Frequently Asked Questions

Smart Auto Financial does not control interest rates. It is up to the bank to decide what interest rate you qualify for, which will depend on your credit history. While the age and term of the loan factor into the rate, generally, if you have good credit and sufficient income, you can expect prime rates to be between 0.99% - 7%. 

There is no way to guarantee an interest rate without submitting a credit application to the bank. 

Auto loans are ‘open-ended’ loans that can be paid off at any time without penalty. You are also free to put as much down on the loan as you’d like.

You can also call the bank and ask them to increase your payments to any amount to pay off your loan faster. However, you are not able to have your payments reduced.

Interest is calculated on a per payment basis. This means if you pay the loan off early you will not be charged the remaining interest. For example, if you are on a 60 month loan and you pay it off in full at 36 months, you would save 3 years worth of interest.

Note: If you decide to place extra money down on the loan after you take possession of the car, it will not lower your payment, it will shorten the length of the term of the loan.

Bankruptcy should be a last resort if you cannot meet your financial obligations through affordable payments over a specific period of time. Bankruptcy is a legal process performed under the Bankruptcy and Insolvency Act. Because of your inability to pay our debts, you assign all of your assets, except those exempt by law, to a licensed trustee in bankruptcy. This process relieves you of most debts, and legal proceedings against you by creditors should stop. 

If you are first-time bankrupt, you will be automatically discharged nine months after the date of bankruptcy if you have no surplus income. you will be automatically discharged after 21 months after the date of bankruptcy if you are required to make surplus income payments to the estate.

For a second bankruptcy, you will automatically be discharged after 24 months after the date of bankruptcy if you have no surplus income and 36 months after the date of bankruptcy if you are required to make surplus income to the estate

Bankrupts with personal income tax debt in an amount of $200,000 or more representing 75% or more of total unsecured claims, are not eligible for an automatic discharge.

A consumer proposal is an offer made by a debtor to his or her creditors to modify his or her obligations to them. For example, you may propose to your creditors that you will pay a lower amount each month, but over a longer period of time. Or you may propose that your creditors accept being paid a percentage of what you owe. 

Any natural person who is insolvent, including a bankrupt, whose debts do not exceed $250,000, excluding a mortgage for person's principle residence, can make a consumer proposal. When a bankrupt wishes to make a proposal, the proposal must first be approved by the inspectors and the bankrupt must have obtained the assistance of a trustee who will be administrator of the consumer proposal. If the person's debt exceed $250,000, the proposal will be made under Division I of Part III of the Act.

Bad credit refers to a person's history of failing to pay bills on time, and the likelihood that they will fail to make timely payments in the future. It is often reflected in a low credit score. Companies can also have bad credit based on their payment history and current financial situation.

A person (or company) with bad credit will find it difficult to borrow money, especially at competitive interest rates, because they are considered riskier than other borrowers. We've all made mistakes in the past, but the only thing that keeps us from overcoming them is the lack of information - information that is not made widely available to the average consumer. Smart Auto Financial is here to bridge the gap between what lenders know and what the borrower knows.

When you have no credit history, it means that you do not have anything on your credit report at all. You have not borrowed money in the past. It simply means that you have not borrowed any money within the last seven years. This is not a difficult thing to overcome. Many people who do not believe in borrowing money may not have a credit history.

If you are in college you may not have a credit history, unless you have taken out student loans or you have a credit card. 

Some companies have a hard time working with someone with no credit history because they do not know if you will pay things on time. If you have utilities in your name or you have been renting an apartment you can use these things to show that you are reliable and make your payments on time. Smart Auto Financial are here to bridge the gap between what the lenders know and what the borrowers know. 

When you fall behind on your auto loan payments, the lender has the right to take possession of your vehicle. This is called repossession and because of the terms of your loan, the lender can do this without having to go to court.

But, when you take your vehicle back to the lender or dealership before they send the repo man for it, that’s called voluntary repossession. You might consider voluntary repossession if you can no longer afford your auto loan payments and other options aren’t viable. The major benefit of a voluntary repossession is that you won't have to face the auto lender's cost of repossessing the vehicle.

Repossession is when an auto lender takes possession of your vehicle, sometimes without warning you in advance or having permission from the court. Vehicle repossession laws vary by state; your vehicle purchase contract should include details about how and when your auto lender can repossess your vehicle.

Repossession typically occurs after you fall behind on your auto loan payments. Depending on your contract, your lender may be able to start the repossession process after the first missed payment.