How to Access Cheaper Car Loans in Acton
How to Access Cheaper Car Loans in Acton
Posted on October 18, 2021
Do you currently have a car loan and are paying more than 5% on it? If you are paying more than that and have good credit, you should consider refinancing your current car loan to something more competitive. Our auto loans team outlines ways to access cheaper car loans in Acton for anyone, regardless of profession or the type of car you want to buy.
Steps to take when trying to Access Cheaper Car Loans in Acton
The first is determining what your car is currently worth. There are websites like Autotrader that can give you some insight but you should also get a quote from a professional car dealership.
This professional appraisal is needed otherwise you would not be able to move forward with the next step which is finding out how much equity if any you have in the car.
The simple way to calculate this is to take the current appraisal and then subtract the amount of money still owed on the car. If the amount is positive then you have equity in the car but if the
amount is negative then you are considered to have negative equity also called being “underwater”.
If this amount is significant then you would need to pay additional money out of your pocket should you decide to sell the car at its current fair market value.
Dealerships to the rescue
Should you find yourself in a situation where you are seriously underwater then your local car dealership will be able to assist. What the car dealership can do is buy your current car and pay out the negative equity plus help you buy a new car.
The amount of negative equity will be factored into the new car loan. This service can help you save a lot of money because the old loan is being paid off and you now have a brand new car at low-interest rates.
Qualifying for this great deal
To gain access to these competitive terms, your credit score has to be very high, we are talking about the 680 or higher range. While you may be able to get a Port Credit loan with a credit score of 650 you should aim higher.
You can get your free credit score online, many apps provide this service so you can pick the one that you like the most.
If you notice your credit score is low, you might want to take stock of your payment history. The primary reason most Canadians have a low credit score is that they forgot to make the minimum payment on their credit card. (Even missing one payment can cause a substantial credit score drop, so take this seriously)
Along with missing the due date on their credit card, another reason is the individual is carrying too much debt.
You can easily calculate this by looking at the total amount of credit available compared to how much debt you have, the more debt you are carrying the greater the perceived risk so try to bring those balances down to a manageable level.
Once you do, you’ll see your credit score increased gradually over time.
Now that you know about the money-saving, car buying opportunities you should take action before the Bank of Canada decides to raise interest rates. The moment these rates are increased, the higher your borrowing costs!
Contact Unique Chrysler for help, advice and competitive Acton car finance and leasing.
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