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Important things to Consider when Buying a New Car

Important things to Consider when Buying a New Car

The pandemic has changed the way we do things, whether it is working from home or interacting with family. Something that has not changed, is our need to drive. The public transit system in Canada is a work in progress and while it has made great progress, most of us are unable to get by without a car. Though beginning the process of purchasing a vehicle can seem overwhelming, so our Hamilton auto loans team as outline some important things to consider when buying a new car in Canada.


Car prices have increased dramatically


There has been a substantial drop in the number of new and used cars available for sale in Hamilton. This limited inventory has forced dealerships to increase their prices but even if there was a “normal” supply, prices would still be on the rise.


Inflation has pushed up the prices of everything from food, to gasoline to the prices of cars.


Since the prices are on the rise, if you have been thinking about getting a new or used car, the time to act is now.


Securing a competitive Hamilton auto loan


The Bank of Canada has kept its benchmark prime rate at a very low level throughout the pandemic but it will start to increase rates.  Once the interest rates begin to rise, other lenders will follow suit starting with the big 5 banks.


Since most of us have become accustomed to shopping online, it seems natural to try and find an auto loan online. There is a plethora of websites that offer auto loans, but these websites are just aggregators who work with other lenders.


These websites are useful when you are trying to get a sense of the overall market but will not provide you with the level of customer service needed for such an important decision.


Benefits of shopping local


You may have seen advertisements from dealerships in your area for “buying local”, this is something to seriously consider when buying a new car.


This transaction represents thousands of dollars over several years, and you need someone who can help you make the right decision.


Qualifying for a Hamilton auto loan


The dealership will have access to the most competitive lenders out there, however, you will need to meet the loan underwriting requirements to secure the financing.


Most lenders want to see a credit score of 680 or higher, if your score is not at that level, there will be options available to you but at higher interest rates.


There are a few simple action items that you can implement if you want to boost your credit score and keep it high. Always and we cannot stress this enough, make your payments on time.


If you are worried about missing a payment, sign up for pre-authorized payment plans with your creditors. By always paying your bills on time, your credit score is going to climb quite rapidly.


The dealership is going to share with you some expert advice on how you can raise your credit score. After your credit score has risen you will be able to refinance your current auto loan to something more competitive.


This level of hands-on customer service is something that you can only find at your local dealership, so be sure to go online and schedule an in-person meeting.


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


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