Car loans are a great way to help customers afford a new or used car that they would otherwise not be able to afford. Understanding your car loan and its financial impact is incredibly important. The first step is understating exactly what you can afford to pay on a monthly basis. Overreaching for a car, and the loan that comes with it, that doesn’t fit into your finances will backfire. Rather than focusing on the total cost of a vehicle, it makes more sense to focus on your monthly payments and how they will fit into your budget.
How to Get the Lowest Payments Possible
There are ways to ensure you are paying as little as possible when it comes to your loan. First, the better your credit is the lower your interest rates will be. A simple credit check before applying for a loan will give you a better idea of what you will owe. Second, the larger the down payment upfront, the smaller your loan amount will be, thus decreasing monthly payments. There are a lot of details that go into your car loan and what you will end up paying, so it can be incredibly helpful to talk with a specialist who can break everything down for you.
Don’t Overreach for a Car You Can’t Afford
This seems simple enough, but it’s easy to look at a monthly payment that’s $50 more a month and think it’s doable. Sticking to your budget ensures that you will be able to pay off your loan as fast as possible, and without any late payments that will increase your interest rates. The faster you pay off your loan, the less you will end up paying in interest, and the faster you will overtake full ownership of your vehicle.
Find a car dealership that will help you understand how to best find a loan that fits your needs, and what vehicles fall under the umbrella of what you can afford. A trusted dealer will get you on your way to purchasing the car of your dreams.
When looking to buy a car at our dealership, we want you to get the best rates available for your loan. You can do this by following these tips and knowing what to ask for when you get here. These factors matter when trying to get the best rate on car loans.
Look for a Low Annual Percentage Rate
APR is the rate of interest that is added on top of your loan payments. The lower your APR, the less money you’ll pay back over the term of your loan. Negotiate for the lowest APR based on your credit history and consider deals we might be offering. For example, sometimes paying low interest with a large rebate might be better than taking zero-interest APR. Do your research.
Make a Down Payment
By making a down payment or trading in your previous vehicle, you won’t need as much financing as those who don’t. This obviously lowers the amount of money you need to pay back. Also, those looking to obtain car loans with bad credit can sometimes get a better APR by making a down payment because it’s less risky for us as your lender. It also shows us that you’re serious about paying in full.
Negotiate a Shorter Loan Term
We often offer car loans varying between 3 – 7 years. While taking a longer term may decrease the amount of your monthly payments, it also adds to the number of payments you make and how much interest you pay over time. By taking a shorter loan term, you’ll repay it faster for less money, so consider paying a bit more monthly to disburse less money over the term of your loan.
Following these four tips will help you gain the best rates for car loans when you buy from our dealership. By negotiating for a lower APR and shorter loan term as well as making a reasonable down payment, you can shave a large amount off the money you owe and the total of each payment.
Getting approved to finance the car you want can be exciting. It is tempting to skim through the details of the loan and rush to the dotted line so that you can drive off in your next car. Before you sign, however, it is important to understand all the terms of the agreement between you and the dealership. Before you drive away, here are a few questions you might consider asking.
Are There Potential Penalties?
If you plan to pay only your monthly payment by its due date, you might not be concerned about prepayment penalties. If, however, you might decide that you want to make an extra payment one month or pay more than the minimum payment, it is important to understand how that affects you. Many car loans have penalties for paying the loan off early, so if you plan to do so, ask the dealership if you can change the terms of your loan to eliminate or reduce the penalty before you sign and agree to it.
What is the Interest Rate? T
he annual interest rate (APR) plays a large role in determining how much money you will ultimately end up paying for the car. Make sure you know your interest rate and whether or not there is verbiage in the loan that allows it to fluctuate so that there are no surprises down the road.
What is the Payment Schedule?
The timeliness of your car payments can affect your credit, so it is essential to understand your payment schedule. Before you sign, make sure that you understand how often you will need to make a payment and how much that payment will be. It is also a good idea to know the total number of payments you will make over the life of the loan so that you can calculate your total cost.
As exhilarating as buying a car can be, don’t let your emotions cloud your judgement. Know the facts of your loan agreement.
Often people who have had trouble with credit debt in the past don’t realize that re establishing credit with car financing is not only possible, but also a very smart option. Everyone has to start building or rebuilding his or her credit somewhere, and if you’re looking at buying a car anyway, you might as well accomplish both tasks at once. Here are a few of the reasons that car loans are an excellent way to rebuild credit.
