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How to Save Money on a Car Loan in Kitchener

How to Save Money on a Car Loan in Kitchener

If you are thinking about buying a car in Kitchener, then you are in the right place. We are going to provide you with the information you need to save money on your next car purchase. Our Kitchener auto loans team explains how you can save money on a car loan so you can drive away happy. We hope it helps!

 

Do you have a down payment?

 

One of the best tools you have to save money on a car loan in Kitchener is a down payment. The vast majority of drivers are looking for 100% financing, meaning they do not put any money down.

 

If you have even $1,000 towards a down payment it helps demonstrate you are serious plus it reduces the total amount you borrow.

 

Give yourself some credit

 

Having a down payment can help, especially if you have credit problems or a lack of credit.

 

Reach out to TransUnion and Equifax for a free copy of your credit report. The Federal Government of Canada requires that these agencies must provide you free access to your report and correct any mistakes the report may contain.

 

If you need help disputing an issue inside your Equifax report, this link will help give you the information you need.

 

Finding the right auto loan for your needs

 

Most consumers only look at the interest rate being quoted on an auto loan, without taking into consideration some variables.

 

Loan term- the longer the duration of the loan the more it will cost you. What some lenders do to attract customers is offer low-interest rates but extend the amount of time you have to repay the loan.

 

The benefit of extending the tenure of the loan is the monthly payments are smaller so it helps people buy cars they would not be able to buy.

 

As a rule, try to keep auto loans to 5 years or less, especially if you are buying a used car.

 

Over time, depreciation eats away the value of your vehicle and if you are still paying on a car that is losing value you are essentially losing money twice.

 

Finding a great car in Kitchener

 

Once you have your financing options established, you can start looking for cars.

 

Start by visiting websites like Auto Trader to get a feel for what is currently available across Kitchener. After reviewing Auto Trader and other platforms, you should have a good understanding of pricing.

 

Now you can start scheduling test drives.

 

Getting a great price on a new car

 

When visiting your local dealership, don’t tell the salesperson that you already have financing in place. Dealerships generate the bulk of their revenue by offering auto loans. If you tell the salesperson that you already have financing in place, they may not give you the most competitive price.

 

Aside from the price being quoted by the dealership, if you are buying a used car, it would be smart to look at getting an extended warranty.

 

Most new cars come with 100,000 KM/ 5-year warranties but if you are buying a used car then the warranty will most likely not apply.

 

By following these suggestions, you are going to save a substantial amount of money so have fun with the car buying experience.

 

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

 

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Categories: Car Loan

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