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How do I start looking for car financing?

How do I start looking for car financing?

You’d like to buy a car to make getting around Dundas easier, and you think you can afford it, but you don’t know where to start.  Shopping for a car is a big decision and can be a daunting task.  There’s financing and budgeting to consider, along with insurance and other costs that come along with vehicle ownership.

A great place to start is to find out your credit score.  You can see what kind of loans you’ll qualify for and get an idea of interest rates.  After you have that information you can create yourself a budget.  Setting realistic expectations from the start will result in you being happy with the final choice you make.

If you find out your credit score is on the low side, don’t panic!  It limits your options a bit, but it doesn’t completely eliminate your chances of finding a great car.

Chances are that traditional lenders won’t be willing to give you a loan if your score is nonprime (601-660) or subprime (501-600).  So you’ll have to find other avenues.

You could apply with a cosigner, someone who is willing to share the responsibility of the loan.  You may end up with a lower interest rate, but remember if you don’t pay your bills, the cosigner will be stuck making the payments.

Another option is to go to a dealership that specializes in poor credit financing.  These dealers offer in-house financing and can get you set up with the loan and your vehicle all at once.  The interest rates tend to be higher here than with a traditional lender, as they need to offset the risk of lending to someone with poor credit.

In the end, the important thing to remember is to be smart about your financing.  If you make a budget and stick to it, you can be happy with your new (or new to you) car for years to come!

At Car Nation Canada Direct, we can help you get into the car of your dreams as well as set you up with the financing you need.  Get pre-approved on our site, and search for the perfect car for your budget all in one place!

 

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Categories: Auto Loan