Car prices are on the rise, and if you are in the market for a new car, then our money-saving tips will get you a great priced car loan in Guelph. In addition, there has been a tremendous amount of deregulation in the automotive financing sector, which is great news for consumers; you are no longer forced to rely on your local bank for car loans.
A closer look at car financing
Car financing has evolved since the onset of the Covid-19 pandemic. There are people who apply for their car loan online and even buy a car without taking it for a test drive!
While online shopping is great for routine purchases, you need to take a more hands-on approach when making a major financial decision like buying a car.
Another drawback to applying for financing online is the interest rates are traditionally retail rates. If you stick with our suggestions, you will be able to access wholesale interest rates, which translates into substantial savings.
Understanding the role credit plays in your car loan
Your credit score is the first thing a lender will look at; based on your score, the prospective lender will be able to determine whether you meet their underwriting requirements.
There are lenders who focus solely on prime borrowers; this is consumers with a credit score of 720 or higher.
Don’t worry; even if you do not have perfect credit, there will be lenders that will give you a car loan.
Check out your credit score with both Equifax and TransUnion before you start shopping around. These credit reporting agencies will have their own scoring model, and you want to protect yourself from any unexpected surprises.
When you get the credit report, if you notice mistakes that do happen from time to time, go through the official dispute process and get them removed. These errors could end up costing you thousands in the future!
Financial health check
After you have looked over your credit, the next item is your financial situation. Do you have a reliable income?
If so, prospective lenders will request documentation that proves that claim. Again, you can get ahead by downloading your latest payslips and/or your bank statements.
These bank statements are especially important if you are self-employed or derive some of your income from self-employed activities.
Accessing a Great Priced Car Loan in Guelph
We mentioned that online lenders offer retail car loans, and you want to get a wholesale deal.
To access those deals, you must go through a dealership in your area. The traditional brick-and-mortar dealership will be able to provide you with loans that no one else can access.
Lenders offer these preferential rates to dealerships because the dealership can bring them qualified customers, so it is the proverbial win-win relationship.
There is a limited number of cars available in Canada, so going through a dealership will give you access to cars that you can buy today!
Along with being able to help you save money, the dealership can provide help if you are having any credit challenges.
Click here to get approved for your next car loan online today! we have a team of credit specialists ready to help you with buying a car with poor credit score, and will work with you no matter your credit score.
For any questions or concerns, please don’t hesitate to contact us here!