Negotiating Tips For Car Buyers
Stepping inside a car dealership is as challenging (if not more), as when you are trying to get approved for a bad credit car loans Alberta option. An experienced car salesperson can easily tell which clients are rookie car buyers and which ones are not. But regardless of whether you are a first time car buyer or not, you will definitely miss hundreds or thousands of dollars in savings if you don’t negotiate for a vehicle the RIGHT way. All that being said, we came up with a strategy in order to make your overall car buying experience smoother and worthwhile.
Knowing What You Want and Sticking to It
Before anything else, you must make your own personal assessment on which car suits your needs and if you have the budget for it. Unlike the olden days, you don’t have to visit various dealerships personally just to ask for the price, pick trim levels and gather a general overview of the vehicle’s specs. For convenience and time conservation, utilize the internet so you can easily gather every data that you want in just a few minutes. This strategy helps you avoid making any direct confrontation with pushy car salespersons or aggressive car dealers. In doing so, you can objectively pick and select various make and model at your own pace without any distractions.
Moreover, it is so much more advantageous if you take care of the auto financing part before visiting any dealerships as well. This is particularly aimed for car buyers who can only get bad credit car loans Alberta options. It will help you focus more on the actual negotiation for the vehicle and not get confused with the financing part. Once you have got it all figured out and have gotten pre-approved for a bad credit car loans Alberta, then it is time to visit your local car dealership.
Avoid Talking About Monthly Budget
When you start talking with a dealer, you will start to talk about the vehicle’s suggested retail price or your set monthly budget. Your car salesperson might even try to spark up a conversation about their new special offer on a vehicle that is much more high end and have equal or lesser monthly payment. More often than not, this “special offer” is just a setup for a vehicle set at a long term duration. Given your situation that you can only get approved for bad credit car loans Alberta, this will inevitably lead to you getting upside down on your loan. Either way, a car salesperson will use your set monthly budget as a benchmark for the entire negotiation and purposely lead you to a deal that is actually much more expensive.
Take Control Of the Negotiation
Set the ground rules and lay everything on the table. In any situation, whether it is negotiating for a bad credit car loans Alberta or the price tag of the vehicle itself, you have two bullets you can use: 1) initiate a bidding war based on your researched MSRP, and 2) bidding war based on offer from other bad credit car loans Alberta dealerships.
Having these two in your arsenal can somehow tilt the odds in your favor. Moreover, you must firmly assert that you have done ample amount of research, know exactly what make and model of vehicle you are looking to obtain and firmly set with other miscellaneous details like annual percentage rate, loan term duration and the likes. That is why opting for a bad credit car loans Alberta pre-approval is very beneficial so you don’t have to deal with the auto financing part during the entire negotiation process.
Furthermore, keep the discussion with your dealer short. If you can, wrap the conversation up in more or less 30 minutes. If they can’t give you what you want, you can always walk away and find a more accommodating dealer. Being fully prepared will provide you at least with a lot of options in the end and at most, get you the deal you have always wanted.
Given that you are in a situation in which you don’t have the luxury of demanding for a prime car loan rate, your weapon is to use the car dealer’s motivation to sell. The fact is, they need you as a client especially when they are chasing a specific number of sales or quota. Use this to your advantage, so that even if you are only getting a bad credit car loans Alberta option, you would still be able to get a deal that has a reasonable interest rate.
Common Car Financing Mistakes To Avoid
Every year, hundreds of thousands of Canadians fall prey to overpriced bad credit car loans Alberta simply because they did not know any better. Majority of consumers still don’t know that they can conveniently get reasonably priced financing options from non-conventional lending institutions.
While many people go for dealership financing because of its convenience, it is a given that the bad credit car loans Alberta options endorsed by dealers have marked up interest rates which can add thousands of dollars over the entire duration of the loan. Needless to say, this is NOT a great idea if your plan is to save money on your car purchase.
Another mistake to avoid is shopping for bad credit car loans Alberta rates without taking a look at your own credit report. You may think you have bad credit, but do you actually know why you have such a low credit score? Shopping based on a hunch or assumptions spells disaster no matter how you look at things. A lender or dealer can just as easily tell you that you can only get a financing option at this steep rate because of your damaged credit. When in fact, you could have gotten an even better bad credit car loans Alberta rate. Adding insult to injury, there are also instances that your credit points got lowered due to mistakes or clerical errors. An already paid debt might have gotten into the mix which made things much more complicated on your part. Trivial situations like these could cost you 3 percent more on interest or hundreds of dollars throughout the loan term, and NOBODY wants to be put into that unlucky situation.
