How Much Should I Budget for Car Payments in Nova Scotia? - Maritime Vehicle Providers (MVPns)

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How Much Should I Budget for Car Payments in Nova Scotia?

Deciding on your best budget for car payments in Halifax is easy! You want the possible lowest interest rate, with monthly payments that fit your budget.

According to the vehicle financing experts at Maritime Vehicle Providers, aspects such as loan duration and interest rate determine the amount of your monthly car payments.

Canada-wide, the average monthly car payments in 2022 were $741, with a 5.23% interest rate on a vehicle worth $50,758, assuming a 72-month term, and a 10% down payment on each vehicle.

However, these figures varied surprisingly among the Provinces: But Albertans were forking out a hefty $800 a month on loans averaging out at $54,859, with the same term and interest rate, while thriftier Nova Scotians opted for car payments that were almost $10,000 lower ($44,935 borrowed) and paid back almost $150 less each month ($656 instalments).

Is It Easy to Calculate Car Costs in Nova Scotia?

Sure it is – and here’s a useful car loan calculator that shows how to find the best deal on your auto loan in Nova Scotia.

The first step is to work out how much you can afford as car payments each month. You can juggle with this calculator as much as you like, keying in different vehicle prices, and then seeing what happens to interest rates and loan terms when you tweak your down payment. Save up as much as you can for a few months before buying your car. That’s because the higher your down payment, the less money you need to borrow.

The ripple effects of this mean that you pay less interest, you could opt for a shorter loan term, and you might even be able to upgrade to a newer or fancier model.

What Can I Do to Lower My Car Payments in Dartmouth?

The cost of your vehicle financing is heavily dependent on your credit score. As soon as you decide it’s time to buy a car, you should download your credit score (and check it carefully), seeing if there’s a possibility of paying less for your ride. Here’s a trustworthy provider where you can download your credit score for free, but there are several others. Remember: the terms of your auto loan are strongly influenced by these scores, which are generally distributed as follows:

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

Lower credit scores indicate that you may be a high-risk borrower. This means lenders will tend to charge higher auto loan interest rates, offsetting this risk. But don’t despair – there are plenty of ways of quickly ratcheting your credit score up a few notches:

  • Always make full or partial payments promptly on all your loans (mortgage, credit cards, etc);
  • Never skip car payments, even if disputing a bill;
  • Let the lender know immediately if you might find it hard to pay for a month or two;
  • Use less than 30% of your available credit, upping your limits, but using less of them each month;
  • Extend your credit history as much as possible, by keeping old credit cards active;
  • Get the widest credit mix you can (mortgage, auto loan, line of credit, student loan etc).

Pro Tip: As a rule of thumb, you should keep car payments in Dartmouth to under 15% of your disposable income. This should leave you with enough to cover your living expenses. Don’t forget to tuck away 10% of your earnings in a savings account – so you can put down a bigger down payment and save even more money on your next ride! Check out your auto loan options! Fill in this simple form and we’ll craft the perfect car payments plan for you in Nova Scotia.

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