Finance Centre

Welcome to Our Financing Department

Welcome to Niagara Truck Centre's Finance Department, your auto loan and car lease resource. We're eager to provide financing for your new car, or we can assist in used car financing. Check out our online car loan calculator for an instant car loan rate. Then, proceed to our online finance application.

All types of credit, from good to bad, can qualify for an auto loan. No credit, no problem! We will work with you to secure a no credit car loan if your situation demands it. Niagara Truck Centre has strong relationships and is committed to finding you the perfect car loan company to suit your car finance needs.

Low interest car loans are available for customers with existing loans. We can help you refinance your car loan or adjust the term of the contract. You're just a step away from approved car financing!

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Privacy Statement

Introduction
As a valued customer, we want to ensure that your private information is kept private and only shared with those companies that are authorized by yourself or that are allowed or required by law. This document explains our privacy policy, gives you reasons why we ask for the type of information we do, and if we do reserve a right to share information with non-affiliated third parties, lets you "opt-out" of our reservation to do so. Please take a moment to read this entire policy.

Collection of Information
The purchase of a motor vehicle requires considerable accumulation of non-public personal information. For example, if we sell or lease you a vehicle—extending credit to you at your request—we will receive information from you in order to determine your creditworthiness. We may also obtain information from a credit reporting agency. We may also obtain information from third parties such as employers, references and insurance companies.

Some of the information we obtain from you may be required by provincial or federal agencies, such as the Department of Motor Vehicles or the Canada Revenue Agency. This information may be required even if you were to pay cash for your vehicle. Examples would be a driver's license or social security number.

Protecting Your Information
We safeguard nonpublic personal information according to established industry standards and procedures. We maintain physical and electronic safeguards that comply with provincial and federal law. We restrict access to non-public personal information about you to those employees and outside contractors who need to know the information to provide goods or services to you. We prohibit our employees and agents from giving information about you to anyone in a manner that would violate any applicable law or our privacy policy.

Information Sharing
Unless we have indicated our desire to share your non-public personal information with non-affiliated third parties (by checking the box in the section below), we share information:

A) For everyday business purposes, such as to process transactions, maintain account(s), to respond to court orders and legal investigations, or to report to credit bureaus.

B) For the purposes of processing a sale or lease transaction at your request or authorization, such as submitting information to third party financial institutions that may be requested to take an assignment of the contract, or verifying insurance coverage information.

C) When using outside service providers to help us provide you with products and services. Before providing information to our service providers, we enter into contractual agreements prohibiting them from disclosing or using the information other than for the purpose for which it was disclosed.

D) With "Affiliated" companies. Companies that are affiliated with us include any company that controls us, any company that we control, or any company under common control with us.
I am interested in purchasing or leasing a vehicle and request that my Consumer Credit Report be obtained, at no cost to me, in order to help determine the types and extent of financing which may be available to me.

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Your privacy is important to us.

Niagara Truck Centre takes your privacy seriously and does not rent or sell your personal information to third parties without your consent. Read our privacy policy.


What is a Subprime Loan?

A subprime loan is a loan issued to a borrower with a "less than perfect" profile.

The term comes from the traditional "prime" borrower that lenders are eager to work with. Prime borrowers have high credit scores, low debt loads, and healthy incomes that comfortably cover their required monthly loan payments.

Subprime borrowers, on the other hand, typically have characteristics that suggest default is more likely to occur:

Credit: Subprime borrowers usually have bad credit. They may have had problems with debt in the past, or they may be new to borrowing and have not yet established a strong credit history. For lenders, FICO credit scores below 640 tend to fall into subprime territory, but some set the bar as low as 580. Unfortunately, borrowers with bad credit have few options besides subprime lenders, which can contribute to a cycle of debt.

Monthly payments: Subprime loans require payments that eat up a significant portion of the borrower's monthly income. Lenders calculate a debt to income ratio to determine how affordable loans are.

