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Mistakes to avoid when buying a car in Mount Hope

Mistakes to avoid when buying a car in Mount Hope

There are some common mistakes you can avoid when buying a car in Canada, these suggestions are going to help you get the most value for your money.

Our Mount Hope team offers insight into some common errors car buyers make in the hope you can avoid making them yourself.

What is your budget?

The first question that you should clearly define is your budget, how much are you looking to spend on a car, if you do not know the exact amount then consider using a monthly payment as a baseline.

If you are willing to spend $500/month on a car payment, that can help you narrow down the list of prospects.

A mistake buyers make is not budgeting the cost of insurance and routine maintenance. Since we live in Canada, you will need a set of winter and summer tires that will need to be installed seasonally.

You might consider using “all-season” but those are not recommended in areas of Canada where winter can be harsh.

Understanding your credit profile

Have you taken a close look at your credit profile? Your credit can make or break your ability to buy a car, so pay close attention to it. You can access your credit score for free by signing up for Credit Karma or Borrowell.

Your credit score is a 3-digit number ranging from 300-850, if your score is over 680 then kudos to you, you qualify for prime interest rate car loans. We should add a caveat that having a high credit score is important, your income is equally important when trying to secure an auto loan.

If your score is low, you can still get a loan but you should take some proactive measures like paying your bills on time and limiting the amount of debt you are carrying, this is the only way to raise your credit score and keep it up.

Applying for Mount Hope auto financing online

This is one of the most common mistakes that people make and you should resist the temptation of applying online.

The websites that offer these quotes are not the actual lenders but aggregators who try to match a person with a multitude of prospective lenders.

The best way to address this is by using an old-school approach and working with a reputable, local dealership. These dealerships already have a network of lenders that can help finance the purchase of a new car.

If you have good to great credit, you may be able to get 0% financing which is appealing, I mean who can argue with zero percent.

Even if you are not able or there is no zero percent financing being offered for the car you want to buy, the dealership can get you interest rates that aren’t posted anywhere.

You are probably wondering why the dealership is going to give you such a great deal, well they are in a very competitive industry and want to keep you as a loyal customer. The only way they can win your loyalty is by giving you top-notch customer service and competitive interest rates.

By avoiding these common mistakes, we have outlined and working with a local dealership, you will have no problems buying a great new car.

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

Categories: Car Loan

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