Category Archives: Uncategorized

How to Save With Dealer-approved Car Loans

People want to save money on products they buy, and this is most true of products that cost more. Cars are one key example. People certainly are inclined to make any effort to save money on car loans when the overall price can represent such a large sum. Car dealers have access and industry insight that can save people money in the long run. Working with one can potentially save anyone looking for a car a reasonable amount of money.

Preferred Lenders

Dealerships often negotiate car loans through a bank. Because these companies have so much business, they often qualify for special rates at a number of financial institutions. This can be advantageous for many customers looking for a good deal. The connections a dealer has can lead to a better price for consumers. It is important to check with a dealership to find out what sort of options it can provide.

Less Down

People looking for car loans through a dealership could also qualify for less down on competitive rates. It could benefit a person looking for such loan to pay less in the beginning and enjoy good rates such as those that a dealership can provide. Even if the dealership cannot guarantee better rates for less down, it still can offer competitive rates for a potentially smaller amount of money. Working with a dealership can be important for anyone who wants more personalization with his or her car loan.

More Options

Another opportunity a dealership can provide is more options. Dealerships have been selling cars for years, and they can leverage their industry knowledge to create a better end result. A person in such a situation should consider reaching out to the professional service with particular requests.

Anyone looking for car loans should explore his or her options and see how a dealership might be an essential part of owning a new car.

Why Buying a Used Car From a Trusted Dealer Is Important

If I wanted to buy a product, I would buy it from a retailer I trust. The same thing is true for buying used cars. I would never buy a car from a dealer I didn’t trust. That is why we strive to be a trusted name in used car sales, and why I think you need to understand the importance of buying used cars from a trusted dealer.

We want our customers to be confident in dealing with us. We want them to know that when we say something, they can trust every word. I don’t make promises I can’t keep or tell my customers things that I can’t guarantee because I know that will only hurt me, the dealership and the customer in the end.

Buying from a trusted dealer is important because it allows customers to be able to buy without worrying that they are being scammed. They know that shopping with this dealer will mean they get a good vehicle for a great price. They know that the dealer won’t tell them a car runs great and has no problems if it actually needs a new transmission. They know that the dealer won’t tell them the car they want is only available at a hugely inflated price and instead will be willing to negotiate a fair price.

Let’s face it, while technology seems to be the way of the world, word of mouth is still huge when it comes to reputations. So, a dealer that is not trustworthy will soon be exposed and his reputation ruined. As a trusted dealer, though, word of mouth is a blessing. That is why we always strive to give each customer the best experience possible.

Our customers expect us to be trustworthy, and we don’t let them down. We offer great quality and prices for used vehicles. That is the whole point of being trustworthy. If we don’t have your trust, then we don’t have a business.

How to Finance a Used Car in Canada

If you’ve found the new-to-you car of your dreams but don’t have the cash to pay for it in full, financing is the solution. In this post we’ll go over everything you need to know so you can secure the right kind of auto financing for your vehicle and your bottom line.

How car financing works

Taking out a car loan eliminates the stress of coming up with a large sum of money all at once. However, it also adds another monthly payment to your budget, so it’s important to understand the ins-and-outs of car financing before looking at the different lending options.
Your monthly car loan payments are calculated using three elements: principal, term and interest rate. 
Principal is the total cost of the vehicle, including any fees the lender or dealership may have for the car loan and any add-ons you choose.
Term is the length of time that payments will be made on the loan — typical terms range from 36 months to 72 months.
Interest rate is the percentage the lender is charging you to borrow money. 
Fixed rate loans offer predictability because the interest rate stays the same throughout the term of the loan. If you’re less concerned with fluctuations and want to benefit from times when interest rates are lower, you can opt for a variable rate loan.

Borrowing for new and used cars

New and used cars get treated differently by lenders for a few reasons. For starters, new cars have a higher sticker price than pre-owned cars. While this usually means buyers can cash-in on incentives like rebates or 0% financing for a certain period, it also means loan payment terms will be longer and monthly premiums will be higher. Also, new cars are usually more expensive to insure. 
Used cars, on the other hand, cost less to purchase. They do, however, require more upkeep than new cars and interest rates on pre-owned vehicles are usually higher — especially if you don’t have much for a down payment or have less than stellar credit. 
Check out our post for things to consider when deciding whether to buy a new or used car.

