How To Get a Better Car Loan Rate
In the game of car loans, rates are king. They are the differentiating factor between a smooth ride home in your new dream car, and a lasting problem that can haunt you for years, and even ruin your credit. For this reason, it’s obvious that you want to get the best car loan rate possible, when shopping around for a new car.
While it may seem like you’re at the mercy of your local car dealerships, this couldn’t be further from the truth. There are many options for improving the car loan rate that you’re offered. From improving your credit score, making regular payments on your current loans, to refinancing your loan based on payments you’ve made, let’s take a look at some of the best ways to get a better car loan rate.
Improve Your Credit By Making Payments
Your credit score is only one indicator of what kind of car loan rate you’re going to be offered when applying for a car loan, so making regular payments on bills is important. Most people are terrified of their credit score, but there are actually many options than most people don’t know. By paying down existing debts, asking for goodwill adjustments, and not seeking or applying for other credit during the car loan application process, you can raise your credit score before applying, and receive better rates.
Increase Your Down Payment
Just like how a higher down payment on a home can lead to a shorter mortgage, a higher down payment on your car loan can lead to a better loan rate. While it may put a little more strain on your savings and finances leading up your car loan application, a bigger down payment is more than worth it in the long run. This also means making sure you don’t overextend yourself on too big of a down payment, so make sure you have a solid understanding of your finances going into the process.
Always Remember To Refinance
Even if you’re stuck with a tough rate on your new car loan, all hope is not lost. By continuing to make your payments as required, you will raise your credit score, and then you can refinance for a better rate in a few months. Refinancing is our priority here at Canadian Auto Brokers, and we will work with you to get you the best rate possible, every time you refinance. We know that people who make their payments should be rewarded, which is why we do so better than dealership financing options.
If you’re ready to start the car loan application process, apply with Canadian Auto Brokers today!