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Car Loans in Smithville and how to find a Great One

Car Loans in Smithville and how to find a Great One

The car loan market has changed dramatically in recent years. The average Canadian doesn’t know how loans work aside from how much they have to pay each month.


That’s why our Smithville auto loans team are going to cover everything that goes into a car loan.


Prime or subprime


Car loans, broadly speaking, can be categorized as prime or subprime. The term may have a negative sound to it, but it is just a classification.


Being “subprime” does not mean anything derogatory. It just means you do not conform to traditional underwriting.


A couple of reasons why you could be classified as “subprime” is not being able to prove your income.


Self-employed Canadians have a challenging time providing documents to prove their income.


Aside from not being able to prove your income, another reason you may be subprime is having credit challenges. If you have a low or no credit score, it will put you in the subprime category. We will discuss credit-building strategies that can be implemented right away.


Do you have a budget?


Most Canadians make one common mistake when buying a car is not calculating their maximum budget.


Without a budget in place, you will get yourself in over your head financially. After your budget has been worked out, you can start looking for vehicles that match your budget.


Finding the car best suited for your needs


When your budget has been defined, it is time to start looking for cars. One of the questions that come up is whether you are buying a new or used car.


This is an important consideration because the interest rates being charged on used cars are higher than what you would be quoted for a new car.


With the car shortage in full effect, the number of used and new cars available has been dramatically reduced.


You will need to temper your expectations, especially with vehicle prices rising.


Building a solid credit profile


We mentioned we would show you some effective ways to build your credit. The first step is getting your copy report from Equifax and TransUnion.


If you do not have any credit, you should open up a few secured credit cards. This is a simple way to start building a positive credit score.


One of the drawbacks of using secured cars is the need to deposit money into the accounts, but your credit score will start to rise.


Find the best source of car loans in Smithville


Whether you are a prime or subprime borrower, you need access to the most competitive car loans in Canada. You will not find the best deals online; the source of outstanding car loans is via your local car dealership.


The dealership has a network of lenders throughout Canada that specialize in both prime and subprime car loans. You will get the lowest interest rate based on your credit profile when you go through a local car dealership.


We should mention the dealership has cars in their inventory that you can buy right away, which is a massive benefit given the shortage of cars throughout Canada.


We’d love to help you find the perfect car loan. Simply fill in the form below and we’ll get back to you ASAP! 


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    Categories: Auto Loan

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