How to Find a Low Interest Car Loan

How to Find a Low Interest Car Loan

Posted on January 27, 2022

When buying a car, you will need to get a car loan, but with interest rates all over the place, you will have a challenging time finding the most competitive terms. Which is why in this article, we'll outline how you can qualify for a low interest car loan.

Credit score needed for a low-interest rate car loan

Your credit score is a number that opens doors for you, not literally but financially speaking.

For example, to access the best low interest car loans in Oakville, you will need a credit score well over 680. Check out your free credit score by visiting Equifax and TransUnion.

If your credit score is low, you have to start working on rebuilding it. A low-credit score drives up your borrowing costs and could prevent you from buying the car you want.

This would be a great time to take some proactive steps to rebuild your credit score. The primary reason your credit score is low, is due to you not being able to make your payments on time.

It can happen to anyone, missing a payment, but if you miss your payments often or have too much debt, you need to address these issues.

What make and model of car do you want to buy?

You are making a significant purchase, so give some serious thought to what type of car you are interested in buying.

For example, do you want a hybrid or EV? After you have determined what kind of power plant your vehicle will have, you should list how many seats and other features the car should have.

When you have worked out what features the car needs, make a list of all the cars that are for sale and meet your requirements.

Note the asking price being listed by the sellers and find out if there are any perks that come with the vehicle. Perks like free oil changes for life, extended warranty and winter tires are very popular.

While you can get extra perks on the vehicle, you won’t be able to negotiate the price down. There is a limited number of cars that are available in the Canadian, marketplace so sellers don’t have to lower costs to sell the car.

Where you can save money is by getting an outstanding car loan. Most buyers are going to focus on the interest rate and don’t get us wrong, the interest rate is important.

Look at the incidental fees like loan origination fees or other fees that drive up your borrowing costs. You should also look at the loan term and remember that the longer the term, the more interest you pay over the life of the loan.

Securing the best financing terms

The best way to secure great financing is by going through local dealerships. Local dealerships will have really competitive deals and customer service that most buyers overlook. In addition, you want a dealership that will be there to help you whenever you have a question or are in the market for another vehicle.

Since cars are in short supply, you should start your car shopping now, or miss out on finding a great car.

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

We’d love to help you find the perfect car loan. Simply fill in the form below and we’ll get back to you ASAP! 

Thanks for reading. Be sure to connect with us on Facebook, Twitter, Instagram, or LinkedIn to stay up to date on our latest great articles!