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When you Buy a Car in Acton, Avoid these Common Mistakes

When you Buy a Car in Acton, Avoid these Common Mistakes

Our auto loans team has put together a few common mistakes you can avoid when you decide to buy a car in Acton, Ontario.

 

Buying new versus new to you

 

The first question we need to ask is when you buy a car in Acton, will it be new or used?

 

All around Canada, the demand for new and used cars has never been higher, this demand has outpaced supply, so you may have to adjust your expectations.

 

Financing for used cars is different for new cars. With new cars, the manufacturer will offer a variety of incentives including zero percent financing for specific models.

 

This zero percent is only for certain models and during specific times of the year. If you want to save money, it is hard to argue with zero percent financing.

 

Used car financing works a bit differently, you will need to go through a 3rd party lender. Since the vehicle is used, the fair market value of the used car is whatever the market is willing to pay at that particular moment in time.

 

These loans tend to carry more risk so lenders are going to charge a higher rate than what you would pay for a new car loan in Acton.

 

How to qualify for new and used car loans in Acton

 

The underwriting requirements for these loans are very similar. Your credit score should be above 650 for a used car loan and 680 for a new car loan.

 

This is the minimum score you need for preferred interest rates, you can still get a car loan with a lower credit score but the tradeoff is a higher interest rate.

 

We are currently battling the Omicron variant, which has made lenders more risk adverse.

 

Lenders want borrowers with great credit and super stable income. If you are self-employed or have more than one source of income, you will need to get everything documented or the lender will decline the application.

 

Most lenders require bank statements and income tax assessments if you are self-employed, so you should download those docs ASAP.

 

Locating the lenders with the best financing terms

 

Most consumers have migrated to online shopping, but when it comes to automobile financing, you will not be able to get the best terms online. The websites that advertise low interest rates are not the actual lenders, they are just lead generators.

 

To access the best car loans in all of Canada, you must work with a local car dealership. The dealership has direct access to lenders from all over Canada. These lenders cater to buyers in both the prime and subprime niches, so you have peace of mind knowing you are getting the best possible deal when you buy a car in Acton.

 

These dealerships are able to help provide you with comprehensive credit rebuilding advice. If your credit score needs improvement, the credit experts at the car dealership are going to help you reach that goal.

 

Interest rates are going up, so you need to make a move as soon as you can or risk paying the mistake of waiting too long.

 

If you need help or advice on anything to do with auto loans in Acton, contact Car Nation Canada today, we can help!

 

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