Five Tips on Getting the Best Car Loan in Halifax

By John Hayden

Do you want a great deal on your next set of wheels? Of course you do – and that’s going to take a few hours of research, scouring the Internet for incentives and offers. But the payback could save you thousands of dollars during the term of your car loan, according to the credit consultants at Hayden Auto Loans. It’s relatively easy to decide what kind of car you want, finding the perfect balance between your dream ride and your family’s needs. But things get tricky when you start working out exactly how much you’ll be paying for the convenience of driving everywhere over the next few years.

Looking for the Lowest-Interest Auto Financing in Nova Scotia

Once you feel confident that your budget can comfortably absorb the cost of a new (or new-to-you) ride, it’s time to choose the perfect car for your needs. And make sure you get the best loan terms too. Depending on personal characteristics, interest rates vary widely throughout the Maritimes:

  • Used cars: interest rates of 4.90% – 46.96% over terms of 3 to 120 months, with at least three months of employment, a minimum monthly income of $1,500–$2,200, and no more than one bankruptcy;
  • New cars: interest rates of 0% – 6.9% over 12 to 120 months, with no minimum employment or income requirement.

How to Get the Best Car Loan in Eastern Canada

As the vehicle serves as collateral securing your auto financing, borrowing against models that are known to break down frequently and rust more severely may well be more expensive, with higher interest rates and shorter terms. So – now that you’ve considered your forthcoming family needs and shortlisted your future rides – here are six inside tips on how to get the best car loan in the Maritimes:

  1. Comparison shop for loans, comparing interest rates offered by dealerships, banks, credit unions, and online brokers, asking for customer loyalty rewards at financial institutions where you already have accounts;
  2. Focus on the total cost over the entire course of your loan. This includes your monthly repayment, title transfer fees, delivery fee, insurance, sales tax, fuel, maintenance, parking, undersealing and winter tyres, ensuring safe trips during extreme weather events whose frequency is increasing;
  3. Polish up your credit score as you check out what’s available on the market in your price range.  Pay all your bills promptly and keep older credit sources alive by using neglected credit cards. Only as a last resort, think about consolidating your debt;
  4. Bulk up your bargaining power over several months, by putting aside every cent you can afford for your down payment. That’s because the more you put down, the less you borrow, and the lower the end cost of your car;
  5. Consider a co-signer, particularly if your credit history is brief or your credit score poor, as this may offer access to better loan terms. Additionally, it can improve your credit rating as you pay back your auto loan;
  6. Apply for pre-approval before getting out onto car lots and kicking the wheels. This will speed up your car loan paperwork and curb any temptation to overspend.

Think Smart About Your Auto Loan

It’s important to stay flexible and be willing to negotiate your vehicle financing. Remember to check out lesser-known possibilities, with your final decision steered by comfort and safety, rather than looks and status.

Don’t jump on the first car loan you’re offered.  Instead, read the fine print carefully. Then ask a motorhead buddy to test drive your selected wheels, as a final precaution.

Takeaway: There are many factors involved in car loan on the market. Some are related to you (income, credit rating, etc.), while others derive from your chosen vehicle: year, make, and model. The Hayden auto financing guys will be happy to help you weave them together into the perfect loan. Get approved now!

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