How to get a car loan after completing a consumer proposal in Ayr

How to get a car loan after completing a consumer proposal in Ayr

Posted by on May 17, 2022 - Archived under Uncategorized

If you recently completed a consumer proposal and now need a new car, you are in the right spot. We are going to show you how to get a car loan and start leading your best life.


Be sure to follow all of the tips provided, and you should have no problems being able to buy a car.


Establishing a positive credit score


During the consumer proposal, you were not legally permitted to take on any new debts.


Now that the consumer proposal has ended, you can start rebuilding your credit.


The consumer proposal will usually stay on your credit report for three years, but it could stay on file even longer.


You need to sign up for a secured credit card as soon as possible.


With a secured credit card, you deposit funds into an account which is your credit limit, every month you will receive an invoice, be sure to pay it in full and on time; by signing up for these secured credit cards, your credit score is going to start to improve.


It will take some time for your credit score to improve, but you are going to see results.


Defining your car-buying budget


How much cash can you allocate towards your new car payment every month? Before you can answer that question, you will need to define a budget.


It is recommended to keep your budget up to date; this is something you would have learned during your credit counseling sessions as part of the consumer proposal.


Along with the monthly payment for your car, you also need to take into consideration the running costs. These running costs include gas, maintenance, and insurance.


You can easily spend $1,000 per month for a new car, especially with gas prices tracking over $2.00 a litre.


If you are not sure how much you can afford, take your gross monthly income and multiply it by thirty-five percent.


This number is what lenders use when underwriting a car loan in Ayr. If your debts coupled with a new car loan exceed this amount, then the loan will be rejected.


Where to get a car loan after going through a consumer proposal


While you are waiting for your credit score to improve, you can still get a car loan in Ayr.


Your best option is to work with a local dealership that specializes in helping consumers just like you get a new car loan.


What the dealership will do is first understand your financial situation and then select lenders that are going to give you the best terms.


You may not qualify for a brand-new car loan, but you should be able to get a loan for a used car.


When you meet with the dealership, they are going to give you an overview of the steps you can take to boost your credit score, so you will never have to worry about bad credit again.


Now that you know how to get a car loan after going through a consumer proposal, you should reach out to your local car dealerships right away.


Click here to get approved for your next great new car loan in Canada online today! we have a team of credit specialists ready to help you find a car 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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