Ways to finance a used car

There are two main ways to secure a car loan in Canada: through a financial institution or directly through a dealership. Each route has its advantages and it’s a good idea to shop around to ensure you’re making the best decision for your financial situation. 
Before applying for any loan, it’s a good idea to check your credit rating and determine your budget. Whether high or low, your credit rating will dictate the interest rate on your loan; knowing your budget will help you figure out how much you can afford for monthly payments. If your monthly payments are more than your budget allows, you run the risk of defaulting on your loan and damaging your credit rating.
Figuring out your budget can also help you decide how much you’re able to put forward as a down payment —  a larger down payment often translates to lower rates because you’ll be borrowing less.
Now, let’s get into the differences between bank financing and dealership, or in-house, financing.

METHOD 1: BANK FINANCING

If you have a good credit rating securing a used car loan through a bank or credit union might be the right choice for you. Getting a loan through your current financial institution can be a convenient option since all of your finances are in one spot. If you’re an established customer, your bank might even offer you a discount on interest rates or fees and most banks are open to negotiating the terms of your payment period.
However, because of their stricter rules and regulations, banks will only grant loans to customers with favourable credit — even for pre-owned vehicles. So, if you have a low credit rating you might not get approved. 
Some banks are wary of granting loans for used cars because they depreciate in value quickly. It’s a good idea to ask about the financing options for the specific make and model of the car you’re interested in.
It can also take longer to get approved through the bank, so you might be stuck waiting several business days to find out if your loan application has been accepted.

METHOD 2: IN-HOUSE (DEALER) FINANCING

The second option is to get financing directly from the dealership you’re buying a car from. The main advantages of in-house financing are speed and flexibility. 
Because the application and approval process is a lot quicker, many dealerships are able to offer same-day financing. That means you can take a test drive in the morning and drive your new (or new-to-you) car off the lot by the afternoon. This way you won’t have to worry about someone else snatching up the used car you fell in love with while you’re waiting for financing to come through. 
Dealerships offer significantly more flexibility for borrowers with less-than-stellar or non-existent credit (as is the case with students or new Canadians). If you have poor credit or have gone through a bankruptcy, shopping for a vehicle can be frustrating and disappointing. In-house financing can help get you into the car you want, even if you’ve been previously turned down for a loan through your bank. 
At Birchwood Credit Solutions, we look beyond our customers’ credit rating. Once you apply for financing, our team will review your whole financial situation and work with you to pick an appropriate budget and payment options. We can even offer you help and advice on how to repair your credit rating.
Learn more about Birchwood Credit Solutions’ Bad Credit Car Loans and quick, hassle-free application process. You can also contact us to talk directly to a car financing expert.

2019 Ford Explorer Overview – Should You Wait for the 2020 Model?

Today on TheDriveGuyde, I wanted to do something a little different. The current Ford Explorer has been available for quite some time. This midsize 3-row SUV went on sale in 2011. As I am far from the first to review this generation of Explorer, I thought I should compare it to the information that we currently have regarding the all-new 6th generation explorer coming out in the near future. Please like, comment and share this video with others, it would be greatly appreciated!

Advice and Negotiation Tips for Shopping Used Cars

Buying a vehicle is never easy, but buying a used vehicle is downright difficult. You will get your hopes up numerous times by an ad that seems too good to be true, only to be let down when, in fact, it was too good to be true. Someone might advertise their car as “Like new! Mild wear and tear! Runs great!” when in actuality, it is very much old, has extensive wear and tear and doesn’t run at all. Yes, it happens. That is why, when shopping for used cars, you should know where to turn and how to negotiate. Don’t fall for a scam and bring home a lemon, and use the following advice to help ease the pain of your search:

Go to a Dealer

Sure, you know someone who found a great deal on Kijiji, or are even friends with that lucky person who bought a car on Ebay ten years ago and it’s still running great today. However, those people are the exceptions to the rule that states that you should never, ever shop for used cars online. Not only is it impossible to tell the true condition of a vehicle without actually seeing it, but also, you’re risking spending thousands of dollars a car that may take a dump on you ten minutes after purchasing it. Then, because there is no warranty, you’re stuck with an old car that doesn’t run and no money to fix it.

