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Tips on Finding a Great Waterloo Car Loan

Tips on Finding a Great Waterloo Car Loan

If you want to buy a car, you will need to take out a loan. The majority of us don’t have the $40,000+ to buy a new car outright.

 

There is a plethora of lenders that are offering loans, so our Waterloo car loans team are going to show you what steps you should take to get the most competitive terms.

 

Lenders are all fighting for market share

 

There is a shortage of new and used cars for sale. This lack of inventory means there is also a lack of loans for lenders to process.

 

Since these lenders are under immense pressure to hit their sales quota, you can get a great deal but you need to familiarize yourself with how car loans work.

 

Lenders focus on your credit score

 

When applying for a car loan in Waterloo, the first thing that lenders will look at, is your credit score.

 

Lenders use software to perform a series of complex calculations and if your credit score does not mean their minimum requirement, the application is rejected without a human reviewing it.

 

The type of car you are buying is key

 

If you are buying an all-electric (EV), the manufacturer is key. Should you buy from a manufacturer that is not established, then the number of lenders will be substantially reduced.

 

Remember, lenders are going to use the vehicle as collateral but the vehicle needs to have great resale value.

 

What is your budget?

 

Inflation is driving up the costs of everything, you need room in your budget to service all of your current debts plus the new Waterloo car loan. Factor in the maintenance costs for the vehicle, this is something most people overlook.

 

Zero percent financing

 

If you have a really good credit score, and stable income, then you might qualify for 0% financing. These promotions are only available at select times of the year, so you will need to wait until those promotions are available. You cannot get zero percent on a used car loan.

 

Finding a suitable lender

 

This step does take time, because there is a massive number of lenders that all claim to have the best deal. While there are some good deals to be found online, your best option is to secure financing through a dealership in your area.

 

The dealership has access to wholesale lending and can get you loans that cannot be secured through other channels. This same dealership has cars that you can test drive and take home today.

 

These dealerships can get you an amazing deal but you need to put your poker face on. The dealership wants to sell the car and you want to buy it, but it doesn’t hurt to ask for a better deal before singing on the dotted line. If you did have any credit issues, the dealership would still be able to secure a car loan for you.

 

No matter what your credit situation is, you should contact your dealership today.

 

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

 

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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