Finding a Car Loan after Divorce Made Easy

Finding a Car Loan after Divorce Made Easy

Posted on April 11, 2022

If you are going through a divorce, you are going to be facing a unique series of financial challenges. Our Glen Morris car loans team are going to show you how to navigate these challenges and come out on the other end with a car loan after divorce.

While it may seem intimidating at first, there is life after divorce, and the first step in that journey is getting yourself a new vehicle.

Is your income stable, or are you just getting back into the workforce?

Each marriage is unique; perhaps you were out of the workforce for quite some time raising a family, or you and your spouse worked together, and you now find yourself trying to do something new.

If you are just entering the workforce, you will need to be with your current employer for at least ninety days.

The ninety-day threshold is commonly referred to as the probationary period in Canada.

Once an employee goes past that mark, they are considered a regular employee and cannot be fired without cause.

This is just the minimum, though; some lenders will require one or more years of employment before offering a car loan after divorce.

How is your credit score post-divorce?

Did you and your spouse have joint accounts, or did you have individual accounts?

Depending on the types of accounts you had and the divorce settlement, you may carry a substantial amount of debt that drags down your credit score.

There are credit reporting services you can sign up for that are free and give you access to your credit score.

While looking over the reports, you can identify what, if any, accounts are causing your credit score to drop.

To get a prime interest rate car loan in Canada, your credit score should be in the 720 range or higher. You can get a car loan with a 600-credit score, but the interest rates charged will take a serious bite out of your budget.

Working out your budget

A new skill you may have to develop is learning how to prepare a budget.

You have to make sure there is enough money available to cover all of your obligations and also the new car payment.

In Canada, new car payments run just over $500 a month, so earmark at least that amount plus a buffer to cover fuel and maintenance.

Without the budget, you will never know if you can actually afford the new vehicle.

Where to find the best Glen Morris Car Loans after Divorce

When trying to find the best car loans post-divorce, you should go through a local dealership.

The dealership will be able to look at your unique situation and pick the lenders that will give you a competitive car loan.

The dealership is able to provide credit rebuilding tips that can help you save even more money on your next car loan.

These dealerships have helped others who, like you, went through a divorce. You should reach out to the dealership as soon as possible; divorce is not the end but a new beginning, so why not celebrate it with a new vehicle.

We’d love to help you find an amazing car loan after divorce in Glen Morris. Simply fill in the form below and we’ll get back to you ASAP or see our selection of new and used cars at our Brantford dealership. 

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