Finding the best deal on a car in Guelph

Finding the best deal on a car in Guelph

Posted on July 5, 2022

If you want to know the best place to buy a car in Guelph is, we can help. Before we set forth on this adventure and try to figure out which province is the best, we should take a moment to learn how car loans work here in Canada.

How does a car loan work?

The average Canadian has a car loan, but they don't know what happens after they sign on the dotted line to make the loan happen. They only care about how much they have to pay each month.

When someone wants to buy a car, they need a loan, and the first step in getting a loan is to fill out an application.

Whether you fill it out online (which isn't a good idea), at a dealership (recommended), or with a third-party (highly recommend).

Your information is put into a database that is linked to a network of lenders, (think of it like Amazon but instead of people buying products, lenders are trying to buy your loan by offering lower interest rates and better terms)

These lenders have already decided what kind of borrowers they want to work with, like people with a certain credit score and income.

If you meet that requirement, you are pre-approved for the loan, though the final underwriting will still need to be done.

In the past, this was a manual task that took a lot of time and effort. Now, with automated systems, you can get a decision in just a few minutes.

The dealership helps because they can bid down the interest rate on your car loan to something much lower than what you would get if you tried to get the loan on your own.

Give yourself the best possible chance of getting a car loan in Guelph

Lenders can't decide whether or not to give you a loan based on how good of a person you are. They have to use data that isn't biased, or they'll get sued by everyone they turned down for a loan. (it’s also bad for business to alienate a portion of the population)

Your loan application will stand out from the others if you make sure your credit score is as high as it can be.

You can do this by signing up for free apps like Credit Karma, which lets you see your credit report and score.

When you get the report, check to see if any of your accounts are past due or close to reaching their maximum credit limit. One of the main reasons why someone's credit score is low is that they have too much debt.

Which provinces have the best deals on new cars

If everything else stays the same, you should work with a car dealership in Ontario. Since this is one of the provinces with the most people, it is also the one that gives out the most car loans.

In Ontario, lenders are all fighting hard for a piece of the market, so you are more likely to have more than one option. In Nova Scotia, where the population is smaller, there are fewer lenders willing to do business.

You should talk to a local car dealer soon and start looking at your options for buying a car. Since prices are rising, getting a great car loan now may be the best thing you do in 2022.

Contact Unique Chrysler for help, advice and competitive Guelph car finance and leasing.

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