Used Cars Financing Guide Ottawa
Used Cars Financing Guide Ottawa
Posted on December 8, 2021
The used car market offers a variety of brands, models, features, engines, drivetrains, and more from which buyers can choose. With so many options, it is easy to focus on picking the right car instead of focusing on how to finance it. However, used car financing does not have to be difficult in Ottawa.
There are several steps that you should take when getting a loan for a used vehicle. Here are some things to do before going to the dealership.
Know Your Credit Score
Knowing your credit score will give you insight into the types of rates and terms you can expect on a used vehicle loan.
Research Lenders
While the dealership will also check with its lending partners to find you the best used vehicle loan, it is important to know what is available before heading to the dealership. Learn the difference between national banks, credit unions, community banks, and more before getting a loan.
Get Pre-Approved
An additional step that you can take is getting pre-approved through your bank before car shopping. This will give you an idea of how much car you can afford and the potential payment. Compare your offers to arrive at the best financing terms for you.
While the dealership might get you better terms, at least you have a backup plan. And if you choose to buy from a private party instead, you already have the loan in place so no one will sweep in and buy the vehicle ahead of you.
It is also important to understand that used car financing in Ottawa will have higher interest rates and shorter loan terms than you would find for brand-new vehicles. It usually will not be significantly higher, but lenders take on more risk when they lend money on used cars.
Do Your Research
With your financing in place, you should begin to research the vehicles that you like the most. Used car rankings and reviews will help you find a car that meets your needs and budget. Doing research ahead of time will let you know if the price listed on a car is a good deal or if it is overpriced.
When buying a used car, you will want to get a vehicle history report, such as a Carfax, to ensure that the vehicle has not been in a major accident, have flood damage, or have title issues. Even though you have secured a loan, it does not mean you have to settle for a less-than-ideal vehicle.
Shop with Confidence
Armed with your credit score, knowledge of financial institutions, and a pre-approval, you are ready to shop for a used car in Ottawa with confidence.