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How People Finance Car Purchases in Canada

How People Finance Car Purchases in Canada

Canadians love their cars. They are an extension of ourselves and our identity. Unless you are living in a major city, you will need a car to get to work, school, and do the normal things we all take for granted.


With car prices on the rise, if you're trying to own that dream car, it helps to understand how people finance car purchases in Canada.


That’s where our Freelton auto loans team comes in. Our experts will walk you through the world of car finance to help you get what you need.


Traditional vs non-traditional auto loans


The tried and true way of how people finance car purchases in Freelton was by going to your local dealerships and utilizing their in-house financing. This approach still works great and you should be able to get a competitive quote.


While the in-house financing being offered by local dealerships is convenient, the modern Millennial buyer is accustomed to doing all of their shopping online, which includes getting their financing.


There are a growing number of websites that provide auto loan quotes for your consideration. These quotes are non-binding so you are not obligated to take them but they will give you a better understanding of what options are available.


The primary benefit of getting auto loan quotes online is the time savings but you should not jump on the lowest quote without giving it some serious thought.


Online shopping is great for clothes, furniture, and other household items but a car is a major financial decision.


Importance of having a relationship with your local car dealership


Local car dealerships are there to help you find the car you want at a competitive price, but the relationship goes beyond that initial transaction. The dealership will be there if to help if there are any product recalls or if you need any ongoing vehicle service.


These dealerships want you to have a great buying experience because they know that you will be in the market for a new car in the next 5+/- years.


With the online loan providers, they do not share the same long-term vision that the dealerships have.


Improving your credit profile


Your credit score is going to determine how much interest you end up paying over the life of your auto loan.  The average credit score in Canada is around the 670 range so if you want a competitive interest rate your credit score will need to be at least that amount or higher.


You can go to Credit Karma and look up your credit score for free, since credit scores are constantly changing you should review your score at least once a month.


While monitoring your credit score, there are a few steps you could take now to help improve your score.


Are there any mistakes inside your credit report? Erroneous information contained inside your credit report may reduce your score which may put downward pressure on your score.


These errors can be fixed but you will need to notify the credit reporting agency, whether Equifax or TransUnion about the error. Once they have been notified, it will take roughly 30 days to be reflected inside your credit report.


You should have no problems getting an auto loan but the amount of interest you end up paying is directly linked to your credit score, so do everything in your power to keep the score as high as possible


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


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Categories: Auto Loan

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