start by getting car loan quotes from banks

To be sure youíre getting the best deal on your car loan you should shop around and get a sense of the most competitive interest rates. Banks will competitively price their loans, which will give you a chance to see what a good deal looks like.

Getting a loan from your bank can prove to be the better option, particularly if your credit score is strong. If you make credit card payments on time and manage your money well, you may be rewarded with a very competitive interest rate.

Next, look into car loans from the dealer

Some car dealers are more willing to negotiate loans than others. Make sure you do your research and get a good understanding of what terms and rates are out there. Once you know that, you can compare those rates and terms against those of the bank.

If the terms and interest rates are similar, youíll need to consider other elements of the loan to determine the better option.

The car loan from the dealer may have better interest rates and monthly payments if you also qualify for rebates and discounts.

Beware of interest rates that change after youíve purchased your vehicle. Since the loan officer you work with at the dealership is not the final authority on the loan (the lending institution facilitating the loan is) the interest rate may change. Youíll avoid this possibility by working with a bank on a direct loan.

Get a car loan quote from CIBC

By starting your conversation with CIBC, youíll discover how much you can borrow and at what interest rate. Call a CIBC advisor at 1-866-525-8622 to get started.

This information is not intended to be and should not be relied upon as financial advice. Speak with a CIBC advisor for details about CIBC lending products. Personal lending products and residential mortgages offered by CIBC are subject to CIBC's lending criteria and credit approval.

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Expand article : Should I Buy a New or Used Car?

Whether you choose to buy a new or a used car, a vehicle is one of the larger purchases you will ever make. Whatever your decision, a CIBC advisor can help you find the right product to fund your new or used car purchase.

If you've already chosen a vehicle and prefer a structured payment plan, a CIBC Personal Car Loan offers flexible repayment terms and amortization periods of up to 8 years. If you haven't decided on a car, but want a pool of funds to draw on, a CIBC Personal Line of Credit may be a more suitable choice.

Additionally, home owners can secure a lower interest rate and more borrowing power with a CIBC Home Power Plan®.

Pricing and budget considerations

When budgeting for a vehicle, it's important to note the substantial price difference between a new car and a comparable used one. By the time a car is 2 or 3 years old, the previous owner will have already absorbed most of the vehicle's depreciation value, which translates to a better deal for the used car buyer.

On the other hand, a new car will be covered by a manufacturer's warranty. New cars also require fewer repairs than even the most reliable used vehicle.

A CIBC car loan can fund up to 100% of the purchase price of your new or used car. By paying cash, you may be able to secure a better deal, or get a cash rebate. Either way, paying up front could help reduce the loan amount, and the amount of your monthly payments.

To get an estimate of what your monthly car loan payment will be, try the CIBC Car Loan Calculator. Once you've got an idea of what you can afford, talk to your CIBC advisor for more information.

Used car buying tips

The second-hand car market offers a broad range of models and options, but it still pays to know what to look for.

  • Always inspect a car in the daylight
  • Check for wear on the upholstery, seats, brake and accelerator pedals. If the car is older, new pedals may be an indication that the car has had a lot of use
  • Look closely at the exterior for any deviations on the body, and ask about the vehicle's accident history. Where possible, get a written summary of any accident details
  • Take a road test to evaluate the steering, brakes etc.
  • Take the vehicle to your mechanic for a check-up before buying

Car buyer resources

  • View publications that list values for cars in Canada
  • The Automobile Protection Association
  • The Automobile Consumer Coalition
  • The Canadian Automobile Association
  • Used Car Vehicle Information Package (Ontario only)

The information in this article is general only; it is not intended as specific investment, financial, accounting, legal or tax advice for any individual.

1 CIBC Prime is the variable rate of interest per year declared from time to time to be the prime rate for Canadian dollar loans made by CIBC in Canada. The interest rate on your loan will change whenever CIBC Prime varies.

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