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How to get a great car loan in 2022

Posted by on Jul 13, 2022 - Archived under Bad Credit Car Loan Tips

Canadians wanting to find amazing deals on a new car loan are in luck, because we’re going to show you how. If you thought you could shop online for the best deals, the short answer is “no”; the Internet is not the best place to find car loans.

If you stay with us until the end of this discussion, you will be able to choose the car loan that fits your needs and situation the best.

Do you work for someone else or are you self-employed?

The first thing we should talk about is whether you work for someone else or for yourself. If you work for yourself, the underwriting process is more complicated because the lender will need more proof that you meet their lending requirements.

Getting a car loan is the same whether you work for yourself or for someone else.

Seriously, how good is your credit?

This might seem like a very personal question, but you need to give an honest answer. Your credit score is the first thing a lender will look at, even before your income.

If your score is over 720, you’re doing great and won’t have any trouble getting good interest rates.

Even if a Canadian’s credit score is less than 700 but at least 600, they can still get a good car loan. They will need help from a professional, which we will explain in a moment.

Do you make enough money to pay back the loan?

After you look at your credit score, the next question that comes to mind is whether or not you make enough money to pay all of your current bills and the new car loan. Lenders use a debt-to-income ratio to figure this out.

If the proposed loan is more than 40% of your income, you won’t be able to get that loan.

Self-employed Canadians will need to give lenders copies of their most recent bank statements and notices of assessments from the government about their taxes.

Without these documents, the loan application will not move forward.

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

We did say we’d tell you where to find the best terms, and we didn’t say it was online. Instead, it’s at a local car dealership.

You will have to do some research to find the dealership with the best track record of making customers happy.

Once you’ve figured out which local dealership is best for you, you’ll need to meet with them in person. During the pandemic, it was okay to do everything through Zoom and the phone, but now there is no good reason or practical reason not to meet in person.

When you go to the dealership, you’ll talk to one of their in-house credit experts. This person will take the time to learn about your situation so that they can find the lender who will give you the best deal.

These credit experts will also show you how to raise your credit score in the easiest way possible. Now that you know how easy it is to get a car loan in Canada, contact a dealership near you right away.

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