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How to save money the next time you buy a car in Ontario

Posted by on Jun 30, 2022 - Archived under Bad Credit Car Loan Tips

Our money-saving techniques will help give you the advantage you need if you’re seeking to buy a car in Ontario, where car costs are tracking higher.

Are you looking for a new or used car?

Secondhand cars could be purchased at a large discount, especially when compared to new cars before Covid, but this is no longer the case.

Instead, used car prices have reached all-time highs; the fundamental reason for this is that there aren’t enough new automobiles being produced to match demand.

This increased demand for cars is being impacted by the effects of inflation. It seems everyone wants to buy a car before the costs of borrowing go through the roof.

When demand exceeds supply, we see prices go up. The factories are working around the clock to produce the vehicles we need, but even then, it may take some time for everything to stabilize.

Getting a better deal on a new automobile

One way to save money is by purchasing the demo car that was used for test drives, it may only have a few kilometers on the odometer, but you can get it for a lower price than a vehicle that was never driven at all. Before you even start talking about financing terms. Although there is a scarcity of new cars, this does not preclude you from attempting to negotiate a better offer.

While the dealership may not be able to significantly lower the asking price, they can offer additional benefits such as free tires, oil changes, and maintenance packages.

Keep an open mind when talking promos with the dealership because the usual oil change can easily cost well over $100.

Choosing a zero-percent financing plan is one of the best methods to save cash on your next car purchase. Who could argue with a percentage of zero?

However, while this is an excellent deal, it will only apply to select models, and you will need a very good credit score to qualify.

To be eligible for this form of loan, your credit score must be at least 720, and your income must be sufficient to cover the debt service.

Most lenders won’t give you a loan if your debt-to-income ratio is more than 35%; you should aim to cut some expenses from your household budget to ensure you qualify for zero-percent financing.

Selecting the right dealership

When looking for a new car, you should look for the best dealership in your area. The dealership will not only sell you a car but will also assist you in obtaining the best finance available. These local dealerships are in the customer service industry, and they want you to have a positive experience so that you will return.

Even if you have bad credit and aren’t eligible for a zero-percent loan, the dealership will work with you to get you accepted through their large network of lenders.

You will save money on your next automobile purchase if you follow this blueprint, so start visiting your local dealerships immediately and exploring all of your possibilities.

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!

Let’s get in touch! 

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