Looking to upgrade your driving experience with a vehicle that’s versatile, road-friendly, and affords you plenty of space for the whole family? Sport Utlilty Vehicles (SUVs) are consistently among the top selling cars in Canada for good reason. As a more compact, but still hardy alternative to trucks, SUVs come equipped with various features tailored for comfort, safety, off-road capability, and performance.
For those looking to purchase an SUV, getting a loan is often one of the best ways to bridge any financial gaps and get the car you need without having to save to afford the entire cost of a brand new vehicle. While financing gets you behind the wheel today, it does require some careful consideration before applying for a loan, especially when it comes to accommodating the higher cost that often accompanies new car models with enhanced features and upgraded designs.
At Auto Loan Hub, we believe that Canadians should be able to purchase a new vehicle with confidence. We know that auto loans can be confusing for many consumers and are here to help you get behind the wheel of your dream ride with ease. Below, we’ll cover some of the SUV features that may affect your loan, and what you need to consider while vehicle shopping. Read on to learn more!
All-Wheel Drive (AWD) vs. Two-Wheel Drive (2WD)
In Canada, where winter weather can be harsh and unpredictable, many drivers benefit from all-wheel drive (AWD) when it comes to conquering snow and icy road conditions. AWD, also known as 4-wheel-drive or 4WD provides better traction on difficult terrain by evening distributing power to all four wheels as opposed to the standard 2 wheel (2WD) set up found in most sedans. For those who want extra safety and support in challenging road conditions, AWD can be invaluable, but it’s important to note that it often comes a higher total vehicle cost. This may mean higher monthly rates for buyers to plan around, however the increased resale value of AWD vehicles can help offset this somewhat in the future. Consider if the added safety and traction offered by AWD is worthwhile for your needs, and therefore worth the extra upfront loan costs.
Hybrid or Electric SUVs
Canadians are more focused than ever on the environmental impact of vehicles, and as the government pushes for a future founded on sustainable energy, hybrid and electric SUVs have become increasingly popular. While hybrid models reduce fuel consumption and electric models eliminate it altogether, their newer technology means that there is a higher upfront cost compared to standard gasoline or diesel models. As with enhanced features like AWD, this will may also be reflected in your loan terms. Certain government incentives may help to offset some of these costs, so it’s wise to do some homework before you buy to see what you may be eligible for.
Advanced Safety and Technology Packages
Families often select SUVs due to their safety and space, with many models offering advanced features like adaptive cruise control, blind-spot monitoring, lane departure warnings, and automated braking systems alongside more luxury focused features like leather interiors, sunroofs, and more. While these features can be incredibly beneficial to your driving experience, the higher cost associated with their inclusion, like the add-ons above, will most likely contribute to a larger auto loan and higher monthly payments.
Towing Capacity and Off-Road Capabilities
Finally, many Canadians love the versatility offered by SUVs, which give you the ability to tow and haul recreational vehicles and equipment without taking up as much space as a conventional truck. Vehicles with enhanced towing capacity or off-road packages, including features like skid plates, reinforced suspension, or hill-descent control, are perfect for adventurous drivers but come with a higher price tag; when looking at these models, consider how significant your need is for these specific add-ons. For those who routinely go off-roading or who want to be able to haul a travel trailer regularly the extra spend may be a no-brainer, but for those who might only benefit from enhanced specs a couple of times a year, you may want to hold off on things that will boost your monthly payments.
Find the Right SUV for Your Needs with Auto Loan Hub
SUV features like AWD, hybrid engines, advanced safety packages, and luxury options can enhance your driving experience, but do come with added considerations when it comes to budgeting and auto loan terms. At Auto Loan Hub, we understand the complexities of financing an SUV in Canada and are happy to provide users with a hassle free experience that helps you find the right vehicle for your unique needs.
Contact us today to explore your options!
