Decided to get a new vehicle? Great! We have prepared a short guide on what you should pay attention to before asking for an auto loan. As long as you’re well-informed, there is nothing to worry about!
Double Check Your Credit
- Before applying for a loan we recommend you check your credit report and request a copy of it, so you have a better understanding of your expectations.
- You can easily do this by getting an Equifax membership and viewing your report there.
- The whole process of buying a car can be a lot less stressful if you have all the information you need in advance.
- By having a copy of your credit report you are able to double-check for any errors or fraudulent activity that the bureau may have made or missed.
- Being aware of any mistakes on your credit report may help you rectify those mistakes in advance, increase your credit score and obtain a better rate.
- If you realize that your credit score isn’t the best, ask your local dealership about their credit rebuilding options through the use of a vehicle.
Did you know the fastest way to rebuild your credit is through an auto loan?
Research & Compare
Although doing research on which lender offers the best deals might be time-consuming, note that it is 100% worthwhile the effort.
These are the places where you can apply for an auto loan in Canada.
- Your Bank
- Credit unions
- Online Lenders → which often offer the most competitive interest rates
Please be aware of the following things before you sign your contract!
- Length of the Loan
- Annual Interest Rate
Do a thorough comparison of them in order to find the best deal for yourself.
Pick and Set a Budget
The biggest question is: How much should you spend?
Here’s a piece of advice budget-wise: it’s good to have an additional 10% saved for taxes and fees. This will help prevent you from being seen as a risk factor!
When setting your budget you should also take into consideration home expenses to have a clear idea of how much per month you can pay. The more you spend on your auto loan, the less there’s left for all the rest, so pick your budget carefully!
Good Organization Is the Key
Before you apply for a loan, there are steps you need to follow to prove yourself creditworthy. It is essential you prepare ahead all the required documents which you need to show to the loan provider.
Here are a list of documents that you will need to have available:
- Bank statements as a proof of income
- Employment history
- Driver’s license
- Current address
- Contact information
Being well prepared and gathering all the documentation before applying will make the whole process much easier for both parties.
Coming off as organized will ensure that you will be taken seriously so the lenders will feel comfortable when approving you for an auto loan.
Now you are ready! Take control of your purchase, after all, it’s YOUR money and YOUR future vehicle =)
New Car Canada offers best deals and full assistance with anything you might need along the way.
The whole process is hassle-free and quick. Apply HERE and get one step closer to getting approved for the vehicle you always wanted.
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Get the vehicle you want at the price you can afford regardless of your credit situation!