Getting Approved For Car Loans in Ancaster Ontario
Getting Approved For Car Loans in Ancaster Ontario
Posted on December 23, 2022
Our Ancaster auto loans team have prepared some strategies that will help make your Canadian car buying experience a more pleasant one.
The first thing you should do is not run multiple applications, each time you do a hard credit inquiry, your credit score takes a hit.
Too many inquiries and your credit score could fall below the minimum threshold for a prime interest rate car loan. Right now, that minimum threshold is around 680 but you should aim for a 700+ credit score to be on the safe side.
Sources of great car loans in Ancaster
Your current financial institution may offer Ancaster car loans, it can be convenient to get a loan from an organization you already have a relationship with.
The challenge is the interest rates that the lenders are going to quote you are on the retail side.
Retail interest rates may look appealing but if you knew about wholesale rates that are being offered preferred customers, you would jump at the opportunity.
These wholesale lenders do not advertise online, the lenders that you find online are targeting retail borrowers. We will tell you how to access these wholesale rates in a bit but first we need to do some prep work.
Income verification and credit needed for prime rates
We are going to show you how to access the best possible Ancaster car loans but you need to make sure you meet the underwriting requirements that have been established by these top tier lenders.
Before the pandemic, all you needed to get a car loan in Ancaster was a credit score over 650 and a simple payslip. This is no longer the case, you will need to show your latest payslip, income tax assessment and if you are self-employed your bank accounts.
You should look at your credit report from both Equifax and TransUnion. Lenders typically look at scoring from both of these credit reporting agencies before they make any decision. You could have a 700 with TransUnion and a 620 with Equifax, while it may sound absurd, it does happen so you should get free reports from both agencies.
If you come across any errors, you can file a dispute to have the items removed. The dispute process is for legitimate mistakes and not to be abused in the hopes of “gaming” the credit reporting process.
Accessing the best car loan interest rates in Canada
As promised, we are going to cover how you can access the more preferential interest rates. The way is by going through a local dealership in your area.
These dealerships underwrite car loans all the time and have access to the most competitive lenders in all of Canada. The dealership is able to negotiate terms that you could never get as a retail consumer.
What makes the dealership even more appealing is their inventory of new and previously owned cars to choose from. With the limited inventory of cars available in the market, you will have the ability to get a great car at a very competitive interest rate.
This is the best strategy to use when buying a new or used car in Canada, you should reach out to a dealership and schedule an appointment to go for a test drive before the inventory of cars is reduced further.
If you need help or advice on anything to do with auto loans in Ancaster, contact Car Nation Canada today, we can help!