880 Walkers Line, Burlington, ON, L7N 2G2
My Garage

Easy Ways to Save Money when Buying a Car

Easy Ways to Save Money when Buying a Car

The Internet has made car buying in Canada, very convenient but there are proactive steps you can take that will help you save money when buying a car while still finding the exact one you want.


Picking the car that best suits your needs


Are you looking for a sedan, SUV, van, or truck? There are numerous choices in each category. While looking over the different options, give some thought to what your needs will be over the next couple of years.


The average car loan is for 72 months, so you want something suitable now and for years to come.


Getting a great price on your dream car


When you have selected the specific make and model you are interested in buying, you should create a list of all the car dealerships that are selling that specific car. The list should be quite extensive, so be prepared to spend some time on this critical step.


Now that you have identified all of the various dealerships, find out what is the asking price each one is going to charge you. Along with the price being quoted, do not forget to factor in taxes and delivery charges if you need to have the car delivered. Try to deal exclusively with dealerships that have a fantastic customer satisfaction track record, they can make your overall car buying experience more enjoyable.


Paying for your new car


Finding a new car at a competitive price is just one step in the process, you still need to pay for it. You can find websites that offer auto loan quotes that can help you save time. The quotes that you will receive are subject to approval.


To qualify for most auto loans in Canada, your credit score will need to be in the high 600’s if you want to get a competitive interest rate. If you had credit challenges in the past, some lenders specialize in bruised credit auto loans but you will pay a higher interest rate.


Re-establishing your credit


If you do have bad credit, you can turn things around for the better but you need to take the initiative. Do you always pay your bills on time, every time? This is the best way to raise your credit score and keep it high on a going forward basis. Depending on how low your score is, it may take up to 90 days before you see a dramatic improvement but you will see an improvement.


When your credit score reaches the high 600’s, you can expect to pay around 3%-5% for an auto loan but the tenure of the loan is dependent on how much income you have. If you have a high income, then the monthly car payments will be higher which lets you pay the loan back faster.


The reason that some car loans have terms of 84 months or longer is due to let borrowers with low-income qualify for the loan. Just bear in mind that the longer the loan tenure, the more you will end up paying in interest.


By having a great credit score, you are setting yourself up for success for trying to save money when buying a car in Canada. If you have not checked out your credit score yet, now is the time to get your free credit score.


For any questions or concerns, please don't hesitate to contact us here!


Thanks for reading. Be sure to connect with us on Facebook, Twitter, Instagram, or LinkedIn to stay up to date on our latest great articles!

Categories: News

Tags: ,