How to get a car loan that works for your budget in Beamsville

How to get a car loan that works for your budget in Beamsville

Posted on August 16, 2022

Do you need a car but are concerned about rising prices? You are not alone; a growing number of Canadians just like you need a newer vehicle because their current car is no longer reliable or fuel-efficient enough to justify keeping it on the road.

By the time you reach the end of this conversation, you will have the information you need to make a better-informed decision.

Defining a budget for your new car purchase

Something that you will need to do is create a budget for your new car purchase. No one in Beamsville has the cash on hand to buy a new car outright, so the only option is financing.

Now that we are learning to live with Covid, the economy is starting to come back to normal, but inflation is impacting all facets of the economy.

You need to adjust your budget to offset these changes; this means there is less cash left over for discretionary spending like a new car payment.

As a rough estimate, allocate $700 a month for your car payment, and you should be fine.

If you don’t have enough cash in your current budget to cover that payment, you should consider taking on a second job or trimming any excess spending from your current budget.

This is the only way you will be able to comfortably afford the new car payment.

Taking a snapshot of your current financial health

Canadians live on credit; you need to keep constant tabs on your credit score so you are never caught off-guard when trying to apply for credit facilities.

Your credit score from either TransUnion or Equifax must be higher than 680 if you want to access the best financing terms.

The good news is you can access your credit score for free by signing up with services like Credit Karma.

Once you have signed up for the service, take a look at your credit report and score.

Are there any accounts that are past due? If there are, you need to bring them current as soon as possible. Past due accounts are the leading cause of low credit scores.

Where to find a good deal on a new car in Beamsville

No matter where you live in Canada, if you want a good deal on a new car, you should head over to your local car dealership.

The local dealership will have access to lenders that the average consumer is not able to access; this means you are going to get a far superior deal to anything you could have found online.

Another immediate benefit of going through a local dealership is their ability to show you how to raise your credit score, so even if you are facing some financial challenges at the moment, you can still get approved today and drive home in a new vehicle.

You should contact the local dealership today and start the journey towards buying a new car.

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

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