NEVER Rush Things
It is no secret that patience and diligence are two main components that you must have if you want to get a good deal for your bad credit car loans Alberta. As the saying goes, “good things come to those who wait”. As previously mentioned, one should take time to know all the rates and terms offered by other auto loan providers. Consider the fact that you are making a huge financial commitment in financing a car especially with the purchase being made via a bad credit car loans Alberta option. You are in a situation in which you must time your purchase perfectly just to increase your odds of getting approved for a fairly priced auto loan option. That being said, you must shop for rates from various lenders within a 14-day period. Doing multiple inquiries within this time period will not damage your credit that much since all hard credit pulls made will be considered as a single credit pull. Take advantage of this “grace period” to ensure that you are getting the offer possible.
The GOOD in Online Bad Credit Car Loans Alberta Providers
Although not the most popular choice, there are a lot of advantages in choosing to get financed via online sites. You can easily obtain financing options at very competitive rates and you can simply apply and get approved anywhere at anytime. Let us take a closer look on why you should choose to get bad credit car loans Alberta online.
Easily Accessible Anytime
With most of its transactions done online, as a car buyer you can conveniently apply anytime online using your smartphone or computer. Unlike mainstream auto loan providers, you don’t have to spare time to personally meet with a financing specialist just to go over details which you could have easily gotten through a simple phone call. To add, you don’t have to queue up on a long line waiting for someone to get you approved. The application process itself is usually straightforward and you can get pre-approved as fast as within an hour upon submission.
Take advantage of New Car Canada’s free bad credit car loans Alberta application right now to know where you stand.
Guaranteed Approval No What Your Credit Looks Like
Conventional lenders base their approval mainly on an applicant’s credit history and income. This might be troublesome for car buyers who have recently gone through bankruptcy, car repossession, consumer proposal loans or unpaid collections.
With online auto loan providers, their only basis for approval is your monthly gross income and driver’s license. Online bad credit car loans Alberta providers like New Car Canada guarantees an instant and stress-free approval regardless of your credit history. These online auto loan companies have made bad credit car loans Alberta more accessible since they recognize the fact that maintaining a perfect credit is not something that anyone can just simply do.
Take the first step by making an inquiry with New Car Canada today. The online application is simple and you can get approved with no strings or obligations attached.
Get Competitive Financing Rates
Contrary to popular belief, non traditional lenders like online car loan sites do offer bad credit car loans Alberta options that can compete with the prices endorsed by traditional car financing companies. If you want, you even get approved for no down payment auto loan deals online as fast as 24 hours. Because of a low operating cost, they can give you access to competitive auto loan options, regardless of credit rating.
Completely FREE Online Application
Typically, online auto loan sites provide FREE application to anyone who wants to make an inquiry. Some companies even provide free credit approval service with no obligation to purchase at any point in the process. And because they would only normally make a soft credit pull, it won’t cause any negative damage to your credit score as well. In addition, you can even cancel if you think that their offers are not a good fit for you. Online lenders that specialize in bad credit car loans Alberta also have strong ties to reputable car dealerships giving you access to any type of vehicle you are looking for.
Cars are commodities that have evolved to become more of a necessity rather than luxury. With a society that has a fast paced lifestyle, it is an undeniable fact that having a vehicle is definitely a must. In this internet age, it is relatively easier for car buyers to do advance research, shop for rates and ultimately, get approved for a good credit, no credit or bad credit car loans Alberta option they can afford. With that being said, you don’t have to settle for an overpriced financing option just because of your damaged credit. If you are resourceful enough, you can land an option that works for you eventually.
When Financing A Vehicle Is Better Than Buying One
From a financial standpoint, buying a vehicle with cash is ideal since you avoid the extra expense brought about by interest payments, especially when it is a bad credit car loans Alberta option. However, this is simply not applicable to all car buyers as our society is mostly dependent on a cash flow lifestyle. There are circumstances in which financing a vehicle is better than paying it straight with cash. Let us check them out.
