915 WALKERS LINE, Burlington, ON, L7N3V8, Canada
My Garage

What is the Maximum Car Loan Amount I can Afford?

What is the Maximum Car Loan Amount I can Afford?

Have you ever noticed that when shopping for a car, you usually don’t focus on the total price of the car but instead focus on the monthly payment?


The reality is, most of us cannot afford to pay cash for a brand new car. Since we all need to get a Welland car loan, we just want to know what is the maximum car loan amount we can get, so identify the cars that fall within that budget.


Chicken and egg scenario


The question, what is the maximum car loan amount I can afford? Is not black and white, there are some things you need to take into consideration.


Do you have an established budget?


A little less than half of all Canadians, have a budget. If you do not have one in place, you do not know where your money is going and whether you can afford a new car at the moment.


Creating a budget is simple, and you can do it for free. Just make a list of all your debts, including the due date (keeping track of due dates is very important).


Now make a list of all your sources of income, including when the funds are deposited into your bank account. When you have a list of all of your debts and obligations, you can then figure out if there are ways you can trim expenses.


The adage a “penny saved is a penny earned comes to mind”.


Having good credit is key


After you have established your budget, the next thing you should look over is your free credit report. If you make your payments on time and don’t carry too much debt, then your score should be over the 680 mark.


You need a credit score of 680, to qualify for the most competitive interest rates. Should your score fall below the 680 mark, you can start taking proactive steps to address those issues.


The most common reason a person would have a credit score below 680 is because they have not paid their bills on time. This would be a great time to sign up for pre-authorized payments, so you never miss a payment again.


Securing the best car loan in Welland


You will never find a great car loan online, even though the websites are promising you the “best deals”. If you are looking to get the maximum car loan possible, at a competitive interest rate you will need to work with a local car dealership.


These dealerships have access to wholesale car loans, the rates that you find online are retail. The local car dealerships can help you save money by getting you the lowest interest rate, they can also help you find the perfect car. With the chronic car shortage that is affecting the world, your best option is going to a local car dealership.


If you are in the market for a new car, or just want to explore your options it would be wise to contact your local dealership today.


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



Categories: Auto Loan

Tags: ,