The Key to finding a Great Car Loan in Smithville

The Key to finding a Great Car Loan in Smithville

Posted on January 11, 2022

If you are shopping for a new or used car in Ontario, you need to be on your toes. The demand for new and used cars is at an all-time high. New cars are being sold the minute they hit the dealership parking lot and used cars are also moving fast. What is fueling this appetite for cars is pent-up demand caused by the pandemic but also record low interest rates. The interest rates on a Smithville car loan have never been lower, so consumers are cashing in on the opportunity to get a great car loan in Smithville and you can too.

Even if you have a car loan right now, you could be able to refinance it to a lower rate and save money!

Low interest rates but tougher underwriting requirements

Car loan providers in Smithville are under incredible pressure to issue as many “good” loans as possible. Since the interest rate being charged is low, the lender needs to issue more loans to meet their income goals.

The challenge is finding these “good” borrowers.

With the pandemic, a considerable portion of the economy in Ontario has gone through a period of under-employment due to the lockdowns. So, lenders are raising the minimum credit score for a car loan from 650 to 680.

This is the credit score needed for a prime interest rate car loan, you can still get a  car loan if your score is below 680 though.

Having verifiable income is the biggest thing that will make or break a car loan.

Lenders want to know if your source of income is verifiable and whether you are generating enough income to repay the loan as promised.

The current maximum debt-to-income ratio is 40%, so if you are earning $5,000 per month, the most debt you can carry including a new car loan is $2,000. Naturally, the more income you have, the easier it will be to find a great car loan in Smithville.

Boosting your credit score to get a better interest rate

There are a few proven strategies to help you get the lowest interest rate. While looking at your credit report, see if there are any debts you can pay off today. You may be the type of person who doesn’t mind just making the minimum monthly payments on your credit cards.

Do yourself a favor and pay down these debts as quickly as possible, the money you save on interest will be worth your effort. This is a quick and easy way to boost your credit score.

Sources of the best car loans in Smithville

You are probably being inundated with advertisements online claiming to have the best car loan rates in Smithville. Truth is, these websites are all offering you retail interest rate car loans.

If you want to know the secret to the lowest car loan interest rates in all of Ontario, you can only get them at your local car dealership.

These dealerships have access to lenders throughout the province and have the negotiating power to get you the lowest interest rate possible on your car. The dealership is able to help you refinance your current car loan to something more competitive, so you really should head over now and explore your options.

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

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