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Best province to buy a car in Canada

Best province to buy a car in Canada

If you are wondering what is the best province in Canada to buy a car, we are here to help. Before we head down the rabbit hole and try to identify the best province, we should take a little time and look at how car loans work.

What goes into a car loan?

The average Canadian has a car loan, but they do not know all of the work that goes on behind the scenes to make the loan happen; they just focus on how much they need to pay each month.

When a person goes to buy a car, they need a loan, and that all starts with an application.

Whether you fill it out online (strongly advise against this approach) or with a dealership (highly recommend). Your details are keyed into a SaaS which is connected to a lender network.

These lenders have predetermined criteria in place of what type of lenders they are interested in doing business with, people with a specific credit score and income.

If you meet that criterion, then you are pre-approved for the loan, subject to final underwriting.

In the past, this was a labour-intensive, manual task, but thanks to automation, you can get a decision in a matter of minutes.

Where the dealership helps is they have the ability to bid down your car loan interest rate to something substantially lower than what you would get if you tried to secure the loan by yourself.

Giving yourself a better than average chance of success when it comes to getting a car loan

Lenders cannot base their lending decision on whether you are a good person or not; they have to use data that is unbiased; otherwise, they would be sued by everyone they did not approve a loan for.

The way you can make your loan application stand out from the others is by making sure your credit score is as high as it possibly can be.

To do that, you can sign up with free apps like Credit Karma; these apps give you access to your credit report and score.

When you have access to the report, note whether you have any accounts that are past due or if they are nearly at their maximum available credit limit. Carrying too much debt is one of the main reasons a person will have a low credit score.

Best province to get a great car loan

All things being equal, your best option is to work with a local car dealership in Ontario. Since this is one of the largest provinces population-wise, it originates the largest number of car loans.

Lenders in Ontario are all aggressively fighting for market share, so you are more likely to have multiple lenders to choose from compared to borrowers in New Brunswick, where the smaller population means there are fewer lenders willing to do business.

You should consider contacting your local car dealership soon and start reviewing your car buying options. With prices on the rise, locking in a great car loan may be the best decision you will make in 2022.

When you’re ready for a car lease or loan, get in touch with the Canadian auto loan experts at Northway Ford for great deals on auto finance.

Categories: Car Loan

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