Easiest way to get a great car loan in Canada

Posted by on Jul 07, 2022 - Archived under Bad Credit Car Loan Tips

Canadians looking for the easiest way to get a great car loan are in luck, we are going to show you the way, and the short answer is “no”; the Internet is not the best source of car loans.

If you stick with us until you reach the end of this discussion, you will be able to select the car loan that is truly best suited for your unique needs and situation.

Are you employed or self-employed?

The first thing we should address is whether you are classified as employed or self-employed. If you are self-employed, the underwriting process is more complex because the lender will need additional documentation to determine whether you meet their lending requirements.

Whether you are self-employed or employed, there are some universal truths that must be faced when trying to secure a car loan.

What is your credit score?

This may seem like a very personal question, but one you need to answer truthfully. The very first thing any lender will look at before your income is your credit score.

If your score is over 700, you are in great shape and will have no problems accessing competitive interest rates.

Canadians who have a credit score that is under 700 but at least 600 can still get a competitive car loan; they will need expert help, which we will explain in a little bit.

Are you earning enough money to service your loan?

The next question that comes to mind after reviewing your credit score is whether you are earning enough money to pay all of your current obligations plus the new car loan going forward.

To determine this, lenders use a debt-to-income ratio that cannot exceed forty percent; if the proposed loan exceeds that amount, you will not qualify for that loan.

Self-employed Canadians will need to provide lenders with copies of their latest bank account statements and income tax notice of assessments; without those documents, the loan application will not move forward.

Where to get a car loan with the best terms in Canada

We did promise we would tell you where to get the best terms isn’t online as mentioned; it is through a local car dealership.

You will need to do some homework to find the dealership with the best customer satisfaction track record.

After you have figured out which local dealership is the one best suited for your situation, you must meet up with them in person.

During the pandemic, it was considered acceptable to do everything via Zoom and over the phone, but now there is no legitimate or practical not to meet up in person.

When you go to the dealership, you will speak with their in-house credit experts, these experts will take their time to understand your situation, so they can pick the lender that is going to provide you with the best deal.

These credit experts will also show you the easiest way to raise your credit score. Now that you know the easiest way to get a car loan in Canada, reach out to your local dealership today.

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! 

Dixie Auto Loans