When Interest Rates Are Low
Primarily, you choose to finance a vehicle rather than pay with cash during times when interest rates are affordable. In cases where your credit score is excellent enough to qualify you a zero percent interest loan, then you should take advantage of that opportunity. Not only that, if you have access to interest rates set at 2 or 3 percent annual percentage rate, then you must most definitely get approved for that option as well.
Why? It is because this allows you to keep your savings and give you an option to use that money on other assets worth investing on. As what most people neglect to realize, cars are depreciable assets which means they lose a percentage of their value as time goes by and spending all your savings on this purchase will not give you an opportunity to invest on something better. You can also use this money to pay off other obligations that have high interest rates like credit cards and the likes.
To give you perspective, consider this example:
If you pay interest on a car loan option of $25,000 in a duration of 3 years, your total incurred interest payment would be only be about $710. Moving forward, if the $25,000 you saved up to pay for a vehicle will be used to earn an investment with a 5 percent annual growth, you would be earning more or less $1,250 on your first year alone. As you can see, you can invest your $25,000 on other investment opportunities that are far more beneficial from a financial standpoint.
Settling For A Used Car Is Risky
Unless you are born to a family of millionaires, those that settle for a cash payment would most likely opt for a pre-owned vehicle rather than brand new. And with a used car, there is always a risk of an unexpected engine problem or what not.
So even if you can only get approved for a bad credit car loans Alberta option, you can get an even better vehicle if you choose to finance rather than paying straight up cash. This part is simply a known fact – we want better vehicles. Who doesn’t right? If you are worried about the interest payments involved in a bad credit car loans Alberta, you can use your savings as a huge down payment in order to lessen your total interest payment. The thing about buying a vehicle is that, you have to consider that you will be using that car for at least 3 or 5 years. With that, it is not a great idea to pick an unreliable vehicle that would just mean more cost to car repairs and such.
Here’s an example:
If you got a chance to save $6,000 and decided to use that in order to purchase a used car, it is very likely that your used vehicle will be pretty much used up and have high mileage. And again, it would lack some of the modern safety car technologies and features that are very crucial as well.
In another situation, you could have used that $6,000 to pay for as down payment and you can start checking out vehicles that are much more exciting to drive and more importantly, better long term-reliability. Even with a bad credit car loans Alberta, you would be surprised to see how affordable it is if you bring a hefty down payment into the equation.
Better Budget Management
For most of us, we budget our expenses based on a monthly basis. By choosing to finance with a good credit or bad credit car loans Alberta, you can easily budget your car expenses with other essential obligations since it is a fixed monthly rate. You just have to pick the right option and do not agree to an auto loan option that has a variable interest rate. What it simply means is that you must pick a financing option that has a fixed interest rate and monthly payment for a given loan term duration.
As a guide, it is safe to set a budget that does not exceed more than 20 percent of your net monthly salary. So if you are current take home salary is $3,000, your monthly budget must not exceed more than $300. Setting a conservative budget will allow you to make room for other needed car expenses like regular tune-ups, change oil, car maintenance and repair and auto insurance policy. These are other expenses that come in owning a vehicle, so you have to make room for these as well.
No Need To Wait To Become A Car Owner
Being frugal is not the same as a financially responsible car buyer. How many times have you heard people saying that if you don’t have the cash, you must not buy a vehicle at all. This is not only judgemental but very unhelpful as well. That is when car financing becomes very helpful.
Whether you are opting for a good credit, no credit or bad credit car loans Alberta, having a car loan option gives you the chance to become a car owner even if you are short in cash. You don’t need to save up for months (or years!) just to get the car that you badly needed. As long as you are regularly employed and have steady income, you can definitely get approved for an auto loan option. You can easily inquire for rates and even calculate the monthly payments using online car loan calculators offered by many sites.
Online car financing sites specializing in bad credit car loans Alberta can even get you approved instantly regardless of credit history. Sites like New Car Canada guarantees an approval for car buyers earning at least $1,800 per month. You can even obtain an approval for bad credit car loans Alberta offer of up to $45,000. As a side note, making a car purchase is a good way to boost up your credit just as long as you keep up with the monthly payments promptly.
At the end of the day, it all comes down as to how you lay your priorities, understanding how bad credit car loans Alberta works and determining a budget you can sustain at least until the duration of the loan. Having a car loan option in your arsenal simply makes things easier.
