Tips to Buy a Car in London Ontario this Year [2022]

Tips to Buy a Car in London Ontario this Year [2022]

Posted on April 6, 2022

Those who want to buy a car  in London Ontario are in the right place; we will cover all of the steps involved, so you do not make any mistakes.

Just about everyone in Canada must get financing when buying a vehicle because, frankly, no one has the $40,000 to $50,000 to cover the price of a new vehicle.

While some people may feel shy about needing to take out a car loan in London Ontario, this is a fact of life here in Canada.

Understanding credit scores

Every adult in Canada has used credit at some point in their life. As a new Canadian, you will have a credit profile with TransUnion and Equifax; these are private companies that gather credit-related details about every Canadian.

This data is used in a scoring model to assign credit scores to people.

Credit scores give credit-granting decision-makers an unbiased way to make better-informed credit decisions.

In Canada, no one can be denied a facility based on their race, religion, or political affiliation. But they can be denied facilities like renting an apartment or a job if their credit score is not sufficient.

Credit scores fall in the following categories:

• 720-850 is considered excellent territory, and you will have no issues accessing the most competitive interest rates. If you are applying for a mortgage, apartment, or in this case, a car loan, lenders will be eager to do business with you.
• 650-720 is considered good, and you will qualify for most credit facilities, including a car loan. In 2022 the average credit score is 660, so if your score is in this range, you are just like most Canadians.
• 600-650 is considered “fair” most lenders will charge you a higher interest rate and may not be willing to extend a high credit limit due to the lack of established credit history.
• Below 600 is considered subprime, and you will not be able to get approved for most credit facilities without a co-signer. There are lenders specializing in offering car loans to individuals in this category, but the interest rates you will be charged will be prohibitive.

Having a rock-solid source of income

Something that all car loan providers in London will focus on is your income.

Are you self-employed or working for a company?

If you are self-employed, the lender is going to need your latest two (2) years income tax notice of assessment.

Along with your tax assessments, the lender will also need to review your bank account statements for the last six to twelve months; you should gather these documents now so you don’t have to fish around for them later.

Where to find the best car loans for new immigrants to Canada

Going through a local car dealership is the best place to get a great car loan, especially for new immigrants to Canada.

These dealerships have helped other new immigrants like you and will know which lenders are going to give you a great deal.

Another compelling reason you should go to the local dealership is their ability to help you get a car loan, even if you have no credit.

We’d love to help you buy a car in London Ontario. Simply fill in the form below and we’ll get back to you ASAP or see our selection of new and used cars at our Burlington dealership. 

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