The Best Car Financing Rates in Burlington for 2022

The Best Car Financing Rates in Burlington for 2022

Posted on January 3, 2022

When buying a car in Burlington or anywhere else in Canada, you will need to get financing.

The majority of us do not have $40,000+ sitting inside our bank account. Car prices are on the rise, so you will need to pay close attention to these tips if you want to come out ahead and find the best car financing rates in Burlington.

Interest rates are going to start rising in 2022

The Federal Reserve and Bank of Canada have both indicated that interest rates are going to rise, it is not a matter of “if” but “when” and that will be in either Q1 or Q2 of 2022.

Now that we know interest rates are going to rise, lenders, carmakers and consumers are all trying to lock in their savings by applying for Burlington car loans. You can get best car financing rates in Burlington but first you will need to qualify for a prime interest rate car loan.

Lenders are eager to lend but also very conservative

Car loan providers throughout Ontario and around Canada have a massive amount of cash to lend out. Investors are looking for high yield opportunities and car loans is a great way to generate passive income.

Lenders are more cautious than usual due primarily to the effects of the pandemic. The Omicron variant is adding a degree of uncertainty so you will need a credit score over 680 to qualify for a prime interest rate car loan.

Even if you have a high credit score, it does not guarantee you will be able to buy the car you want. Along with having the required credit score, you also need to have enough income to service the car loan plus any other debt you may be carrying. Most lenders will not approve a loan to a borrower who has a debt-to-income ratio (DTI) over 35%.

Addressing any credit issues you may have

If your credit score is just at 680 or below it, you should review your credit report to find opportunities to boost your score. One way to raise your credit score and maximize the total amount of money you can borrow for your car loan is by paying down your debts.

By paying down your debts, you are saving money on interest plus you are increasing your credit score and the maximum Burlington car loan you can secure. This is just one way you can raise your credit score.

Your best chance of getting the lowest possible interest rate car loan is by going through a local dealership. These dealerships can provide you with advice on how to raise your credit score.

The local dealerships also have working relationships with all of the major lenders across Canada. This gives the dealership tremendous negotiating power which translates into lower interest rates for you!

We mentioned that interest rates are on the rise, so you need to take our advice and contact your local car dealership ASAP to take advantage of the best car financing rates in Burlington. The sooner you reach out to the dealership the sooner you can get your new car!

For any questions, concerns, or inquiries. Please don’t hesitate to contact us here! 

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