Re: Best way to finance a used car

[plucky duck]

gman is correct. You have to cover the difference that insurance doesn't cover in the case of a write off.

If you buy a new car CAA offers you new car insurance, they'll pay you the purchase price of the vehicle if it is written off within 2yrs. They offered it to us when we bought our new car.

[Kenneth]

Of course, it does. You are the one who borrow the money. The car is the security. But, if the car value cannot cover the loan, the bank will go after you.

That is the balance is $10,000. Insurance pays $5000. The bank will go after you for $5000 unless the bank has a special provision to give you a special arrangement.

I've only dealt with RBC; so maybe i'm wrong then. Might look into this.