Even if you do everything right when returning a leased vehicle, you may not be protected.
Here’s why: The “grounding dealer” (where you turn in your leased vehicle) can assess the returned vehicle as being pristine in all respects, but your legal contract is actually with the finance company, and it will always have the last word.
In 2008, I returned an end-of-lease Dodge Magnum to the dealer from whom I was leasing a new Dodge Journey.
My wife and I spent a full day cleaning the returning vehicle the day before the return: washing, waxing, steam-cleaning the interior carpets and polishing/detailing everything inside and out including air vent vanes, etc. It was beautiful.
As a small joke, when we arrived and parked the vehicle at the dealership, I even stuck the detailed vehicle information sheet (the one all new vehicles have on the window listing all options, the price and so on) on the inside of the driver’s window (yes, I had kept it from when the car was new).
In addition to their technician’s inspection in the shop, the dealership’s sales manager inspected the vehicle and both he and the general manager signed the “vehicle return receipt,” which includes a “VRR condition report” page to note any damage, excess wear or missing items.

 Everything was perfect and they joked about how it looked exactly like all the new cars on their lot.
Imagine my surprise when, two weeks later, I received an “invoice and lease settlement” in the mail from Chrysler Financial claiming I owed them $637.33 for “excess wear and tear,” with no details as to the reason.
I called the dealership and they said I had to deal directly with Chrysler Financial.
When I called Chrysler Financial, they said that the floor mats were missing (not true, but they charged me $70) and that both key fobs were inoperable and had to be replaced at a cost of $440 (I think the battery may have been low in one of them, but at least one of them worked when I returned the car because they used it to unlock and lock the car).
They also charged me $54 to remove the aftermarket trailer hitch. (I had bought the “trailer towing option” but couldn’t buy the trailer hitch itself because they weren’t going to be available from Dodge for another six months, so I had a reputable aftermarket hitch installed.)
After lengthy negotiations, they agreed to a reduced settlement of $350, which I paid. I asked them to return my $300 trailer hitch but they said it had already been disposed of.
Now here’s the ugly part: on the vehicle return receipt, filled out and signed by the grounding dealer, the sales manager entered “yes” to the question, “Will customer be purchasing a new vehicle?” and he entered the VIN of the new vehicle being purchased in the space provided on the form.
Below this question is prominently printed: “If lessee is purchasing a new vehicle, the grounding dealer is responsible for payment of all outstanding obligations on the account terminated by the return of this vehicle.”
In other words, Chrysler Financial should have been chasing the dealership, not me, to pay these fees.
Neither the dealer nor Chrysler Financial agreed with me, and after Chrysler Financial threatened to send the invoice to a collection agency I eventually paid them.
My legal lease contract is with Chrysler Financial and I was not about to enter an expensive legal battle with a billion-dollar corporation over $350, and also harm my credit rating as a result.
So, by all means, do as Lorraine Sommerfeld says and get the grounding dealer to appraise and inspect the returning vehicle a month before the lease is up and fix anything they note. But understand that you may still get a nasty surprise after the dealer ships the vehicle back to the manufacturer, whose inspectors have the final word.

Tony van Kessel, Queensville, TORONTO STAR, Wheels Section, Dec. 5, 2009

There’s no denying that wanting something and being able to pay for it often comes down to affordability.  Along with basic needs are things that we want and desire. More often than not, the only thing separating the two is the ability to afford them. 

Credit used to be something people took for granted; if you wanted something you couldn’t afford, you simply borrowed the money and made your purchase, but that formula has recently changed.  Today, credit is often associated with debt and/or living above one’s means: it has a stigma of risk associated with it that oftentimes is neither fair nor deserved.

Over the last year, the economic picture in Canada has remained extremely stable, especially compared to many other markets which endured tremendous uncertainty and losses.  Canadians are by and large fiscally conservative; we like to know our money is safe and aren’t very eager to risk it unnecessarily.

That’s why our governments maintain very high regulatory standards that ensure our credit markets don’t engage in questionable lending practices that led to the kinds of cash flow issues the United States and other nations recently saw which resulted in the economic crisis.

While so many other countries were facing severe market disruptions, credit continued to be available to Canadian consumers with little or no risk involved, which is what we’ve come to expect.  It’s this level of confidence in our financial markets which helped Canada to remain fiscally calm while other markets were riding through rough seas.

It’s also why credit in our country is not seen as a quick fix remedy for cash flow issues, but more of a financial option to be taken seriously when necessary.

That said, some people may have fallen victim to the economic downturn in which case their ability to get credit via conventional means (banks & other lending institutions) has become a challenge.

