Getting a Second Chance For Car Loans in Canada
Maybe it was a divorce, perhaps you took some bad financial advice at some point, and it left you in greater debt than you had anticipated. It could be a sudden injury or illness that has left you unable to work for awhile, causing the bills to pile up. It could be a hundred different things.
Whatever unfortunate turn of events you've experienced, you may now find yourself in need of a new, or at least a decent pre-owned automobile, but you have challenged credit. You may have been lead to believe that with less than perfect credit, you're simply left at the mercy of an automobile dealership. By following a few simple steps, this absolutely doesn't have to be the case!
Like many things, the key to having no/bad credit approved in Canada, is by remaining positive. Yes, these types of automobile loans are often referred to as "second chance loans." Remember though, just because you find yourself seeking this type of loan, does not make you a second class person. Keep your chin up!
Careful with dealerships, they spend so much money on slick advertising, encouraging those with less than perfect credit to make the dealership itself their financing center. A better bet, for a possible lower interest rate, is to visit a few local online companies like New Car Canada and credit unions before you even visit a dealership. Explain you situation to them honestly, and don't be ashamed. They hear similar stories all the time. Often, these institutions can offer you a better interest rate, and more importantly, allow you to shop for your automobile with the confidence of already being approved for financing through them! When the dealership hears that you're already financed, they will likely still try to talk you into letting them look for even better (supposedly) financing through them. It's generally best to say, "No thanks" to this, which will make your shopping much more enjoyable! Check our New Car Canada to learn more.
If you aren't able to get financed ahead of time, don't give up. Start visiting dealerships and have an honest dialogue with them about your situation. Be willing to negotiate not only with them, but with yourself! Do you really need that "deluxe" package on your new truck? Can you possibly live with the 2 wheel drive version of the make and model you're interested in? Instead of the more pricey 4 wheel drive? Vehicles that are a couple of years old still have a hint of that "new car smell" in them - so maybe consider a pre-owned model. This will help keep your monthly payment reasonable, especially if you're going to be paying a higher interest rate due to your current credit situation. In short, be willing to compromise! In a few years, you will have your credit built back up to excellent status, and be able to buy any vehicle you want - within reason, of course!
What banks looks for during your loan application. We will be offering helpful advice that can be beneficial to you during your auto loan process. Contact us with any questions.
Following steps to having no/bad auto credit approved in Canada, we will hopefully save you time and headaches – if you’re currently credit challenged. Stay strong and enjoy that new set of wheels! We will have updated steps coming up so stay tuned.
We can help you get a car loan, go to our contact page and we can get a quote for you as soon as possible. We usually can get you a quote within 20 minutes.