Find the Car You Want

Before you head to the dealership, know what you’re looking for. If you head to the dealership without a clue, you may end up purchasing a vehicle that is over your budget and all wrong for your needs. Identify the traits you need in a new used car: good gas mileage, three rows, ample storage space, etc. Once you do this, set a budget and head to the dealer.

Negotiate Like a Pro

Negotiating for a fair price might be the most daunting part of the car buying process, but it’s necessary. Dealerships expect you to negotiate and price their cars accordingly. Use all the knowledge you have regarding the vehicle to bring the price down.

Use the tips above when shopping for used cars to get the best your money can buy.

Who You Should Bring Along When Shopping for Used Cars

Shopping for used cars can be a daunting experience. With so many makes and models to choose from and with so many ways to finance your vehicle, going it alone can make you feel less confident than you normally might. To make your experience more pleasant, we have some tips about who you might bring along as you shop and take test drives, as this may help you make a more confident purchasing decision.

Your Spouse

Having your spouse along with you as you shop for a used car might make you feel comfortable in terms of helping you decide what kind of car best suits your needs as a couple or a family. You can also bring them to help you keep track of your paperwork and for moral support as well, especially if this is your first time buying a used car on your own.

Your Mechanic

If you have a good friend who is a mechanic, they can be an invaluable individual to have along when you’re browsing used cars. You can ask them questions about which models have the best track record when it comes to safety and reliability. Taking them on test drives might also help you understand and identify any unfamiliar noises you might hear.

Your Adult Children

Having your adult children accompany you on your used car shopping trips can be extremely helpful, especially if you have not purchased a vehicle in some time and are now a senior. They can help you make decisions about which finance option is best for your budget and assist with filling out paperwork if you find yourself running low on energy. If you are not familiar with today’s technology, your kids can help a dealer explain features such as GPS, Bluetooth capability and more.

Shopping for used cars can sometimes feel overwhelming if you go it alone. Bringing along a spouse or a loved one can help you feel more confident that you are getting the most for your money.

Reasons You Should Buy Used Cars

Even if you have the financing to purchase your next car brand new, you should consider buying used instead. Used cars offer several benefits over new vehicles.

Pricing Is Better

This one is obvious, but also one of the most important benefits. Even if you do have the financing for a new car, why spend the money if you don’t have to? Purchasing a used vehicle can save you thousands of dollars. In many cases, you can find used cars that don’t have any flaws, especially if you choose to go the route of buying a certified pre-owned vehicle.

You Have More Variety

When you go to a new car dealership, you won’t have as much variety to choose from because you’ll only see the most current models. Newer doesn’t always mean better. Sometimes vehicles undergo redesigns that remove desirable features. When you choose to go to a dealership for used cars instead, you’ll have the option of choosing from a wider variety of makes and models, which could include finding something with a great feature you can’t find in a new car.

Slower Depreciation

When you purchase a new car, it loses much of its value as soon as you drive it off the lot. Who wants to spend a thousand bucks just to pull into traffic, right? When you purchase from a used car dealership, you don’t need to worry about the depreciation rate. Used vehicles lose value at a much slower rate. In many cases, you will be able to get most of what you paid back for it should you choose to sell. You won’t be able to do that if you sell a car you purchased new.

If you do decide to purchase a used vehicle, do so from a reputable dealership like ours and aim to find something certified. Always test drive and look at a car’s history before handing over your money.

