Car Loans for Veterans in Canada: How to Get Approved

Car Loans for Veterans in Canada: How to Get Approved

Posted on March 23, 2021

Getting a car loan as a veteran unfortunately can be a challenge. Even more so if you haven’t spent much time in civilian life before your service. We at Northway Ford want to make this process much easier than it is, which is why we are discussing it today.

At the moment, there are no specific car loans for veterans, although we think there should be. You will have to apply for a standard car loan using your current status.

Car Loan As A Veteran

As mentioned, there are no specific car loan products for veterans. Your local VA may know of lenders who offer individual deals but there is no specific product just for veterans.

Some manufacturers offer money off cars once you get to the buying stage but that’s something entirely different.

In the meantime, you’re in the same position as the rest of us.

Building a credit history

If you lived in base housing and bought your cars cash, you may have very little credit history. That’s going to need to change if you want a Glen Abbey car loan.

I know a few veterans and the majority of them have saved cash from overseas deployments and while on maneuvers to pay for cars. Base housing is taken care of, prepaid phones mean no worrying about phone contracts if you’re deployed overseas and life is financially simple.

This works for you in keeping life manageable but works against you once you leave the service.

Tips for building credit as a veteran

Car loans are offered depending on your credit score, which is determined using your credit history. Without one, you cannot have the other.

If you’re renting, see if your landlord or letting agent will add a note to your credit report. Any positive mention of paying on time will help build out your report and contribute towards your credit score.

If you haven’t used credit cards much, get one. Use a secured credit card if you need to and use it for regular expenses. Set up automatic payments for the minimum amount and pay off the full balance each month to avoid interest.

That way you’ll build a positive payment history over time.

Get a phone contract too if you don’t already have one. Prepaid is all very well but a phone contract is another entry into your payment history. Every little helps when building credit.

Veterans with credit histories

If you went the other way and lived off base, used credit cards, had a phone contract and had car loans, you’re golden. You will already have a credit history so all you’ll need to do is check your credit score.

Then get preapproval for the car loan, assess how much you can borrow and go from there. If you have a trade in, take the approximate value off the cost of the car and you have the loan figure you’re likely to need.

If you're ready for a car loan, we'd love to help with that! simply fill in the form below to get started.