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How Long Should Your Car Loan Be?

When it comes to car loans, no matter if they’re regular, bad credit, bankruptcy, slow credit or any other kind of loan, it’s best to focus more on the length of the loan instead of the amount of monthly payment that you’ll be able to afford. This might sound a bit counterintuitive, but focusing on the bigger picture comes with bigger and better advantages.

While getting a good interest rate and monthly payments that you can easily afford are important when it comes to auto loans, a loan might come with a monthly payment that you just can’t quite afford. If this is the case, then you may apply for a longer term loan so that you can get a monthly payment that you can afford. The danger with this strategy is that you might actually wind up paying even more down the road.

A seven-year loan might come with lower monthly payments, but the overall interest rate will more than likely be higher than that of a five-year loan. It’s not unusual for someone to pay more than double the cost of finance charges for a seven-year loan than they would a five-year loan. Something else to think about is the fact that you’ll have two more years of car payments with a seven-year loan than you would a five-year loan.

Something else to think about with longer auto loans is that it can take you longer to build up equity, which is defined as your car being worth more than you owe on it. Having negative equity or being “upside down” on your vehicle essentially means that you owe more on your car than it’s actually worth. To keep from being upside down and to build equity, you’ll want to pay as much as you can on the original down payment for your quality used vehicle.

Before you get swept up in the idea of getting a new car, make sure that you are fully aware of what you’re getting into and the terms that you’re agreeing to. A short-term car loan can come with several long-term benefits.

What You Need To Know About Used Cars

There are numerous aspects to consider when purchasing a used car. Two key things to educate yourself on include how depreciation works as well as how to go about taking out a car loan if needed. If taking out a loan is not necessary, paying for your car in cash can save you a lot of money over time because you can avoid depreciation.

Going With a Used Car Can Be Beneficial

You have the opportunity to obtain the car of your dreams at a reasonable price and quickly. Additionally, negotiating a price down even further than the asking price is a possibility. Also, your options for which car to choose are endless because there are a ton of used cars to choose from.

Understating Depreciation

Unfortunately, cars lose value over time and the older a car gets, the less it is worth. Despite this, the biggest drop is in the initial uses of a car. Once the car has been owned for a long time, it looses less value than previously.

Taking Out a Loan

If you cannot currently afford the car of your dreams in full, taking out a loan can be a viable and advantageous option. Commonly, car loans are obtained through banks and after doing some research, you can seek out low interest rate options. Another financing option is to choose in-house financing which means a car dealer handles the financing. The main benefit of taking out a car loan is the fact that you can have a car you are not currently able to pay for in full. If you can pay for the car in cash, this can also be beneficial because you can avoid interest all together.

There are numerous benefits to purchasing used cars including the opportunity to obtain an amazing car at a reasonable price and the increased possibility in negotiating the price down to something you can afford. Additionally, even if you do not have all the money needed to instantly pay for a car, you can obtain a loan.

Top 5 Reasons to Get a Car Loan When You Buy Your Next Car

At our dealership, we’re very familiar with car loans in the Windsor area. In fact, we offer car loans to our clients on a daily (even hourly) basis. Therefore, we are able to answer just about every question you could possibly have about how to get a car loan, when to get a car loan, what good car loan rates are, and more. Still, many of our customers are not sure whether or not they should get a car loan when they buy their cars.

Car loans are a safe and convenient way for our customers to easily afford their cars. Here are the Top 5 reasons to get a car loan in the Windsor area that we’ve compiled based on our experience giving car loans on a daily basis:

1. They allow you to have some flexibility. When you go to buy a car, you can either spend all of the money that you have on the car or you can get a car loan and only spend some of your savings (if applicable) on the car. When you are able to keep some of your money for an emergency fund, then you will have more flexibility down the road. Plus, you never know when you might actually need that savings.

2. Low interest rates. Sure, when you buy a car through car financing, you will have to pay an interest rate on the amount of money that you take out. It may seem like this interest rate is unnecessary and simply designed to make the car more expensive. However, consider the fact that you are actually in a car and not having to rely on friends or family for rides. That small interest rate pays for the convenience of having reliable and safe transportation. Plus, we can show you cars that have such low gas mileage that the interest rate pays for itself.

3. You’ll improve your credit. Whenever you take out a loan, you will improve your credit if you are able to repay the loan in a timely manner. Therefore, taking out a loan now will increase your credit and allow you to get even lower interest rates down the road.

4. You’ll get the car you can afford – and that suits your needs. Especially if you use dealer financing, your dealer will make sure that you get a car that not only suits your needs, but also that you can easily afford for years to come.

