Whether you are in the market for a new or used car, the tips we have prepared will help protect you from making the wrong decision.
We asked our St. Catharines auto loans team to collect a few useful tips to help anyone buy a car in what is an interesting time!
New or Used
There has been a massive surge in the demand for used cars, the demand is insatiable and has created a shortage of both new and used cars.
Without getting overly technical, there are some benefits associated with getting a used car. Typically, when we hear the word “used car”, images of a vehicle well past its prime come to mind.
If you buy a used car from a dealership, it will usually only be a few years old and in most cases still, be under warranty. The challenge is to do your research and pick the make/model of car that is going to best suit your budget and needs.
Competitive auto loans in St. Catharines
Another important consideration is securing the most competitive St. Catharines auto loan. Don’t try to get a competitive auto loan online, these websites cannot hold a candle to the deals that a local dealership can offer.
These dealerships underwrite car loans daily and have the ability to get a lender to give you a super low rate. While the dealership can get you a great interest rate if you have awesome credit, the dealership excels when it comes to getting auto loans for customers with credit issues.
Assessing your credit score and financial situation
The dealership can pull your credit score on their end but you should take a look at your score with apps like Credit Karma.
While reviewing the credit score, take a look at your report and note if there are any mistakes. The mistakes inside the report may have a negative impact, so always have these mistakes corrected as soon as you become aware of them.
Most Canadians have not learned about credit in school so there are some general rules you should follow. Always pay at least the minimum balance by the due date, if you can pay more you should but at the very least pay the minimum.
The credit scoring model uses a variety of different factors when calculating a score but the biggest factor is your payment history.
By making your payments on time, your credit score is going to climb higher.
Why it pays to work with a local car dealership
The dealership is going to give you a detailed overview of the steps you must take if you want to qualify for a prime interest rate auto loan.
A common practice is to take a higher interest auto loan, so you can get a new car right away. After a year or two of following the advice provided by the dealership, you will be able to refinance the auto loan at a more competitive interest rate. With the resale value of used cars at all-time highs, you will have no challenges refinancing your auto loan provided you pick the right local dealership
If you stick with the car buying tips we have provided, you should not have any problems getting a great new car.
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!
For any questions or concerns, please don’t hesitate to contact us here!