Whether your credit is great or if lay-offs or bad financial decisions you made in the past have left you holding a poor credit score, there’s a smarter way to finance your next car. When you’re shopping for a deal on a vehicle, too many shoppers just look at the price alone. Financing too plays a major role in determining how much you’re going to spend on a new automobile in the long run, so it pays to know your options. A smarter car loan will keep you ahead of the game and satisfied with your new set of wheels down the line, so follow these smart tips for getting a better deal.

#1 Know Your Credit Score – It sounds obvious, but knowing your credit score before you apply can prepare you for what to expect and give you an idea of what makes a good deal. Generally speaking, the lower your credit score, the higher the interest rate, as it’s considered a riskier loan. You can find out what your credit sore is with free tools like Credit Karma; you will always be better prepared the more you know. If you have a poor credit score, you may be better off getting a loan from the dealer; in the Greater Toronto Area, dealers like Colony Ford Brampton have their own financing branches which regularly deal with customers who have poor credit scores.

#2 Put Money Down – Put as much money down on a new or preowned car as you can afford, as it will reduce the total amount of interest you have to pay in the long-run. Some suggest that you put down at least 20 percent; that can be ambitious for some, but the more you pay right away, the more you are going to save.

#3 Trade Ins – Saving is the key to smarter financing options; the less money you borrow, the faster you’ll be out of debt and driving free. Ford dealerships in Brampton such as Colony Ford Brampton accept trade ins that will considerably reduce the cost of a new vehicle, all you have to do is go in and get your vehicle appraised.

#4 Keep the Term Short – The shorter the term of the loan, the higher your monthly payments are going to be. However, the longer you stretch the loan out for, the more you will wind up paying in interest, increasing the total amount of money you spend. Aim to get the shortest loan you can afford given your income and personal finances; experts recommend getting loans no longer than four years. Always keep financing and term length in mind when you’re picking the right vehicle for you; you can always get great deals in your price range by looking at our pre-owned inventory, too.

If you live in the GTA, you know that getting around is hard enough, whatever your credit score. That’s why you need to a dealer that will provide great financing options for all; look at dealerships like Colony Ford Brampton when you need a new vehicle no matter what. You should also be able to apply online for a pre-approved dealer loan so that you can get moving again. When you have to get to work in the morning, drop the kids off at school, pick them up from the babysitters, and get to the grocery store, driving isn’t optional, whatever your credit score looks like. Talk to people who understand and offer great dealer financing.