The Ultimate Car Buying Guide For Canadians in 2024

We've prepared a car buying guide in Canada to make your life easier. Buying a car can seem very stressful yet exciting time but with a little preparation, it can end up going very smoothly! Let's just dive right in.

How to Finance a New/Used Car Purchase

Average new car prices are over $50,000, so you will need to get financing because, let's face it, no one has that kind of cash on hand.

Many lenders offer car financing, but not all of them are going to have a competitive loan in or be willing to do business with you.

It would be smart to take a closer look at your credit score posted by TransUnion and Equifax.

Your credit score could vary, so don't worry if one agency has your score higher than another.

To get the most competitive terms, you need to have a credit score of over 720.

However, if you are not at the 720 mark, you can still qualify for a car loan, but the cut-off mark is 600 or you would end up in subprime car loan territory.

There are some tips you can follow to rebuild your credit quickly, but the challenge is you need to put in the necessary work.

You should make sure there are no delinquent accounts in your credit report.

Should you find any delinquent accounts, they should move to the top of the list. You need to bring these accounts current as soon as possible.

Delinquent accounts will stay on your credit report for up to seven (7) years, so they will not go away by itself.

Locking in the Best Financing

If you are facing credit issues, you do not have to wait for things to improve, you can still get a car loan approved, but you need to find the right resources.

First, you should go through a local dealership that specializes in second chance financing. The dealership will have existing relationships with the lenders and will know which lender is going to give you the best deal.

While the dealership gets you approved for a car loan today, they are going to provide you with tips on how to repair your credit score so you can get a prime interest rate car loan in the future.

If you're ready for a car loan in Southern Ontario, we'd love to help! simply fill in the form below to get started.