Many people have an easier time of getting approved for an auto loan after financial troubles. Getting a credit card or other loan through a financial institution can be difficult, but car financers often work with a network of lenders and have more of a vested interest in getting a prospective buyer reasonable financing. Many auto loan companies advertise their ability to finance even clients who have been turned down elsewhere in the past.
Another benefit of an auto loan is that it leaves less room for borrowers to run into trouble. Many people have had problems with credit lines or credit cards, as it is easy to lose track of spending, put off making substantial payments, and let debt get out of control. A used car loan is a little easier to keep up on. After all, it’s a set monthly payment that you can budget for well in advance, and you can’t borrow against it to pay for emergencies or personal splurges. For people who may need to develop better spending habits, an auto loan offers an easy opportunity to establish a record of consistent payments, without offering any opportunity for abuse.
These are just a few of the reasons that re establishing credit with car financing is a wise choice. Whether you’ve already been turned down trying to obtain other credit products or you’re just starting to think about how to rebuild credit, you should consider an auto loan, as it is one of your safest and most effective options.
Just because you may have a credit score that is less than perfect doesn’t mean that you can finance a car that you really want. Having an idea of how to go about getting a loan for a vehicle is often complicated, even with good credit. Here are some ways to get a bad credit auto loan without being overwhelmed by the process.
One of the first things you should do is check your credit score. There are websites online that will allow you to get your credit reports for free. You may wonder why you would want to know your credit score if you already know that your credit is wrecked. Well, things may not be as bad as they seem and often a lender can make things work for you, even with a low score.
Don’t take the first good offer that comes your way. Having poor credit doesn’t mean that you have to accept whatever is available. If you go into the financing process keeping in mind that you may get a better deal than you are expecting, you are less likely to accept a subprime loan when you may in fact qualify for something a little better. A bad credit auto loan doesn’t have to be all that bad.
While you are looking for a loan, it’s important to keep working towards correcting your bad credit score. Make sure that you are making payments on all of your debts so that lenders can see you working on getting better. A six-month good payment history prior to signing on the dotted line is ideal if you want to get the best loan possible.
If you do your homework before you begin looking for a bad credit auto loan, you are more likely to find a financial institution that is willing to work with your situation. Knowing what to look for beforehand can end up saving you money over time.
There are numerous aspects to consider when purchasing a used car. Two key things to educate yourself on include how depreciation works as well as how to go about taking out a car loan if needed. If taking out a loan is not necessary, paying for your car in cash can save you a lot of money over time because you can avoid depreciation.
Going With a Used Car Can Be Beneficial
You have the opportunity to obtain the car of your dreams at a reasonable price and quickly. Additionally, negotiating a price down even further than the asking price is a possibility. Also, your options for which car to choose are endless because there are a ton of used cars to choose from.
Unfortunately, cars lose value over time and the older a car gets, the less it is worth. Despite this, the biggest drop is in the initial uses of a car. Once the car has been owned for a long time, it looses less value than previously.
Taking Out a Loan
If you cannot currently afford the car of your dreams in full, taking out a loan can be a viable and advantageous option. Commonly, car loans are obtained through banks and after doing some research, you can seek out low interest rate options. Another financing option is to choose in-house financing which means a car dealer handles the financing. The main benefit of taking out a car loan is the fact that you can have a car you are not currently able to pay for in full. If you can pay for the car in cash, this can also be beneficial because you can avoid interest all together.
There are numerous benefits to purchasing used cars including the opportunity to obtain an amazing car at a reasonable price and the increased possibility in negotiating the price down to something you can afford. Additionally, even if you do not have all the money needed to instantly pay for a car, you can obtain a loan.
In today’s economy, purchasing a used car makes perfect economic sense. In fact, since so many people are holding onto their cars for longer periods of time that used cars have actually increased in value. This is due, in part, to the fact that fewer used vehicles are coming on the market. Thanks to better engineering, it is possible for almost any modern car to last for nearly 300,000 kilometres, if properly maintained. The average age of the car on the road today is slightly more than 11 years.
The most obvious advantage when purchasing a used car is the smaller down payment required. In many cases, if the buyer has budgeted wisely, he is able to buy his car outright for cash. Even if the individual is not able to eliminate his monthly payment altogether, he will have a payment that is a great deal lower by purchasing used. With job insecurity at an all-time high, lowering monthly expenses is a prudent measure that provides a safety net. In addition to the smaller down payment, you save on taxes and fees that are associated with purchasing new.
