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Car Financing Mistakes to Avoid in Waterdown

Car Financing Mistakes to Avoid in Waterdown

There are some mistakes you can avoid when financing a car in Canada. By following these tips, you will save thousands of dollars and still get a great car in the process.

 

These tips were put together by our very experienced Waterdown auto loans team. They are designed to help you avoid common car financing mistakes they see every day.

 

Timing the car buying market

 

There are a few times in the year when you can get a really good deal on a new car.

 

End-of-the-year promotions are a great time to start shopping for a new car. Carmakers will usually have their new makes and models out around November and dealerships must make room.

 

While the car you are looking at is 1 year older than the latest models, the car was never driven so it is still new. The savings could be in the thousands depending on the car and dealership you are dealing with.

 

Another great time to visit a dealership is at the end of the month or quarter, the salesperson is chasing their quota and will do their best to cut a deal.

 

Take advantage of dealer financing

 

Dealerships will offer in-house financing but you must meet their lending requirements to enjoy the preferential interest rates being quoted.

 

The dealership will need to check your credit score to determine whether you would be eligible for the in-house financing that is being offered. Credit scores that are 680 or higher would qualify as “good credit”.

 

You may be thinking about applying online to get your financing in place before going to a dealership.

 

Some websites will promote lower interest rates than what the local dealership can offer. While it may seem like a no-brainer to take the lower rate, you have to think about the overall level of customer service and support you will receive.

 

When you go through a dealership, they will help you find the car that is best suited for your needs and budget. These dealerships will also go above and beyond by supporting you after you purchase the car.

 

The lenders that you find online, will not be as committed to your overall buying experience.

 

If you are an individual who has less than ideal credit, your local dealership will be able to help you get the Waterdown auto loan approved.

 

Online lenders make binary decisions based solely on the data gleaned from your credit report. With the dealership, they get to know you and your unique circumstances.

 

Make your life easier by boosting your credit score

 

There are credit repair websites that will help raise your credit score in a short amount of time. These firms are often snake oil salesmen and we recommend you don’t use their services.

 

The only sure way to safely boost your credit score is by paying your bills on time and keeping your debt levels at a manageable level.  As a rule, keep your debts to less than 35% of your monthly income and you will be fine.

 

Credit scores do change every month, so you should see your score improve after a few months. You can install free credit reporting apps on your phone to keep tabs on things. By fixing your credit and working with a reputable car dealership, you will avoid most of the common mistakes that Canadians make when buying a car.

 

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

 

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Categories: Car Loan

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