Buying a new car is a major financial decision and not one you should make on a whim. However, we want to provide some tips to save money on a new car loan on Cambridge to help you a better-informed buying decision; there is a lot of ground to cover in a short amount of time so let us begin.
Do you have a defined car-buying budget?
With the median new car price over $40k and closer to $50k, you should have a budget in place.
Both the new and used car markets are on fire, far outpacing inflation which is tracking north of 5% monthly.
Lenders who issue car loans in Canada have a standard debt-to-income ratio they use when underwriting a car loan.
The most they will lend is 35% of your monthly gross income; if you make $10,000 per month, then the most debt you can have, including a new car loan, is $3,500 per month.
This is predicated on you having a high enough credit score to qualify for a low-interest rate car loan.
Checking your credit score at regular intervals
You should always know what your credit score is, so you are never caught off-guard when applying for credit.
The last thing you want is to be in a situation where you need to buy a car quickly, but your credit score is not high enough to secure the best terms.
It would be prudent to sign up with both TransUnion and Equifax so you know what each agency is reporting and nip any error in the bud before they weigh down your credit score.
The law forces credit reporting agencies to correct any mistakes that do appear inside your report, but you must come forward and go through the proper dispute channel.
Picking the right vehicle
Gas prices are high and getting higher by the day. You will need to give some thought to what type of engine you want in your new car.
Are you going for a hybrid that can help you reduce your fuel consumption, at least while driving in the city and then using gasoline as the fuel of choice when traveling at highway speed?
Whatever you choose, it needs to have good fuel economy, or you are going to end up spending more on gas than the actual vehicle.
Best way to Save Money on a New Car Loan in Cambridge
Since you want to find a great deal on a new car, head over to your local dealership and start reviewing the various options that are available.
The dealership will be able to show you all of the different loan options that are available throughout Canada; there are lenders that only work with dealerships, so you need to go through the dealership to access the best deal.
While working with the dealership, they can help you repair your credit if you had issues in the past, so you are able to get the most competitive car loans in Canada on a going-forward basis.
We have shown you what steps you need to take when buying a car; contact your dealership today
Click here to get approved for your next car loan online today! we have a team of credit specialists ready to help you save money on a new car loan in Cambridge and will work with you no matter your credit score.
For any questions or concerns, please don’t hesitate to contact us here!