Car Financing in Nova Scotia
Shop for a new or used car and you’ll join millions of other Canadians searching for an auto loan. Car financing is what makes car ownership possible for most of us, even if it takes several years to pay off the auto loan. If you plan to finance your car in Halifax, the following steps can make this right for you.
Auto Loan Nova Scotia
Step No. 1 — Determine Your Budget How much are willing to pay for a car? $10,000? $15,000, $20,000 or more? It is important to base your search on a budgeted amount, with those funds covering your down payment, taxes and other expenses. Ultimately, your monthly payments will determine what you can afford. For instance, if you know that you can afford $250 per month and make payments for 60 months, then your budget is $15,000.
Step No. 2 — Obtain Your Credit Score Your credit score is a three-digit number ranging somewhere between 300 and 900. The higher your score, the more likely you’ll be approved for car financing, provided other factors are also strong, including your income and repayment history. If your score is at least 650, that bodes well for you. But don’t worry about a low credit score as subprime loans may still qualify you for car financing.
Step No. 3 — Search for a Car Browse the inventory to find a car that suits your needs. Each listing offers plenty of details about the vehicle that interests you. When you find one, jot down the stock number and model code. Contact your dealer to confirm the vehicle is still in stock. If it is, then make an appointment to take it for a test drive.
Step No. 4 — Take a Test Drive Perform a walk around of the vehicle, taking note of any imperfections present inside and out. Likely, the car has been detailed, restoring it to its original lustre. When driving the vehicle, familiarize yourself with how the ignition starts, the engine runs and the transmission shifts. Make certain that all lights are working, turn on the audio system and check all electronics, including navigation.
Step No. 5 — Negotiate the Price If you’re satisfied with the vehicle, present your offer to the salesperson. Unless the price is firm, you’ll have room to negotiate. After some back and forth negotiating, you should settle upon a satisfactory price. Make sure you have all the numbers in front of you, including the sales tax.
Step No. 6 — Let’s Talk Financing Finally, we have reached the step you have been waiting for. The wait was worth it because now you’re sure what you can afford, the type of vehicle you want and for a cost within your budget.
There are several factors that determine your payments, including the amount of money you put down or the trade in offered. The interest rate and loan term will have a large bearing on your monthly payments.
Work with your dealer to come up with a plan you can manage. Happy Drives! With car financing in your rearview mirror, you’re now ready to enjoy your new ride. The process may have seemed challenging at times, but your transportation needs have now been satisfied.