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The Rush to Get Back On the Road: Auto Financing Mistakes to Avoid

Tarnished credit can make getting approved for auto financing a much more stressful situation, and the pressure to just get it over with can be absolutely overwhelming and could lead to poor choices.

Avoiding the Pitfalls

Auto Financing

Buying a car is a huge investment, and we know that trying to buy one when you have a low credit score isn't ideal. Even if you need to get back on the road as soon as possible, be sure to avoid these mistakes that could cost you later on.

  • Not checking your credit.
    Going in blindly to a car dealership is the worst possible thing you can do. If you are not aware of what your credit really looks like, you run the risk of wasting more time on the application and approval process.
  • Accepting a bad loan agreement.
    When you are pressured for time, it can be tempting to accept the first auto financing deal you come across. Be sure to look closely at the terms and conditions, and don’t just accept the offer because it’s all there is.
  • Not taking the car for a thorough test drive.
    In any car purchasing situation, make sure to take your potential purchase out for a comprehensive test drive. For instance, if you do a lot of highway driving, use that as a gauge to see how the vehicle handles. And don't worry about getting back to the dealership immediately - take your time. Also, if it is a used car, have it inspected by a Certified Master Mechanic and a Certified Body Specialist.
  • Make sure that you are staying within your budget.
    Obviously, you want to ensure that your monthly car loan payment is affordable, but also remember to factor in the costs of insurance, routine maintenance, and gas. Underestimating these costs may make things difficult for you financially down the road.
  • Not bringing all of the needed paperwork.
    Make sure you have all of the necessary paperwork with you when you visit the dealer (such as pay stubs, driver's license and insurance information). Contact the dealer beforehand and ask them what you will need to bring with you in order to get the loan process done the fastest.

Work with a Dealer You Can Trust

Canada Auto Loan has a network of reputable bad credit car dealerships throughout Canada who are experts in auto financing for car buyers with challenging credit situations. We will connect you with the dealer that is best suited to assist you in getting the reliable transportation you need. Complete our fast and easy online application today.