Your Car Financing Options in 2024: A Guide to Securing the Best Rates and Terms in Canada

There are many ways to finance a new or used car. We’ll discuss the various ways to get financing for your auto loan and how to secure the best rate in this article along with tips to get a lower interest on your auto loan and why you need to contact us for your new car. 

Get a Car Loan from a Bank 

With banks, you need to check your credit standing. What is your credit score? You may get approved for an auto loan if you’re credit score is 660 or more and you pass the income requirement. 

We recommend fixing or rebuilding your credit to get better interest rates. While banks may offer lower interest rates, the downside is that it can take a long time to get approval as they’re strict with the process. Don’t worry though as there are other financing options to get an auto loan approval. 

Car Loans from a Dealership

You can go directly to a bank or ask your dealership if they could recommend lenders that can finance your auto loan. Car dealerships usually partner with banks and lending institutions to help their clients acquire loans. It’s possible to also get a personal loan even if you have bad credit. However, it’s recommended to get a co-signer and prepare a larger down payment to increase your chances of getting approved. 

Get a Car Lease

If you can’t get approval for an auto loan, another option is to get a car lease. This is similar to a long-term rental. You can lease a car for 3-5 years, which means you can typically get a new vehicle every few years or so. Also, it might be easier to get approved for a car lease than an auto loan. With a car lease, the car loan payments are usually lower and some leasing contracts may include repair expenses to help you save money. The downside is that there may be extra costs for excessive wear. Should you decide to lease a car, we recommend getting regular maintenance to avoid problems down the road. Another option would be to purchase a used vehicle and save money.

Planning to Get an Auto Loan?

As mentioned, one of your best options to get approval for an auto loan this year is to rebuild your credit. The higher the credit rating, the more likely you are to get approved and get a lower interest rate. Don’t worry though as you can still get an auto loan even with bad credit. You just have to find the right institution who will take the risk. Submit all the requirements including your certificate of employment and salary slip. Better yet, prepare for a bigger down payment to get approval or a lower interest rate. Also, we still recommend you get your credit report to increase your score or to have good credit. You’ll get better interest rates for your car purchase if you have a good credit score. If you have questions or are ready to buy a new car, please contact us today.