To achieve a successful car purchase or auto loan, you need to get several elements right: Get the best interest on the financing, choose the right car, and get a good price. Before
you start your car buying process, there are a few key steps to take in order to make your purchase successful:
1. Get Pre-approved for Your Loan – Then Shop for the Car
It’s always best to walk into the car dealership with a financial offer from a lender in hand. A pre-approval guarantees you a loan to cover the cost of the car you will buy. Also it provides additional leverage and puts you as a buyer in a much stronger negotiating position. You can get pre-approved in less than 5 minutes today with credit repair experts at Canada Auto Experts!
2. Know Your Credit
Your credit, in combination with your income determines whether or not you will be approved for a loan. With a good credit score, you’ll get a lower interest rate meaning you pay less for the vehicle in terms of the total costs, and the monthly payments which is based on your interest rate. Review your credit report and fix any credit errors that drag your score down because lenders will largely make their choices based on that.
3. Know Your Budget
Know how much you can afford in terms of down payment and monthly payment before you start looking at cars.
Your down payment is an up-front payment – the larger the down payment amount, the smaller your loan and monthly payments. Your monthly payments are the regular payments that you’ll make for years to come. Make sure this amount is affordable because finances dwindle sometimes.
4. Apply for Auto-loans During a 14-day Time Span
Even though your credit score decreases when there is a hard inquiry on your credit, keeping your application process within a 2-week period helps reduce the negative impact as all inquiries made during that time will be considered as one.
Getting a new auto-financing at a low interest rate is one of the best ways to improve your credit. To learn more about getting a new auto-loan which improves your credit contact Canada Auto Experts. Call the toll free number 1-855-550-5565 or visit www.canadauto.ca to learn more about getting the lowest possible interest rate on your auto-financing.