How to Get a Car Loan after a Consumer Proposal

How to Get a Car Loan after a Consumer Proposal

Posted by on Apr 11, 2022 - Archived under Uncategorized

We need a car in Canada to live; the transit system is not able to meet the needs of Canadians. If you’re looking to find a car loan after a consumer proposal, finding a lender that is willing to give you a chance is tough.


Our goal is by the time you reach the end of this conversation; you will be behind the wheel of a new car.


Have you completed the consumer proposal?


This may sound like a redundant question, but it is a legal requirement; legally, no one can take on new debts while in a consumer proposal without the written consent from their insolvency trustee.


Therefore, presuming you have completed the consumer proposal, we can move forward.


How to rebuild your credit score


The consumer proposal will be in your credit report for up to seven years.


While your creditors have settled for pennies on the dollar, they would have left derogatory remarks in your credit report. It would be best if you started rebuilding your credit now by following these tips.


One of the easiest ways to start rebuilding your credit is by signing up for a secured credit card.


This is not to be confused with a pre-paid credit card where you use it one time. With a secured credit card, you deposit funds into a special account which acts as your credit limit.


For example, if you deposited $500, then your credit limit would be $500. This card works just like a conventional credit card where you receive a statement and need to make your payments on time.


If you pay your statement on time, your credit score will start to recover.


While waiting for your credit score to recover, you should look at your budget to see how much cash you have available to put towards the debt.


Budgeting 101


While getting a car loan after a consumer proposal, one of the things you would have learned was budgeting.


When creating your car-buying budget, you need to look at the total amount of debt you are carrying, which should be small.

Lenders will not approve a loan if your debt-to-income ratio is more than 40%. Having enough cash for the car payment is just one of the costs associated with ownership.


Additional costs like insurance, maintenance, and soaring gas prices need to be added to your budget.

Where to get car loans after a consumer proposal


You have worked out the budget and taken steps to rebuild your credit, but you need a car now and cannot afford to wait.


It would be smart to contact your local dealership and leverage their experience. The dealership will find lenders that are willing to give you a chance at an interest rate you can afford.


By going through a local dealership, they will find vehicles that work with your budget so you can find a vehicle that meets your personal and budgetary needs.


Car prices are going to rise even further in Canada, so you should contact the dealerships today before prices go any higher.


Fill in the form below to get approved for your next car loan after a consumer proposal today! we have a team of credit specialists ready to help you find a vehicle suited to your needs and will work with you no matter your credit score. 


For any questions or concerns, please don’t hesitate to contact us here! 


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