Tips to follow when trying to buy a car with weak credit

Posted by on Jun 29, 2022 - Archived under Bad Credit Car Loan Tips

We’ll provide you with some pointers on how to purchase a new car with weak credit. If you continue with us until the end, you’ll be able to get a terrific bargain on a new car, so make sure you stick around.

Is everything in your financial life in order?

Prices are rapidly increasing and are not expected to slow down, with inflation tracking all-time highs. Inflation has driven up the costs of everything, including new cars, but it goes beyond that.

The only way the government is able to slow inflation is by increasing interest rates. These higher rates mean you pay more for everything from credit cards to car loans.

This is why you need to make a budget so you can figure out how much money you have to spend on a new car.

Did we mention that automobile prices are rising? A new car might easily cost $700 per month; therefore, you must be ready and willing to pay that amount for the entire term of the loan.

Examining your credit report in greater detail

As a general guideline, review your credit report at least once or twice a month and ideally every week. Koho, for example, is an app that gives you access to your credit report. A credit score of over 750 is required for the best interest rates; if your score is over 600, you could receive a car loan at market rates; if your score is below 600, you are in subprime land, where you might be paying up to 40% or more!

While your credit score is low now, you may start improving it, but you must take the initiative to do so.

If your credit score is low, for example, the most common explanation for this is that you are not making your payments on time. Missed payments are the most common cause of credit problems. If you don’t pay your bills, your credit score will continue to plummet.

You could be tempted to employ online credit repair services, but this is not a smart idea. These credit restoration companies merely aim to boost your credit score fraudulently, but their methods may potentially harm your credit score in the long run.

The most effective method for obtaining a car loan approval

Working with a local vehicle dealership is your greatest option for getting your loan authorized.

With everyone purchasing online, it may sound old-fashioned, but they provide top-notch customer service and competitive auto loans, a brick-and-mortar dealership is your best option.

These dealerships have full access to lenders across Canada and can assist you in obtaining a loan even if other lenders have turned you down.

We’ve gone over the procedures you’ll need to take to have your vehicle loan approved; all you have to do now is take action and contact the dealership today.

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