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This Is The Best Way To Finance a Car in Canada

This Is The Best Way To Finance a Car in Canada

Car prices in Waterloo have increased year over year and show no signs of slowing down. The pandemic has created production bottlenecks which have greatly reduced the total number of new cars that are available for purchase.


With surging demand for new cars and limited supply, carmakers and dealerships have no choice but to raise prices because they cannot sell in volumes as they did in the past.


In Canada, a car is not something that is “nice to have” but a necessity as public transit even in the most urban area of the GTA does not provide adequate coverage.


With average new car prices coming in over $40,000, financing through our auto loans team is the only viable option for a new car purchase in Waterloo aside from winning the lottery.


Financing a new car purchase in Waterloo during a pandemic


The pandemic has forced dealerships to do most of their business online, which is efficient but you still need to go for a test drive and make sure the car you select is the right one for you. (bring your face mask and hand sanitizer)


When you have picked the car that you like, it is time to start crunching the numbers. Websites are promoting low-interest rate auto loans but you should seriously think twice before using those websites.


A dealership provides intangible services that go beyond securing an auto loan for you. The dealership is going to find you the most competitive rates based on your credit profile and advise you on how you can improve your credit score where necessary.


The dealership is also going to provide after purchase support, whenever your vehicle needs to be serviced or if you have questions, they are there to help.


Credit basics


Most consumers do not realize they have a credit problem until they apply for a Waterloo auto loan. To save yourself some grief and money, take a quick peek at your current score.


There are services you can pay to get your credit score but we suggest using free apps like Credit Karma.


If your score is 670 or below, there are some things you can do now to boost the score. The dealership would be able to give you a precise approach but these suggestions will put you in the right direction.


Try to pay down your debts if you are carrying a large balance. Carrying a lot of debt gives the impression you are at a higher risk than someone who does not have any debt.


By paying down your debts faster, your credit score will improve and you will save money twice. First, by not having to pay additional interest on your current obligations, and second, by getting a lower interest rate on your new car purchase.


Since you are buying a $40,000+ car, every percentage point will make a big difference over the term of the loan which usually ranges 5 years.


If you're ready for a car loan in Southern Ontario, we'd love to help with that! simply fill in the form below to get started.

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    Categories: Auto Loan

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