There has never been an easier time to find a great priced car loan in Canada. Interest rates are at all-time lows and will not be going anywhere until well into 2022 if at all.
These low interest rates and challenging economic times present a unique opportunity to consumers like you who are seeking out a great priced car loan in Canada.
Lenders are flush with cash
There is a massive amount of capital available for auto loans. The chartered banks can borrow from the Bank of Canada at a rate of 2.54% and then underwrite auto loans for 5% or higher. These great rates are good news for the banks but even better news for consumers like you who have good credit.
To tap into this great opportunity your credit score will have to meet or exceed the 680 thresholds. You may be able to skirt by with a 670 score but it is not recommended.
Check your credit score now by clicking this link and find out where you stand. There are no costs for these free credit reporting apps so you have nothing to lose.
Making dollars and sense out of the car loan marketplace
Even if you are not in the market for a new car loan, if you currently have a car loan and paying more than 5% you could refinance it and save money.
To refinance your car loan, the first step is to determine what your car is currently worth. You can use websites like Kelly Blue Book for some insight but the only way to know with certainty is to get an official appraisal from a local trusted car dealership.
The dealership will not charge you for the appraisal and at least you will know where things stand.
When you have the appraisal, look at the total balance outstanding and compare it to the appraisal, if the amounts are nearly the same then you should be able to refinance the car loan.
Since cars depreciate rapidly, there is a good chance that you will have negative equity. This technical term means that you owe more money than what the car is currently worth.
You will not be able to refinance a car loan when you have negative equity without putting some money down. To avoid this situation, you might consider buying a new car and having the current loan rolled into the new one.
An immediate benefit is you will be able to drive a new car and your loans will be at a more competitive interest rate.
The only way to fully take advantage of this amazing opportunity is by engaging the services of a great dealership. Some websites will explain all of the steps involved but there is no substitute to experience when it comes to financing these deals.
These dealerships will have access that the average retail consumer would never be able to reach. So now that you understand what steps you need to take to save money on auto loans, contact your local dealership right away and book an appointment.
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 great priced car loan in Canada today!
For any questions or concerns, please don’t hesitate to contact us here!