5. Low monthly payments. Instead of paying one junk of change up front, we’ll arrange for you to make low monthly payments that fit your budget and lifestyle. Affording your car will be easier than ever with the right financing options.

Contact us today to learn more about why car financing is a great option when it comes time to buy your next car.

How to Pay for a Used Car Without Breaking the Bank

Sometimes it seems like cars break down at the worst times. You might not be in a great place financially when your car becomes inoperable, and buying a new car is not always possibly. When you need a car, and you have limited funds, a good used car might be the best thing for you. There is a wide-variety of used cars on the market. With a little bit of research, you might find a used car will work well with your current lifestyle.

Know Your Budget Before You Begin

Before you start your travels to dealerships, you need to consider how much money you can afford to spend on a used car. You could save a lot of money, if you pay for the car in full. If this is not possible, consider making a large down payment. Obviously, when you finance your car, the cost is more because you are paying interest each month when you make your payment. Traditionally, when you purchase a used car, rates are higher and the financing periods are usually shorter compared to purchasing new cars. One tip most financial experts offer is to never spend more than 20 percent of your take-home pay on a car.

Estimate Future Expenses

Always do research on the car you want to purchase to see if certain parts need to be replaced more frequently. You might have a particular car in mind that you’d like to buy, but if the water pump in that model has a history of failing, than you might want to consider another car. When you purchase a used car, there’s always a chance you will have to forgo funds for maintenance and upkeep. An older car obviously has more wear and tear on it than a new car. Having savings put aside is important, since you don’t want your car to cause you unnecessary debt.

Making the Right Financial Choice With Used Cars

When you do not have a great deal of money, but you are in desperate need of a vehicle, you might feel like your options are limited. This is especially true if you do not have the most ideal credit score. Luckily, there are many different ways for you to be able to get around these obstacles. Looking into used cars can help you to understand just how much you can save when you take time to do enough research.

Find Your Dream Car

There are hundreds upon thousands of different car types out there for you to explore. Most of these vehicles can be found used, which means that you are not going to have to worry about settling for a car that you do not like. Hunt down the right used cars for your needs and be impressed by how affordable the prices are. On average, most used cars sell for several thousand dollars, which can be a real boost to your confidence.

Find a Financial Plan

On top of the affordable prices of used vehicles, you might also be excited to learn that there are plenty of financing options available as well. The reason for this is quite simple: most lenders see financing used cars as a perfect reason for a short term loan. Whether or not you have great credit, you might be able to qualify for some of the more sensible financing options that are out there. Reach out and see who offers financing for the type of vehicle that you have been looking. Make contact and see what the terms and conditions of the financing might be. The more you learn, the easier it will be to feel like you are making the right moves.

If you are looking to drive a car, but are worried about your finances, you can do yourself a favour by looking into used cars. With enough research, you will easily be able to see all of the benefits of choosing this choice for your needs.

An Important Statement from AutoMAXX Pre-Owned Superstore & ServiceMAXX Total Car Care Regarding COVID-19

Service Hours Closed on Saturdays

AutoMAXX main location is closed but we are open 24/7 for online car shopping.

ServiceMAXX is open Monday – Friday 8am – 5pm and has implemented procedures to help keep our customers and employees safe.

If you are displaying symptoms of COVID-19, have traveled within the past 14 days, or are feeling ill, please refrain from visiting our store. We would be happy to help you via phone or email if you are unable to visit our store.

Thank you,

The AutoMAXX & ServiceMAXX Teams

Smart Shopping for Used Cars

Buying a used car can be daunting if you haven’t purchased one before. There are always concerns about the condition of the vehicle, but if you work closely with a reputable dealer specializing in used cars, you can get a dependable vehicle for a great price. Asking the right questions and doing some research is part of the process.

Find a Dependable Make and Model

Online consumer groups can help you find makes and models that are rated well for reliability and low repair costs. If a car doesn’t have a good resale value, there may be a reason. Don’t forget to check gas mileage and maintenance costs as well.

Test Drive Used Cars

Never purchase any vehicles without taking them out for a test drive. Listen to the engine, pay attention to any knocking or pinging and get a feel for how smooth the ride is. When you test drive, make sure you take the vehicle on local roads as well as the highway. Trying a used vehicle under a variety of condition will help you narrow down your options to cars that you’re truly comfortable driving.

Get a Vehicle History Report

Request a vehicle history report from one of several online services. You’ll need the vehicle identification number (VIN number), which any auto dealership can provide you. You can also see it in the lower corner of the driver’s side window when you’re looking at it from outside. When you check the report, look for accidents, water damage and other issues that could affect the car’s performance.

