Financing in Hagersville

Financing in Hagersville

Posted on June 16, 2022

When you’re in the market for a new (or new to you) vehicle in Hagersville, you’re almost always also in the market for a car loan.  How can you be sure you’re getting a fair deal on your loan and won’t end up struggling to make payments every month?  Let’s look at how car financing works.

Most of us do not have the luxury of being able to pay cash upfront for a car, so we need to take out a loan to pay off whatever remains after our down payment.  If you have a good credit score (over 660), you’ll have no problem getting a car loan from a bank or a dealership, usually with a low interest rate.

Those of us with low credit or none at all, will have a more difficult time.  The good news is that there are car dealers who specialize in low credit lending, and when you make your car loan payments in full and on time every month, you help to improve your credit score!  That means the next time you apply for a loan, you’ll have more options and be eligible for lower interest rates.

Before you decide where to apply for a loan, you can shop around a bit.  When you apply for pre-approval on a loan, your credit score may take a hit.  Luckily, if you apply to several places within a few weeks, it won’t have an impact over and over.  The credit bureaus understand you’re simply looking for the best rates for your budget, and you won’t be penalized for that.

Another benefit of pre-approval is that you know before you start car shopping how much you’ll be able to spend.  This helps temper expectations and lets you find the perfect car within your budget.

Speaking of budget, remember that your monthly car expenses will be more than just your loan payment.  You’ll have insurance, gas, maintenance, & emergency repairs when they pop up.  Be realistic about what you can afford so you don’t end up with more monthly debt than you can handle.

You can apply for financing pre-approval, and shop for your next car all on our site.  At Northway Ford we want to help you get into your next dream car!

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