Getting Bad Credit Car Loans Alberta and How Cut Costs For It
It is a given that bad credit car financing are expensive due to the high interest rates involved. However given that’s the case, there are still ways in which you can use to compensate for that sky high rates.
Bigger Down Payment
Saving for a big down payment is a huge lifesaver. Your interest payment depend on the principal debt, so slashing down the money down results to lower total interest payments. Not only that, this means you owe a majority of your purchase or in technical terms, you have equity over your purchase. In an event of a total wreck accident or car theft, your insurance company would only cover for your vehicle’s market value. And having equity over your bad credit car loans Alberta means there will not be any remaining debt involved since it is covered completely by your insurance provider.
Financing experts recommend to place at least 20 percent down to cover for the initial depreciation but given that you are financing through a bad credit car loans Alberta, you must consider paying more than that amount (if possible).
Choosing Shorter Bad Credit Car Loans Alberta Term
The longer you pay for the loan, the more cost it will be as interest payments. In addition, lenders usually offer lower interest rates if you opt for a shorter loan term since it means lesser risk for them.
What is frustrating though is that based on a recent survey, there is an increasing number of cases in which Canadian car buyers go for an extended loan term just because of the lower monthly payments involved. What they fail to consider is that spreading out your loan to a 7 year duration is actually costly. Remember that cars lose more or less, 20 percent of their value during the first two years of your loan with a slight rate decline for the succeeding years. With that, by the time you reach the 7th year of your bad credit car loans Alberta, you are already upside down on your loan by hundreds of dollars. In a worst case scenario, you might end up paying for a vehicle that is not reliable or inefficient.
If you can’t afford the monthly rate involved in a 3-year or 5-year bad credit car loans Alberta term, it is a clear indication that the vehicle is too expensive for you. Settle for a car that satisfies your daily needs and pay it as quick as possible. By the time you have successfully paid for it, your credit score will increase significantly and will be good enough to get you approved for a low interest car loan the next time around.
Consider A Cosigner
Getting a cosigner guarantees an instant approval no matter what your credit rating is. Not only that, it may even give you a chance to bargain for a lower bad credit car loans Alberta rate. Having two persons tied up to an auto loan would greatly reduce the overall risk involved, particularly in the point of view of your lender. That being said, you have a greater negotiating power especially if you tell him that you have other more competitive deals waiting.
Refinancing Your Loan
In a refinancing deal, you replace your current good credit or bad credit car loans Alberta with a new car loan with different terms that are usually more manageable. This process has varying outcomes for car owners, so you have to understand all the factors that come into play and the outcome you are looking for.
In most situations, people seek refinancing in order to save money. Although done in a multitude of ways, ultimately the outcome you seek is somehow related into saving a few hundred bucks. But sometimes, people choose to refinance in order to make the bad credit car loans Alberta more manageable. Regardless of what your motivation(s) is(are), here are things you need to know about refinancing.
To Reduce The Monthly Payment
In reality, people tend to spend more for their car expenses relative to other utilities and expenses. Car expenses have a direct impact on a household’s monthly expenses, which would tell you more for individuals financing a vehicle via bad credit car loans Alberta. Despite that, in some cases, lowering your monthly payment could mean more expenses overall.
The best way to lower the monthly rate is of course, with a lower interest rate. But if this is not the case, restructuring to an extended auto loan term could work as well. The downside to this however is that you will become upside down on your car loan, meaning, you will be paying more for your car that it’s worth. But if you really can’t sustain the current monthly rate, it is better to opt for a restructure rather than end up on an auto loan default. Lenders tend to accommodate this option because they would actually lose more money on a car repossession.
When Interest Rates Offered Are Better
When you acquired your loan, it may have been during the time when you were in a rush or your credit score was pretty damaged, leaving you with no other choice. Fortunately, there are a lot of online car loan sites that offer special offers for bad credit car loans Alberta car buyers. Or you could take advantage of dealers that are chasing a certain sales quota, and are more inclined to offer you a lower interest rate just to land you as a client. Keep your eyes peeled for offers specially during major holidays and the likes.
Your Credit Score Is Now Good Enough
You have been very prompt with your monthly payments and now, it is time to harvest the fruit of your labors. With a credit score that just might be good enough to qualify for a single digit interest, it is a perfect time for you to refinance your loan for a better auto loan option.
