Tips to Help You Finance your Next New Car

Getting a new vehicle is always exciting, but determining how to pay for it rarely is! Here are some tips to help your put in the driver's seat:

Check your credit report for accuracy.Even if you think you have a strong credit rating, ir pays to review your credit report before applying for a car loan. Credit score plays an important role in determining the interest rate you'll receive. Check for possible reporting errors; identify open accounts that can be closed; and review for any signs of identity theft. Be sure to correct any errors promptly. Three major credit card reporting agencies in Canada include Equfax Canada, NCB Inc. and TransUnion Canada.

Explore all loan sources before you buy.Dealer finance departments offer one-stop convenience, but you may not get the lowest possible interest rate. Several loan options are available outside for the dealer. Banks and credit unions can also provide vehicle loans but may require branch visits or pre-shopping  to select your car before approving a loan.

Evaluate your puchase incentive options. Dealers may offer cash rebates or a discounted financing rate, but often not both. You may come out ahead by selecting the rebate and applying it to your purchase price, then using your own low interest rate loan (instead of taking the dealer's rate offer). Bring a calculator or laptop to the dealer to see what option is best for you.

Approach your purchase as three different transactions.Treat the car-buying process as three separate transactions: 1) financing, 2) vehicle prize, and 3) trade-in value. This strategy will maximize your negotiating opportunities and simplify the transaction by breaking the process into three manageable parts. Pricing information on hundreds of vehicles can be found in the automotive section at caamanitoba.com.

Review your contract closely. Consider taking your contract outside of the dealership to read it carefully and without pressure. Don't sign the documents until your know your interest rate, total amount financed, length of loan, and trade-in value. Also, double-check to ensure that unauthorized "extras" haven't been added to your contract (e.g., extended warranties, rust proofing, etc.) And never sign a contract with blank spaces, or rely on oral promises.

Select the length of your loan carefully. Match the length of your loan term to the length of time you plan to drive the vehicle. Buyers who take out longer terms can find themselves "upside down" on their loan - that is, owing more on the car than it's worth in trade when it comes time to buy a new car.

Birchwood Nissan

3965 Portage Avenue

In the Pointe West AutoParI

261-3490

birchwood.mb.ca

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