Quick Guide to Great Car Loans in Lincoln ON for 2022

Quick Guide to Great Car Loans in Lincoln ON for 2022

Posted on January 11, 2022

The average price of a new car in Canada, is over $40,000 and rising monthly. If you are thinking about buying a car, you will need to get some financing lined up.

Our Lincoln auto loans team has put together some tips that will help you get the best possible terms on great car loans in Lincoln for 2022.

Are you buying a new or used car?

The interest rate you pay on a previously owned car will always be higher than what you pay on a brand new car.

One of the reasons new cars have a lower interest rate is the carmakers have sales targets they want to achieve.

One way to reach those goals is by offering low interest rate car loans. Car manufacturers do not make any money from the sales of used cars, so the interest rate on these loans is higher.

Understanding the role that credit plays

Whether you are planning on buying a new or used car, your credit score can make or break the deal. If you have credit issues, the interest rate being charged could be two or three times more than what a person with good credit would pay.

If you are not sure how to differentiate “good credit” from “bad credit”, anything over 680, is good and anything below 600 is considered bad. In Canada, the median credit score is around 650.

Most common causes of bad credit

There are a few common reasons that a person has bad credit. Not paying your bills on time is by far the most common reason. Missing a payment, even though it was an accident will send your credit score tumbling!

Thanks to technology, there is no reason for you to miss making your payments on time again.

Are you carrying large balances on your credit card? The interest rate being charged on credit cards is quite high, so it would be smart to pay them off. If you are carrying more too much debt, your credit score will drop.

Selecting the right car for your needs

Are you planning on getting a hybrid or EV? EVs make sense if you live in a urban area where you can easily find charging stations for your vehicle. If you live in rural parts of Canada, then a hybrid is your best bet.

Mustang Mach E GT (EV)

Securing the best financing terms for your new car purchase

We touched on why you need a great credit score, our focus needs to shift on how to get the best financing. You will not be able to find the most competitive car loans online.

Your local car dealership is by far, the best place to get a competitive car loan. These dealerships have cars for sale in their inventory, which is quite appealing given the lack of cars for sale across Ontario.

If you are serious about buying a new car, you need to head over to your local dealership and start going for test drives. You will know after the test drive, which car is the right one for you.

When you’re ready to look at great car loans in Lincoln, get in touch with the auto loan experts at Northway Ford for great deals on auto finance.

For any questions, concerns, or inquiries. Please don’t hesitate to contact us here! 

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