You feel a sense of excitement as you are going to get a new pair of wheels for personal transport. Depending on public transportation, your friend’s vehicle, or cabs to get you around the city will soon become a thing of the past.
The freedom you feel from having personal transport is wonderful, as you decide when you want to leave from a destination. However, when you start looking for car loans, you don’t know where to start. Making the right choice is essential because it will take a couple of years to repay the credit. Here are three areas where you can shop for a car loan:
Banks
The most common place everyone visits when they want to take car loans is to approach nearby banks. These financial institutions are popular because a large number of consumers consider them to be a safe place for credit. Start with your local bank, before approaching the bigger players in the industry.
As they have websites, you can always take a look at their rates of interest to find out how much to pay every month. However, they will only work with customers who have a good credit score.
Dealerships
If you can’t avail of car loans from banks, you have the option of approaching a dealership. They work with third-party vendors to provide auto loans to consumers. The advantage is that you get faster rates of approval, as you are purchasing the vehicle from the dealership. Although it comes with several advantages, you may have to pay higher rates of interest or hidden fees, so that the dealer walks away with a profit.
Lenders
The third option is to approach lenders who are willing to work with all types of customers, regardless of their credit score. Due to heavy competition in this sector, you can get low rates of interest, provided you do your research.
If you want to take a car loan from a lender, make sure you go through the contract carefully. Several vendors try to cheat unsuspecting customers by adding additional charges.
These are the three places in Canada where you can shop for a car loan!