How To Lower The Cost Of A Car Loan In Ancaster

How To Lower The Cost Of A Car Loan In Ancaster

Posted on May 26, 2021

Our Ancaster auto loan team are experts at sourcing competitive loans for people from all walks of life. Even though we can minimize the costs of a loan, there are ways you can help do the same. Today’s blog post offers 5 actionable ways to lower the cost of a car loan in Ancaster.

1.   Don’t borrow too little

Borrowing too little can cost more than you might think. As lenders make their money from interest, they will charge higher rates on smaller amounts to make sure they stay in profit.

If you’re just planning to borrow a couple of thousand dollars, you would be much better off saving it up yourself. While that does take time, it will lower the cost of your car loan.

2.   Improve your credit score

All lending is based on your credit score so the higher your score, the lower the interest you’ll be charged. If you have the time or if you’re planning in advance of a loan, now would be a good time to do everything you can to improve that score.

Our blog contains several posts outlining practical ways to improve your credit score so we won’t repeat ourselves here.

3.   Refinance your current auto loan

If you have paid off a portion of your current loan and are happy with the car you have, perhaps refinancing that loan would be enough. If you’re a couple of years into the loan, you will have paid a portion of it and should have equity in your car.

You can refinance your current loan to a much cheaper one which will lower your monthly payments. This works even more if you have a bad credit car loan and your credit score has improved since.

4.   Work with auto loan experts

Not all dealerships invest the time, effort and training we do in finance. We have a dedicated finance team covering Ancaster and much of Ontario. They work tirelessly building relationships with lenders and customers and working to find competitive deals.

Not all dealerships can do that, which could cost you money. Work with a reputable dealership with proven auto loan expertise and you could get a cheaper loan.

5.   Buy nearly new instead of new

While car technology is improving every day, a year old car will have much the same tech as a brand new one. It will also cost a lot less. You could save up to 30% on a nearly new car, which would lower your monthly costs considerably.

Find a good quality car a year or two old and you will still be driving a new model, with a new design, new safety tech and all the bells and whistles but you’ll be paying a lot less for it.

Those are 5 actionable ways we know of to save money on an Ancaster auto loan. Do you have any to share?

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

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