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Strategies to follow when trying to get a great car loan in Hannon

Strategies to follow when trying to get a great car loan in Hannon

Almost every car on the road has been financed. We are lucky to get by, the average Canadian is $200 away from financial ruin, because the majority of Canadians do not have the cash on hand to pay $40k or more for a new car.

If you bought a car before the pandemic, you are probably paying too much interest and should consider refinancing your car loan.

You could save thousands of dollars over the life of your loan, especially now that the Bank of Canada has started to increase interest rates as a way to slow inflation which is now well over 6%!

It’s not a lie, you can refinance car loans in Hannon

Most of us are used to refinancing our mortgage every five years or so, but most Canadians believe their car loan is locked in and that there are no options for lowering the interest rate.

How does refinancing a car loan work?

The lender must examine the vehicle and determine its current market value.

Most car dealerships offer a professional appraisal that can be presented to a lender.

The lender will take the car's appraised value and subtract whatever your current loan balance is, yielding either a positive or negative number.

If the number is negative, your car is worth more than you owe, but because cars depreciate quickly, you will owe more than the car is worth.

Lenders are willing to lend you up to the full market value of your car, but if you have a good credit score, you may be able to borrow more.

Locating lenders who provide these auto refinancing options

These loans are advertised online by lenders, but you must have a high credit score to qualify, which is over 700.

These loans are available if your credit score is around 650, but the loan providers are not available online. You will need to contact your local dealership for assistance.

These lenders only work with dealerships, so you'll be able to get these loans this way. If your credit score is low, there are a few things you can do right now to improve it.

You can quickly improve your credit score by following some established best practices. If you're tempted to use credit repair services advertised on the internet, you should resist.

The majority of these credit repair companies are nothing more than con artists. The only way to improve your credit score legally is to pay your bills on time and reduce the total amount of debt you have.

The secret to great credit is keeping balances low, paying your debts on time and being patient.

It's a good idea to contact your dealership right away because car loan interest rates are about to rise, and you don't want to miss out on the chance to save some serious cash.

The sooner you refinance your car loan, the more money you'll save, so contact your local dealership as soon as possible and have that appraisal completed.

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

Categories: Auto Loan

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