For convenience, you can easily opt to refinance online. New Car Canada offers refinancing option that can save you hundreds of dollars. With a wide network of dealer partners throughout the country, you have a wider array of financing options for all types of vehicles – SUV, minivan, pickup truck, sedan.
Ultimately, the aim of a refinancing option is to make things more manageable for you. As cars have become an integral part in our daily routine, it is almost unavoidable for car buyers to settle for overpriced bad credit car loans Alberta options just to get behind the wheel of the car they need. Do not worry though, with a refinancing option available, you don’t have to worry about ending up on an auto loan default.
Picking a Vehicle With The Right Budget
When you think setting a budget for a new car is simple, think again. While you think sticking to a budget is easy, you might find yourself spending more than what you have estimated.
First and foremost, you must determine your monthly car budget.
Crunch in the numbers for your estimated monthly household bills plus a portion of it where you need to place as savings. When financing through bad credit car loans Alberta, a good rule of thumb is to limit your budget under 20 percent of your income. But because of other expenses that come in buying a car, you may have to spend more or less than that. The point here is that you need to be conservative with your budget to make room for miscellaneous expenses. Other expenses include car insurance policy, periodic maintenance, vehicle repairs and fuel expenses. Once you have decided on a budget, it is not a straightforward process where you can just step inside any dealership and drive off with the car you want. You need to look for a bad credit car loans Alberta first that is a perfect fit to your set budget.
Foresight: Obtaining A Pre-Approval
This may seem like an extra step but getting pre-approved directly from a bad credit car loans Alberta provider can cut the whole car buying process by half and save up to 3 percent of interest. Car dealerships put a price markup of at least 3 percent in all their financing offers which translates to thousands of dollars through the entire duration of the bad credit car loans Alberta.
Walking in a dealership with an approved financing option in your hands will instantaneously make you a cash buyer. In a pre-approval, a lender will give you a “blank check” which is not really a blank check since there is already a pre-set limit to that given bad credit car loans Alberta option. This gives you much more leverage during the negotiation process since you can focus more in haggling for a better purchase price for the vehicle. Also, this will encourage you to stick to your budget and not run the risk of overspending.
Another advantage when opting for a pre-approval is that you can freely shop from various bad credit car loans Alberta lending companies. In doing so, you can quickly compare the rates offered and pick an option that is perfect for your budget.
New Car Canada Quick and Easy Approval
Dealing with bad credit is definitely hard because it essentially puts you into a position where your options are limited, particularly when applying for any type of financing. Despite that fact, it should not stop you from getting the car you badly needed. There are still bad credit car loans Alberta options that you can get approved for with monthly payments within your budget.
As a rule, the first thing you should do is secure a copy of your credit report. Find out what went wrong and make sure to address those mistakes so you can start building back credit. But more importantly, this will let you know where you stand.
After which, you start looking for bad credit car loans Alberta options. The best place to get a quick and easy approval is through online auto loan sites like New Car Canada. Our company offers guaranteed auto loan approval no matter what your credit situation is. Our mission is to help every Canadian get behind the wheel of the car they love without going over their budget. Our team of reputable financing specialist can help you find financing quotes for the car you want based on your set monthly budget. With hundreds of car dealership partners nationwide, we are more than willing to help you out, regardless of your location.
Take advantage of our free 1-minute online application and learn more about how our financing services can help you.
When the dust settles, it is all about how financially committed you are into buying a vehicle. Here at New Car Canada, we base our approval on your financial capacity to pay for the loan. If you have a steady job and decent income, we guarantee a fast approval. Unlike local banks and credit unions, we believe that not everything can be seen through a credit score. That is why we help anyone looking for an affordable financing option – good credit, bad credit or no credit history at all.
Few Points To Remember By
When shopping for a vehicle, prioritize your needs over wants. The functionality of a vehicle must always come first. Financing a car at a subprime rate is costly so you need to make sure that you are getting the car you absolutely needed. Furthermore, always negotiate for the price. There is always a wiggle room, and if your dealer is too stubborn to give it to you, be prepared to walk away. With how competitive the auto finance market has become, there will always be lenders/dealers willing to compromise just to get you as a client. Take advantage of New Car Canada’s services today and see the difference.