How to Save Money When you Buy a Car in Halton

How to Save Money When you Buy a Car in Halton

Posted on October 7, 2021

Car prices have gone up year over year, so our Halton auto loans team has compiled some very simple tips that will help you save money when you buy a car.

New or used which is better?

If you asked 100 people whether you should buy a new car or a used one, they would have 100 different opinions. The truth is you can get high quality used car provided you buy from a reputable car dealership, then you will not have any issues.

We all heard the horror stories of people buying used cars from dealers that were unlicensed and just downright lied to the customer about the condition of the vehicle.

Thanks to the internet, you can do some quick research and select the dealerships that have the highest customer satisfaction rates.

Benefits of buying a used car vs new

The immediate benefit is the lower price, new cars command a premium because they are “new”. You could buy a perfectly acceptable used car at a great bargain.

One of the challenges associated with buying a used car versus a new one is the interest rate you will end up paying if you decide to finance the purchase. Realistically, just about everyone will need financing if they want to buy a car.

Automakers use very 0% promotions to try and sell more vehicles but they do not offer special financing for used cars. What car dealerships do is look for lenders that specialize in this type of financing, a great example of this type of lender is Scotia Dealer Advantage.

There are websites that offer auto loan quotes which is great when you are trying to get a sense of what is available in the market. While these quotes are convenient, you should give serious consideration to getting your financing from the dealership.

The dealership can negotiate more competitive terms with the lender than you could as an individual. Also, the dealership wants you to have a great experience or run the risk of having a bad customer review.

Save money by improving your credit score

To secure the lowest possible interest rate for your car purchase, your credit score needs to be well above the 650 range. If you are not sure what your current credit score is, you can visit websites like Credit Karma, Equifax, and Transunion to get that information.

If your score is low, there are some immediate steps you can take to bring it up. The most important is to pay at least the minimum before the due date each time without fail. Paying your bills on time has the greatest impact on your credit score, set up reminders on your phone so you never miss a payment again.

Something that might impact your credit score is errors which can happen to anyone. Look over your credit report for legitimate mistakes and if you come across any, just let the credit reporting agency know. They are required by law to address these changes but you have to make them aware.

It can seem intimidating but our tips will help you save money when you buy a car, just be sure to pick a great dealership and you will come out on top.

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

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