If you want to save money on your next car purchase, the tips put together by our Guelph auto loans team will give you a distinct advantage.
Some people live near the U.S. border and have considered heading south in the hopes of getting a better deal. There is no denying that the prices of cars south of the border are much lower (even when factoring in foreign exchange rates), than compared to what we are paying here in Canada.
There are a few reasons why this is happening but it simply comes down to an economy of scale. The U.S. is 10x the size of the Canadian population, since more cars are being sold, the cost per car is lower than what is being charged in Canada.
Getting approved for your Guelph car loan
A recommended approach is to get approved for a car loan in Guelph before you go for a test drive. By knowing what you can afford, you will be able to narrow down your prospects to cars that fall within your budget.
While on the topic of budget, have you factored in the cost of insuring and maintaining the car? We are not trying to be a buzzkill, just want to protect you from any unexpected expenses.
Some websites do provide pre-approvals but you should not give out your details to them. You should instead apply for preapproval with a local dealership that is fully licensed and insured.
To get preapproved for a Guelph car loan, you will need to provide some information.
The first thing that lenders look at is your credit score, if your score is under 700, you can get a car loan but the interest rate will be higher.
This would be a great time for you to work on improving your credit score so you do not have to pay higher interest rates than what is necessary.
There are no hidden secrets when it comes to repairing your credit, just make a promise to yourself that no matter what, you will pay your bills on time. By sticking to that promise, your credit score will begin to rise.
Lenders are also going to look at your income to see how much you make. Based on your credit score and income, the lender will let you know what is the maximum loan you can secure.
Having a long term strategy
When you have a preapproval in place, you can start scheduling test drives at your local car dealership. If you are having credit issues, the dealership can help you refinance your Guelph car loan in 12-18 months after your credit score has risen to the 700 range.
The best way to get a competitive car loan at an affordable interest rate is by going through a dealership. Do not be fooled by the websites that offer “the lowest interest rates” or “all credit types approved”, the local dealership is the only way you can save money and still get a car you like.
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!