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Five ways to get a good deal on a car loan

Five ways to get a good deal on a car loan

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Financing is a big part of buying a car and will often last longer than the joy of driving that new purchase. In all the excitement of choosing a car, adding extras and building your dream vehicle, the actual financing aspect can be forgotten or not given the attention it deserves. That could be a mistake.

Spending as long on the financial details as on the car may not be as exciting but it can make the entire purchase much more affordable. Here are five ways to get a good deal on a car loan.

Check your score
The first, and arguably most important part of financing is to check your credit score. This has a huge impact on the affordability of a loan or the range of loans or lenders willing to accept you. The wider you can cast your net, the better loan deals you will likely be able to access.

Knowing your score in advance also gives you the opportunity to correct any errors, manage any issues and perhaps even increase your score. The higher your score, the lower risk you are regarded to be. The lower the risk, the more competitive the interest rates you will be offered.

Set your budget
Before you even set foot on the lot, make sure you know how much you can afford. Know the maximum price you can afford on a car, to pay each month and also know how much your trade-in should be worth. Use a loan calculator to work out how much you can pay and where the cut-off is. Try your best to stick to this as much as possible once you’re at the dealership.

Shop around
Not all dealership loans are created equal. While Car Nation Canada does its best to find the best possible car loans, it does make sense to shop around. We want you to be happy with your car and if that means your getting a loan elsewhere, that’s fine with us. Just don’t settle for a loan before checking ours out as we can sometimes beat competing offers.

Go short
Car loans are gradually becoming longer. While this means you can borrow more for a lower monthly cost, it does mean paying more interest over the long term. You may be much better off saving more for a deposit or buying a cheaper car. A lot depends on your personal circumstances and where your priorities lie.

Look at more than the monthly payment
When considering a car loan, it is easy look only at the monthly amount. That could be a mistake. You need to consider the purchase price of the car, the cost of the loan over the term and the value of any trade in as well as the interest rate of the loan. You need to balance all of these to know you are getting the best deal.

Here at Car Nation Canada, we want you to be delighted with your new car. That’s why we work as hard as we can to secure the best deal we can. Visit one of our locations to see what we can do for you!

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