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3 Common Mistakes when Buying a New Car in Woodstock

3 Common Mistakes when Buying a New Car in Woodstock

Are you interested in buying a new car in Woodstock? There are some mistakes you need to avoid to get the best bang for your buck. Our car loans team are going to let you know what those mistakes are in advance, so let's get going!


Thinking your local bank has the best financing options


Your parents and grandparents probably go to their local bank for all of their financial products.


While this works for them and may be convenient, the automobile financing sector in Canada is super competitive, and you can access lenders from around the country.


The local banks have a lot of overhead, so they will charge higher interest rates than what you can find elsewhere.


So, remember to never rely just on your local lender.


Don't apply for loans online


This is another common mistake that people make when they buy a new car in Woodstock and it can lead to a host of headaches.


The websites that are advertising car loans are not the actual lenders. These websites take your details and sell them to any lender that is willing to pay their fee.


There is no guarantee the lenders are going to have the most competitive terms or if they are even legitimate lenders!


Do everything you can to avoid these websites, or you could end up regretting it.


How to safely buy a new car


It would not be a good use of time to focus on what you should avoid without giving you insight on what you can do to buy a new car.


Lenders will focus primarily on your credit score before looking at anything else, so you should take a quick look at your credit score by visiting TransUnion and Equifax right now.


You need a credit score of 720 to get a prime interest rate car loan in Woodstock.


However, you need a minimum score of 500 to get any type of car loan. If your score is under 600, the interest rate charged is going to be in the mid to high teens.


With poor credit, you will not be able to buy a new car and have to select a used car. We hate to break the news to you, but this is a reality that must be faced.


Car prices are quite high, so you cannot access a large enough loan to buy a new car without good credit.


Where to find the right car loan in Woodstock


Your best option to accessing car loans is to go through car dealerships in your community. The dealership has the ability to negotiate loans on your behalf from lenders throughout Canada.


This access provides you with peace of mind; you are going to get the best loan based on your personal situation.


While the dealership is able to provide you with competitive auto loans, they can also find a car that is going to meet your needs.


These options are why you should only go through a dealership; they are hands down the best car buying option.


We’d love to help you buy a new car in Woodstock. Simply fill in the form below and we’ll get back to you ASAP! 


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