388 King George Rd, Brantford, ON, N3T 5L8
My Garage

Best strategies to use when shopping for a car with bad credit in Dundas

Best strategies to use when shopping for a car with bad credit in Dundas

If you have bad credit and need to buy a car, you already know how hard it can be to get a loan. With the suggestions of our Dundas auto loans team, you will be able to get a loan, which is good news, but you need to move quickly.

You are being hurt by inflation

The cost of everything, including cars, has gone up because of inflation. There aren't enough new and used cars in Canada, which makes prices even higher.

Taking a look at your credit

Spend some time looking over both your TransUnion and Equifax credit scores. Most lenders use both of these agencies to check on people's credit. You could have a good credit score with Equifax but a bad one with TransUnion.

You need to look over your credit reports, and if you find any mistakes, you need to file a dispute through the right channels.

It can take a few months to rebuild your credit, but it will be worth it. While you wait for your credit score to get better, you should start looking for car loan companies that work with people with bad credit.

Great credit versus Alt-A lenders: what’s the difference

Banks that can get money from the Bank of Canada are examples of prime lenders. These lenders focus on people who have good credit and a stable income.

Since these people have the best credit, they get the best interest rates.

Alt-A (Subprime)

These lenders can't get money from the Bank of Canada, so they have to go to investors and ask for deposits to raise money.

Since these lenders work with people who have bad credit, investors want a higher return because these investments are riskier.

Another reason why lenders have to charge higher interest rates is that their operating costs are higher than banks' because banks can take advantage of economies of scale.

Since banks can't charge high-interest rates, they have to make more loans to make a profit.

Having a reliable income is vital

Even if your credit score isn't perfect, how much money you make can make a huge difference. If you have a stable and large income, lenders will give you a chance

If you have more than one job or are self-employed, you will need to show your bank statements from the last 12 months. The lender needs to know how much you make each month on average and if that amount stays the same.

How to get to these bad credit auto loans in Dundas

This is the hardest step because most of us think the best place to find subprime lenders is on the Internet. The best way to find subprime lenders is to visit a car dealership in your area.

The dealership will be able to get you a competitive quote and show you how to rebuild your credit. In addition, the dealership already knows all of the lenders in Canada, including the subprime ones, and can negotiate better terms than you could on your own.

Now that you know how to buy a new car with bad credit, you should go to a dealership as soon as possible.

When you’re ready for a car lease or loan, get in touch with the Dundas auto loan experts at Northway Ford for great deals on auto finance.

Categories: Car Loan

Tags: ,