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How to Save Money on your Next Car Loan in Canada

How to Save Money on your Next Car Loan in Canada

If you are in the market for a new car or just kicking the proverbial tires, you could seriously save money on your next car loan by taking advantage of the ultra-low interest rates being offered by banks and other auto loan providers.


Our Cayuga auto loans team explains Government induced lending and shares some tips on how to save money on your next car loan.


Government induced lending


The Bank of Canada has a current prime rate of 2.54% which means that any of the chartered banks can borrow from the Bank of Canada at 2.54% and use those funds to fund credit cards, lines of credit, and for this particular conversation, Cayuga auto loans.


Since these lenders can borrow at prime, it gives them the ability to offer consumers like you and me some competitive deals provided we meet the loan underwriting requirements.


Selecting the car that’s right for your budget


In the past, most people would go for a test drive at their local dealership and fall in love with a car. Once they became emotionally attached to the vehicle, they would be willing to take on more debt than they originally planned to.


When you establish your budget first, the odds of you getting yourself in over your head financially are greatly reduced.


Best sources of auto loans in Canada


The internet may seem like a great place to get a car loan, while it can help give you insight into the auto industry, there is no substitute for having a qualified expert helping you.


By working with a sales rep at your local car dealership, they will know precisely what loan options are available based on your unique credit profile.


Not only can the dealership help arrange the financing, but they can also negotiate a lower rate for you. These dealerships have very strong relationships with their lenders and know what lenders to approach in any given situation.


At first glance, this may sound like it is too good to be true or there must be a catch somewhere.


Well, truth be told there is a catch. The dealership wants you to become a repeat customer and to also tell your family and friends about the great experience.


Making sure you qualify for a great auto loan


While your local dealership will go to bat for you and try to get you a good loan, there are some things you can do now to help make the job easier.


Start by cleaning up your finances, if you have bad credit or credit challenges, you can map out a plan to address these issues. Get a copy of your credit report and establish a baseline, how can you track your progress, if you do not know where you stand?


If you are not sure where to get the report, you can get it from apps like Mogo, or ask check with the credit bureaus for advice on how to fix your credit issues. These experts know all of the ins and outs when it comes to qualifying for a competitive auto loan.


It may sound like a simple concept, but working with a local car dealership is the surest way to saving money on your next car purchase. Which is where we come in.


We will use all our skill and experience to deliver the lowest possible Cayuga 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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