Can I Balance Transfer My Personal Car Loan?

Life is all about possibilities. Planning that next great trip, renovating your home, or just enjoying all that life has to offer—there’s so much to experience, yet most of it requires money. When cash is tight, many Canadians turn to credit, personal loans, or other financing options to make those possibilities affordable.

Car loans represent a significant portion of our personal debt. For many of us, having a vehicle isn’t a luxury, it’s a necessity in maintaining our work, family, and personal lives. But with monthly payments, along with insurance, parking, fuel, and all the other incidental costs, car ownership can be expensive. Most car loan contracts come with terms that span years, and as time goes by, all that interest adds up. Over the course of a typical auto loan, you could easily end up paying thousands purely on interest.

If you’re currently carrying a significant amount of car loan debt, you may be looking for options for how to minimize your payments, ideally while also improving (or, at least, not endangering) your credit score. The best solution might be to balance transfer your auto loan debt to a lower-interest option. But, getting a clear understanding of how your auto loan fits into your overall budget can often be a daunting prospect.

Getting a better sense of how much a car loan costs you is the necessary first measure in re-engineering your personal finances. To do so, your very first move should be to try out the car loan payment calculator.

What Is The Car Loan Calculator?

The car loan calculator is our simplified, easy-to-use tool designed to help you determine your budget when financing your vehicle purchase. All you need to provide are a few key pieces of information about your employment, budget, and expectations, then the auto loan calculator will instantly give you an accurate estimate of what to expect for a monthly payment, including interest.

Car Loans Canada

The car loan payment calculator takes the guesswork out of auto financing shopping. Say goodbye to thorny dealer terms, aggressive sales ploys, and the frustration and wasted time of endlessly shopping around. With the real numbers provided by the car loan auto finance calculator, you’ll know what actual costs to expect ahead of time. From there, LendingArch’s comprehensive database can point you toward reputable lenders in your area who are ready to work with you. They’ll help you consolidate that debt and wipe out (or at least reduce) your costly and stressful car loan obligations for good.

Knowing where you stand helps you make informed decisions when managing car loan debt within your personal budget. In some cases, that might mean your best bet is to transfer the balance of your loan to a new loan or line of credit, potentially saving significantly on interest over time.

Should I Balance Transfer My Car Loan?

If you’re carrying a balance on a single line of credit, several different credit cards, or a number of different monthly debt payments, you should consider using a balance transfer credit card or a personal loan to consolidate your debts.

The same holds true for your car loan. If making your debt obligations every month has left you spinning your wheels, a balance transfer might be the smartest move.

By transferring your balance, you could lower the regular interest rate you’re paying on your debt. At the very least, consolidating your debts into a single loan with a single creditor will give you fewer bills to worry about every month, which can provide peace of mind and simplify your household budget.

Balance transfer cards have become a popular option for managing debt. These cards offer a lot of appeal for consumers carrying debt because they typically come with a low introductory offer, often 0% APR. However, these cards often come with restrictions on how they can be used.

Another route is to take out a personal loan. Banks, credit unions, online lenders, and other financial institutions issue personal loans, and the interest rate can be lower than that of a credit card. For a typical loan, you’ll pay back the loan in monthly installments over time, usually a period of several years, though terms will vary between lenders.

The benefit of a loan over a balance transfer card is the flexibility it offers. Once approved, you can have immediate access to a large lump sum that can be used however you like, including paying off a car loan, either in whole or in part. If the monthly interest you’re paying on the loan amounts to less than that of your car loan, you could keep a decent amount of cash in your pocket over time.

LendingArch: More Savings, More Options

At LendingArch, we specialize in matching Canadians to the best lenders for financing approval, even drivers with imperfect credit histories. After you take the online car loan payment calculator for a test drive, contact us to explore your possibilities for debt consolidation and transferring existing balances. Our personal loan application process will let you compare loan options instantly, helping you begin streamlining your debts and taking back control of your finances.

With debt consolidation, you can merge outstanding debts, such as car loans, into one single, easily managed low-interest loan. This also avoids headaches by setting up a pre-approved payment plan, so your bills are paid automatically and on time each month from your chequing account. Not missing payments can be the first crucial step toward building a stellar credit score.

Transferring your auto loan balance to a personal loan might also reduce your interest rates, especially if bad credit has left you saddled with a tough rate on your car loan. A personal loan often comes with a fixed rate, so you can budget accordingly—and even begin actually paying it off, rather than just making minimum payments.

If you’ve crunched the numbers with the car loan payment calculator and a balance transfer looks like your smartest option, get in touch with LendingArch today. Consolidate your debts, simplify your life, and start enjoying all of life’s possibilities.

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