Covering only 5,660 km², Prince Edward Island may be Canada’s smallest province. But its snug dimensions don’t impose any constraints on the range of auto loans on P.E.I. for vehicle owners. Its small size and light traffic means used cars in Charlottetown may be driven less than elsewhere in the Maritimes. And there’s certainly no lack of budget-friendly car financing auto loan options in Fredericton!

Great Places to Find Auto Financing on P.E.I.

With over a dozen loan-providers, a little research lets car buyers in Charlottetown find the perfect lender for their needs. Offering amounts from $500 to $ 1 million, over terms ranging from 3 to 96 months, there’s something for everyone. Interest rates vary from 2% to over 45%, indicating that even buyers with poor credit ratings are welcome. There are three main sources of auto loans on Prince Edward Island: banks, dealerships, and on-line retailers. Here’s a rundown on all three of them:

  • Banks: Scotiabank, BMO, RBC, CIBC, and Toronto-Dominion are solid institutions offering auto loans – provided you already have excellent credit. The downside: working with banks can be frustrating, with multiple in-person appointments, plenty of paperwork, and some hefty fees;
  • Dealerships: super-convenient for kicking wheels and signing up for financing all in one place, they focus on their prime business. That’s selling new models of specific brands plus pricy add-ons. This means less focus on the trade-ins in their used-car lots, and limited abilities to help low/no credit score buyers; 
  • Online retailers: with no costly brick-and-mortar premises or dealer fees, substantial savings are passed on to customers. They partner with a wide range of lenders (prime and non-prime) to help borrowers get the wheels they need. 

Unexpected Benefits of Car Loans on Prince Edward Island

Almost everyone in the Maritimes needs a budget-friendly car loan. Like most Canadians, Maritimers appreciate the comfort and convenience of fast commutes, and fun family outings on weekends. But getting around easily is only one of the many benefits of an auto loan on Prince Edward Island. Here are some other advantages:

  • paying off your auto loan promptly each month helps build up your credit score, so you will be able to score lower interest rates on future loans, including mortgages;
  • going electric could save you up to $1,500 a year for a decade or more, with a well-structured auto loan covering the higher upfront costs of an electric vehicle (with savings of up to $5,000 for P.E.I. drivers, under recent EV incentives);
  • boosting your chances of affording a safer, larger, and more practical vehicle for a rapidly expanding family, like a spacious minivan with plenty of room for kids and all their kit;
  • getting you closer to your dream wheels, when your credit card balances aren’t high enough are you need to keep money in the bank to cover emergencies;
  • saving you money long-term, when soaring costs for repairing your current vehicle have already eaten into your savings, with not enough left to replace your wheels with something more reliable;
  • offers you the option of refinancing, when your situation changes, either extending your loan term for lower monthly payments, or shortening it, paying more each month but lowering your overall vehicle price through paying less interest; 
  • if you need money quickly, some vehicle financing agreements include the option of taking out a vehicle title loan, with your car serving as collateral.

Takeaway: If you need advice on the best auto loans on P.E.I., contact the local financing experts at Canada East Rides. They’ll be happy to structure an easy-pay option that’s tailored to your needs, regardless of your credit rating. Here’s the perfect car financing for you in P.E.I.!

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