4 Considerations before you Buy a New or Used Car in Ontario

4 Considerations before you Buy a New or Used Car in Ontario

Posted on February 10, 2022

Want to buy a new or used car in Ontario? The market is scorching, and you will need to be fast-acting if you want to get a good deal, as our Waterloo auto loans team explains.

There is a very limited number of new and used cars available in Ontario and the rest of Canada, so the competition has never been more intense.

Don’t buy from private sellers

Do not buy from private sellers if you have been scouring Kijiji and AutoTrader for used cars. There has been a considerable amount of fraud taking place on these platforms.

You are spending your hard-earned money and need the peace of mind that only a reputable licensed dealership can provide.

Establishing a budget before you start shopping

You never buy groceries on an empty stomach, and you don’t buy a car without first knowing what you can afford.

If you don’t have a budget worked out, you are likely to buy a car that you cannot afford, so take a few minutes to calculate what you can afford.

If you are not sure how much money you can afford to put towards the new vehicle, the average car loan in Waterloo is around $500 per month so use that number as a benchmark.

This is just the car loan cost; you also need to ensure you have room for insurance and maintenance.

The last thing you want to do, especially with the fragile economy, is taking on more debt than you can handle.

Reviewing your credit report

You will need to look at your credit score to see whether you qualify as a prime or subprime borrower.

To qualify as a prime borrower, your score needs to be in the 700 range, be sure to check both TransUnion and Equifax.

You could have a 720 with Equifax but a 680 with TransUnion; by checking your credit score now, you protect yourself from having any surprises when it comes time to negotiate financing.

If your credit is under 700, you can still qualify for a car loan, but the interest rate will be higher. Individuals with a credit score below 600 will have a very difficult time securing a car loan without professional help, but there is always hope.

How to access the best financing for your new car

Whether you buy a new or used car loan in Ontario, the best way to get a competitive car loan in Waterloo is by going through a local dealership.

You may find websites that advertise great car loans, but they will fall short when it comes to customer service.

The dealership will have cars in their inventory for you to test drive, and they can negotiate very competitive car loans on your behalf. If you had any credit issues, the dealership would also be able to help you repair your credit, thanks to their in-house credit experts.

You should head over to a local car dealership and begin reviewing the different options that you have available. Always go for a test drive before you make any final decisions; you don’t want to buy a car until you have decided it is the one you truly want.

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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