Car Loan and LOC

[WtsupDoc?]

^ I hear ya Shady!

 

But hey... just keep in mind that you've gotten into medical school and that was always the goal! We don't get a free education in Canada but we don't pay for the whole thing on our own either. At least the banks are willing to take our money and unlike many other career aspirations and educational endeavours, once you are an MD you are guarenteed to make significantly more than the national average.

[shady]

^ yea I agree. Our system is not perfect and has its flaws, but it's certainly better than many others out there

[holiday1001]

Hmm, that is an interesting idea. I hadn't thought about it since my parents have no money to finance an extra car, but I guess if I give them the money in advance, that might be an option! That's another goofy OSAP loophole though... if your parents can afford to buy you a car then the government will give you more free money, but if you have to buy one on your own, they'll reduce your funding? Pretty silly system sometimes.

 

One thing I'm unsure of is how that would affect insurance. Again as someone who has never owned a car I'm just totally new to this kind of thing. If they technically own the car, do they need to be included in the insurance even if I'm the only one driving? Or is it possible to have a car that is owned by my parents, with myself as the only insured driver?

the owner of the insurance policy has to be the registered owner of the car.

if you're from ottawa, and you put yourself as the primary driver and address as hamilton, the insurance company won't be happy at that. if you're from toronto, it may be an easier idea to sell.

 

mac students get a 10k exemption for the car value (it's usually 4 or 5k i forget). when you submit osap signature papers, write a little note saying you're a med student and you want to be considered for that limit.

 

don't lie about the car value! if they think you undervalued, they will send you a letter demanding you get the car appraised.

[shady]

mac students get a 10k exemption for the car value (it's usually 4 or 5k i forget). when you submit osap signature papers, write a little note saying you're a med student and you want to be considered for that limit.

 

Really? Is that written down somewhere?

 

Also, why only Mac? What about other med schools?

[holiday1001]

duno about other schools. i haven't seen it written but speak to the student financial aid office if you have questions about it/

[rmorelan]

Really? Is that written down somewhere?

 

Also, why only Mac? What about other med schools?

 

It isn't just Mac - anyone in any program can request a 10k exception if said vehicle is directly required for that program.

[holiday1001]

do other programs (ie med schools) 'directly' require a vehicle in preclerkship? i vaguely remember Mac being unique in that regard, but I'm not sure

 

from 2009 post:

Once in clership, most schools write a letter to state that a car is required and in that case you can now how a car valued at 10k before any deductions come off.

[leviathan]

0% isn't 0% if buying the car outright with cash gives you a $2k discount. It's just a play on words. There is no way they are going to lend you money for free. This applies to the Hyundai offer. If you look carefully, they also have what they call "cash incentives" which are essentially discounts if you pay cash.

 

I would extend this idea and guess that any car loan below prime means some of the price of the car is going to finance the loan. It means you can probably negotiate a lower price for buying outright with cash.

I think you guys are only partially right about this. Most dealers offer cash incentives, but not all of them. For example, Ford is offering 0% financing for terms up to 72 months, but there is no cash incentive for buying the car outright.

 

The costs of that are obviously still built into the price of the car, but it's done at the factory level. Even if you buy the car for the price the dealer paid the factory, you can still get those incentives as they come directly from the factory, who manufactures the car at a much cheaper level and still has a large profit margin to play with. Because it would be pretty hard to go to a dealership and tell them you want the car at lower than what they paid for the vehicle, you can essentially see it as a 0% finance rate.

 

On that note, if you do buy a new car you should find out what the dealer's invoice price is, and what factory to dealer incentives currently exist. There are sites that offer this for a small fee. That way you know the real bottom line price which makes it very easy to bargain with dealerships. I just bought a new car for $1000 below MSRP/sticker price, because I offered them the factory price plus a small percentage extra to give them a reasonable profit.