A Guide to your First Time Buying a Car in Grimsby
A Guide to your First Time Buying a Car in Grimsby
Posted on October 20, 2021
There are many steps you must take when it's your first time buying a car in Canada, we have put together these suggestions to make the process smooth and cost-effective.
Our Grimsby car loan team have collated some useful tips for when it's your first time buying a car. Everyone remembers their first and we are here to help.
Financing the purchase of your new car
The average Canadian only has on average $5500 in their savings account, so unless you are planning on buying a very old used car, you will need to apply for an auto loan if you want to buy a new car.
There are a significant number of auto loan providers to choose from, you cannot and should not try to apply with every one of them.
This would be a massive waste of time and energy on your end, plus there is no guarantee you will get a great deal. Then there’s the impact on your credit score to consider!
What you should focus on is making sure your credit and income profiles are transparent. Lenders will first look at your credit score to determine whether you meet their lending requirements and if so, at what interest rate.
Interest rates are based on a sliding scale, the higher your credit score, the lower your interest rate until it reaches a specific cap.
You may come across dealerships that are offering zero-percent financing but that is only for specific makes and models of cars. For our purposes we will speak in general terms.
If you are not sure what your current credit score is, you have a plethora of different apps like Mogo which give you free access.
Credit building tips 101
There is a massive amount of misinformation online when it comes to building or maintaining a high credit score. If you apply these suggestions then you will be able to boost your credit score with ease.
Look for errors in your credit score, it could be something simple like misspelling your name or date of birth. It may not seem like a major issue but these errors can put downward pressure on your credit score so it is something that has to be corrected.
Credit reporting agencies have a legal obligation to correct any mistakes that you report to them but you need to go through their defined error reporting process.
Only apply for new credit if you need it. Some people apply for every offer they see online. When you apply for credit, you do not need, you run the risk of getting yourself into debt by making impulse buying decisions.
Even if you have amazing financial self-control, applying for too much credit too soon gives the impression you are in financial hardship which can lower your credit score. It’s true!
Pay your bills on time and never miss a payment. This simple-to-follow suggestion will help keep your credit score up and over time it will help your score exceed the 720 range.
Seek professional help
We covered the things you can do to help raise your credit score but you will need expert help from a local car dealership.
These dealerships will help you with not only finding the car you’ve always wanted but lining up a Grimsby auto loan at very competitive terms. These dealerships work on auto loans all the time so they know what it takes to make a great deal happen.
If you made it to this point in the conversation, you should reach out to your local dealership now and book an appointment.
Contact Unique Chrysler for help, advice and competitive Grimsby car finance and leasing.
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