Finance a Car Loan in Canada: How to Get Easy Approval in 2024

Welcome to our guide to finance a car loan in 2023! Whether you're looking to purchase a new or used vehicle in Canada, financing can be a useful tool to help you spread out the cost over time. But with so many options available, it can be overwhelming to navigate the world of car loans and leases.

This guide aims to provide you with a comprehensive overview of the different types of financing available, as well as tips and tricks for finding the best deals and securing the most favorable terms.

So whether you're a first-time car buyer or a seasoned pro, this guide will help you make informed decisions and get the most out of your experience when you finance a car loan.

Things You Should Know About Car Financing

Lenders are more risk-averse: The pandemic has sent shockwaves throughout the economy; job security is a thing of the past.

Lenders are worried about taking on bad debts and have adjusted their underwriting processes to reduce their exposure to risk.

This means that people who would attempt to finance a car loan in Canada before the pandemic may not be able to get approved at all.

There's still a fighting chance: Lenders have modified their underwriting, but you can still get a car loan; you just need to have the right approach. Have you recently reviewed your credit report?

Try to make it a habit to review your credit score at least once a month; you can sign up for credit monitoring services like Credit Karma.

To qualify for the best interest rates, your credit score will need to be over 720. You will be able to get car loans with a credit score that is lower than 720.

The interest rate will be slightly higher, and if your score is under 600, you are in subprime car loan territory, which makes it difficult to finance a car loan in 2023.

You can do a few things to improve your credit score, do not pay for credit repair services that you see advertised online.

However, these services are not going to solve the root cause of your credit challenges; that takes effort on your end.

A common reason that a person will have credit issues is not making payments on time. If you have missed payments, you should seize the opportunity to get caught up as soon as you can.

Credit scores are fluid, and as soon as you get your affairs back in order, the score will begin to rise.

Budgeting is a must: When shopping for a car, you should know how much money you can afford every month to put towards the payment. Click here for help with figuring our your budget.

The median car payment is around $500, so you should have at least that amount available for your new car loan. If you have additional funds available, it will help you qualify for a larger car loan.

Head to a dealership: To secure the most competitive car loans, you need help. The lenders you find on the Internet will not be able to give you a good offer if they can get you approved at all.

If you want to get a great car loan if you have credit challenges, your only tangible option is to go through a car dealership in your community.

The dealership will have access to all of the lenders in Canada and can get you approved even when other lenders have turned you down.

Even if you have perfect credit, going through a dealership is the best way to get a superior deal.

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