Financing a car - clerkship/residency

[bellejolie]

Hello - i was wondering how its possible to finance a car with no income? I've been told by CIBC i need "proof of medical license" which i wouldn't get until August, and by Scotia that I need "proof of income and pay" which I wouldn't have until July so I'm not sure how to do this. Do i need co-signer? Should i pay cash with LOC? Any advice/help would be appreciated. 

[robclem21]

Once you match, your program can provide you with a letter showing your income. You don't need to wait until July. The other option would be to find someone to cosign the financing for you.

[Anti_Dentite]

You have an LOC with a subprime interest rate and an interest only grace period, why not use that? It makes no sense to finance through a bank and pay a higher interest rate when you already have the funds available to you. 

[robclem21]

9 hours ago, Anti_Dentite said:

You have an LOC with a subprime interest rate and an interest only grace period, why not use that? It makes no sense to finance through a bank and pay a higher interest rate when you already have the funds available to you. 

It might be cheaper still to finance through the bank. Most cars can be financed for <2% (most for <1%)

[Anti_Dentite]

12 hours ago, robclem21 said:

It might be cheaper still to finance through the bank. Most cars can be financed for <2% (most for <1%)

Interesting, I always thought they were around 4-5%. Good to know! 

[cotecc]

dealers do give incentives if you finance through them

[bellejolie]

thanks for all your advice - problem with LOC is i used it for a condo so i have quite a high load on it and wanted to make sure I had some wiggle room for residency in case of any unexpected debt otherwise would totally use that. 

For the car i want (a coveted rav4 hybrid) interest at the dealer is 5-6% unfortunately, so that's why i'm looking into a bank. I will definitely be using a chunk from LOC for the down, just looking into what options would have the lowest interest rate otherwise.