When looking to acquire a bus or add one to your fleet of buses, do not let financial constraint be an issue. You can secure a bus loan from various financial service providers including traditional and alternative ones. Other than your financial limitations and situation, what ought to concern you is the interest rates being offered by different lenders. The best rate is the lowest or most favorable to make repayment easy for you. As such, take a look at the following pointers to help you in comparing bus loan interest rates in a bid to get the most favorable one.
If you are just starting out your search, remember that at Smarter Loans – Canada’s Loan Directory, you can find multiple providers of bus and coach financing in Canada.
Research and Shop Around
Different banks offer competitive bus loan rates with an aim of attracting more customers compared to their counterparts. Hence, do not simply settle for the current banking institution. Instead, explore various available options for bus loans while weighing the rate associated with each. In this case, you may do it at the comfort of your house through the Internet or physically by visiting several potential banks. This effort will help you know the rate that each financial service provider offers to help you pick the ideal one.
Join a Credit Union
Credit unions lend loans to their members at low interest rates. You can use this to your advantage by joining one in your area. However, try to make sure that you join a credit union that has a reputation of availing loans to members at a rate that favors yours.
Consult Bus Dealerships
Bearing in mind that different bus dealers charge varying loan rates, you need to know what the market offers. Contact and schedule meetings with several trustworthy/reputable bus dealers to determine whether either of them can help make your bus ownership dreams come true. What’s more, get all your facts right before entering into any dealership. For instance, you can use the information or offers from other dealers to negotiate a favorable rate. Sometimes the same companies that offer truck loans in Canada also provide financing for different types of busses.
Look at the Term accompanying the Interest Rate
The term in this case entails the loan repayment period provided by the lender. Here, keep in mind that the shorter the period the more you are likely to save money and the vice versa is true. In fact, short term loans have a lower interest rate than long term loans in a bid to encourage borrowers to consider the former. Hence, make sure that you compare the rates of short term bus and coach financing offered by different lenders before selecting the best.
Low Interest Rates are Not Necessarily Cheap
When comparing bus loan interest rates between different lenders, keep in mind that at times loans with low interest rates attract some hidden costs. What this means is that you may end up paying more money for a loan with the lowest interest rate compared to one with a relatively higher one. Such fees may include establishment fees and monthly fees among others. Hence, be careful when making your choice.
Don’t forget to visit Smarter Loans for the most up to date listings of Canada’s top providers of bus, truck and other equipment financing.