When you’re shopping for a new vehicle, the loan rate that you lock in can have a major impact on your options. Whether you’re looking for your first car or want to upgrade your current ride, the loan you pick is the key in the ignition when it comes to saving money down the line.
If you’re wondering how to get the best car loan rates in Halifax, check out this handy guide and learn the best tips and tricks for securing a loan that makes sense for you!
How to Find the Best Rates for Halifax Car Loans
Scoring the best rates for Halifax car loans is all about strategy, and a few smart moves can go a long way. Before you sign anything, here’s what you should keep in mind to secure the most affordable used car loan possible.
Check Your Credit Rating
Your credit rating plays a big role when it comes to interest rates and eligibility. By checking your score before applying for a loan, you’ll have a better idea of where you stand, and it gives you a chance to improve it before going ahead with a loan. Remember: a better score = better rates.
Compare, Compare, Compare!
Never settle for the very first option that you find. Always shop around and compare the loan rates, terms, and lender requirements to make sure you’re driving away with the best possible deal.
Get Pre-Approved
By getting pre-approved for used vehicle financing, you’ll be painted a much clearer picture of what rates and terms you qualify for. And, if you are going head-first into a dealership, it gives you much more negotiating power.
Put Down a Bigger Down Payment
If you’ve got enough money to spare, pay more of the asking price upfront to take out a lower loan. This will put the loan terms in your favour and likely give you better interest rates – a win-win!
Keep Loan Terms Short
The longer the loan, the smaller each payment will be, meaning you’ll be dealing with higher interest rates. If you can afford to, try to keep things short and sweet and get your debt cleared sooner with lower interest rates.
Why Your Credit Score Matters More Than You Think
In most cases, your credit score is the gas that fuels your credit loan approval. The higher your score, the more likely you are to secure a loan for a good rate with better terms.
But, if you’ve got a lower credit score, you might be rejected for a loan or be offered one with higher rates. That’s because most lenders see low scores as red flags and charge more interest to cover their investment.
Get the Best Rates on Halifax Car Loans with Race Auto Group
We’ve got unbeatable auto loans in Halifax at Race Auto Group. We’ll help you figure out everything, from predicted interest ratings to loan eligibility, so you can seal the deal on a loan that matches your budget and credit goals.
Frequently Asked Questions
Is it a good idea to get car loan insurance?
It’s a wise choice to get car loan insurance. You’ll have a safety net in case something unexpected pops up, like a loss of income, an event of impairment, and more. By getting your loan insured, you’ll save your family the burden of covering repayments for you.
What is the average car loan term in Halifax?
In Halifax, most car loan terms range from 60 to 72 (5 to 6 years) for new cars and 36 to 48 months (3 to 4 years) for used cars.
Is car finance the same as a car loan?
While both are very similar in that they involve borrowing money and paying it back, they have some key differences. Car financing is when the lender owns the car until you’ve paid it all off. With an auto loan, you borrow money to buy your new car and fully own it.
Is it easier to get an auto loan in Halifax than financing?
That’s mainly down to your credit score. If you’ve got a poor rating, you’ll probably find it easier to secure financing instead of a loan because credit checks tend to be more forgiving.
