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When Searching for a New Car in Waterloo, don't do this

When Searching for a New Car in Waterloo, don't do this

We are going to provide you with tips on how not to buy a new car in Canada. These tips work for both new and used cars. If you follow these suggestions from our Waterloo auto loans team, you will have a more pleasant car buying experience.


Do not go car shopping until you have worked out your budget


A common mistake that most people make is to show up at the dealership and start test-driving cars.


Of course, we are all in favor of test driving but usually, what happens, then fall in love with the car and then assume a devil may care attitude when it comes to negotiating terms.


To draw a comparison, you don’t go shopping for groceries if you are hungry? This is a similar scenario, car prices are increasing on a monthly basis, and you don’t want to bite off more than what you can chew.


Do not fall under the impression that your local bank is going to have the best deal


Your bank may offer car loans, but do they have the most competitive terms? Unfortunately, there is a good chance they do not.


Most institutional lenders provide car loans, but they are not offering the most competitive terms; we are going to show you how to get a competitive car loan in a little bit.


Underestimating the importance of having a good credit score


The economy is fragile thanks to Covid-19, and lenders are more risk-averse than usual. To help mitigate the risk being faced by auto loan providers, they are increasing the minimum credit scores needed for prime interest rate loans.


So, if you want to save money on a car loan, your credit score needs to be in the 700’s if you want to stand a chance.


Selecting the right vehicle


Car prices are rising, and you need to pick a reliable vehicle, so you are getting reasonable value for your money.


There are reputable brands like Jeep that you should add to your list of prospects; You will need to do your homework and identify which vehicles match both your current and projected needs for the next couple of years.


Once you have a shortlist of vehicles that you like and work for your budget, you can then move forward.


If you are not sure how much to budget for the new car, a good ballpark number would be $500-$600 as a minimum.


How to lock down the most competitive auto loans in Waterloo


We mentioned finding the most competitive car loans; they are not available online. Your best bet when it comes to securing a competitive car loan is to go through a reputable car dealership in your area.


The dealership has access to wholesale lending, which means you are going to get the most competitive rates possible based on your financial profile.


We have covered some of the things you should not do when shopping for a new car in Waterloo; with the chronic shortage of cars impacting the world, the worst thing you could possibly do is continue to wait; if you wait too long, then you could be forced to wait months before having any cars to buy.


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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