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Why Canadians should buy a car ASAP

Why Canadians should buy a car ASAP

If you have been sitting on the sidelines waiting for the right time to buy a new car, you should do it as soon as possible, as our Dunnville auto loans team explains.

For a very long time, people have been speculating on when interest rates on car loans would rise, the time for speculation has passed and we now know the rates for mortgages on set to rise.

That wasn’t a typo, mortgage rates are going to rise and when that happens, interest rates for Dunnville auto loans and all other types of unsecured credit rises in tandem.

A limited supply of cars to choose from

The reason we suggest you buy a car soon is as interest rates rise, there is going to be a spike in the number of people applying for car loans before the interest rate change takes effect.

This increase in demand for cars and a very limited supply of new and used cars to choose from mean you will either pay higher prices or not be able to get the car you want.

Getting your financial affairs in order

You will need to get your financial affairs in order if you want to buy a new car. Start the process by looking at your credit score, as a guideline anything over 700 is considered prime.

Even if your credit score is below 700, so long as it is over 620 you will be able to get a competitively priced auto loan with the one caveat being you get help from a professional. (We will let you know where to find these professionals) If you are having credit challenges, you should create a budget so you can track all of the money coming in and all of your expenses.

This would be a great time to set up pre-authorized payments so you never miss another payment again. Missed payments are one of the primary reasons a person has a low credit score.

Sources of verifiable income

After you have looked over your credit report, you will need to prepare your income verification documents. Lenders are more cautious when underwriting auto loans since the pandemic has wreaked havoc on the economy.

If you are working more than one job or self-employed, your best bet is to bring your bank statements and income tax assessments so the lender can see your total pre-tax income.

Getting professional help

After you have gathered your income documents, you should contact your local car dealership. The dealership already has an inventory of new and used cars for you to choose from.

The dealership will also be able to help you get a car loan approved, even if you have credit issues. These dealerships want you to have the best possible car buying experience so you will keep coming back to them and tell your social circle of contact about them.

With the clock ticking before interest rates start to rise, you should contact your local dealership ASAP, or you will end up paying more to finance your new car.

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

Categories: Auto Loan

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