Finding The Best Car Financing Deals in Canada: 5 Key Tips

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Finding The Best Car Financing Deals in Canada: 5 Key Tips

Posted on February 7, 2023

If you are buying a brand new or previously owned car, these suggestions from our Lincoln auto loans team are going to help you get the best deal on a car loan near you in 2022!

 

Take advantage of aggressive trade-in promotions

 

The used car market is experiencing unprecedented demand. In the past, trading in your car was an after-thought but you can get some serious money for your used car now!

 

Even if your car is old and on its last left, you would be amazed by how much money you can get for it.

 

Interest rates for Lincoln car loans are at all-time lows

 

The pandemic forced the Bank of Canada to keep interest rates artificially low. Now, that the economy is starting to recover, those rates will need to rise.

 

This presents a great opportunity for you to find the best deal on a car loan and lock in those low-interest rates.

 

Qualifying for low-interest rate car loans

 

You will need good credit if you want to get the lowest interest rate for your Lincoln car loan. The current minimum score required is 680, but that could change.

 

If you are not sure whether your score reaches that level, you can check with the major credit reporting agencies, TransUnion and Equifax.

 

Should your credit score not meet that threshold, there are steps you can take to help improve your score. Take a few moments to review your credit report and find out why your score is below 680.

 

It could be something like missing a cellphone payment, but you need to identify the cause of your credit issues before taking proactive steps to address them.

 

Importance of having a stable income

 

Something that can greatly improve your chances of getting your car loan approved is having a stable income. Lenders have tightened up their loan underwriting procedures and you need to have proper documentation.

 

Canadians that are self-employed will need to show their latest income tax assessment and banking statements. If you are working a traditional job, your most recent pay slip should be enough.

 

Finding car loan providers with the best terms

 

The majority of consumers are under the impression they can find a great car loan online, Unfortunately, that is not the case.

 

You can find bargains online for most things but when looking for a competitive car loan, your local car dealership is the place you need to go.

 

The dealership has a couple of advantages that you cannot find anywhere else. We touched on trading in your car and putting those funds towards the purchase of a new car. When you bring your used car to your local car dealership, they will give you top dollar.

 

These dealerships also have access to the most extensive network of lenders throughout Canada. This gives the dealership the ability to shop around with a variety of lenders and pick the one that will give you the best deal.

 

Last, but certainly not least of all, the dealership has the ability to provide you with credit rebuilding advice. If you really want to know the secrets of buying a car in Canada, your local neighborhood car dealership is by far the best-kept secret.

 

We’d love to help you find the perfect car loan. Simply fill in the form below and we’ll get back to you ASAP! 

 

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