Applying for a car loan is quick, simple and painless but, like many things, it’s as much about preparation as it is applying. This is what we are going to talk about today.
Here are some do’s and don’ts when you’re getting ready apply for a car loan.
1. Establish a budget
It’s disturbingly easy to overspend when buying a new car. All those brilliant extras and tech options pile up quickly. Establish a budget it’s the only way to avoid it.
Establish a budget as soon as you are seriously considering buying a new car. Evaluate your down payment and see how comfortably you can afford to borrow. Use it to set a budget and stick to it.
2. Don’t waste all your savings on a down payment
Down payments can save you a lot on interest, but you need to be measured in your approach. If you have some money set aside for a down payment, great. If not, be sure to allocate a certain amount of savings for a down payment and use it only.
Don’t empty your rainy day fund for just one car. Murphy’s law says that the moment you do this, something will go wrong and you will need money for something important. Make sure you keep enough aside for you to pass.
3. Make a list of wants and needs
The list of wants and needs is part of the budget for your new car. Create a list with one column of needs and one column of wishes. Add all the features your new car needs to have and all the things you would like it to have in desires.
Use the list to help you decide on the make, model and trim level for your new car when applying for a car loan.
4. Don’t let bad credit scare you
People end up with a low credit score for all kinds of reasons. Not all of them are your fault. We understand this, which is why we love working with people to rebuild their credit.
We have access to a range of high quality lenders who evaluate people on their current situation and not just their credit history.
5. Consider the cost of running the vehicle
Car loans are all about affordability. Part of that is being able to comfortably afford the loan payments along with your other monthly expenses. People often forget vehicle management costs when defining the budget and applying for a car loan.
Add the cost of gas, tires, service, insurance, any parking permits, and other related expenses when looking at the car loan. You will save yourself a lot of hassle if you do it now rather than later!
Ready to apply for your next car loan? We would love to help! Click here to get pre-approval online today.
This article was published by: Michelle Paletta by title: Applying for a car loan in Canada: dos and don’ts
If you like the information in this article, please write your opinion in the comments column.
Column comments available for discussion, sharing ideas and knowledge. Respect other readers with good and polite language. Stay on topic. Do not attack or spread hatred against certain ethnic groups, religions, races, or groups. Think carefully before posting a comment.
Please write your comments according to the topic of this news page. Comments that contain SPAM! will not be displayed until it is approved by our team.(comment nicely and politely)
IMPORTANT!!! If you want to take content from our site, please include the source of our article My Loan
Tim Editor: Omar, Shaqueena, Bilqis