How to Save Money on a Car Loan in St. Catharine's
How to Save Money on a Car Loan in St. Catharine's
Posted on April 25, 2022
Canadians that want to save money on their next car loan have their work cut out for them. The car market in Canada has experienced dramatic shifts due to the pandemic.
But, stick with our auto loans team until the end, and you will know how to save money on a car loan in St. Catharine's.
Car prices are on the rise
New and used car prices in Canada are on the rise; this is due to inflation which has driven up the costs that go into making the car.
These higher costs are passed on to us, the consumer, but before these price changes take full effect, you can take proactive steps and buy a car quickly.
Interest rates are also rising
The Bank of Canada has increased interest rates to slow inflation to combat the rising inflation rates.
These increases make everything more expensive, which should slow inflation but at the cost of economic progress.
With rising car prices and interest rates, you will need to dig even deeper to make your monthly payments
Taking a closer look at your credit score
Your credit score is going to play a pivotal role in whether you can get a new or used car.
Of course, if your credit score is over 680, you will qualify for the most competitive interest rate, but even if your credit score is on the low side, you can still get a car loan approved.
There are free services like Credit Karma you could sign up for, and that will let you know your credit score.
If your score is on the low side, there are some things you can do to help improve it, starting by reducing the total amount of debt you are carrying.
The more debt you are carrying, the more interest you are going to pay in order to service that debt. Reducing your total outstanding debt will help make it easier for you to qualify for a larger car loan.
The average car payment in Canada is over $600 per month, so you must factor that into your budget.
Where to save money on a car loan in St. Catharine's
If you want to save money and find the most competitive car loans in St. Catharines, you cannot find those lenders online.
Your best option is to go through a local car dealership; these dealerships have relationships with all of the lenders throughout Canada, so you have peace of mind knowing you are going to be getting the absolute best terms.
What makes the dealerships even more appealing is their ability to give you credit advice.
This advice will help improve your credit score, so you will have access to the most competitive car loans in the future.
You need to follow these suggestions and do it soon; with each passing day, car prices and interest rates are rising, which costs you money over the long term. So now that you know where to get the best loans, contact the dealership today; it will be the best call you made all month.
We’d love to help you save money on a car loan in St. Catharine's. Simply fill in the form below and we’ll get back to you ASAP or see our selection of new and used cars at our Burlington dealership.
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