Not everyone is able to finance a new car in Canada, so purchasing a used vehicle is often the norm. When you buy a used car, you have the peace of mind of owning reliable transportation without the headache of worrying about how expensive a brand new automobile is. If you are in the market for a gently used or certified used car, chances are it’s only a couple years old and you will still need financing in order to drive it off the lot. Check out GFA Financing guide to securing financing for your used or certified used car purchase so you can get the most out of your money.
How to Finance a Used Vehicle
Most people in Canada secure auto financing in one of two ways, through the car dealer or through their bank. For most other used car purchasing you will need financing. There are a couple of things that will affect your chances of approval when it comes to financing a used car purchase, the most important factor being your credit score. Your credit health will either gain your approval, conditional approval or rejection along with various interest rate offers depending on your score.
When it comes to buying a used car, your affordability depends largely on the interest rate you are offered for your Toronto bad credit car loan. It’s important to research rates and offers before you ever step foot on the car lot because it’s often the single most important thing that can make or break the deal. A financer or car dealerships may offer different rates at different times of the year, and even in some cases offer different rates for different car models. It never hurts to ask questions and take your time when it comes to choosing a car with an attractive interest rate attached.
Start with your home bank, see what type of offers they have available for existing customers. Once you are armed with that information, shop around at other banks to see if they have better offers for new customers. Sometimes banks will offer lower interest rates on used car loans just to secure your patronage.
Used Car Loan Dealership Financing
Obtaining financing for your used car through the dealership is a common option that most borrowers use to their advantage. What’s great about getting your financing on site is that you can usually get approval and drive home in your used car the same day. If you go to a trusted dealership, they will often more than likely apt to offer lower interest rates and even some bonuses or upgrades, because they care about their clients. Purchasing from a used car dealership also offers a wider variety of choice, because luxury cars are actually affordable.
What Used Car Financing Should I Choose?
Regardless of what you decide, make sure that you read the terms and conditions in full of any finance agreement you choose to apply for. Make sure to do the math and understand your long-term budget and repayment expectations prior to agreeing to sign any documents. GFA Financing is always here to give you advice about the various used car loans that are available with no obligation. Give one of our agents a call at 1-(888) 721-0731 and someone will get in touch with you shortly.