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Practical advice to follow when shopping for a new car in Milton

Practical advice to follow when shopping for a new car in Milton

A car is more than just a means of transportation for Canadians; it is an extension of ourselves and a symbol of our freedom to choose and move around this massive country.

Unfortunately, while owning a car is a necessity for most Canadians, most of us have not been introduced to some car-buying best practices that can have a profound impact on your ability to get a great vehicle at an affordable price.

Elements of a great car loan

Everyone in Canada needs to finance the purchase of a new car; no one in this economy has tens of thousands of dollars collecting virtually no interest inside their savings account.

Since you need financing, there are some things you can do right now to increase your chances of getting a really good deal on your financing.

Clean up your credit report

You should sign up with Equifax and TransUnion for free credit monitoring if you haven't already signed up.

Once you have access to your credit report, you must look over your credit report for any errors, no matter how insignificant they may appear to be. Errors inside a credit report are one of the leading causes of a low credit score.

Having a low credit score will impact your ability to get approved on credit products, including car loans.

To have these errors removed from your credit report, go through the official dispute process on the credit reporting agencies website; by law, these errors must be removed in a timely manner, but you must go through the correct dispute channel.

As a rule of thumb, your credit score must be at least 600 to qualify for any type of conventional car loan.

Borrowers with a credit score under 600 are considered subprime and will get hit with high-interest rates. If you want to access the most competitive interest rates, your credit score should be over 700.

Trim some excess from your budget

With inflation climbing in Canada, now would be a good time to go through your budget and look for ways to save money.

Any savings you can realize in your budget can go towards purchasing a new vehicle. The median monthly car payment in Canada is just under $600, but that is just one part of the costs of ownership.

You also need to include fuel, insurance, and maintenance.

Finding the best car for your needs and budget

Shopping online for a new car is exciting, and you can learn a lot, but when it comes time to actually buy a car, you should go through a dealership in your area.

The local dealerships have vehicles that you can test drive and drive home today.

These dealerships are local, so they are easily accessible whenever you need maintenance or have a question. The dealership can also get you approved for car loans that aren't available to the general public.

By going through the local dealership, you are able to access car loans that you'd miss out on if you tried to secure the financing on your own.

Now that you know the steps involved in buying a new car in Canada, head over to your dealership today.

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

Categories: Car Loan

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