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Tips on getting a low-interest rate car loan in Oakville

Tips on getting a low-interest rate car loan in Oakville

Canadians wanting to save money on their next car purchase will need to be proactive. The auto loan industry is very competitive and if you use the right approach, you can get yourself a low-interest rate car loan in Oakville.

Understanding the Canadian auto loan industry

There is a vast number of lenders who are flush with cash looking for qualified borrowers.

The reason these lenders have so much cash available is due in part to low-interest rates and investors looking for a way to hedge inflation.

Inflation is at a generational high so you need to put your money to work or it will lose buying power due to inflation.

With all of this competition, you can get a great deal provided you fall under the “qualified’ category.

What constitutes a qualified borrower?

The first thing that is required is a verifiable source of income. Lenders want to know how much you are making and whether it is consistent.

If you are working a typical 9-5 job, the lender would look at your payslips and how long you have been with the current employer.

Most Canadians now have a side hustle, so you will need to bring along information about this income source.

The most accepted way to prove this income is with your bank statements.

Credit score underwriting requirements

The next thing that lenders will be looking at, is your credit score. Right now, you will need a 680 credit score to access low-interest rate car loans in Oakville.

That requirement could increase if the economy takes a sudden turn for the worse.

You should check your credit report often and note any mistakes that may appear. There are laws in place that protect you from erroneous information in your credit report but you have to follow the dispute process established by the major credit reporting agencies.

If there are no errors in your credit report but the score is still under 680, you will need to identify the cause of the low score.

Did you miss any payments? A missed payment, even if it was only for a small amount of money can hurt your score.

The only way you can protect yourself from having a low score is to never miss payments going forward. You can sign up for pre-authorized payments or set up payment reminders on your calendar.

By making all of your payments on time, you will never have to worry about your credit score plummeting.

Sources of low-interest car loans in Oakville

You are probably shopping around online for the lowest interest rate car loan providers in Canada. There is an easier way to get the lowest rates possible and that is to work with a local car dealership.

These dealerships already work with the most aggressive lenders in Canada, so you don’t have to shop around on your own. The same dealership will have a great selection of cars for you to choose from, so you don’t have to look around online hoping to find the perfect car.

If you followed our suggestions and work with a local dealership, you will be able to find a great car at a very competitive interest rate.

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

Categories: Car News