2016 Canadian Vehicle Financing Approval Tips

bad credit car loans Canada

It would not be wrong to suggest that recently it has been difficult for people to build up their credit or look forward to maintain a good one over time. However, you might often ask yourself, does having a bad credit imply that you do not have the ability or the right to be financed or leased a new vehicle. Obviously, the answer would be negative. However, having bad credit might make the procedure of finding the correct place to finance from, somewhat difficult. There have been several dealerships in every province of Canada, which now have been known to specialize on sub-prime vehicle loans.

Vehicle Leasing offers advantages to both buyers and sellers. For the buyer, lease payments will usually be lower than payments on a car loan would be, and qualification is often easier. Any sales tax is due only on each monthly payment, rather than immediately on the entire purchase price as in the case of a loan. Some consumers may prefer leasing as it allows them to simply return a car and select a new model when the lease expires, allowing a consumer to drive a new vehicle every few years without the responsibility of selling the old vehicle, or possible repair costs after expiry of the manufacturer’s warranty.

bad credit car loans Canada

Understanding bad credit car loans

A bad credit car loan, which is also known as sub-prime auto loan, would be best described as a vehicle loan having a higher interest rate. It has been compared to loans for various individuals encompassing remarkable credit history.

Find below some car loan approval tips in case you have bad credit score.

Come prepared

You should do plenty of research before you actually enter into any loan, especially having bad credit history. You should have comprehensive knowledge about subprime loans, interest rates and how would car loan affect your credit.

Look for shorter term financing deal

You should look forward to fix the issue that lead to bad credit score. You could fix your credit score by making your payments on time for at least a year. Consequently, the credit score would start to repair itself. Look for a short term financing deal to set your credit history on track.

Be honest

You are required to be honest about your present financial condition. You should also be open with any past issues your financial record had before you actually apply for a new loan.