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Ancaster Car Loan Buyer's Guide

Ancaster Car Loan Buyer's Guide

If you have never applied for an Ancaster car loan before, it can seem quite intimidating. It really isn’t. Like any financial product, it can be complicated when you get into the details but the overall process and loans themselves are very straightforward.

 

Our Ancaster auto loan experts put together this quick guide covering the basics of what you need to know when considering a loan.

We hope it helps!

 

How much can you borrow?

 

The amount of auto loan you can qualify for depends on how much you can afford. Some of that will depend on your credit score. The higher the score, the higher the amount you could possibly borrow.

 

The rest comes down to affordability. How much can you afford to pay each month? How much spare cash do you have before you get paid again? How much are your current loan repayments?

 

Answering those questions will give you a good idea of how much you can borrow. Online auto loan calculators are pretty good at estimating but nothing comes close to asking the experts.

 

What does prequalification for an auto loan mean?

 

Prequalification is like a soft test to see if you could qualify for an auto loan in Ancaster. It’s like a soft application. You test the waters by getting prequalified with a lender. The process doesn’t leave a hard inquiry on your credit report and you get an idea of how much you could borrow and at what rates.

 

Prequalification isn’t a loan offer. It’s a test run to see what you could possibly get and at what potential rate. It’s a guide, not a loan offer.

 

How do I apply for an Ancaster Car Loan?

 

Applying for an Ancaster auto loan is actually quite straightforward but there is a defined process for it.

 

  1. Save for a down payment
  2. Make sure your credit score is the best it can be
  3. Prequalify for a loan to see how much you can borrow
  4. Set a budget for the car
  5. Go car shopping
  6. Find the car of your dreams
  7. Apply for a loan for real
  8. Drive away your car!

 

Down payments are optional but recommended, especially if you’re buying a brand new car. They help prevent you going upside down and give lenders more confidence to lend to you.

 

We cover improving your credit score a lot on our blog so we won’t labour the point here. Suffice to say, the sooner you begin improving your credit score, the higher it could be when you apply for the car loan.

 

Can I pay off an auto loan early?

 

Most auto loans will allow you to repay them early. Either through monthly overpayments, lump sum payments or early settlement. You will have to check your loan paperwork first though as not all auto loans are built the same.

 

Your loan paperwork should tell you if there are any early repayment penalties or limitations.

 

We will use all our skill and experience to deliver the lowest possible Ancaster car loan rates, guaranteed. Contact Car Nation Canada Direct to learn how we can help.

 

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Categories: Auto Loan

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