Post-divorce car buying strategies that work in Canada

Posted by on Jul 27, 2022 - Archived under Bad Credit Car Loan Tips

With the pandemic restrictions, for the most part, removed, we are seeing a substantial uptick in the number of Canadians filing for divorce.

Perhaps it is a side effect of being working from home for the last eighteen-plus months that has taken its toll.

Whatever the root cause of the relationship breakdown, you are going to be facing some unique challenges.

It’s a marathon, not a sprint

After a divorce, you will be going through a host of emotional and financial challenges that you never anticipated.

The first is finding a vehicle for work and picking up the children if you and your former spouse had kids together.

Divorce happens for a variety of reasons, but they are always expensive. Your finances would take a massive hit, and your credit score may have sunk to 600 or even lower.

Since your credit score took a hit, you will have a tough time being able to secure any type of financing at a competitive rate, it can be tough renting an apartment with a low credit score, but there are options available.

Work on rebuilding your credit

You need to work on rebuilding your credit as soon as you possibly can without delay. Canadians rely on credit now more than ever.

If your credit score is low, it can make getting an apartment or certain jobs nearly impossible; a low credit score also makes everything more expensive than it needs to be.

The quickest way to rebuild your credit is to pay down any outstanding debt on your credit report from the divorce.

If you are carrying a lot of debt, it will bring down your credit score and increase the amount of money you need to spend to service that debt.

While you work on paying down those debts, it would be a great time to sign up for a secured credit card from companies like Home Trust.

These secured cards give you an additional tradeline that can have a positive impact on your credit score.

Setting aside cash for an emergency fund

While you are learning to adapt to this new normal, you should set aside some money from each pay and put it towards an emergency fund. This cash will come in handy when you have an emergency and don’t need to go back into debt.

Getting help from the professionals

Something that most Canadians feel when going through a divorce is the feeling of being alone and isolated.

You are not alone and can get approved for a new car, but you must speak with the professionals in your area and contact a local car dealership, one with a reputation for going above and beyond for their customers.

When you have identified those dealerships, head over and start reviewing the options you have available to get behind the wheel of a new car.

The sooner you do reach out to the dealership, the better you will feel.

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! 

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