Tips for Finding a Great Deal on a Car Loan in Dunnville

Tips for Finding a Great Deal on a Car Loan in Dunnville

Posted on August 20, 2021

An auto loan is a significant expense and something you’re going to be living with for a few years. That makes getting a great deal on a car loan in Dunnville essential as it could have a far reaching impact on your financial wellbeing.

We asked our auto loans team to come up with some straightforward tips for getting a great deal on a car loan in Dunnville. This is what they suggest.

Do your math before you go car shopping

Setting your budget and calculating the total cost of the loan before you do anything else is one of our most popular tips. It’s part practical and part psychological and definitely works.

The practical part will tell you exactly how much you have to spend, how much an auto loan will cost you each month and how much of a down payment you’ll need.

The psychological part will tell you the maximum you can spend on a car before you go car shopping. This helps set expectations and should prevent you being talked into spending more when in the dealership.

Total cost over monthly cost

Some auto loan calculators and many dealerships will concentrate on the monthly cost of a loan rather than total cost.

In the case of dealerships, this is a classic way of making you concentrate on a lower monthly cost while distracting you from a longer term or a higher rate.

Your main focus should always be on the total cost of the loan first and the monthly cost second as this will impact your finances the most.

Review your credit

As part of your preparation, we also recommend checking your credit report and your score. Knowing where you are right now gives you a good idea of the kind of rates you’ll get and lets you identify any areas that need addressing before you apply for credit.

Check your credit report for errors while you’re there as they can impact lending decisions too.

Avoid auto loans with prepayment penalties

If the past couple of years has taught us anything, it’s that life loves to challenge us, so flexibility is key. Wherever possible, avoid inflexible loans with prepayment penalties.

There are enough good quality auto loans out there that don’t penalize you for paying it off early and will allow overpayments, so use one of those wherever possible.

Even if you don’t pay it off early, it’s reassuring to know you can if you need to.

Shop around for your Dunnville auto loan

The auto loans market is open and competitive with all kinds of organizations vying for your custom.

Shop around for a loan in exactly the same way you would shop around for a car. Check all your options, use prequalification to check rates and see what’s out in the market.

When you’re done, come see us and you’ll have a much better idea of just how competitive our auto loans are!

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

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