This is where United Auto Credit can help.  We provide car financing and auto credit for consumers with bad credit and who may have difficulty getting car loans because of it.  We take the hassle out of the car loan process so that you can buy the vehicle you need at a price you can afford.

Contact United Auto Credit or fill out an Online Auto Loan Application today to find out how we can make your credit issues a thing of the past.  Providing Bad Credit Credit Loans in Ontario.

As anyone applying for credit knows, your credit history can be a positive that helps secure a loan, or a negative that prevents you from getting one.

For many people, loans are the only available option for making purchases that require a large sum of money, such as a home loan, car loan or small business venture loan.

The most common reason such loan applications are denied is because of bad credit history, meaning that, in the past, an individual did not make good on payments they were responsible for.

Generally, this doesn’t include missing one or two water bill payments, although in some cases it might, but would definitely make you a bad credit risk if you missed 5 payments in as many months, or defaulted on the monthly fees for a new dishwasher or big screen television.

A lot of people make the mistake of thinking that buying on credit is the same thing as applying for credit, but it’s not.

When someone buys a car on credit, it means that they enter into a contract with the dealer for a down payment on the vehicle and agree to pay the balance on a month to month basis until the full value of the car is paid.

Applying for credit means that, in order to buy the car in the first place, you need to get the money for the down payment from a lending institution like a bank or a financing company.

Even though they are different financial transactions, they can greatly affect each other; if you purchase the car on credit, and fail to make your monthly payments, you can not only expect to have the car repossessed, but it will make it extremely difficult for you to secure any future loans to buy other items, as you will be considered a bad credit and loan risk.

If you are approved for a loan to buy the car, but default on your payments to the lending institution, then once again you’ll lose the car and you will also be judged to be a bad credit risk, meaning your chances of being approved for any future loans will be practically zero.

This is where United Auto Credit can help.  We specialize in providing auto loans for people considered a bad credit risk, those in bankruptcy or collections,  those with disabilities and/or new arrivals to Canada who have difficulty getting car loans. 

We make the process easy so that you can get a vehicle that fits your needs and have you on the road in hours, not days or weeks.

If you have bad credit and or looking for a car loan, Contact United Auto Credit  today: Providing bad credit car loans in Ontario.

In 2008, over 13% of North American consumers who intended to buy new cars actually bought used cars, up from 8% just over five years ago.

George Iny, president of the Automobile Protection Association, says that car buyers “are now looking at used lease returns, which drives up used car prices.”  Yet, despite higher used car prices, demand remains high.

In particular, Iny mentions good deals to be had in the SUV and entry-level luxury markets.  For example, a used Infiniti G35 was recently selling for $8,000 less than a comparable BMW 3-Series, still a great value.

Iny notes that the best used car deals can found in the used domestic midsize cars and minivans which, as Iny says, are still priced well below market value.  A 3 year old Dodge Caravan can be found for less than $9,000; or, about 1/3rd the purchase price when it was new.

Another reason that domestic products are priced lower than their non-domestic counterparts is due to lower demand for domestics.  As well, buyers fear the high cost of repairing transmissions and air conditioners after the warranty expires.

To prevent costly repairs down the road, consider aftermarket warranties for used cars.  “Certified” programs by manufacturers have gained favor and do offer peace of mind.  That said, be prepared to pay more for used car certifications.

For those looking for an affordable used car, used car warranties and/or used car financing, Contact United Auto Credit today.  Providing used car loans and financing in Toronto, Ontario for those with bad credit, bankruptcy issues, collections, disabilities or who are new to Canada. The process is easy, lets you choose the car that fits your needs and is designed to get you driving again in a matter of hours.

The executive director of CarHelpCanada.com and host of CP24’s Auto Shop, Mohamed Bouchama, says that “Used car prices are starting to go up.”

New cars are not selling well and, as a result, new car dealers are bidding up the prices at used car auctions to fill their lots.

According to Bouchama, “Prices are $1,000 to $1,500 higher than they were a few months ago.”  He goes on to say that “The independent lots can’t even get used cars because the franchisees are outbidding them.”

To survive consumers’ shift from new to used cars, a number of former new car dealerships are transforming themselves into used car dealerships.

Traditionally, used car sales have always helped retailers to offset the low profit margins on new cars.  For example, the average margin for the dealer on a used car is $1,800 to $2,200.  On a new car, it’s closer to $1,000 to $1,200.

Combined with the fact that leases are becoming costlier and more difficult to come by in these times, dealers are stocking their lots with used cars and directing returning lease customers there, where it’s much easier to finance an affordable vehicle; albeit used.

For those looking for an affordable used car and/or used car financing, Contact United Auto Credit.  Providing used car loans and financing in Toronto, Ontario for those with bad credit, bankruptcy issues, collections, disabilities or who are new to Canada. The process is easy, lets you choose the car that fits your needs and is designed to get you driving again in a matter of hours.

