Our Cambridge car loans team has put together a blueprint of how you can get a low-interest car loan in Canada. While we have made our best effort some variables cannot be controlled, like Government intervention.
What is fueling the low-interest rates
The Bank of Canada has kept interest rates artificially low to protect the economy from the ravages of the pandemic.
These low-interest rates combined with programs like the CERB have kept the economy going but now that inflation is rearing its ugly head, the Bank of Canada is going to start raising rates in early 2022 if not sooner.
Since the window of low-interest rates will be closing soon, you need to take action now. While there are reports that the Bank of Canada will raise the rates next year, lenders are already in the process of raising their rates.
How to get a low-interest car loan in Cambridge
Start by looking at your credit score, lenders are feeling particularly apprehensive since the pandemic is still causing issues in the global economy.
The credit score you should aim for is 700 but if you can get higher than that, it will put you in a position of confidence.
Lenders are facing a dual-edged sword, they have a large amount of capital they have to lend out, since interest rates are low, it takes more loans for the lender to generate the revenue needed to keep their operations going.
The drawback is if they give out loans to people who are not suitable, it will cause bad debts which could put the entire business in jeopardy.
If your credit score is under 700, you can still get a car loan in Cambridge but you will need to work with experts to optimize your chances of success.
Benefits of getting expert help
When you have credit issues, you need someone in your corner that can help you find lenders willing to give you a chance. These experts also have access to wholesale car loans. This means the expert can get you a low-interest rate car loan, it may not be ultra-low because of credit issues but they will still save you money.
If you are wondering where to find these experts, wonder no more, they are at your neighborhood car dealership. The dealership has built a network of lenders across Canada who specialize in a variety of customer profiles including those who have credit issues.
The dealership can negotiate a lower rate because they do a large amount of business with these lenders regularly. The average consumer would never be able to get these preferential rates, only by working with a local dealership can you benefit from the savings being provided.
These same dealerships are there to help you repair your credit as well. They can give you a game plan on what steps you must take to get your credit score over 700, if you follow their advice, you will surely come out on top.
The good news is you can get a low-interest car loan in Cambridge but you have to reach out to your local dealership now.
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!