How to Save Money Buying a New Car in Woodstock
How to Save Money Buying a New Car in Woodstock
Posted on October 25, 2021
New and used car prices are on the rise and show no signs of slowing down. There is a critical shortage of new cars and used cars, so dealerships across Canada are trying their best to make the most of every sale.
This scarcity of vehicles gives you the consumer tremendous leverage when trying to get a great deal on your next car purchase as our Woodstock auto loans team explains.
Dealerships are motivated to sell
With reduced inventory, dealerships are trying to offer incentives to get your business. Some will provide free oil changes for the life of your car, while other dealerships will provide gift cards or vacations if it means you will buy from them.
Prime or sub-prime auto loans
Most dealerships will offer both prime and sub-prime auto loans. Your credit score will dictate whether you qualify for prime (680+) or sub-prime (650-).
You could shop around online looking for websites that provide auto loan quotes but your best option is to still work with a local dealership that will work hard to get you a competitive deal.
Boosting your credit score
The higher your credit score, the lower the interest rate you will pay on the auto loan. There are some tips you can implement to help boost your credit score. Start by paying off any accounts that are in collections.
Collections, no matter how old, will be a red flag for prospective lenders. By paying off the collections, your credit score will increase and you will have peace of mind knowing that there will be no surprises when applying for a car loan.
Are you carrying too much debt?
This is another reason your credit score is not as high as it should be. Try to keep the total amount of credit utilization to be 30% or lower. This makes you appear less risky than someone who has maxed out all of their credit lines.
The number one way to boost your credit score is by making your payments on time, for all of your credit accounts. When you make your payments on time, all of the time then your credit score will start to rise.
It makes takes a month or two before the score rises but it will surely go up.
Getting a great car loan
We know that dealerships are motivated to sell and you cleaned up your credit, so you know qualify for prime interest rates. What you need to do is select a car that you like and will serve you well throughout the life of the car loan.
Since many Woodstock car loans are for 60+ months, the car you select has to be something you truly love. While falling in love with the car is important, you want peace of mind knowing it will be reliable for years to come.
By picking a car that you love and is reliable, it will help you get the best possible value for your dollar.
When you’re ready for a car lease or loan, get in touch with the Woodstock auto loan experts at Northway Ford for great deals on auto finance.
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!