Canadians wanting to get a car loan have a variety of great options available to them. There are some important things you will need to understand if you want to get the best deal.
Tips our Flamborough auto loans team are willing to share to help every Canadian access competitive credit for their next new car.
What is your car-buying budget?
This is a complex question because there are many variables at play. The first is how much cash you have available per month that can go towards a Flamborough car loan but you also have to think about your current and future car needs.
It may come as a surprise but the average price of a new car in Canada is well over $40,000 and the benchmark is constantly rising due to inflation.
Since car prices are rising faster than incomes, you will need to get a car loan ASAP or you will have a hard time being able to buy a new car.
When you have a rough idea of how much per month you can put towards a car loan, the next step is to look at your overall financial health to see if you are a candidate for a great car loan in Flamborough.
Credit score and income verification
Your credit score is the primary thing lenders look at and if your score is well below the minimum of 680, your application could be automatically rejected.
There are free credit checking services online, you just need to select the one you prefer.
You should scour your credit report and if there are any unpaid collections or delinquent accounts, those are the ones that need to be dealt with immediately. No car loan provider will approve a loan if you have outstanding debts.
It will take roughly 1 month after you have paid those accounts before it is reflected on your credit report, which is why you need to be very proactive.
After you have cleaned up the credit issues, you can prepare your income verification documents.
Lenders are exercising a greater degree of caution when granting credit and want to see your bank statements.
The bank statements will show how much money is coming in and whether those payments are regular. The prospective lender needs to average out your income to figure out how much you bring in each month.
When the lender has determined what is your average monthly income is, they can quickly decide what is the maximum loan you can repay.
Path of least resistance
We have covered a lot of information about how to get a car loan in Flamborough, but there is a much simpler and easier way to get a great car loan.
You can go to a local car dealership and apply through their network of lenders.
The local dealerships have access to lenders from all across Canada and can get you interest rates that you could never access online. These dealerships also have staff that can help you with any credit problems you may have.
By going through the local dealerships, you are getting the best rates with the least amount of hassle so you should reach out to them now and discuss your options.
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!