TransUnion.ca Provides Six Easy Steps to Guide Canadians on the Road to Car Buying

TORONTO, Feb. 25, 2009 -- Canadian auto sales tumbled 21 percent in December 2008 and experts predict sales will likely decline even more in 2009, which is why many auto manufacturers are offering tempting deals to entice consumers to make a purchase.

Now more than ever, Canadians should take the time to review their credit profile and understand how lenders are likely to view them, to determine if they're well positioned to take advantage of unprecedented auto discounts and loan rates.

"While many Canadians may be easily tempted to jump on these offers, it's really important to take a step back and first understand if they're likely to qualify for those deals and then assess whether they can truly afford the long-term costs associated with such a purchase," said Tom Reid, director of Consumer Solutions for TransUnion.ca. "Now more than ever, it's critical for consumers to be very familiar with their credit standing as well as their overall financial standing, so that they can make well informed decisions in these uncertain times."

TransUnion is helping Canadians by providing simple steps to consider when making a car purchase:

  1. Make necessary tune-ups. Whether or not you're in the market for a new
     car now, keep a close eye on your credit report.  If you spot something
     that doesn't look right, you should first contact the creditor
     involved.  If that doesn't solve the problem or if the issue doesn't
     involve a specific credit or loan account, contact the appropriate
     credit reporting company directly. If you have significant issues with
     your report, consider delaying your purchase until those issues are
     resolved to help you get the best rate available.
  2. Drive down debt. Reducing your credit card balances or paying off small
     debts may help your credit standing and save you money on a loan.
     Lowering your debt-to-income ratio may also increase your borrowing
     power.
  3. Make an age-defying purchase. Decide if you want to buy a new or used
     car. Buying a used car can save you a heap of money if you do your
     research. Since new cars generally depreciate 10-35% during the first
     two years, it's a good idea to check the depreciation rate on the car
     you're interested in by looking up the current price and the price for
     the same car made two years earlier. Manufacturers are offering great
     deals on new cars, so you should also be sure to investigate what makes
     sense for you.
  4. Check your inventory. Evaluate what you already own to determine if you
     have a trade-in or down payment to help you pay for the car. These
     assets can help you negotiate a better rate with lenders and can be
     especially important if you have problem credit.
  5. Do your homework. When you're ready to talk to lenders it's a good idea
     to shop around for the best interest rates. Visit your local bank or
     credit union to discuss applying for an auto loan. Financing with the
     car dealer can sometimes be more expensive, so pricing out your options
     is a good idea. Keep in mind that shopping your loan with multiple
     lenders over a few week period will generally have the same net effect
     on your credit score as checking with just one lender.
  6. Cost of driving off the lot. It's important that consumers keep in mind
     that this purchase involves more than just the cost of the vehicle
     itself. Be sure to research costs of insuring the car, maintenance, gas
     and all the extras that add up to a bigger bottom line.

For more information about credit management, please visit www.transunion.ca.

About TransUnion

As a global leader in credit and information management, TransUnion creates advantages for millions of people around the world by gathering, analyzing and delivering information. For businesses, TransUnion helps improve efficiency, manage risk, reduce costs and increase revenue by delivering comprehensive data and advanced analytics and decisioning. For consumers, TransUnion provides the tools, resources and education to help manage their credit health and achieve their financial goals. Through these and other efforts, TransUnion is working to build stronger economies worldwide. Based in Toronto, with global headquarters located in Chicago, Illinois, TransUnion provides local service and support in Burnaby, Edmonton, Saskatoon, Montreal, Quebec City, Rimouski, Charlottetown, Halifax and St. John's. Visit www.transunion.ca to learn more.

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