Car Financing Tips That'll Make Your Experience Way Easier

Car Financing Tips That'll Make Your Experience Way Easier

Posted on September 30, 2022

Buying a car is a major life event so we have compiled some golden rules that will help make the overall experience a pleasant one. Even if you have purchased numerous cars in the past, it would not hurt to add these tips for financing a car loan to your current process.

We tasked our Woodstock auto loans team to collect some useful, actionable tips for financing a car loan.

Don’t buy cars based on the colour or because your friends have one

The first of the tips for financing a car is never buy a certain vehicle because your friends or neighbours purchased one. Each person has their unique driving requirements and what your friends or neighbors require may not match your situation.

If you have a few children then buying a 2-seater coupe would not be ideal, even if you want one. Also, some cars have a terrible reliability track record, so always look for customer reviews to identify which models to avoid.

Wait until year-end before buying a new car

Auto manufacturers typically release their newest vehicles around the end of the calendar year. These new vehicles put pressure on dealerships that need to make room for these new vehicles.

To move the old inventory, these dealerships will offer incentives, price reductions, and very competitive financing.

Get multiple financing quotes before settling on one

If you are going through a dealership for financing, they could make it seem that you are getting a great deal with them and there is no point shopping around, simply “sign here and drive away”.

While that is a very tempting offer, it could be a costly decision over the long run.

Always compare auto loans before you sign anything. If our dealership is the most competitive, you’ll rest easier knowing that for a fact!

Leveraging the power of the internet

Some websites specialize in providing auto financing quotes in Woodstock. They make money from the various lenders who pay to advertise on the platform.

The websites are not the actual lender but get some basic information from you and based on that, they will have the various lenders contact you with a quote.

These quotes can range dramatically in tenure and interest rates, so read the fine print carefully.

The quotes that you receive are non-binding, this means you do not have to accept them. To “lock-in” those quotes you would need to go through the loan underwriting process.

Each lender has its unique way of processing a loan application but most follow a common theme.

• The lender needs to know if you can afford the loan, should they offer and you accept it. The lender must look at your income documents, if you are unable to provide payslips/bank statements then the lender would not be able to offer you a Woodstock auto loan.
• Are you responsible with your money? If you receive a large income but don’t pay your bills on time as promised, then no lender would want to do business with you. The best way to determine if someone is financially responsible is by looking at their credit score.

If you can document your income and have a credit score over 650, your chances of getting a competitive auto loan are quite high.

After you have compiled the various auto financing offers from your local dealership and online sources, it is time to pick the one that best suits your needs.

This is a decision that only you can make but if you use our tips, it should be smooth sailing!

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

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