880 Walkers Line, Burlington, ON, L7N 2G2, Canada

How to Find a Low Interest Car Loan in Hannon

How to Find a Low Interest Car Loan in Hannon

The car market in Hannon is heating up and if you are thinking about buying a car, you need to start looking for financing options.

 

Realistically, no one has the cash on hand to buy a car without taking out a car loan. The challenge is being able to find a competitive low interest car loan in Hannon based on your unique financial situation.

 

Our Hannon car loans team are going to provide a crash course in auto financing. By the time we finish this conversation, you will know how to get the best possible deal!

 

It all starts with your credit score

 

The first thing that lenders will look at is your credit score to determine if you are “prime” or “subprime”.

 

In order to qualify for prime lending, you need a credit score over 680. If your score is between 620-679, you are in between prime and subprime, which is the credit score that most Canadians fall under.

 

If your credit score is under 620, then you are considered subprime.

 

These categories just indicate the potential risk of a borrower defaulting on a loan. The higher the risk of defaulting, the more interest lenders will charge to offset the risk.

 

Debt to income ratio

 

Another thing that lenders will look at when making the determination on whether to approve a car loan in Hannon, is your debt to income ratio.

 

This is a ratio that takes all of your debts and compares it to your total income. If you are currently spending more than 40% of your income on debts, it does not leave enough room in your budget to take on a car loan.

 

This is great news if you have credit issues but a good income, it gives you the ability to qualify for a larger loan.

 

Credit rebuilding strategy

 

Credit scores are fluid and can improve quickly if you follow some best practices. Start by paying your bills on time, missing a payment no matter the size can send your credit score spiraling.

 

If you are the type of person who forgets to pay things because you are busy, sign up for pre-authorized payments and you don’t have to worry about missing another payment.

 

Along with paying your bills on time, you should try to reduce the total amount of debt you are carrying. If you carry too much debt, it weighs down your credit score.

 

Source of the Low Interest Car Loan in Hannon

 

It may come as a surprise, but the best low interest car loan in Hannon isn’t found online, you need to visit your local car dealership. These dealerships will have access to wholesale lending throughout Ontario and Canada, so you will get the most competitive terms.

 

The dealership has fantastic working relationships with these lenders, this means that even if other lenders turned down your application, the dealership can get you approved.

 

If you are serious about buying a car and want to get a great deal, your best option is to work with a local car dealership, so do yourself a favour and book a test drive today.

 

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

 

For any questions or concerns, please don't hesitate to contact us here! 

 

Thanks for reading. Be sure to connect with us on Facebook, Twitter, Instagram, or LinkedIn to stay up to date on our latest great articles! 

 

Categories: Auto Loan

Tags: ,