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Why Ontarians should refinance their car loan now

Why Ontarians should refinance their car loan now

If you are living in Halton Hills or anywhere else in Ontario and have a car loan, you should think about refinancing as soon as possible.

Interest rates are on the rise

All good things must come to an end, the Bank of Canada has signalled it will be raising the prime interest rate in the new year.

If you bought your car more than a few years ago, the interest rate you are playing will be well over 5%. Instead of overpaying you should refinance your Halton Hills car loan to a lower rate and save money.

Ontarians that are in the market for a car cannot afford to delay their buying decision any longer. The average price of a new car in Canada is over $40,000 and that price is constantly rising.

How to get the lowest possible interest rates

Start by reviewing your credit report to see where you stand. There are popular apps like Credit Karma, which let you review your credit score in real-time plus it is free.

This is arguably the most time consuming and important step, but a necessary one. If there are mistakes inside your credit report, you need to file a dispute with the credit reporting agency as soon as possible.

The law dictates that these credit reporting agencies must correct any legitimate errors but you need to make them aware of the issues.

Aside from any mistakes inside your credit report, if you are carrying too much debt, this can drag down your credit score, so try to keep your overall credit utilization below 30%.

The credit scoring system considers too much debt as a potential red flag and penalizes you even if you pay your debts on time.

Sources of the best auto refinancing loans

We touched on why you should refinance your car loan in Halton Hills and how to assess your credit report. The next step is looking for lenders that will give you a great deal, spoiler alert but you will not be able to find those lenders online.

You will see advertisements online from organizations claiming to have the best interest rates but those are retail rates. What you need to do is find someone who has access to wholesale car lending rates, and you will find them in your area.

Your local car dealership will be able to give you access to some of the most competitive auto loans throughout Ontario and Canada.

The reason the dealership is able to give you such a great deal is due to their established network of lenders. These dealerships have long standing relationships with lenders and can negotiate competitive terms you could never access.

Not only can the dealership help you access the most competitive terms, but they can also help advise you on how to raise your credit score even higher.

Now that you know how to refinance your car loan and why you should do it, give your local dealership a call and schedule a meeting with them. You will be happy you follow our advice and refinance your car loan before rates rise.

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

Categories: Car Loan

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