Buying a car in Canada has become very convenient and if you follow these money-saving suggestions you will be very happy. Don’t worry, the suggestions are easy to follow and the you’ll feel that much better when you save money buying your next car.
Dealership competition is intense
There is a chronic shortage of new and used cars available in the global market, this has forced car dealerships to bring their “A” game and work hard for your business. This lack of inventory is a dual-edged sword, you will be able to more easily save money buying your next car due to the increased number of offers and incentives, but you may not get the exact car with features you want.
Do you qualify for prime or subprime auto financing?
Prime broadly speaking is a person who has a credit score over 680 and can verify their income. If you are not sure whether your credit score meets that requirement, check out Credit Karma and you will be able to find out your score in a few minutes.
Should your credit score fall below the 680 minimum score, all is not lost. There are a few things you could do to help boost your score. Start by making sure there are no errors inside your credit report that may bring your score down. These errors must be corrected by the credit reporting agency but you must inform the agency about the error (The government requires credit reporting agencies to correct mistakes).
If your score is only a few points below the minimum, you may be able to discuss your situation with the lender. You will need the help of a local car dealership to communicate your situation with the lender. One possible solution is to have someone help cosign the loan with you, this cosigner must have good credit but it will help you qualify for the most competitive interest rates possible.
Selecting the right car dealership is important so you should look over the reviews that were posted by other people who recently dealt with the dealership. You will never find a dealership that has a perfect reputation, but focus on the dealership that has the largest number of positive reviews and you can’t go wrong.
Selecting a car with great resale value
After you have selected the lender that can provide you with very competitive interest rates based on your credit profile you need to pick a great car. You should select a car that preserves its value over time, Toyota Rav 4 is an example of a vehicle that holds value but you should pick the car that best suits your preferences.
If you are buying a used car, you should take the extended warranty for added peace of mind. New cars come with a 5 year/100,000 miles warranty but if you are buying a used car the warranty may not cover you for the entirety of the loan.
By sticking with these suggestions, you will be able to save money buying your next car in Canada. Just remember to take your time, do not feel like you have to make a decision today. Buying a car is a major financial commitment and you want to feel completely comfortable with that decision.
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!