Loans Canada Launches Free Credit Score Portal And Is Recognized As One Of Canada’s Top Growing Companies
Loans Canada is pleased to announce it placed No. 131 on the 2022 Report on Business ranking of Canada’s Top Growing Companies.
Despite it being one of the most expensive investments you’ll ever make, buying a new car can make a world of difference in your life, whether you use it for work, school, grocery runs or road trips. The only problem is that a new car could cost you tens of thousands of dollars throughout the years, which is enough to steer any driver away from the idea. Luckily, there’s always the option of financing your car using a loan.
That said, new car financing can come with a few expenses of its own, one of the largest being the interest rate your dealership or lender charges. So, in order to save as much money as possible, it’s important to find the best rate you can. Keep reading this article to learn how you can do just that.
Essentially, interest is what you pay to borrow from a dealership or lender. You can either apply for in-house financing and make payments directly to your auto dealer or take out a loan to purchase the car outright, then repay your lender in installments. The lower your interest rate is, the less you’ll pay overall to finance your new car.
Although both types of car financing have similar application and payment procedures, the associated interest rates can be quite different. In addition, there are a number of factors that can affect how high or low your specific rate ends up being, such as:
It’s true that your interest rate can make your new car payments much larger than you were initially expecting. Don’t worry, because there are a few easy ways of finding and qualifying for the lowest car financing rates possible, including but not limited to:
Compare new vehicles, dealerships, and lenders in your area. You’ll find that every one of them offers different financing rates, loan amounts, and approval conditions. After you fill out some simple forms, they should also give you a free price quote, so you’ll have an idea of what rate you’ll qualify for.
Before you actually apply for new car financing, it’s a good idea to get pre-approved by your dealer/lender. Not only will this let you know if you’ll qualify for a loan, but it can also help you narrow down your car search, shop smarter and save money by finding you the lowest financing rates.
Offering the largest down payment you can comfortably afford can also help you earn a lower rate, especially if you don’t have good credit. Plus, it can reduce the overall size and length of your debt. Most experts suggest that you put down at least 20% of the car’s asking price.
If your income and/or credit aren’t great, a financially stable friend or family member can cosign your application and agree to take over your payments if you can’t afford them. Due to this extra security, your dealer/lender may give you a better rate than you would get from bad credit car financing.
Build Your Credit Score
Prior to applying, be sure to increase your credit score by paying off existing debts, checking your credit report for errors and avoiding any other new credit. The closer your score is to 900, the easier it would be for you to make payments (theoretically), so you may qualify for a lower rate.
One of the best ways to earn a low rate is to show your dealer/lender that you can afford all associated costs when they inspect your finances. Be sure to have a solid job for at least a few months prior and enough extra money saved to cover a down payment and any other future costs.
Amount | Interest | Term(Months) | ||
![]() | $500 - $50,000 | Up to 46.96% | 12 - 84 | Learn More |
![]() | $500 - $35,000 | $29.99% – 46.96% | 9 - 60 | Learn more |
![]() | $500 – $10,000 | 12.99% – 39.99% | 9 - 36 | Learn more |
![]() | $5,000 - $40,000 | Varies | 12 - 72 | Learn more |
![]() | $7500 - $59,995 | 3.95% + | 12 -96 | Learn more |
![]() | $5,000 - $45,000 | 4.90 % - 29.95% | 36 - 72 | Learn more |
![]() | Varies | 11.9% + | 12 - 84 | Learn more |
![]() | Up to $50,000 | Varies | 12 - 84 | Learn more |
![]() | Up to $50,000 | 8.99% + | 12 - 72 | Learn more |
For most drivers, buying a new car is not very easy or affordable. Some have to work for months, even years just to save up for a down payment. Since your dealer or lender’s interest rate can drastically increase the cost of your car financing installments and repayment term, it’s important to seek out the lowest rates possible.
In fact, if you’re a responsible borrower, qualifying for a low new car financing rate can start a ripple effect that will gradually improve your financial health and credit report:
There are plenty of simple ways to find the best car financing rates for a new car and your finances. However, if you’re still having trouble, Loans Canada can help you find prime auto financing sources and the lowest interest rates in your area.
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Loans Canada is pleased to announce it placed No. 131 on the 2022 Report on Business ranking of Canada’s Top Growing Companies.
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