How to Negotiate A Great Rate on a Car Loan

How to Negotiate A Great Rate on a Car Loan

Posted on January 27, 2022

Even though there is a car shortage, you can still negotiate a great rate on a car loan. Since there are not many cars available for sale, you need to determine what features you need and which features you can live without.

You will not be able to get a car with all of the bells and whistles you want right away. The car would need to be made, and that could take months before you take delivery. Regardless, our tips on how to negotiate a great rate on a car loan for new and used vehicles.

Are you planning on buying a new or used car?

A growing number of Canadians are choosing used cars because they can take possession right away.

Another reason that these consumers are buying used cars is they are more affordable.

The prices of both new and used cars are rising by 5% monthly, and it is not showing any indications of a slowdown. These rising prices coupled with inflation are forcing car buyers to make some tough choices.

Getting the best car financing you need

Since car prices are high, you will need to get financing in place. There are websites promoting car loans online that say you can get approved in seconds, and the interest rates are low.

The websites that are advertising low rates may have some decent offers but you are not going to get the best car loans shopping online.

The best source of car loans in Flamborough is by going through a car dealership. You will need to get competing offers from a few lenders to see which lender is going to give you the best terms.

There is something you can do to help stack the odds in your favor. Start by reviewing your credit score and see whether you are a prime or subprime borrower.

Prospective lenders are trying to conserve their capital by giving loans to the most credit-worthy borrowers.

These lenders are focusing on borrowers that have credit scores over 700 and a rock-solid income.

If your credit score isn’t in the 700 range or your income isn’t that stable, then you will end up paying a higher interest rate for the car loan.

Credit is everything when it comes to car loans; if your credit score is low, you need to start taking steps to rebuild your score, so you qualify for prime interest rates going forward.

One of the best ways to raise your credit score fast is to pay your debts on time. This sounds cliche, but you need to pay your debts on time; if you follow that rule, your credit score will rise.

When reviewing the different car dealerships that are offering car loans, pick the one that has the best customer satisfaction track record. By sticking with a dealership that has great customer satisfaction, you will have peace of mind knowing that after you buy the car, there is going to be top-notch customer service after the sale.

If you follow all of the tips that we have outlined, your car buying experience will be a truly memorable one.

We’d love to help you find the perfect car loan. Simply fill in the form below and we’ll get back to you ASAP! 

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