How do I qualify for a car loan through your site?
We only have a few basic requirements for drivers in PEI (and the rest of Canada). For your car loan application to be approved, you need to be a resident of Canada, have a full license, be 18 or older, and earn $1,500 per month or more.
Does LowestRates.ca only work with specific car dealers in Prince Edward Island?
Yes. These dealers are part of our nationwide auto loan network, and they specialize in bad credit auto financing for Canadian drivers. So if you have bad credit or no credit, don’t sweat it: we’ll match you with one of these dealers in PEI and help you quickly get approved for a loan.
How much tax do I need to pay on a car purchased in Prince Edward Island?
Currently, the sales tax (HST) on vehicles in Prince Edward Island is 14%. But that’s set to change: in October 2016, the HST rate in PEI will increase to 15%.
How do you set the interest rate on my car loan?
Your rate is actually set by the dealer offering you the loan, and it’s based on a number of different factors, such as your credit, income level, employment history, and loan amount.
Should I choose a long car loan term or a short car loan term?
Longer loan terms result in smaller monthly payments, but there’s a downside: you’ll end up paying more money toward interest, and, for a few years, you’ll probably owe more on your loan than your car is worth. Why? Because you’ll be paying off your loan balance slower than your vehicle is depreciating.
Here’s what your monthly payments would look like over different lengths of time on an $8,000 car loan at 8% interest.
Monthly payments on a $8,000 car loan (at 8% interest)
|Length of car loan||Car loan payment|