Consider Other Costs

Insurance, monthly maintenance and fuel economy all figure into the actual cost of a car, not just the sticker price. Get insurance quotes, look into maintenance costs and check the mileage estimates. All of these will impact the car’s actual cost.

Proper research and working with a trusted automobile dealership will guarantee you the best price for your next used car.

You Can Get A Car Loan

At AutoMAXX, we are proud to be able to offer car loans in the Windsor area to all of our customers. Some of our customers come to us with excellent credit and qualify for very low interest rate loans. Other customers come to use with bad credit and qualify for competitive car loans that suit their overall financial needs. However, we are proud of the fact that we do not turn down any of our customers that come to us looking for car loans.

The question that we sometimes get from our customers is “how can you afford to give car loans to all of your customers.”

Here’s our answer: We believe that all of our customers should be able to receive a car loan if they need it. After all, not everyone has loads of money that they can spend to buy a car with cash. Therefore, we have a philosophy that we will partner with our customers in order to ensure that they are able to get a car loan that makes it possible for them to afford to buy a car.

Car loans are possible for everyone. However, the type of car loan that our customers qualify for may vary based on the credit history and their needs. Therefore, the first step that our customers need to take in order to get a car loan in the Windsor area is to complete a credit application. From the credit application, we will learn more about their current financial situation and about their credit history.

We use a series of equations and formulas to determine what interest rate and loan amount our customers qualify for based on the information that they provide to us on their credit application. With this information in mind, we will meet with each customer to discuss their practical needs, which may include a real-life budget or other concerns that our customers have about their ability to afford to repay a loan. By speaking with us candidly about their financial situation and concerns, we are able to tailor a loan program that our customers are truly able to afford.

The best part about getting a car loan through us is that we can work with your budget as we determine which cars might be best for you. We not only understand your lifestyle needs, but also your financial needs and will make sure that they are both addressed adequately.

Contact us today to get started getting the best car loan for your needs and lifestyle.

Buying a Used Car: How to Choose a Payment Option

When the time comes to buy a used car, there are many financial factors to consider. Perhaps your budget will narrow your used car choices, or you may not be aware of the payment options available. We are ready to show you some ways you can pay for your vehicle and to show you that the make and model you desire most may well be within your reach if you plan carefully.

Consider the Time Frame

As you consider payment options, one of the first factors you might want to think about is how long you will be paying for your car. Whether you secure a loan through the bank or choose in-house financing with us and depending on your credit, your loan could be as brief as two or three years or as long as five. It is important to understand the exact terms of the length of your loan before you sign off on a vehicle.

Give Yourself Time

Even if you find yourself needing a new vehicle for your commute to work or school, you should avoid jumping into a deal right away. Take the time to consider your options, as this may help you avoid hefty payments that might be hard to handle later on. For example, ask yourself whether your current car is a valid trade in or if you can secure a down payment that may help lower the cost of a vehicle.

Review Your Budget

One mistake many people make when they shop for used cars is to miscalculate how much they can afford to pay monthly. To avoid this error, you will need to factor more than just the car payment into your auto ownership budget. The cost of insurance, gas and other taxes and fees that will need to be paid when you purchase a vehicle should all be included in your budget to ensure you do not overextend it.

Buying a used car can be a challenge, especially if you are unsure of your payment options. However, being prepared and asking the right questions can help you get the car you want at an affordable payment.

Our Straightforward Car Loans Make Car Shopping Enjoyable

Think of the car features that you definitely want in your next vehicle. Would you like leather seats and a moon roof, or do you want plenty of seats and cup holders? Do you think you have a short list of favourite vehicles or are you open to anything that fits your budget? Even if you are undecided on a car just yet, we can take the worries out of getting the best car loan for you.

Car Considerations

The first impression of a vehicle comes down to two factors, ergonomics and personal preference. You should have ample head and legroom, feel that the window layout gives you good visibility, and like how the gauges and controls are laid out. If members of your family have car seats, it is a good idea to bring them along to see if they work well with the cars you are test driving.

If you have a set color or feature combination in mind that does not come around every day, you may have to look longer to find what you want. But, if you know what your top three colour and make combos are, you may be pleasantly surprised by the number of cars available to test drive. Conversely, if colour is not important to you, you may get a great deal on a car in a less popular colour.

Financing the Transaction

When you have found the vehicle you want and are ready to make a purchase, we want you to know the total price of the used car you’ve decided to buy. We itemize any extended warranty and interest costs in all of our car loans. Of course we are always happy to consider your current vehicle as a potential trade-in, and we offer extended warranties for our used cars. This is a great way to handle any unforeseen repairs covered by the warranty.

Our financing staff are experienced in setting up a loan with terms that will fit your budget. Come visit us soon to see how enjoyable car shopping can be.