Deciding on your most realistic car loan budget in Nova Scotia can be a challenge. That’s because you want the best possible wheels, but with monthly installments that won’t break your budget. According to the experts at Canada East Rides, two aspects are particularly important for determining how much your wheels are going to cost you. They are your interest rate and your loan term. Nationwide, the average monthly car payment was close to $750 in 2022, for a mid-market vehicle priced at $50,000. Assuming you take out a six-year loan, with a 10% down payment, you’d be looking at interest rates of around 5.25%.

So here’s the good news! While Albertans opted for more expensive wheels ($55,000) and were paying out $800 a month on their car loans, budget-savvy Nova Scotians have been opting for lower-cost wheels ($45,000), with much friendlier monthly paybacks of around $650.

How can I Calculate my Car Loan Budget?

That’s an easy task! All you need is an online auto loan calculator like this, which helps you Select the best deal for your car loan budget. Here’s what you need to do: Decide roughly how much you want to pay out each month for your new ride, and how much you have saved up as a down payment. Then key the prices of your shortlisted vehicles into this calculator, with different loan terms, ranging from 12 to 84 months. Remember, a shorter term means higher monthly payments, but will save you money in the long run.

Can I Lower My Auto Loan Payments in Halifax?

Whenever you try to borrow money – particularly mortgages, student loans, and auto financing – potential lenders will check your credit score. So when you start thinking about buying your next car, the first step is to download your credit report from a trusted provider. Check it carefully for accuracy, as this will help you find the best auto loan for your car loan budget. Even if your record is poor, there are several ways of upgrading your credit rating quickly. Loan approvals and terms are strongly influenced by these scores, which are distributed as follows:

  • Poor: 300 – 559;
  • Fair: 560 – 659;
  • Good: 660 – 724;
  • Very Good: 725 – 759;
  • Excellent: 760 – 900.

How Can I Improve My Credit Rating Quickly?

Lower credit ratings can indicate that you are a higher-risk borrower. Consequently, some lenders may charge higher interest rates to offset this risk. But cheer up, because there are plenty of things you can do to boost your credit rating In just a few months:

  • Use less than 30% of your available credit
  • Raise your credit limits wherever you can, but use less of them each month;
  • Broaden your credit history by keeping old credit cards active;
  • Build the widest credit mix you can (bank line of credit, student loan, mortgage, auto financing).
  • Always pay every installment promptly on each of your credit channels;
  • Even if you are disputing an invoice, never skip paying an installment;
  • If are going to have trouble paying your bills for a couple of months, tell your lenders immediately

Check Out Your Auto Loan Options! Just fill in this form and we’ll customize the perfect financing plan for your car loan budget in Nova Scotia.