How to Buy a Car With Bad Credit

If you have bad credit, you know the pain of trying to purchase just about anything of significant value. A new home? It’s not in the cards right now. A fun vacation? Maybe next year. A new car? Not in your wildest dreams. Or is it? With the growing number of bad credit car loans being issued today, people with bad credit and no credit have a fighting chance of hearing those magical words: “You’re approved.” However, in order to hear those magical words, you have to shop smart, be patient and follow these words of wisdom:

Improve Your Credit

Though this post is meant to help people with bad credit, you shouldn’t forego your credit entirely. If you want to get the best rates your score will allow and terms that are reasonable and affordable, take measures to improve your credit. If you can, hold off on buying a vehicle for at least six months. In that time period, pay off whatever credit cards you do have. Get a secured credit card if you don’t have any cards in your name and cannot get approved for a “real” one. Put small purchases on your card and pay them off right away. You’ll be surprised by how much your credit improves just by doing this one thing.

Consider Preapproval

Companies like Capital One offer preapproved auto loans to people with subpar credit. If your credit isn’t terrible and if you have verifiable income, you may be able to get preapproved for a loan within a matter of minutes.

Find a Dealer Who Will Work With You

Some dealerships don’t have time for people with bad credit; avoid those guys. Look for a dealership that is willing to put in the time and work to find you an auto loan with terms and rates you can afford. Though it may take days, the right dealership won’t stop looking for a loan for you until they’ve found one.

Bad credit car loans are not as rare as you might think. If you have bad credit or no credit, use the tips above to drive away in your new car as soon as today!

Three Categories of Car Bargains

Our dealership offers a large number of solid deals on used cars. We stock a variety of vehicles on our lots that are ready to be driven off and provide years of exciting and economical transportation. A good way to look at our inventory is to break it down into three broad categories.

 

  1. There’s no surprise that buying a used car is a great way to maximize your dollars. You can take it even further by looking for a car that provides great value above and beyond the purchase price. Often this means looking at smaller cars such as sedans that get great gas mileage, are reliable and have low maintenance costs. The savings you get from lower insurance costs, decreased taxes and registration fees, and more, are a great way to create a little breathing room in your budget.

 

  1. This level of vehicle can include crossovers, SUVS, minivans and trucks. For a moderate price, you can find an attractive vehicle from our lot that has a medium-level of miles on the odometer. This route gives you the opportunity to get the vehicle you desire and will only increase your monthly payments a little bit. You will still reap the savings associated with buying used, and you will still get a great car at an affordable price.

 

  1. If you are looking for used cars with super low miles, we carry a good selection on our lots. You can also find high-performance vehicles, as well as luxury models that offer smooth rides, spacious interiors and the latest technology. You will pay more for a fully-loaded vehicle, but you will get to enjoy all the perks of an exceptional ride.

 

No matter what you decide, our customer service department will work with you to ensure your happiness. We offer financing, service and a friendly environment to do business in.

What You Should Know About Leasing a Car

If you’re in the market for a new car, then you may be considering the option of leasing the vehicle. This can be a way for you to enjoy the benefits of a brand new car while being able to afford the monthly payments. Here are the basic things you should know about car leasing. Keep these in mind the next time you are in the middle of searching for a new car.

 

First of all, it is important to know what a car lease actually is. It is often depicted as a long-term car rental. Generally, you will make monthly payments for a certain time period and then when you reach the end of the lease, you have the option to purchase the car or turn it back in.

 

There are certain restrictions with leasing a car. So you should be sure to read all of the fine print before you sign a lease. For instance, since you don’t technically own the car you may have to pay for any kind of damages that occur to the vehicle during the lease.

 

Before you begin looking for leasing offers, you should have an idea of what your personal credit score is. You can usually access your credit score from any of the major credit bureaus.

 

The leasing specials you often see at dealerships are for customers who have excellent credit scores. If you have a lower credit score, then you can still qualify in some cases for a leasing offer it may just require you to put down more money upfront in the form of a down payment.

 

As you can see, there are some important points to consider before you decide to accept a car leasing offer. You should make sure that you can afford the vehicle you are interested in leasing. It also helps if you can put down more money upfront as this will lessen your monthly payments.