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Who has the best auto financing in Ontario?

Who has the best auto financing in Ontario?

Ontarians that are in the market for a new car have to make some important decisions.

Our Welland car loans team are going to run through the major talking points you need to cover when trying to make a better informed car-buying decision.

Credit and car-buying in Canada

The first thing you need to look at is your credit score; unless you are independently wealthy, you will need to finance the purchase of a car.

Lenders have become more risk-averse in 2022, and to access the best terms, your credit score must exceed 720.

You can still secure a car loan with a 600-credit score, but the financing cost is going to get fairly expensive. There are free credit monitoring apps like Credit Karma you can use to find out where you stand.

Having a great credit score is important, but that is not the only thing you will need when trying to get behind the wheel of a new car.

Having a predictable income is also equally important

The average Canadian household is $200 away from financial hardship; lenders are acutely aware of this and have tightened their underwriting guidelines to reflect this reality.

You could have immaculate credit but if you are working in a sector like tech, that is downsizing, then lenders may not feel as confident as they would with someone who has an average credit score but works in healthcare.

What type of vehicle are you interested in buying (hybrid, EV, or internal combustion engine)?

The type of vehicle you purchase will impact your borrowing options, there are some lenders who specialize in a particular type of financing.

While just about every lender offers loans for hybrid and internal combustion engines (ICE), there are those that focus primarily on the EV market.

Another consideration is that the retail price of EVs is comparable to gas-powered cars, but they can be slightly higher. If your budget is razor-thin, you need to take that into account so you don’t buy more cars than you can afford.

Budgeting for life

When creating a budget, you need to add a buffer for emergencies. We all would like to expect that our income will stay constant, but the pandemic has taught us that no one person is an island.

Try to reduce the total amount of expensive consumer debt you are carrying and refinance the high-interest debt you have to something more affordable.

If you are not sure how to go about doing that, you should speak with a credit specialist at your local car dealership. The credit experts will review your unique situation and provide you with a plan of attack.

You will also be able to go for test drives and find the car that you genuinely love and want to drive. This is the only way you can make a truly informed decision; shopping online is great but driving a car is a visceral experience and not something that can be duplicated online.

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

Categories: Auto Loan

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