It is a rite of passage; you have worked hard in school and landed a job, now the next major milestone is to buy a car as a recent university graduate.
This can be challenging, especially if you are servicing a considerable amount of student debt; fortunately, our Lincoln car loans team will give you a crash course in automobile financing so you will be able to find a good deal.
How stable are your sources of income?
No one has the cash on hand to pay for a new car outright, new cars will set you back $50k.
So, you will likely need to get financing in place if you’re wanting to buy a car as a recent university graduate. Lenders are eager to lend but are very concerned about issuing loans to borrowers who are unable to keep their commitments.
Since you recently graduated and just started your new role, some lenders may be a little apprehensive about approving a loan.
In addition, you will need to complete at least the initial 90-day probationary period; after passing this deadline, your employer is not able to fire you without cause.
You need to work on your current job for a few months, so you will have salary slips to show potential lenders.
Lenders are going to look at your rolling month average and then use 35% of that as the maximum amount of debt you can service.
This 35% also includes any new Lincoln car loan, with the average car loan around $500 per month; you should earmark the same amount in your budget.
Reviewing your credit
After taking stock of your finances, the next thing you should look at is your credit score.
Are you current with all of your obligations, including your student loans?
Your credit score is going to have a material impact on your life, so you need to keep it as high as possible.
If your credit score is over 720, you are going to have access to the most competitive car loans in Canada.
The minimum credit score you should have when trying to get a car loan is 600; anything below that, and you are considered subprime and not able to get a competitive car loan.
Where to find the best car loans in Canada
You may think the internet is the best place to find the best car loans, but that is not true.
The best source of car loans anywhere in Canada is by going to a dealership in your area.
The dealership has the ability to contact all of the lenders in Canada in one shot by going through their dealership network.
This saves you money and time because the dealership can get you approved for the best loan in a short amount of time.
Not only can the dealership get you approved for a car loan, but they can also show you how to improve your credit. With all of the dealership’s benefits, you should reach out to them right away.
Click here to get approved for your next car loan online today! we have a team of credit specialists ready to help you buy a car as a recent university graduate and will work with you no matter your credit score.
For any questions or concerns, please don’t hesitate to contact us here!