If you’re looking to buy a new or used vehicle, chances are you’ll end up financing it. While paying cash for a new car is always an option, most of us don’t have that much money to spend at one time.
If you decide to finance a new vehicle, you want to make sure you lock down the best rate possible on a car loan. That’s where we come in!
Here are some industry secrets for getting the best rate possible.
The shorter your car loan, the lower your interest will be. Today, you can almost guarantee 0% interest on 36 month loans (with import brands, at least), but it’s also fairly common to see 0% rates for 60 and 72 month terms.
Today, you’re able to secure a car loan for up to 96 months. While that may make your monthly payments smaller in the short term, you’ll end up paying more in interest in the long run. One, because you’re paying interest for a longer amount of time, and two, because longer terms come with higher interest rates.
A shorter loan term may mean higher monthly payment (because it requires you to pay your car loan off faster), but it also means you’ll save money in interest in the long run.
Choose the shortest period of time you can afford for a car loan. On average, Canadians apply for vehicle loans around 48 months.
When we say “credit history,” we’re talking about two important pieces of information: your Credit Report and your Credit Score.
Your credit report keeps track of how well you manage your debts. It will detail what you owe, to who, and for how long. Most importantly, it keeps tabs on how timely you’ve been with your payments. Paying on the time is key when it comes to your loans. The most important thing you can do is pay all your bills on time.
Your credit score is a three-digit number that tells a lender how reliable you are as a borrower. If your score is high, it’s easier to get a loan. If your score is low, that makes things more difficult (for most auto financers; luckily, you don’t have to worry about that when it comes to My Ride).
In Canada, credit scores range from 300 (just starting out) up to 900 (the best possible score). 650 is around average. If you’re below 650, don’t panic. Bad credit won’t stop you from securing a car loan with My Ride.
We specialize in no-credit and low-credit customers. While other dealers have to go through the banks to get you approved, we can finance you ourselves. Our success allows us to finance you with our own money. So don’t let bad credit or a poor credit report stop you from applying for an auto loan with us.
You might not think you can afford a new vehicle, but buying new can often be the best financial choice. Typically, financing rates for new cars are better than they are with previously owned vehicles.
Manufacturers often offer extremely low rates with new vehicles (0-2.99%), whereas the lowest possible financing rate you can get with used vehicles is around 4.9%. That means your chances of getting a better financing rate are higher with a new vehicle than a used one. And a low financing rate means less interest. And that means more money in your pocket!
With over 10,000 vehicles and 20 brands to choose from, My Ride offers you more options than anyone else. By working directly with the biggest brands in the industry including Ford, Dodge, Volkswagen, Mazda, Toyota, Nissan, Honda, Hyundai, Kia, Porsche and others, we’re able to find the right vehicle with the right car loan. New or used.
#1: Choose the shortest car loan you can afford. The shorter the loan, the better your interest rate.
#2: Know your credit history. If you find you have bad credit or a low credit score, don’t let that stop you from applying. When you get financed through My Ride, you can use that car loan to establish and even rebuild your credit (if you pay your bills on time).
#3: Buy new, if possible. New vehicles may seem more expensive, but they usually come with the best financing rates and really long warranties, which cut your service bills down by a LOT.
At My Ride, we understand car loans. We know how to get you the best possible finance rates, even if you have bad credit. With over 30,000 happy customers behind us, we have tons of experience securing affordable loans for all types of drivers. Now, it’s your turn!