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4 Great Tips for a First Time Car Buyer in Woodstock

4 Great Tips for a First Time Car Buyer in Woodstock

Being a first time car buyer is a significant life event and should be celebrated. However, when purchasing a vehicle for the first time, you may feel a little anxious about what to expect, which is perfectly natural.


The goal of this post by our Woodstock auto loans team is to show you how to get the best possible financing. Just be sure to follow the tips and you will come out ahead.


Car prices are reaching uncharted territory


The price of new and used cars is fast approaching uncharted territory. A conventional gasoline-powered car will cost well over $40,000, and we aren’t even talking about EVs which cost even more!


You probably don’t have $40,000 in your bank account, so you need to get a loan. One of the pandemic benefits is low-interest rates, but inflation is forcing the Government to raise interest rates to battle inflation.


As you can see, there is an urgent need to start shopping around for Woodstock car loans before rates go up.


You don’t need to buy a car today, but you need to get your financing approved, so the rates are locked-in.


Understanding the lender’s mindset


We need to shift gears and understand what prospective lenders are looking for, so you give them precisely what they need.


A good credit score is the first thing that lenders want. A good credit score is over 680 and closer to the 700 range.


Not sure whether you meet that requirement? Check out your scores for free by going to TransUnion and Equifax.


Do you have stable and sufficient income to repay the loan?


The last thing that lenders want to do is issue a loan that goes into default. Currently, lenders will not approve a loan if the debt-to-income ratio is over 40%.


The lender can access your credit report with your permission, but you must provide the required documentation. For example, self-employed borrowers will need to provide their banking and income tax documents.


Are you buying a new or previously owned vehicle?


The pandemic has created bottlenecks in the supply chain, so a first time car buyer interested in a new car may require patience. There are reports of people having to wait a few months before they can take delivery of their new car.


With used cars, you may be able to buy them right away, but the interest rates are on used cars are traditionally higher than brand new vehicles.


Locating the most competitive lenders in Woodstock


This step is a trade secret that most first-time car buyers are unaware of. If you want to access the most competitive lenders, you cannot do it on your own.


You can only gain access to these lenders by applying for a loan through a car dealership. The lender and dealership have a relationship that allows buyers like you to access wholesale lending.


When you go through a local dealership, you can test drive the car to make sure you like it. Take your time, and don’t rush. You will know inside your heart when you have found the right car.


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



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