Borrowers who spend most of their income on loan payments have little wiggle room to absorb unexpected expenses or a loss of income. In some cases, new subprime loans get approved when borrowers already have high debt to income ratios.

Cost: Subprime loans are typically more expensive because lenders want compensation for taking risk.

Critics might also say that predatory lenders know they can take advantage of desperate borrowers who don't have many other options. Costs come in various forms, including higher interest rates, processing and application fees, and prepayment penalties (which are rarely charged to borrowers with good credit).

Documentation: Prime borrowers can easily provide proof of their ability to repay loans. They have records showing steady employment and consistent pay. They also have additional savings in banks and other financial institutions so that they can keep up with payments if they lose their jobs. Subprime borrowers are not able to make a strong case for continuing financial stability. They might be financially stable, but they don't have the same documentation. Leading up to the mortgage crisis, lenders routinely accepted applications for low-documentation loans, and some of those applications contained bad information.

Risk:
The key theme of subprime loans is risk for everybody involved. The loans are less likely to get repaid, so lenders typically charge more. Those higher costs make the loans risky for borrowers as well. It's hard to pay off debt when you add fees and a high interest rate.

For more details on how rates are directly related to monthly payments, see How to Calculate Loans.
Types of Subprime Loans

Subprime loans became notorious during the financial crisis as homeowners in record numbers struggled with mortgage payments. But subprime loans are available for almost anything. Currently, borrowers may find subprime lenders in the following markets:

  • Auto loans, including buy-here-pay-here and title loans
  • Credit cards
  • Student loans
  • Unsecured personal loans

Since the mortgage crisis, consumer protection laws make subprime home loans hard to find. But old (pre-crisis) loans still exist, and lenders may still find creative ways to approve loans that probably shouldn't be approved.

How to Dodge Subprime Traps

If you're planning to borrow-or if you're already in a subprime loan-figure out a way to avoid those expensive loans.

Without perfect credit, you have fewer options: You won't be able to shop among as many competing lenders, and you'll have less choice when it comes to using different types of loans for different purposes. Still, you can stay away from predatory loans.

The key is to appear (and actually be) less risky to lenders. Evaluate your creditworthiness the same way they do, and you'll know what you need to do before you even apply for a loan.

Manage your credit: If you haven't already, check your credit reports and look for anything that will spook lenders. Fix any errors, and address any missed payments or defaults if possible. It may take time, but it is possible to build (or rebuild) your credit and become more attractive to lenders.

Look at your income: Lenders need to be confident that you have the ability to repay. For most people, that means you've got a regular income that more than covers your minimum monthly payments. If a new loan (in combination with any existing loans) will eat up more than 30 percent or so of your income, you might need to pay off current debts or borrow less to get the best deal.

Try new (but legitimate) lenders: A lousy loan can haunt you for years, so shop around before committing to anything. Be sure to include online lenders in your search. Peer to peer lending services might be more likely to work with you than traditional banks and credit unions, and several online lenders even cater to borrowers with bad credit-while still offering decent rates. Be sure to research any "new" lenders you're considering before you pay any fees or hand over sensitive information like your Social Security Number.

Minimize borrowing: If loan sharks are the only lenders nibbling at your applications, reconsider whether or not your loan makes sense. It may be better to rent housing for a few years instead of buying, although there are certainly pros and cons with waiting. Likewise, it may be best to purchase an inexpensive used vehicle (as long as it's safe) instead of a brand-new car.

Consider a cosigner: If your credit and income are not sufficient to qualify for a good loan with a mainstream lender (such as a bank, credit union, or online lender), consider asking a cosigner for help. A cosigner applies for the loan with you and is 100 percent responsible for paying off the loan if you fail to do so. As a result, your cosigner is taking a big risk and putting their credit on the line. Ask for help from somebody who has strong credit and income and who can afford the risk-and don't take it personally if nobody is willing to take that risk.

Have any other questions about subprime? Contact us by completing the form below.

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