The internet is filled with information about auto loans. The problem is, how do you know what’s true and what’s not? With an industry that’s constantly changing, it’s difficult to separate fact from fiction. Why not let us do it for you? Here’s what most people don’t know when it comes to car loans.
It used to be that in order to get a car loan, you had to go through the banks first. The problem is, the banks made getting a car loan difficult. Especially for people who have less than good credit, or first time buyers.
In the last decade, things in the vehicle financing world have changed. Dealers recognize that buying a car shouldn’t only be an option for people with good credit. While good credit makes getting a loan easier, a loan can actually help someone improve their credit over time. That’s why My Ride developed an in-house financing team. We wanted to create an easier way for people with bad credit to get a car loan.
Our in-house process eliminates the banks altogether, if need be. We’ll try to finance you through traditional lenders first, but if they deny you, we’ll finance you ourselves. This has allowed us to create a less stringent approval process that doesn’t automatically deny you just because you’ve made a few financial mistakes in the past.
We use our own money and operate by our own rules. While banks used to be a necessary evil, we’ve created an alternate path to financing. We help our customers get back on their feet and rebuild their credit through a car loan. Don’t feel forced to go through the banks; there is another option.
Did you know that manufactures typically offer better interest rates with new vehicles than they do with used ones? This is to incentivize customers like yourself to buy new.
Manufactures can often offer as low as zero-percent financing with new vehicles, which means you pay no interest over the course of your loan. It’s basically borrowing money for free. On the other hand, the lowest financing rate you can get on a used vehicle is around 4.9%.
When you have bad credit, it’s important you make safe financial decisions and sometimes, buying new is the safest route. Choosing to buy new means your vehicle is backed by a manufacturer’s warranty.
With a warranty, you never have to worry about unforeseen service costs or breakdowns; you’re financially covered. Plus, it takes the uncertainty out of vehicle ownership. Without unexpected bills to stress about, you can always make sure you’re making your payments on time.
While it is true a credit worthy cosigner makes getting a car loan easier (especially for first time buyers), it doesn’t mean it’s impossible if you don’t have one.
Most manufacturers realize that sometimes a low credit score isn’t a result of bad decisions. It might just mean you haven’t had a chance to establish good credit yet. This is often the case with younger buyers or people who are new to Canada. That’s why we’ve worked with lots of manufacturers to offer programs designed to get first time buyers into vehicles with or without a cosigner.
We work closely with auto manufactures who run first-time buyers programs like these ones every day. Don’t be afraid to apply just because you don’t have established credit. With the introduction of these programs, getting a car loan has never been easier.
There are more incentives to buying a vehicle than ever before. In addition to things like zero-percent financing and cash rebates, dealers are offering longer terms so you can find a payment plan that works for you.
Be careful, though. While it may be enticing at first, vehicle loans that go as high as eight years may not be an ideal situation in the long run. Plus, you’ll end up paying more in interest over time.
The important thing about incentives is remembering to run some simple calculations before you decide. Some incentives offer more in savings over the long term than others. Use a car loan rebate calculator and determine which incentive is best for you.
When you apply for a car loan with Go Auto, you’re not subjected to an intense application process. You can do it online, here. We ask you a few simple questions and that’s it! It takes less than two minutes.
We specialize in supplying vehicle financing for people with little to no credit, as well as bad credit. We also work with manufactures who offer specialized incentives for first time buyers. Finally, we offer payment plans for all types of budgets. Whatever your situation is, we can help.
There’s a lot of misinformation about new car loans out there. If you’re confused about how a car loan works, or if just want to know if you qualify for one, we have a 24/7 customer service staff that knows the ins-and-outs of the industry.
Don’t feel pressure to buy if the time’s not right for you; we’ll be more than happy to walk you through the vehicle financing process so that when you do decide to apply, you’ll be fully informed.