If you want to in save money on your next car loan, our approach will put you on the path to success. Interest rates on cars are at historic lows, but those rates will rise in 2022, so you need to start shopping around for a great deal.
Haste makes waste
The car market is overheating, and you may feel intense pressure to make a buying decision, but that could put you at a disadvantage.
Have you given much thought to what type of vehicle you are interested in buying? There is a societal push towards hybrid and all-electric vehicles (EVs).
We cannot tell you which kind of vehicle is right for you, however, we can tell you that the average asking price for an internal combustion engine (ICE) car is $40,000+ and the EVs are north of $50,000 this is serious money.
Types of car loans
Generally speaking, there are prime and subprime car loans available. It all comes down to your credit score. If your score is 650+, you should easily be able to save money on your next car loan.
Borrowers with a credit score under 650 will usually fall under subprime, which comes with higher interest rates. You can check your credit score for free by going to Equifax and TransUnion.
This would be a great time to review your budget and financial obligations. If your credit score is low, you should commit to paying all of your bills on time. By simply paying your bills on time, your credit score will begin to rise.
Lenders want predictability
All lenders are looking for predictability, especially when it comes to income. Lenders will ask you to show proof of income before they will approve your loan. One way to prove your income is by giving the lender copies of your bank statements for the last few months. Lenders will use this to confirm your income is stable and the total amount.
After the income and credit score have been reviewed, you will get an offer from the lender, but this offer will not be the most competitive deal out there.
You must go through a car dealership if you want the best deal. The dealership can access the most competitive lenders in all of Canada. The lenders you find online may have competitive rates, but those are retail, and dealerships will have access to wholesale rates.
To find the dealership that is the best choice, you can look for reviews that other consumers left. The dealership with the best overall reputation in your area should be the one you visit.
The dealership isn’t just trying to sell you a car. They want a long-term relationship. So if you have credit challenges, the dealership will have their in-house credit experts give you some credit rebuilding tips.
Since you made it this far in the conversation, you should head over to your dealership right now and find the car best suited for your needs.
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 save money on your next car loan today!
For any questions or concerns, please don’t hesitate to contact us here!