Good Credit Car Loan in Toronto, Ontario (GTA)
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If You Have Good Credit You Deserve a Good Credit Auto Loan with Low Interest!
Here at Good Fellows Auto we have helped many customers with good credit get the best interest rate available for their auto loan. We have several auto financing programs that offer 3-6 months of payment free financing for those with qualifying credit. We also offer 0% down payment financing that is paired with our proprietary car loan protection plan.
Just because you have a good credit score doesn’t mean you should pay more for your car, and you should always be wary about new car loan offers that have extremely low-interest rates. Most often, you will encounter car dealerships offering low-interest financing for new cars that are meant to draw you in for the purchase. Before you decide to take the plunge on that new car with your good credit auto loan, you should keep these 4 tips in mind:
Most low-interest rates are only for short term loans. This means that you will have higher monthly payments to go with that low rate so you will expected to pay off the full price of your car in as little as 24 months. When you choose a longer loan repayment term, that enticing interest rate will disappear. Auto loans with Good credit are attractive, but not always the best option.
Low-interest rates are not often paired with rebates. There is usually some type of rebate offered on the purchase of a new vehicle for people with good credit, but when you opt for a low-interest rate, it may require you to give up that rebate. Before you jump at the chance for a low rate, make sure you take the time to calculate your actual savings. In some cases, keeping the rebate will save you more money than opting for a lower short term interest rate on your payments even if your credit is good.
Keep the car price in mind. A lot of consumers forget about the final price of the car when they are blinded by the fact that they are being offered a low rate of interest for their good credit car loan. Often, low rates are only available for higher end cars, or for cars they need to offload from their stock.
Vehicle Depreciation. Everyone knows the value of a car starts to go down the moment you drive it off the lot, but in some cases, it’s better to skip a low-interest rate on a new model when you can opt to buy one that is slightly used instead. In many instances, you can save yourself thousands of dollars by purchasing a 1-year-old certified used car instead of a brand new model. Since your credit score is good, you can secure a loan with easy terms for a used car.
Leasing is another trap consumers with good credit are drawn into. Here are a few things you should keep in mind about leasing when you are offered a good credit car loan.
- Leasing a car tends to cost more than an actual good credit car loan because the car you are driving depreciates quickly.
- Continuously leasing also leaves you with perpetual car payments. When you purchase a car, there are a set number of payments that allow you to retain some value on your investment once the loan is paid off.
- Leasing a car limits the number of miles you are able to drive in a calendar year. Since the car doesn’t actually belong to you, if you exceed the agreed upon mile limits, you will end up paying an extra fee which can cost quite a bit at the end of your term.
- Some wear and tear are expected when you lease a car, but if you don’t keep the vehicle in near mint condition, you will end up facing extra fees at the end of your term. This may not be an issue for the casual driver, but most people who have a family can expect to pay excessive fees when the term is up even if you have a good credit car loan.
- Leasing a car gets you locked into a specific amount of rental payments, if you need to end your lease early for any reason, you will have to pay the remaining amount due immediately. In most cases, when you add the penalties and fees, the amount comes out to much more than you would pay over the term of the lease.
If any of these don’t sound like the ideal way to own or lease a car, it’s probably a better idea to find a used vehicle or a lesser priced new one to meet your needs. Good Fellows Auto has several good credit auto loan options for buyers who qualify. If you have good credit, give us a call now!