Shopping for a new car should be an exciting time full of optimism and anticipation but it isn’t always like that. But, if you follow our tips and plan properly, it can really make the car buying process easier.
We asked our Glen Abbey auto loans team to outline a few tips that can help make the car buying process easier and less stressful in general. This is what they came up with.
Set a budget first
The single most important piece of advice we can offer is to set your budget before you go looking at cars. Knowing what you can afford to borrow will tell you how much you can afford to borrow and then spend on a car.
Knowing this from the off should help frame your search and help make your car buying process easier by ensuring you buy the right car for your needs without overspending.
Shop for the auto loan before the car
Once you have a provisional budget, you can refine that by getting a better idea of the costs and rates of auto loans.
Use an auto loan calculator and then get prequalified for an auto loan so you can see in black and white how much you’ll have to spend. Do this early on and, like budgeting, you can frame your car search by affordability rather than try to make your budget fit the car you want.
We can help you assess auto loan affordability and set a realistic budget for a new car.
Research dealerships as well as cars
If you’re anything like us, you’ll research cars, makes models, trims, technology and safety features exhaustively before making a decision.
We recommend also researching dealerships. Check reviews, check with anyone you know who has used a dealership and perform your due diligence.
The quality of the dealership you use can be as influential as anything else when buying a new car.
Dealerships like Car Nation Canada do everything they can to make the purchase process as enjoyable as possible. That makes them worth checking out when it comes time.
Don’t forget other expenses
When you’re budgeting for your new car, don’t forget to factor in insurance, gas mileage, parts and servicing costs, fast charger installation and anything else that comes with it.
Many an auto loan application has been undone by not taking into account monthly gas and insurance costs and we don’t want that to happen to you!
Consider GAP insurance
There aren’t many optional extras we would recommend as much as GAP insurance. While not suitable for everybody, if you’re buying a car on finance, it is something you should consider.
GAP insurance is designed to make up the difference between what an insurer assesses a car is worth with the amount of loan outstanding.
If your car is written off for any reason, your insurer will only pay you market rate and not the amount you might have outstanding. If you’re in negative equity or are still early on in the loan, there could be quite a difference between market value and the amount outstanding.
GAP insurance is designed to address that.
For those of you who know that you have a challenging credit situation, please visit Dixie Auto Loans where we have a team of credit specialists ready to help you get approved for a car loan today!
For any questions or concerns, please don’t hesitate to contact us here!