It is a major financial decision to buy a car in Flamborough that should not be taken lightly. There is a checklist of questions that you should answer before you put the key in the ignition and drive off in your new car and we’re going to share some of it today.
Our auto loans team explains a few things to be aware of the next time you go buy a car in Flamborough. Use them well!
Do you truly need a new car?
To some people, their car is an extension of themselves and their identity. The premise is that if you are successful, you should be driving a brand new car. If you are not driving a new car then somehow your life is incomplete.
While this may seem like a crude observation, someone may buy a car in Flamborough they cannot afford out of fear of looking inferior.
If you truly need a new car then you should figure out whether your budget has sufficient room to service the car loan.
How car loans in Flamborough work
There are a few things you will need to provide to qualify for an auto loan in Flamborough. The first is a piece of government-issued ID, usually a driver’s license or passport. Identity theft is rampant in Canada so lenders must check the identity of prospective borrowers.
The lender will want to review your credit report and credit score. A lender cannot refuse to offer you service based on your race, religion, or sexual orientation and why would they? The lender just wants to know if you are financially responsible and capable of repaying the auto loan.
If you know your credit is less than perfect, you should explain your situation to the auto loan provider before they pull your credit report. Explaining your special circumstances will demonstrate you are forthcoming and willing to take ownership of your financial situation.
Sources of income
Auto lenders need to determine whether you make enough money to pay the loan on an ongoing basis. While no one can accurately predict the future, the consensus is that if a person has paid their bills faithfully, they are likely to continue to do so.
The lender will typically let you carry no more than 35% debt to income, so if you added up all of your monthly credit card bills and the proposed car loan then divide it by your total income. If the result is less than 35% then you would qualify for the loan.
Selecting a reliable car
Now that you know what is the maximum Flamborough auto loan you qualify for, the next step is to begin looking at different cars to try and pick the one that you deem most appropriate for you. Invest some serious time in this step since you are going to have the car for many years to come.
There is currently a limited inventory of new and used cars to choose from, industry experts say it could be a few more years before things stabilize.
Take this scarcity into consideration when picking a car, you may not get the color you want or exact features but you will still get a great car.
It would be prudent on your end to shop around for competitive auto insurance when you buy a car in Flamborough. There are many auto insurers to choose from and depending on which province you live in, the rates could differ.
Just be sure to purchase more insurance and not take the bare minimum. It is better to have too much insurance and not need it than to have too little and need it!
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!