What you Need to Know about Car Financing in Canada
What you Need to Know about Car Financing in Canada
Posted on October 13, 2021
Car Financing in Canada has changed considerably over the years thanks in part to the internet and social media. We can now find amazing bargains with reputable dealerships in a matter of minutes. You still need to shop carefully though, which is why we wrote this post.
These suggestions from our Glen Abbey auto loans team are going to help make your overall car buying experience a very pleasant one.
Finding the right car dealership
This step is going to be the most important, if you pick the wrong car dealership then there is no guarantee you will get the car you love at the price you want.
While every dealership may claim they are the premier choice when it comes to buying cars, only you can be the judge of that.
Start by looking at the social media accounts of the dealership and find out how long they have been in business. New dealerships are opening up all of the time but as a rule, try to give preference to companies that have been in dealerships for more than 5 years.
You want to deal with a dealership that is going to be around for the long haul.
Another benefit of using well-established dealerships is their access to auto loan providers from all across Canada.
Some people think that the dealership provides the loans but the dealership works as an intermediary for you the customer. The auto lenders want customers and you want a loan to buy a car, so the dealership brings you both together to help make the transaction happen.
Car loan providers give these dealerships a finder’s fee as a means of appreciation. These finders’ fees make up a big portion of the dealership's income.
The dealerships represent a massive amount of business for these lenders, so the lenders are willing to offer better interest rates than what you could get if you reached out to the lender on your own.
Picking the car best suited for you
When you have found a dealership that stands out from all of the others, you can look at the inventory of cars they have available. The total inventory of cars that are currently available around the world has been dramatically reduced, due in part to the pandemic.
With reduced inventories to choose from, you may have to slightly refine your list of wants versus needs when reviewing cars.
Something that should be top of mind is whether the carmaker has a reputation for producing reliable vehicles. Remember, you are going to be spending a large sum of money and time on this car and the last thing you want is to spend money on a car that is always in the shop being repaired.
If you are still unsure whether you should buy a car now, at least you know what steps to take when you are ready to pull the trigger and move forward.
In the interim, you should perform a financial health check to make sure you will qualify for a Glen Abbey car loan when the time comes to make a purchase.
There are no costs associated with accessing your credit score, you can visit Equifax and TransUnion which are the dominant credit reporting agencies in Canada.
Keep an eye out for any potential mistakes and if you notice any inside your credit report then be sure to contact the credit reporting agency ASAP. The sooner you get it fixed, the sooner you can buy that car!
For any questions, concerns, or inquiries around car financing in Canada, Please don’t hesitate to contact us here!
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