How to Buy a Car with Bad Credit in Delhi
How to Buy a Car with Bad Credit in Delhi
Posted on October 26, 2021
We have all had credit challenges at some point in our lifetime. Credit plays a profound role in our financial life but no one teaches us about credit and credit scores in school.
If your credit is bruised and you need to buy a car with bad credit in Delhi, the good news is you have options. But, you should definitely follow these tips from our Delhi auto loans team to come out ahead.
Transparency with prospective lenders
Prospective auto loan providers will look at your credit score. If it falls below the threshold of what is considered good credit (somewhere below the 650) range, they will need to understand why your score is low.
The lender wants to give you a loan because that is how they make money. They also need to make sure you can afford the loan and have the intention of repaying it as promised.
One reason why your credit score could have taken a dip is due to the economic hardship caused by the pandemic.
Another reason is perhaps you had a divorce or some other major life event that harmed your finances. Do not feel shy about explaining your situation to the lender, they are professionals that only really care about whether you can afford the loan or not.
Finding a car dealership that specializes in all credit profiles
There are dealerships throughout Canada that work with customers with bruised credit. Some could be down the road from where you live!
While there are websites that do provide auto loan quotes online, your best option is to seek out qualified experts and enlisting their help.
Income profile
The dealership will also look at your income which will influence your chances of getting a new car. If you went from a low-income to a high-income job, then having a credit score would not be a barrier.
Imagine you are a student in university and you have bad credit but once you graduate and land a high-paying job, it would be reasonable to expect your financial situation will improve dramatically.
Selecting the right car
Another variable in determining whether you can get a car loan with bad credit in Delhi is the type of car you select. Interest rates for bad credit auto loans are quite high, this means that a larger portion of your payment goes to servicing the debt.
You may not qualify for the most expensive car on the dealership lot, but you will surely qualify for something.
Pro Tip: The car dealership experts at Northway Ford will give you advice on how to fix your credit score.
One easy way to improve your score is to take the car loan for a year or two and make all of your payments on time. As you make your payments, your credit score will rise.
After your credit score has risen to qualify for prime interest rates (680+) you will be able to refinance your current car loan to something more competitive or buy a brand-new car outright.
The first step is contacting your local dealership that specializes in helping people who have credit challenges. The sooner you do, the happier you will be.
When you’re ready for a car lease or loan, get in touch with the Delhi auto loan experts at Northway Ford for great deals on auto finance.
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