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Smart Ways to Save Money for a Car Loan

Smart Ways to Save Money for a Car Loan

Canadians looking for smart ways to save money on auto financing are in luck. We have done all of the leg work and come up with some tried and true strategies that will make your life easier.

 

Our Hagersville auto loans team lists some key ways to save money on financing your next car so everyone drives away happy!

 

Don’t focus solely on the monthly payment

 

Have you given any thought to the cost of operating the car you are interested in buying?

 

Most of us only think about what the monthly car payment is and don’t give much consideration to the added costs of running the car.

 

  • Insurance can be expensive, especially if you are a new driver or driving a very expensive car. The lender who is financing the car will require comprehensive insurance which can quite costly. The cost of this insurance comes directly out of your pocket, so you must budget for it.
  • Routine maintenance is another cost that new car buyers tend not to think about because they may feel that a new car won’t require much maintenance. Tire and oil changes and maintenance at specific milestones must be taken into account.
  • Fuel, the cost of gasoline and diesel is on the rise and will not go down. Industrialized nations are trying to curb their carbon emissions by driving up the cost of fuel. If the vehicle you are considering has poor fuel economy, that will take a bite out of your budget.

 

Wait until you have great credit before applying for auto financing

 

It is human nature to want a new car right away, but you should not buy one until you have great credit.

 

Interest rates are currently at unprecedented lows but without great credit, you would miss out on these bargains.

 

Surefire ways to optimize your credit score

 

Start by requesting a free copy of your credit report from Equifax or TransUnion, it only takes a few days to come in the mail. When the report arrives, spend a few moments looking it over for potential mistakes. Your address and other personal information should be 100% correct.

 

Should you identify any mistakes inside your credit report, there are forms that you can fill out and submit to the respective credit reporting agency. The law requires these credit reporting agencies to correct the errors within 30 days.

 

If you have missed payments, your credit score will be severely impacted, so make it a top priority to always pay at least the minimum amount requested on your credit cards.

 

Paying your bills on time will have a profoundly positive impact on your credit score.

 

Another great way to drive up your credit score is to reduce your overall debt levels. The industry experts suggest keeping your total debt at 35% of total credit. If you had $10,000 in total credit available, try to keep your combined balance below $3,000.

 

Give yourself time

 

There are no magic fixes when dealing with credit scores. Over time, if you can pay your bills on time and keep your balances low, then your score will climb. The money you will save on interest by waiting until your credit score is high is worth it, the difference could be thousands of dollars.

 

Now that you know how to save money on auto financing in Hagersville, you should begin implementing these suggestions. The faster your credit score rises, the sooner you will have the car of your dreams.

 

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

 

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