Everybody likes a bargain; it’s human nature to feel good about getting a deal on something.  The bigger the purchase, the better it feels. 

For a long time, buying a used car had a certain stigma about it, one that made used car buyers extremely wary of being taken advantage of; who hasn’t heard the old adage ‘Would you buy a used car from this man?’

Attitudes can change over time however, especially when economic times are hard.  Buying a used car today is often seen as a smart purchase that makes good fiscal sense, regardless of your salary or lifestyle.

It’s also true that the business of selling used cars has changed considerably as a result of growing awareness, laws and knowledge of the trade.  Where once kicking the tires and checking the headlights constituted the sum of a consumer’s expectations, buyers today have a number of resources they can reference when it comes to making an informed choice.

The Internet can be one of the most valuable resources for gathering information on how to make the right choice when it comes to buying a used car.  One of the best sites to visit is Trader.ca.  This site is absolutely packed with information on used vehicles; what to look for in a previously owned car, what they are worth, their availability in your area, where to find a dealer etc.

Another comprehensive site is http://www.twopages.com/ which literally has everything a prospective used car buyer would need to make an educated decision.

At United Auto Credit we cater to consumers whose credit history often prohibits them from securing a car loan.  If you are having difficulty getting approved for financing because of credit challenges, we can help.

Find out more by contacting us and/or completing an Online Auto Loan Application today.

Providing Used Car Loans in Barrie, Bradford, Brampton, Keswick, Leamington, London, Sault Ste.Marie, Toronto, Ontario Canada

Many people looking to finance a large purchase such a an automobile often run into difficulties when it comes to lending institutions and their credit rating; in other words, they are refused.

This is generally the result of a bad credit rating, something most people have only a basic idea about and the mystery of how it is determined.

Your credit rating is calculated by a mathematical formula known as an algorithm, or a step-by-step process for solving a problem in a finite number of steps.  The formula takes your credit information and compares it to the credit information of other people,  possibly millions of them.  The algorithm comes up with a prediction of how likely you are to be able to pay your bills on time.

The credit information used to determine this can be everything from your credit card payment history to your monthly mortgage payments, and virtually anything else that requires a payment schedule, such as utilities like electricity, water and heating bills.

Your credit score is used by creditors, lending institutions, credit rating agencies and others to determine levels of risk when lending money and identify whether you are perceived as low, medium or high risk

Many banks and other loan guarantors won’t even consider anyone in two of the three categories for approval; can you guess which ones?

Medium or high risk credit scores are most commonly refused as being too risky and are often left with few options when it comes securing a loan.

This is where United Auto Credit can help.  We specialize in providing loan options for those who have been turned down for auto loans and are percieved as having bad credit.

We recognize that a bad credit rating should not be the final word on whether or not individuals with credit challenges receive loans or not.

Find out more by contacting United Auto Credit and/or completing an Online Auto Loan Application today.

Specialists in re-establishing auto credit and providing bad credit auto loans in Toronto and Ontario including Queensville, Brampton, Mississauga, Etobicoke and the GTA.

For most fiscally responsible people, owing money for any reason is rarely considered a good thing, and this is especially true in an economic downturn: during such times,  people tend to put off major purchases.

This is partly due to the fear and uncertainty driven by economic hardships, and partly the reality of people simply having to make economic decisions based on having less money to spend.

The harsh reality is that no matter what the financial atmosphere, some purchases will still have to be made; people will still need to buy homes to live in and cars to travel in, because those needs don’t rise and fall with economic trends, they are consistent no matter how hard it may be to finance them.

Few of us will ever be in a position to purchase a car outright, whether it’s a new or used vehicle, without having to borrow money to pay for it; but does that make this good or bad credit?

If you’re able to make the payments on the vehicle, which would obviously be less for a used car than a new one, then this is definitely good credit.  A car is an asset, which if properly maintained, retains value and adds benefit to the life of the consumer.  Lending institutions recognize this and understand the importance of vehicles to their customers.

Good credit can often be a sign of fiscal responsibility that positively impacts your credit rating.

Bad credit on the other hand, is not looked upon so favorably, and is generally considered for purchases that are not deemed necessary, cannot be easily paid for by the consumer, and will generate high interest rates. This sort of credit should be avoided, as it will do nothing but negatively impact your credit score.

That said, if you presently find yourself with bad or poor credit and need a car loan, let us help.  We are a private lending institution that specializes in helping people with poor or bad credit get car loans.

United Auto Credit - Car Loans in Toronto, North York, Mississauga, Brampton, Scarborough, Etobicoke and Greater Toronto Area (GTA).

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,