What Canadians need to think about when buying a car with bad credit

Posted by on Jun 15, 2022 - Archived under Car Loan

A substantial number of Canadians have fallen on hard times because the pandemic has made them lose their job. However, there are lenders who can help you get a new car even if you have bad credit, and we’ll tell you what you need to know to get a fair deal.

Taking a closer look at your finances

Before we can point you in the right direction, we need to know more about your financial situation. Is your income steady and has been steady for at least 6 months? Lenders are willing to give you a shot if your income is reliable and substantial.

If you have a steady income, you may be able to get a better deal on a car loan. The income needs to be enough to pay for all of your current bills and the car loan.

Even if your income isn’t stable, some lenders will give you a chance if you work in a high-demand field.

You should look at both your Equifax and TransUnion credit reports to find out which one gives you the lowest credit score. If your credit report has mistakes, you should dispute them right away.

Your score will drop if you make mistakes, and right now, we need to do everything we can to raise it. Also, try to pay down any debts that are past due or almost due to be sent to collections.

Anyone can have bad credit, but the good news is that it can be fixed. All you have to do is follow some best practices, pay your debts on time, and pay off as much debt as you can. If you follow these tips, your score will get better over time.

Having the right mindset

Since you have bad credit and new cars cost more than $35,000, which is a big ask when you have bad credit, it’s likely that you won’t be able to pay cash upfront.

However, you can still buy a great used car, and if you take care of your credit, you can buy a newer car after 12 months.

You would be smart to do some research to find a car that will meet your needs now and in the future. A Jeep Grand Cherokee is a good example of a great car, but only you can decide which car is right for you.

Where to find lenders who will give you a car loan even if you have bad credit

These lenders don’t actively market their loans online; instead, they rely on their network of dealerships to send customers their way. When you go through a local car dealership, they can choose the lender who will approve your loan and give you a competitive interest rate based on your situation.

Even though you may have been turned down in the past, you can get a car loan if you do what we say. We mentioned that there aren’t enough cars, so it would be smart to start calling car dealerships before their stock gets even lower.

For those of you who know that you have a challenging credit situation, please visit Dixie Auto Loans where we have a team of credit specialists ready to help you get approved for a car loan today!

Let’s get in touch! 

Dixie Auto Loans