You need to understand some key things when buying a car in Canada. Unless you have $50,000 in your bank account, you will need to secure financing. The suggestions we provide will help level the playing field so that you’ll have no problem paying for a car loan in grimsby.
Car prices are rising monthly
Inflation is wreaking havoc on the entire Canadian economy including paying for a car loan in Grimsby, and no area is spared. The likely culprit is Covid-19, but here we are two years into the pandemic, and the Bank of Canada needs to stop printing money before we experience hyperinflation.
Inflation is like a tax that no one asked for, it eats up the buying power of everyone and those who are on fixed budgets are most at risk.
A typical no-frills new car will easily set you back $50,000; this high price is compounded by the rising prices being charged for food, energy, and everything else in the economy.
Unfortunately, wages are not able to keep pace, so consumers are using debt to make up the shortfall.
Credit is more important now than ever
Debt financing is the only way that we can finance major purchases; the days of saving up enough to pay cash are long gone.
In order to access credit, your credit score is going to impact whether you can get approved for a loan and at what interest rate.
To secure a competitive interest rate car loan, your score must be 700 or higher. Generally speaking, you can get a loan if your credit score is at least 600, but you will be forced to pay a hefty premium for that benefit.
You need to review your credit score by signing up with Equifax and TransUnion right away.
There is no cost for the service, so you do not have a legitimate excuse to avoid signing up today.
After you have access to your credit scores, you can identify whether you have a high enough score or if you need to take remedial action.
How to boost your credit score
The first step is to find out which accounts, if any, are not current. Having overdue accounts really take a toll on your credit score. However, once you bring those accounts up to date, your score will rise in as little as 30 days.
Another option is to reduce the total amount of debt you are carrying to below 30%; by keeping your credit utilization rate below that level, your credit score will rise.
How to get an outstanding car loan
The only way you can access a great car loan is through a dealership; there is no organization capable of getting you a better deal.
Furthermore, these dealerships already have the network of lenders they work with on a daily basis, so they will know which lender is the most likely to approve the loan.
This is an invaluable service, especially with the limited number of cars out there to choose from; the dealership will have cars that you can drive home right after you sign on the dotted line.
These are our tips for paying for a car loan in Grimsby! Click here to get approved for your next car loan online today! we have a team of credit specialists ready to help you easily buy a car with low 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!