Best way to buy an EV with lower than average credit
Best way to buy an EV with lower than average credit
Posted on July 18, 2022
If your credit isn't great, but you want to purchase an electric vehicle, these tips from our Beamsville auto loans team will make your car-buying experience a more pleasant one.
But before we show you how to get EV financing, we need to talk about the many benefits of owning an EV.
Along with financing there, there are some other things you should think about when shopping for an EV.
New vs. used EVs: what you need to consider
Canada's used EV market is growing, and there are some great deals to be had if you know how to go about it.
When purchasing a used gas-powered car, you would look at the car's mileage, its condition, and how well it was taken care of. Buying an EV used car is different.
How to tell if a used EV is in good shape
The first thing you have to check is how good the battery is in general. This is not something you can do yourself.
Instead, you should hire a professional or insist on working with a reputed and reliable car dealership that checks all used EVs they sell in a thorough way.
The average loss of range is between 1% and 2% per year. This is directly related to how the car was charged and maintained.
Since the market for used EVs is still pretty new, you should only buy from local, well-known dealerships.
Even though the majority of Canadians are honest, their electric vehicle could have a significant electrical problem that could cost you thousands of dollars to fix. You don't have to worry about any of these problems if you buy from a local dealership.
Reviewing your overall financial situation
When you know which used EV you want to buy; you need to figure out how much you can spend and what works for your budget.
When you look at your budget, the money you spend on gas could be put toward paying for your car.
No matter where you live in Canada, the difference between how much you will save on gas and how much you will spend on electricity is like day and night.
How to read a credit report: the basics
Once you've figured out your budget, you should look at your credit report and understand why it's not great. It could be as simple as a mistake inside your credit report, or it could be that all of your credit cards have high balances.
The best way to deal with these credit problems is to talk to a credit expert at a car dealership near you.
To buy a used EV, you will need to borrow money, and you won't be able to find the best lender on your own.
When you work with the in-house credit expert at a local dealership, they will give you a detailed plan for how to improve your credit score and get a good deal on a used EV car loan. The most important thing you'll learn from this is that you can rest easy knowing you're making the right choice.
The EV market is going to change the way cars are made in Canada. If you buy an EV early on, you could save a lot of money and help the environment.
When you’re ready for a car lease or loan, get in touch with the Beamsville auto loan experts at Northway Ford for great deals on auto finance.