The cost of insuring a used vehicle is usually considerably less, especially if you decide to eliminate comprehensive and collision coverage. Another advantage to buying a used car is that most of that kinks or hiccups will have been worked out. The previous owner will likely have taking care of any problems that were on the scene at the factory. This makes your car more reliable. Even though you are likely to love your used car, you are less likely to be stressed about keeping it looking brand-new and scratch free. It is also likely to be less of a target for theft. When it comes time to sell or trade in your use vehicle, you may find that it hasn’t lost much in value. That is because the steepest depreciation usually comes within the first six months of a car’s life. So you are likely to find that your used car holds its value very well, if you have chosen well.
If you are looking at used cars, please pay us a visit. We have many quality used vehicles in stock and will be happy to help you select a car that fits your budget and that you will love.
Sometimes it seems like cars break down at the worst times. You might not be in a great place financially when your car becomes inoperable, and buying a new car is not always possibly. When you need a car, and you have limited funds, a good used car might be the best thing for you. There is a wide-variety of used cars on the market. With a little bit of research, you might find a used car will work well with your current lifestyle.
Know Your Budget Before You Begin
Before you start your travels to dealerships, you need to consider how much money you can afford to spend on a used car. You could save a lot of money, if you pay for the car in full. If this is not possible, consider making a large down payment. Obviously, when you finance your car, the cost is more because you are paying interest each month when you make your payment. Traditionally, when you purchase a used car, rates are higher and the financing periods are usually shorter compared to purchasing new cars. One tip most financial experts offer is to never spend more than 20 percent of your take-home pay on a car.
Estimate Future Expenses
Always do research on the car you want to purchase to see if certain parts need to be replaced more frequently. You might have a particular car in mind that you’d like to buy, but if the water pump in that model has a history of failing, than you might want to consider another car. When you purchase a used car, there’s always a chance you will have to forgo funds for maintenance and upkeep. An older car obviously has more wear and tear on it than a new car. Having savings put aside is important, since you don’t want your car to cause you unnecessary debt.
Buying a car is an exciting experience. The process of obtaining financing, on the other hand, is less joyful. We want you to consider these aspects about financing used cars so that your experience can be a good one.
Obtain Your Credit Report
Before trying to get financing you always want to obtain your credit report. Be sure to check it for errors and report them should you notice any. Your credit report can also help you identify aspects that you are able to improve, such as paying off some debt. Improving your credit score is helpful for getting a better interest rate.
Decide on the Budget
Reviewing your finances helps you figure out how much vehicle you can or want to afford. Take into account any fluctuating, fixed and unexpected expenses, such as fuel, insurance and maintenance. If you don’t care about make and model of the vehicle, you are more flexible in finding a car that fits your budget.
Know Your Financing Options
Contact your house bank for a direct loan. Often times they offer competitive rates for their customers. In addition to that reach out to local banks, credit unions and online lenders. The latter can be a good option if you have a bad credit score and credit unions are known for offering great loan terms. The car you have your eyes on must be able to meet the bank’s basic requirements. Get offers from multiple lenders to find the best rate.
You can also obtain financing through your car dealership. This is a smart choice if you are not keen on one specific vehicle. Most dealerships finance any vehicle on their lot, which opens up your options for getting a great deal. Furthermore, many dealerships offer financing for people with bad credit. It is recommended to put down some money in order to get the best interest rate. This is also important because cars depreciate in value and you don’t want to owe more on it than it’s worth.
Being smart in regard to financing a car can get you a great deal. Be sure to bear in mind these aspects about financing used cars.
Due to the unforeseen and extraordinary events surrounding the global Novel Coronavirus pandemic and for the safety and protection of our Customers, staff and community in general, we have made the difficult decision to suspend showroom operations at Nexgen Cars Canada Temporarily.
Until additional advice from our province’s health team arrives, our sales team will work online/remotely.
SALES ONLINE AND VIA PHONE
We have our sales team ready to answer emails, phone calls and online requests and questions. We can facilitate online purchases and can help you buy from home but no store visits or test drives can be arranged at this time and permitted .
Our virtual showroom is open 24 hours a day, 7 days a week at www.nexgencarscanada.ca.
For all sales and vehicle inquiries, please call at 905-877-5100 or email at
WE ARE HERE TO HELP
We’ll update further as we receive guidance from our federal, provincial and municipal government and health agencies.
We did not come to this decision lightly and we want to assure all our customers that we are always going to be here when you need us.
We would like to thank all essential workers that are continuing to keep our community running and wish they stay safe and healthy during this trying time.
The entire team here at NexGen Cars Canada can’t wait to get back to doing the work we love.
See you soon!
Nexgen Cars Canada Team