After nearly a year of what has been labeled the worst economic crisis since the Great Depression, the global recession is finally showing signs of not just leveling off, but actually making a healthy recovery.

Canada has been among the few industrialized nations to have come through this dismal economic period relatively unscathed, with the optimal word being relatively.

As with most economic downturns, the hardest hit areas are usually the housing and auto sectors; both big ticket purchases.

During times of economic uncertainty, the auto industry inevitably sees a slow down as consumers put off the purchase of new automobiles, opting for used autos and/or holding onto and fixing up their existing automobile.

The reality of this latest global recession has also seen credit markets take a major blow, meaning that securing auto loans and purchases has been more difficult than ever, and has remained so for nearly the entire fiscal year.

All recent indications however, are that this fiscal tightening seems to be reversing, and auto loans are now more easily available.  This is partly due to the fact that the Canadian financial system was in a much stronger position prior to the recession, and partly because the easing of global credit markets has meant that money is now flowing again through once familiar channels that had in effect dried up completely.

The net result is that positive signs of economic recovery are going to benefit consumers.  As credit continues to become easier to acquire, auto loans and purchases will be less difficult to secure.

United Auto Credit specializes in Auto Loans for both new and used autos.  Find out more by contacting us and/or completing an Online Auto Loan Application today.  Providing auto loans in Toronto and Ontario including Vaughan, Peel, Peel Region, Simcoe, Durham, York, York Region, Brant, Halton, Peterborough, Chatham-Kent, Sudbury, Niagara, Waterloo,

Cars have one of the highest depreciation values of any product: from the moment a car is driven off the lot, it’s automatically worth less than what you paid for it.  By the fifth year it’s already lost up to 65% of its initial value, a sobering figure that would shock most used car sellers.

Moreover, some makes and models can lose an astounding 75% of their initial value over time; but which ones, and how would a new or used car buyer find out?

Part of our commitment at United Auto Credit is to help consumers make smart choices by providing them with information and resources that give them the ability to make smart new and/or used car purchasing decisions. As a result, we’ve created a list of 10 models with the highest depreciation value:

10) Suzuki Aerio                                                  
Base MSRP: $14,770
Five-year depreciation: 74%
Retained value after two years: 49%
Retained value after four years: 33%

9) Mercury Grand Marquis
Base MSRP: $25,280
Five-year depreciation: 75%
Retained value after two years: 46%
Retained value after four years: 31%

8)  Suzuki Forenza
Base MSRP: $14,249
Five-year depreciation: 75%
Retained value after two years: 46%
Retained value after four years: 31%

7) Chevrolet Uplander
Base MSRP: $21,540
Five-year depreciation: 75%
Retained value after two years: 47%
Retained value after four years: 32%

6)  Suzuki Reno
Base MSRP: $13,599
Five-year depreciation: 75%
Retained value after two years: 47%
Retained value after four years: 32%

5) Ford Econoline
Base MSRP: $23,725
Five-year depreciation: 76%
Retained value after two years: 44%
Retained value after four years: 29%

4) Dodge Durango
Base MSRP: $26,455
Five-year depreciation: 76%
Retained value after two years: 44%
Retained value after four years: 29%

3) Isuzu Ascender
Base MSRP: $27,884
Five-year depreciation: 77%
Retained value after two years: 46%
Retained value after four years: 29%

2)  Lincoln Town Car
Base MSRP: $45,910
Five-year depreciation: 79%
Retained value after two years: 47%
Retained value after four years: 29%

1) Kia Sedona
Base Manufacturer’s suggested retail price: $21,420
Five-year depreciation: 80%
Retained value after two years: 47%
Retained value after four years: 28%

For more information on Used Car Values and/or acquiring a Used Car Loan, please contact United Auto Credit.  Providing Car Loans in Toronto and Ontario including Vaughan, Peel, Peel Region, Simcoe, Durham, York, York Region, Brant, Halton, Peterborough, Chatham-Kent, Sudbury, Niagara, Waterloo,

The recent US Cash for Clunkers program has been generating a good deal of interest south of the border.  As a result,  Canadian automobile consumers are wondering if they’ll see a version of this immensely popular program in Canada and/or Ontario any time soon.

The US government instituted what is basically a trade in program for cars that begain in June 2009.  The moniker ‘Cash for Clunkers’ is really a media coined phrase to describe the program which issues auto credit for consumers wishing to trade in older cars for newer, more fuel efficient ones. The program is officially called ‘Car Allowance Rebate System’ or CARS.
 
The purpose of the new program has been twofold; first, to provide sorely needed auto credit for new car purchases in the US auto market, a sector of the economy especially hard hit in the recent recession.  With loans becoming increasingly hard to acquire due to banks and lending institutions having problems securing their own financing, they in turn were less able to provide auto credit to their customers. 

The Obama administration saw an opportunity to ease the auto credit crunch by offering up to $4, 500 in cash credit for consumers looking to finance the purchase of a new vehicle by essentially trading in their old ‘clunker.’  The older car/clunker must get 18 m.p.g. in combined city and highway driving and be less than 25 years old to qualify.

The second purpose was to encourage people to buy more efficient cars by basically trading in less fuel efficient models.

The result has been a resounding success; as of  July 2009 Volkswagon, Volvo, Hyundai, Subaru, Kia and Ford all posted monthly sales increases, with Subaru leading all auto makers with a 34% increase.  While GM, Chrysler and Toyota didn’t see increases, they did experience significantly less declines over previous months, which is still a big improvement for an industry that has arguably been hit hardest by the economic downturn.

As for some form of the program being established in Ontario, there’s good news and bad news; the bad news is that there are no plans by the federal or provincial government to institute a similar policy at this point in time.

The good news is that Canada has benefitted from more stable economic policies which have allowed us to stave off the kinds of panic and credit issue which have plagued the U.S. economy as of late. 

For more information, visit United Auto Credit – providing Bad Credit Car Loans in Ontario including Toronto,  North York, Etbicoke, Richmond Hill, Mississauga, York, Brampton, Scarborough, Oshawa, Ajax, Pickering, Whitby, Port Colborne, Burlington, Thunder Bay, North Bay, Chatham and Ontario Canada.