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Used Car Loan Financing in Ancaster: Our 4-Step Guide

Used Car Loan Financing in Ancaster: Our 4-Step Guide

With the average price of a new car well over $40,000, you should consider buying a used car. However, financing a used car is not the same as buying a new one.

 

There are a few distinct differences that you need to be aware of before you can drive the car home as our Ancaster car loans team explains.

 

Used car prices have never been higher

 

Before the onset of the pandemic, used car prices were considerably lower than a brand-new vehicle, but the prices are pretty close.

 

One of the biggest differences between new and used car loans is the interest rate you will be charged.

 

Car manufacturers want to hit sales goals and have access to capital at very low-interest rates. This means the dealerships are able to provide borrowers with the best possible terms.

 

When it comes to used cars, the lenders who underwrite these loans do not have access to loans at prime rates, so they are forced to charge a higher interest rate right from the get-go.

 

Even if you have fantastic credit (720 or higher score), you are still going to pay a higher interest rate than what you would pay for a new car.

 

The upside of buying a used car is the lower amount of money you need to borrow in order to get a car, and the amount of deprecation you will experience is reduced when compared to buying a new car.

 

Tightening up your credit to qualify for better terms

 

If your credit score is under 720 and you don’t need a car right away, then you should consider working on your credit.

 

With interest rates rising, you need to seize every opportunity to try and lower the amount of interest rate you are paying.

 

A simple and easy way to boost your credit score is to reduce the total amount of debt you are carrying simply.

 

By reducing your credit utilization rate, your credit score will improve.

 

Additional things to keep in mind when buying a used car

 

When buying a used car, something that you will need to think about is whether to purchase an extended warranty.

 

A new car will usually come with a 5-year, 100,000km warranty, but a used car may only come with the balance of the warranty.

 

By purchasing the extended warranty, you have peace of mind that if something goes wrong with the vehicle, you are not on the hook for a hefty repair bill.

 

How to get the best deal on a used car loan financing in Ancaster

 

If you are looking for the best deal on a used car, your best option is to visit your local car dealership.

 

Although the local dealership will have a massive inventory of vehicles to choose from, these dealerships also have access to the most extensive network of lenders throughout Canada, so you are guaranteed a fantastic deal.

 

The dealership will take care of everything so you can focus on selecting the used car that is best suited for your needs and budget.

 

You should head over to the local dealership today and begin looking at what used vehicles are currently available.

 

We’d love to help you with used car loan financing in Ancaster. Simply fill in the form below and we’ll get back to you ASAP! 

 

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