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Hard questions you need to ask yourself when buying a car in Halton Hills

Hard questions you need to ask yourself when buying a car in Halton Hills

Anyone shopping for a car in Canada needs to ask themselves some hard questions before signing on the dotted line, as our Halton Hills auto loans team explains.

 

The first thing you need to work out when looking for the best car loan rate in Halton Hills is what type of vehicle you want to buy. Is it a sedan, SUV, truck, or something in between?

 

Along with the type of vehicle you want to buy, are you going to focus on a hybrid, EV (all-electric), or a conventional internal combustion engine?

 

Only when you have answered each of these questions will you be able to move forward with financing the purchase.

 

Car loans in a post-pandemic Canada

 

We are just starting to adjust to the new normal of living with Covid. Throughout the pandemic, the Bank of Canada was forced to pump money into the economy to keep things afloat, which helped but now inflation is causing prices to rise on everything, including cars.

 

To stop inflation from entering hyperinflation territory, the Bank of Canada is cranking up the prime interest rate.

 

These rising interest rates will increase your borrowing costs, so it behoves (yes, behoves) you to start the process of securing a car loan before interest rates go up.

 

To access these interest rates, you will need a credit score that is over 680.

 

Suppose you are not sure whether your credit score is high enough to access the most competitive interest rates. In that case, you can sign up for free services like Credit Karma and Koho.

 

When accessing your credit report, you can easily identify the accounts that are weighing down your score and work on improving it.

 

Once you have addressed the accounts that are weakening your credit score, you should determine how much cash you can afford to put towards the new Halton Hills car loan.

 

In Canada, the median car loan payment is $500 per month, but that does not include insurance, maintenance, and fuel.

 

Use $1,000 per month as the total cost for your car, and you should be safe. If you are not sure whether you can afford that, create a budget, and it will become clear what you can afford.

 

Securing the best car loan rate in Halton Hills

 

To secure the best car loans in Canada, even if your credit score is not high, is via a car dealership in your area.

 

The dealership has an extensive network of lenders all over Canada, so they can shop around and identify the lenders who are going to provide you with the best car loan.

 

The lender will present you with the offer and also show you the best way to improve your credit score, so going forward, you will be able to access the most competitive financing.

 

When you go through a local dealership, you are all but guaranteed a fantastic deal, so why not contact your local car dealership today and find out what the maximum car loan you can get is?

 

You have nothing to lose and could benefit from the low-interest rates currently being offered.

 

We’d love to help you find the best car loan rate in Halton Hills. Simply fill in the form below and we’ll get back to you ASAP or see our selection of new and used cars at our Brantford dealership. 

 

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