Buying a car can be an intimidating experience. Picking the vehicle and test drives are fun and exciting, but when it comes down to the numbers, you tend to loosen your collar a bit. Whenever money becomes involved, things start to get tense. I put out a question asking what people wanted to learn about the car industry, and many people wanted to learn more about the finance department. So we asked our awesome Finance team, “what are some of the questions you guys get the most?” They come up with 6 questions, and here are the answers:
1. Does checking my credit affect my credit score?
In short, yes. But not entirely. Obviously when you’re buying a house or a vehicle, we need to check your credit score to see if you’ll be approved. If you get it checked once or twice, then the hit will be so small that you can gain that lost credit very quickly. If you get it checked 6, 7, 8 times by a bunch of different dealerships, then obviously this will affect your credit score more significantly. But these hits are very small, and you can easily make these up by making your payments if you do choose to buy a vehicle.
2. What should I bring with me so if I do choose to buy a vehicle, I can drive away with it the same day?
If you want no additional accessories and you know what you’re looking for, it’s very easy to drive away in a vehicle the same day you show up. First thing to bring is a certified cheque from your bank, so you can start making payments on time. The second is your most recent pay stub, as the bank sometimes wants to verify your income. The third is a piece of government-issued ID. Because as silly as it sounds, we have to make sure you are who you say you are.
3. Can I pay off my loan early or make additional payments?
This is a question we get a lot. You can definitely make additional payments since all our loans are open loans. And if you come across a lump sum of money, you can pay it off entirely as well. This is very easy to do. Just go to your lender and let them know you want to make additional payments, and they will even set you up online if you’d like. Just remember, even if you make the equivalent of 2 payments 1 week, you will still need to make the bi-weekly or annual payments you agreed upon in your contract.
4. When is it too late for warranty?
It’s almost never too late for warranty. We suggest you look into warranty around the time your comprehensive coverage of 3 years or 60,000kms is up. If you are after that, no big deal! Come stop by and see our financing team and they can see what kind of options you have.
5. How do I get approved with little to no credit, or if I’m new to Canada?
People sometimes are afraid of buying a new vehicle because have no credit or if they’re trying to rebuild their credit. That’s no problem! We have different lenders that have first time buyer programs for people in those situations. New to Canada? Also not a problem! Our lenders also have “new to Canada” programs that can help you get in a vehicle and start accumulating credit.
6. Will I need a co-signer?
This is a question we got a lot. It IS NOT A BAD THING to get a co-signer. It will make it easier and faster for you to get approved, and might actually lower your rate. Do you need one? It depends. If you are rebuilding your credit or are new to credit, having a co-signer might be advised. If you want to see if you’ll need a co-signer, stop by and we will sit down and walk you through everything!
Is there a finance question that you have before you go into a dealership? We are more than happy to answer your questions! Let us know in the comments below, or on Facebook.