2021 First Time Car Buyers Guide Made Easy in Paris
2021 First Time Car Buyers Guide Made Easy in Paris
Posted on September 30, 2021
Owning a car is a right of passage but also a necessity in some parts of Canada. We have put together some very important tips that will help first time car buyers have a very pleasant experience.
We asked our Paris auto loans team to come up with some actionable intelligence to help first time car buyers along the journey. This is what they came up with.
Take a deep breath
Right now, you may feel overwhelmed with the prospect of buying a car. There are many questions to address and you don’t want to make a costly mistake. Remember the adage that haste makes waste?
Well, that is very true when buying a car or any other big-ticket item.
How does car financing in Paris work?
The auto loan market in Canada is very competitive, which is good news for consumers wanting to get a great deal. In the past, before online shopping was common you would be limited to your local bank or credit union.
Whether you are meeting a prospective auto loan provider in person, working with our Paris auto loans team or doing everything online, the process is essentially the same.
Are you buying new or used?
If you are buying a new vehicle, the sticker price and the fair market value are the same which makes it easy for the lender to underwrite the loan.
The value of used cars is subjective. For example, you may be interested in a used car that has a sticker price of $25,000 but the fair market value is only $23,000.
In a scenario like that, you would need to come up with an additional $2,000 to make this deal work or negotiate the price down.
Loan term vs monthly payments
Car buyers are usually fixated on how much their monthly payment is without giving much thought to the loan term. It is human nature to have low monthly payments but keep this in mind, the longer the loan lasts, the more interest you will pay.
Reduce your total auto financing charge
Do not focus solely on the interest rate that Paris auto loan providers quote but find out if there are additional fees. Common industry practice is to use low-interest rates to attract customers and then add miscellaneous fees to maximize profits for the loan provider.
Take into consideration the interest rate being quoted and any fees being levied to calculate the total cost of the auto loan. Based on that number, you will be able to identify the lender that has the most competitive rates.
What you need to qualify for auto loans
Lenders want to know two important things before issuing an auto loan. The first thing is that you keep your financial commitments and the only way to do that is by looking at the credit score of the customer, which in this case is you.
If you have less than perfect credit, there are some things you can do to help bring your score up to the 700+ range.
The first and most important step is to pay your bills on time, every time without fail. By having a track record of paying your bills on time, your credit score is going to remain high.
After the lender has determined you are financially responsible, they will want to make sure you have the means to pay the Paris auto loan.
To confirm this, you will need to provide your latest salary slips which show your regular pay plus everything you have earned during the year.
So long as you have good credit and proof of income, you will be able to purchase a car. Just remember to only deal with loan providers that have a great satisfaction track record and you should have no issues.
Our very own auto loans team would be happy to help.
Contact Unique Chrysler for help, advice and competitive Paris car finance and leasing.
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